British Airways Crews Vote to Strike

PARIS — British Airways cabin crew voted Monday to push ahead with a walkout next week, threatening major disruptions to holiday travel at a time when the carrier is scrambling to stem record losses.

The strike is expected to begin on Dec. 22 and last for 12 days, until Jan. 2. More than 90 percent of union members who voted were in favor of the action.

British Airways management has been wrangling for months with Unite, a trade union that represents the carrier’s 13,500 flight attendants, over changes to staff contracts, job cuts and a proposed two-year pay freeze.

The strike would be the first by British Airways employees since the summer of 1997, when a three-day walkout left 25,000 passengers stranded in a dispute over changes to pay and working conditions.

Last month, British Airways announced a record loss of £208 million, or $338 million, for the six months to Sept. 30. On Monday, it revealed that the deficit in its employee pension fund had more than doubled to £3.7 billion as of last March, from £1.8 billion a year earlier.

The airline has announced plans to shed 5,000 jobs by the end of March 2010 — about 13 percent of the current staff of 39,000.

Willie Walsh, the airline’s chief executive, has referred to 2009 as the toughest year in the history of aviation.

“Given our record financial losses, our package for cabin crew is very fair and reasonable,” said Cathy West, a spokeswoman for the airline. “British Airways cabin crew are rightly renowned for their professionalism and skills, and we want to continue to recognize that.”

According to Britain’s Civil Aviation Authority, British Airways cabin crew are among the highest paid in Britain, earning twice as much as their counterparts at Virgin Atlantic. Long-haul cabin staff earn between £35,000 and £56,000 per year, depending on rank and experience, while short-haul salaries range from £18,000 to £52,000.

The International Air Transport Association estimates that the world’s airlines will lose around $11 billion in 2009 as the global recession sharply reduces air traffic. Revenues from first- and business-class travel — the mainstay of British Airways’ business — have been especially hard hit, with yields falling 18 percent in September from a year earlier, according to the I.A.T.A. Yield represents the revenue per seat and distance traveled.

British Airways Crews Vote to Strike

Europe Pledges Billions in Climate Change Funding

BRUSSELS — European Union leaders agreed on Friday to pay $10.5 billion over the next three years to help poor countries begin tackling the effects of global warming — and to improve the odds of reaching an international climate accord next week at a conference in Copenhagen.

Skip to next paragraph Living Story Global Warming

Recent developments on the politics of global warming with background, analysis, timelines and earlier events from NYTimes.com and Google.

Multimedia Graphic Who’s at the Climate Talks, and What Do They Seek? Interactive Feature Climate Change Conversations Interactive Graphic Copenhagen: Emissions, Treaties and Impacts Interactive Feature Science and Politics of Climate Change Related U.S. Climate Envoy’s Good Cop, Bad Cop Roles (December 11, 2009) Reporter’s Notebook: Global and Local Concerns Meet in ‘Hopenhagen’ (December 11, 2009) Times Topics: Copenhagen Climate Talks (UNFCCC) How Much Climate Aid Is Enough?

Should the U.S. join Europe in giving money to help poor countries deal with global warming?

Post a Comment » NYT_VideoPlayerStart( { playerType : “article”, videoId : “1247466087044″ } );

But the developing world is also seeking a commitment from industrial powers to provide long-term financing of more than $100 billion each year by the end of the next decade. European Union leaders left unanswered how much they would give in the longer term.

The push in Brussels, where the European Union is based, came as a group of negotiators in Copenhagen who were convened by the United Nations issued a six-page informal outline of a new climate agreement. The outline sought to pull together a growing stream of conflicting proposals from nations involved in the climate-treaty talks.

The outline calls for wealthy nations to commit themselves to sharp reductions in greenhouse-gas emissions in the next decade, and for all nations to seek jointly to nearly eliminate the emissions by 2050.

But the disagreements on vital numbers remained wide, and sections of the outline concerning some contested issues were left entirely blank. Among the sidestepped items were any long-term goals for financing the deal and provisions for how trade rules might be employed.

Expressing skepticism at a briefing, Todd Stern, the top American negotiator, said that the proposal lacked any language requiring emerging economic powers like China and India to take concrete steps to curb emissions.

Mr. Stern said that the United States would remain steadfast in demanding such a commitment, given that nearly all of the growth in emissions of greenhouse gases in the coming decades is projected to come from such countries.

Suggesting that much remains to be done, he said the section of the outline on curbing emissions reflected “old think” and was “unbalanced in a whole host of ways.”

Still, he struck a note of optimism. He said that after months of one-on-one discussions with counterparts from China, he was confident that there was “language we could both agree to, if we can get to the serious stage.”

The European Union’s pledge to contribute to a global climate fund — one that the United Nations has said should add up to $30 billion over the next three years — is one of the largest financing efforts announced so far. The money is meant to help vulnerable nations adapt to the effects of climate change and develop their economies in ways that will help limit emissions of carbon dioxide.

The pledge “is a very clear message indeed to Copenhagen that we are more than ready to assume our share of responsibility,” Chancellor Angela Merkel of Germany said at a news conference in Brussels after a meeting of European Union heads of state and government.

Prime Minister Gordon Brown of Britain sought to underline what was at stake in Copenhagen, both for developing nations threatened by climate change and for wealthier nations seeking to remold the ways they produce and consume energy.

He said there were “few moments in history when nations are summoned to common decisions that will reshape the lives of men and women potentially for generations to come.”

In Copenhagen, some of the smallest and most vulnerable countries — island states facing the prospect of centuries of rising seas in a warming world — fired off a warning shot in the form of a new draft text of their own.

They called for the proposed ceiling for a rise in global temperature accepted by most nations to be lowered by 0.5 degrees Celsius.

The world’s industrialized countries and emerging economic powers have pledged over the past year to work to limit warming to less than 2 degrees Celsius above where temperatures stood in the 1800s. That translates roughly into a rise of no more than 1.3 degrees Fahrenheit from today’s average global temperature of about 59 degrees.

But given projections for greenhouse gas emissions and what is known about how the gases trap heat, even that target will be tough to reach, many climate scientists say.

Money is central to the demands by poor nations. Most African countries and small island states have demanded aid as a condition for signing a new pact to replace the 1997 Kyoto Protocol, which expires in 2012.

The European Union has led efforts to raise money for what is known as a fast-start fund, with its contributions meant to be joined by donations from other advanced nations, including the United States.

But it is not yet clear if or when the money will be available.

1 2 Next Page »

James Kanter reported from Brussels, and Andrew C. Revkin from Copenhagen. Tom Zeller contributed reporting from Copenhagen, and John Broder from Washington.

Europe Pledges Billions in Climate Change Funding

Consumer Credit Falls For 9th Straight Month

WASHINGTON – U.S. consumers’ outstanding credit balance fell for the ninth month in a row in October, but the decline in debt this year hasn’t been as steep as previously reported, the Federal Reserve said Monday. Outstanding balances of consumer credit fell by $3.51 billion, or 1.7% annualized, in October to $2.482 trillion. Revolving credit – mostly credit cards – fell by $6.95 billion, or 9.3% annualized, to $888.1 billion. Nonrevolving credit, such as auto loans or student loans, rose by $3.44 billion, or 2.6%, to $1.595 trillion. The $3.51 billion decline was less than the $10 billion expected by economists surveyed by MarketWatch.

Consumer Credit Falls For 9th Straight Month

Barclays Upgraded To Neutral At J.P. Morgan

LONDON — Banking group Barclays was upgraded to neutral from sell at J.P. Morgan on Friday. The broker said that, despite disappointing third-quarter revenues in Barclays Capital and a downgrade to its fourth-quarter investment bank revenues to 3.3 billion pounds from 4.6 billion pounds, it has raised 2009 estimates by 10% to reflect higher gain for Barclays Global Investments and and to reflect expected stronger Barclaycard margins. “Barclays is our preferred name within the U.K. domestics, but HSBC remains our U.K. top pick and one of our preferred names in Europe,” the broker said.

Barclays Upgraded To Neutral At J.P. Morgan

Fed Learning From Its Mistakes, Rosengren Says

WASHINGTON — The Federal Reserve made mistakes that contributed to the recession, but the central bank is learning from its mistakes, Boston Fed President Eric Rosengren said Thursday. In a speech in Boston, Rosengren said the Fed “did not accurately foresee and prevent all the problems” that led to the crisis. “We were far from perfect, but we are doing our best to learn from mistakes,” he said. The extraordinary actions taken by the Fed were designed to limit the damage of the financial meltdown and to protect Main Street businesses, workers and consumers from an even-worse recession, he said. Congress should fill in the regulatory gaps to make sure that no large, failing bank will ever again be bailed out, he said.

Fed Learning From Its Mistakes, Rosengren Says

Japan To Add $11.5 Billion In Stimulus: Nikkei

TOKYO — Japan’s Ministry of Finance will set aside an additional 1 trillion yen ($11.5 billion) or more to fund economic stimulus measures in the fiscal 2009 second supplementary budget, business daily Nikkei reported Wednesday. The funding will come from such means as tapping a decrease in interest payments on government bonds, the report said. Stimulus measures are now expected to reach roughly 4 trillion yen in actual spending — excluding such items as loan guarantees — compared with the early government projection of about 2.7 trillion yen. Long-term interest rates have stayed below the ministry’s initial projection of 2%, leaving the government with unspent interest payments of about 700 billion yen as of Nov. 30, and 150 billion yen in emergency funds set aside by the previous government to deal with the financial crisis are sitting untapped, Nikkei reported. The ministry is also considering dipping into the 350 billion yen in reserves for disaster relief and other emergency situations.

Japan To Add $11.5 Billion In Stimulus: Nikkei

Hot News: Earnings roundup: Universal Technical, Landauer

Chinas economy reaps a golden age of weddings

BEIJING (Reuters) – Meng Ni and Fan Zhiqing said "I do" to each other in the same month that they said "we do" to their real estate agent.

China is in the midst of a golden age of weddings, a boon for businesses from photo studios to global platinum miners. Yet nowhere is the economic impact so potentially profound as in the housing market.

A flood of newlyweds such as Meng and Fan buying their first homes could help power China's property sales for years, even as some investors fear that prices are already in dangerous bubble territory.

"My husband and I preferred to have our own home rather than rent one as before, because marriage stands for a new start and we are building a family now," Meng said, sitting in their tidy, studio apartment.

Their story may seem perfectly normal, even universal, at first glance. What makes it more powerful is that Meng and Fan are part of a demographic bulge of people in their twenties who will be of prime marrying age between now and 2015.

As these newlyweds shell out for their first homes, the property market will enjoy a fount of solid demand. Analysts estimate such couples could mop up as much as 450 million square meters of housing every year, or roughly 16 percent of all that is under construction at present.

BABY-BOOMERS' BABIES

Looking west from Meng and Fan's window, clusters of new apartment buildings fill the skyline. To the east lies a flat, gray landscape of single-storey dwellings that is slowly being swallowed by high-rises.

"The apartments here are fairly small. They're a perfect fit for young couples," Meng said, estimating that three-quarters of her neighbors were around the age of 30.

These are the children of China's baby-boomers, a demographic ripple effect of the country's population surge in the 1950s and 1960s.

They would have been even more numerous had Beijing not launched its one-child policy in the late 1970s to cap family size, but they are still a bigger group than those immediately younger and older than them.

As it turns out, the controversial population controls have shaped their consumption habits. Showered with attention and gifts all their lives, this generation of only children keep their purse strings loose, unlike their parents.

"They have all grown up since 1980, during 30 years of fast-paced growth, so they don't feel the same need for precautionary savings as their parents," Xing Ziqiang, an economist with China International Capital Corp, said.

Nuptials give them a ready outlet for spending.

Not only are more people getting married, more of those getting married are choosing to have weddings — and lavish ones at that. The wedding industry is worth about 400 billion yuan a year, roughly a 2.5 percent contribution to gross domestic product, according to official estimates.

BIG BUSINESS

The Xidan Wedding Mall in the heart of Beijing offers three floors of dress makers, jeweler merchants and photo studios.

"A bride usually buys two gowns: a white one in the Western style, used for the procession and vows, and a traditional Chinese one in red for the banquet," said Ying Zi, a saleswoman at Modern Bazaar, a dress shop in the mall.

A few years ago, brides often rented their clothes. Ying said almost all of her customers were now buying the dresses, which cost at least 2,000 yuan ($293) each.

Diamonds are also hot. Chen Yin's family began crafting diamond rings at home for a niche market a decade ago. Now they run a shop, Bling Jewelry, selling hundreds a month.

"There are some people who originally bought small diamond rings, but are now looking to upgrade to bigger ones," she said.

And brides have taken to platinum jewelry, because the white metal matches their white gowns. Its place in Chinese weddings has helped double global demand for platinum this year despite a sharp fall in use by the hobbled auto industry, according to precious metals refiner Johnson Matthey.

The choice of white is, in itself, an indication of the social change sweeping over China, where white was traditionally the color of funerals.

Then there are the wedding photos, shot against elaborate, if fake, backgrounds: a couple in 1920s attire on a French boulevard or in cowboy gear with a rugged Wild West landscape behind them.

The wedding boom has not escaped the government's notice. The state-run China Association of Social Workers established the Wedding Industry Committee in 2003 to gather data and set standards.

The number of weddings, about 10 million in 2008, is increasing by 10 percent a year, while spending is rising 20 percent, according to Shi Kanning, the committee chief.

NO CRISIS

"The global financial crisis hit a lot of industries: exporters, banks, insurance. But not only was the wedding industry not affected, it has had even stronger growth over the past year," Shi said.

This resilience, he said, spilled over to the property market, with newlyweds buying homes when other business dried up. He pointed to surveys by the China Index Research Institute, which show that three-quarters of first-time home buyers are below the age of 35.

But a surge in housing sales — up 79 percent by value in the year to October — is clearly about more than just newlyweds.

The economy is awash in cash after banks issued an unprecedented flood of loans to help combat the financial crisis. With few investment channels in China, property is alluring.

"Property prices are largely dictated by investors," Zou Linhua, an economist at the Chinese Academy of Social Sciences. "Wedding-related home buying is only a part of the demand."

Yet it is an essential part, Xing of CICC argues, so much so that the demographic implications need closer analysis.

In smaller towns, for example, where men outnumber women by a wide margin, families try to help make their sons more attractive by promising larger homes to potential brides.

The government needs to give serious thought to how to cushion a potential fall-off in housing demand at the end of the wedding boom, sometime around 2015, Xing said.

FUELED BY PARENTS

In the meantime, it is frugal parents, not the young couple and not banks, who often foot much of the bill for new homes. Armed with a lifetime of savings and with just one child because of the government's population controls, parents are only too willing to lend a hand — and sometimes twice.

Wang Dajian and Niu Xiaoxia said they recently purchased a second Beijing apartment for their 29-year-old son and his wife after the first one they had bought failed to entice the young couple out of the parents' home.

The newlyweds found the first apartment "inconvenient" for their jobs, their parents said, because it required a 30-minute commute from their offices.

"They should be independent. They should be responsible for their own lives," lamented Niu, who noted that when she and Wang married they had to wait more than two years after marrying before their work unit arranged for a tiny one-room apartment.

"I want to push them out, to make them suffer a little like we had to," Wang said with a wave of determination that quickly melted.

"But the problem is, when we see him suffer, we feel bad. I don't blame them, because all this resulted from us. We are responsible because we spoiled them."

(Additional reporting by Ken Wills; Editing by Megan Goldin)

China’s economy reaps a golden age of weddings

Personal finance books for kids, teens and adults

The approach of a new decade means a chance for a fresh start with your financial habits. Maybe your loved ones could use a nudge in that direction, too.

Either way, it’s time to cast out any idea that books about money have to be boring. There’s an abundance of well-written, even entertaining books on the market that could make savvy holiday gifts for either the personal finance nerd in your life or that special someone who could benefit from good information.

What follows is a sampler of books for all ages to whet your per-fi appetite. Titles featuring The Berenstain Bears and Christian money guru Dave Ramsey target the young and those looking for faith-based guidance, respectively, while others focus on teens, recent college grads and value investors. And if you don’t want to give them as gifts, grab one for yourself.

_____

TITLE: The Berenstain Bears’ Trouble With Money

AUTHOR: Stan & Jan Berenstain, illustrated by the authors

PRICE: $3.99 (paperback)

SUMMARY: From junk food to environmental pollution, the Berenstain Bears haven’t been afraid of tackling the issues since they first appeared on the children’s literature scene with 1962’s “The Big Honey Hunt.” This title, first published in 1983, teaches kids aged 4 to 7 the basics about money. It’s not just about spending, but earning. Brother and Sister bear find ways to build up a stash of quarters so they can play video games. Along the way, they learn how to find a middle ground between being spendthrifts and little misers.

QUOTE: “It happened that the bank was right next to the video arcade. ‘Say, that looks interesting,’ said Papa when he saw the Astro Bear game. ‘Let’s give it a try!’ So the Bear family gave Astro Bear a try.”

PUBLISHER: Random House Children’s Books

_Mark Jewell

_____

TITLE: The Teens Guide to Personal Finance (2008)

AUTHOR: Joshua Holmberg, David Bruzzese

PRICE: $12.95 (paperback)

SUMMARY: Designed for young adults taking the first step to learn about money management, “The Teens Guide to Personal Finance” lays out the basics concepts of saving, borrowing, investing and maximizing tax advantages. It’s all explained in a way that’s easy to understand with graphics, work sheets and action plans.

QUOTE: “Financial independence means freedom: freedom to do what you want with your money and freedom from the bonds of bad debt, creditors, employers, the government, and others who are more than happy to use your dependence on money to control or at least significantly influence your life. Financial independence is not something that only can be achieved late in life. You can achieve financial independence now or in the near future, if you’re up to the task.”

PUBLISHER: iUniverse Inc.

• David Pitt

_____

TITLE: Prepare to be a Teen Millionaire

AUTHOR: Kimberly Spinks-Burleson, Robyn Collins (2008)

PRICE: $16.95

SUMMARY: The authors are founders of a Texas-based business magazine called “Millionaire Blueprints” and here they compile some of the best advice from some of their issues on how successful young entrepreneurs turn their vision for a business into reality. The book features the real stories of successful teens. It details how they raised money, promoted their business ideas and other aspects of launching their ventures.

QUOTE: “To sit down with Ephren Taylor is to enter the presence of drive, determination, and charisma. Taylor represents an unbelievably rich history of overwhelming success in mind-blowing rapidness of time. Getting into the game at the very ‘mature’ age of twelve, Taylor was well on his way to the big bucks. By age sixteen, he had acquired his first million. Within the next few years, he founded numerous companies. Today, he serves as the youngest black CEO of a publicly-traded company and oversees millions in assets.”

PUBLISHER: Health Communications Inc.

_David Pitt

_____

TITLE: I Will Teach You To Be Rich

AUTHOR: Ramit Sethi

PRICE: $13.95 (paperback)

SUMMARY: This six-week program to financial literacy is geared toward those just getting started with their finances. The tone is tailored to younger readers, who might be sick of parental nagging about money matters. Consider the introduction, entitled, “Would You Rather Be Sexy or Rich?” Lest readers get bored, charts, lists and even scripts for negotiating with banks are peppered throughout. Despite the sometimes casual tone, the book includes useful fundamentals on using credit cards wisely, a breakdown of credit scores and the importance of investing.

QUOTE: “Listen up, crybabies: This isn’t your grandma’s house and I’m not going to bake you cookies and coddle you. A lot of your financial problems are caused by one person: you. Instead of blaming ‘the economy’ and corporate America for your financial situation, you need to focus on what you can change yourself.”

PUBLISHER: Workman Publishing

_Candice Choi

_____

TITLE: The Intelligent Investor — Revised Edition (2006)

AUTHOR: Benjamin Graham; updated with commentary by Jason Zweig

PRICE: $21.99 (paperback)

SUMMARY: Anyone who takes stock-picking seriously should spend some time with the book Warren Buffett has deemed by far the best ever written about investing. Buffett’s mentor Graham pioneered value investing — a strategy based on finding and buying underpriced stocks — and wrote the book that became a stock market bible in 1949. Many bull and bear markets have passed since then, but his practical approach and insights on everything from inflation and portfolio strategies to dividends and margin of safety remain relevant. As Buffett says, it doesn’t take a stratospheric IQ or inside information to invest successfully over a lifetime. It takes a sound intellectual framework for making decisions, and this book precisely and clearly prescribes that.

QUOTE: “The determining trait of the enterprising investor is his willingness to devote time and care to the selection of securities that are both sound and more attractive than the average. Over many decades, an enterprising investor of this sort could expect a worthwhile reward for his extra skill and effort in the form of a better average return than that realized by the passive investor.”

PUBLISHER: Collins Business

• Dave Carpenter

_____

TITLE: The Total Money Makeover (2nd Edition, 2007)

AUTHOR: Dave Ramsey

PRICE: $24.99

SUMMARY: Dave Ramsey is a multimedia star, with a syndicated radio show, a television program, several best-selling books and a Bible-based series of training videos, all focused on helping people get out of debt and learn to invest. In “The Total Money Makeover,” Ramsey admits up front that the concepts he’s teaching are not new or complicated. He walks readers through the dangers of debt and myths about money, and advises a stringent program of cash-only living, aggressive payments on credit cards and other non-mortgage debt that he refers to as the “Debt Snowball.” He also offers advice on building up an emergency fund and investing for retirement, college savings and paying off the home mortgage. Bible quotes and other Christian references are sprinkled throughout, as are testimonials from people who followed his program.

QUOTE: “Winning at money is 80 percent behavior and 20 percent head knowledge. What to do isn’t the problem, doing it is. Most of us know what not to do, but we just don’t do it.”

PUBLISHER: Thomas Nelson

_Eileen AJ Connelly

Personal finance books for kids, teens and adults

U.S. jobless claims tumble in latest week

WASHINGTON (Reuters) – The number of U.S. workers filing new applications for jobless insurance tumbled last week by a surprisingly large amount to the lowest level in more than a year, according to government data on Wednesday that gave fresh evidence the battered labor market is improving.

Initial claims for state unemployment benefits slid to a seasonally adjusted 466,000 in the week ended November 21, from a revised 501,000 in the prior week, the Labor Department said.

Seasonal adjustments turned a smaller-than-anticipated unadjusted rise in claims into a drop, a Labor Department economist said.

It was the fourth consecutive week of declines in seasonally adjusted claims, and marked a steady march lower from a recent peak of 674,000 in late March. Analysts say claims must fall below 400,000 to signal payrolls growth, which would be a critical indicator of recovery from the worst recession since the 1930s.

Analysts polled by Reuters were expecting a more modest slip to 500,000 claims from the previously reported 505,000.

The four-week moving average for new claims fell 16,500 to 496,500 in the latest week, the lowest since November last year and the 12th consecutive weekly decline. The moving average is considered a better gauge of underlying trends since it smoothes out week-to-week swings.

The number of workers still collecting benefits after an initial week of aid plunged a greater-than-expected 190,000 to 5.42 million in the week ended November 14, the lowest level since February. Analysts polled by Reuters were expecting so-called insured unemployment to slip to 5.59 million.

(Reporting by Mark Felsenthal, Editing by Andrea Ricci)

U.S. jobless claims tumble in latest week

FTSE 100 makes big gains

LONDON (AFP) – The leading shares posted big gains on Monday, led by miners who were boosted by better-than-expected US housing data and a weak US dollar.

London's FTSE 100 index gained1.98 percent to close at 5,355.5 points.

Vodafone was the most traded stock, seeing 100 million units change hands, followed by independent broker Icap, which saw 69.2 million shares switch owners.

The Royal Bank of Scotland (RBS) was top of the leader board, gaining 1.80 pence — or 5.01 percent — to finish at 37.80, followed by Icap, which saw shares gain 18.90 pence — or 4.50 percent — to stand at 439.

The biggest casualties of the day were oil services group Petrofac, which shed 12.50 pence — or 1.24 percent — to finish at 998.50, and specialist distribution group Bunzl , which gave up 7.50 pence — or 1.16 percent — to end at 637.50.

The pound rose slightly to 1.6615 US dollars as the dollar weakened with expectations that interest rates would remain at near zero low levels.

The pound stood at 1.1089 euro.

FTSE 100 makes big gains

VW Preps $38.5 Billion Spending Plan

LONDON — Volkswagen said that it will invest around 25.8 billion euros ($38.5 billion) in its auto division over the coming three years. Investments in property, plant and equipment will account for 19.9 billion euros, half of which will be invested in Germany alone.

VW Preps $38.5 Billion Spending Plan

Hot News: Hershey Eyes More Cash For Cadbury Than Kraft: WSJ

Intel leads big retreat in world markets

LONDON – World stocks slid Thursday after analysts at Bank of America Merrill Lynch reportedly downgraded their recommendations on a series of U.S. technology stocks, including Intel Corp. That feeded mounting concerns that current valuations are not justified by the pace of the global economic recovery.

In Europe, the FTSE 100 index of leading British shares closed down 74.43 points, or 1.4 percent, at 5,267.70 while Germany’s DAX fell 85.43 points, or 1.5 percent, to 5,702.18. The CAC-40 in France ended 67.94 points, or 1.8 percent, lower at 3,760.22.

On Wall Street, the Dow Jones industrial average was down 149.72 points, or 1.4 percent, at 10,276.59 around midday New York time while the broader Standard & Poor’s 500 index fell 19.12 points, or 1.7 percent, at 1,090.68.

Technology stocks in the U.S. were at the sharp end of Thursday’s retreat in the U.S. after Bank of America Merrill Lynch downgraded their recommendations on ten stocks, including Intel Corp., Texas Instruments Inc. and Marvell Technology Group Ltd, said David Buik, markets analyst at BGC Partners. Intel was down over 5 percent, making it the biggest faller on the Dow.

The downgrades fed into a growing feeling in the markets that stock valuations are now pricing in too rapid an economic recovery.

Stock markets have rallied strongly since March’s lows as investors reined in their economic doomsday expectations to factor in a swifter than anticipated global economic rebound, but recent disappointing U.S. housing figures have dented the optimism.

Figures Thursday from the Mortgage Bankers Association showing that more than 14 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of September added to the gloom.

Mixed earnings from some of the country’s leading retailers have also weighed on sentiment as household spending in the U.S. is key for recovery — it accounts for around 70 percent of the nation’s economy.

A second consecutive quarterly loss from Sears Holdings Inc. did little to ease concerns that the upcoming Christmas trading period may not be as strong as many in the markets have been predicting.

Further insights will be looked for in results later from Gap Inc.

Encapsulating the negative mood was the reaction to what at first glance appeared to be rosy economic forecasts from the Paris-based Organization for Economic Cooperation and Development. Markets ignored the fact that it more than doubled its estimate for 2010 growth in its 30 member countries — which include the U.S., Japan and Germany — to 1.9 percent and raised its 2011 forecast to 2.5 percent.

“Neither of these figures is exceptional which underpins the delicate nature of the present economic recovery,” said Jane Foley, research director at Forex.com.

Earlier, Japan’s Nikkei 225 stock average lost 127.33 points, or 1.3 percent, to 9,549.47 — its seventh straight day of decline as investors succumbed to jitters about a possible glut of new bank shares after Mitsubishi UFJ announced plans to raise capital. The bank’s shares fell 3.7 percent.

Elsewhere, Hong Kong’s Hang Seng fell 0.9 percent to 22,643.16, while Taiwan’s benchmark shed 0.1 percent and Indonesia’s market was 0.6 percent lower.

Other markets fared better: South Korea’s Kospi added 1 percent to lead the region and China’s Shanghai index rose 0.5 percent. In Singapore, shares were up 0.6 percent after the city-state reported a second straight quarter of growth as manufacturing and service sectors helped it surface from a deep recession. The economy was seen expanding between 3 percent and 5 percent next year, the government said.

Oil prices fell sharply alongside stocks with benchmark crude for December delivery down $2.30 to $77.28 a barrel.

Gold prices eased after a strong run saw it top $1,150 per ounce for the first time ever — they were down $8.10 an ounce, or 0.7 percent, to $1,140.30.

The dollar fell 0.4 percent to 88.95 but was up against the euro, which was trading 0.6 percent lower at $1.4877.

____

AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.

Intel leads big retreat in world markets

Obama, Hu show cooperation — and differences

BEIJING – President Barack Obama and Chinese President Hu Jintao emerged from hours of intense talks Tuesday determined to marshal their combined clout on crucial issues, but still showing divisions over economic, security and human rights issues that have long bedeviled the two powers.

“The relationship between our two nations goes far beyond any single issue,” Obama said in a joint appearance with Hu that followed about 2 1/2 hours of private conversations.

Both leaders spoke in bold terms of the growing relationship between the countries and emphasized cooperation on the economy, climate change, energy and the nuclear threats of Iran and North Korea.

But in those areas and others, there remained differences that underscored that tensions would hardly be erased in Obama’s first, high-profile visit to China. Obama spoke at length about the nations’ joint interests and said, “I do not believe that one country’s success must come at the expense of another.”

Obama and Hu said they agreed on restarting the collapsed six-nation effort to rid North Korea of its nuclear programs. The Chinese said the effort was essential to “peace and stability in northeast Asia.”

Beijing has supported sterner sanctions against Pyongyang for its continued nuclear weapons program. And, as North Korea’s last major ally and a key supplier of food and energy aid, China is a partner with major leverage in six-nation talks with the North over the issue.

On Iran, where the U.S. needs China’s clout to help pressure the nation to give up any of its own nuclear weapons positions, Obama spoke with sterner language than Hu.

“Iran has an opportunity to present and demonstrate its peaceful intentions, but if it fails to take this opportunity, there will be consequences,” the U.S. president said. Hu made no mention of consequences, saying the Iran conflict is important to resolve through negotiations.

China has significant economic ties with Iran, and Beijing has appeared less willing to endorse a tougher approach to restrict Tehran’s uranium enrichment and suspected pursuit of atomic bombs.

In a minor step forward, Obama announced that the governments will reconvene their on-again, off-again human rights dialogue early next year. Previous rounds have fallen casualty to disputes over arms sales to Taiwan and other issues.

Hu expressed disappointment with the Obama administration over its decision to impose punitive tariffs and duties on imports of Chinese tires and steel pipes. “Our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stand,” Hu said.

The Chinese president also called on the U.S. to respect China’s “core interests” — code for ending support for Taiwan and for the Dalai Lama, in his Tibetan government-in-exile.

On climate, Obama said the United States and China are looking for a comprehensive deal during next month’s climate change summit that will “rally the world.”

Obama said the goal at the Copenhagen meeting should be an agreement that has “immediate operational effect,” not just a political declaration. As the world’s two largest consumers and producers of energy, Obama said the United States and China must play a key role in negotiating an agreement.

Obama said China has helped the United States pull out of the worst recession in a generation. He said a revised economic approach will help increase U.S. exports and create jobs while helping bring about higher living standards in China.

Obama came to China seeking help with an array of global troubles. He and Hu sought to strike a balance between trading partners and competitors during Obama’s trip to China during his Asia tour.

A day before, Obama prodded China about Internet controls and free speech during a forum with students in Shanghai. His message was not widely heard in the country; his words were drastically limited online and shown on just one regional television channel.

He also suggested that China, now a giant in economic impact as well as territory, must assume a larger role on the world stage — part of “burden of leadership” it shares with the United States.

Eager to achieve a successful summit, the two leaders avoided spats on economic issues. With America’s budget deficit soaring to a yearly record of $1.42 trillion, China is the No. 1 lender to Washington and has expressed concern that the falling price of the dollar threatens the value of its U.S. holdings.

In the U.S., American manufacturers blame China’s own low currency value for contributing to the loss of 5.6 million manufacturing jobs over the past decade. During that time, America’s trade gap with China has soared.

With sightseeing in Beijing’s Forbidden City sandwiched in between their talks, the two leaders’ day was to end at a lavish state dinner in Obama’s honor.

Topmost on Obama’s ambitious agenda with Hu is the so-far elusive search for global agreement on a new climate change pact, stymied by disagreement between rich nations like the U.S. and developing nations such as China. Wealthier countries want legally binding greenhouse-gas reduction targets for themselves as well as for energy-guzzling developing nations such as China, India and Brazil. Those poorer nations say they will set only nonbinding goals and they demand assistance to make the transition to harder targets.

___

Associated Press writers Charles Hutzler, Mark S. Smith and Alexa Olesen contributed to this story.

Obama, Hu show cooperation — and differences

Schwab Daily Average Trading Fell Versus Year Ago

NEW YORK — Online financial services firm Charles Schwab said on Friday that its daily client trading volume averaged 335,000 trades, down 33% form year-ago data. The company also said net new assets brought to the company by new and existing clients in October totaled $8.6 billion. Total client assets were $1.350 trillion as of month-end October, up 16% from October 2008 and down 1% from September 2009.

Schwab Daily Average Trading Fell Versus Year Ago

Friends Provident New Business Sales Drop 6%

LONDON — Resolution the new owner of Friends Provident, said Thursday that third-quarter total life and pension new business on an annual premium equivalent basis at Friends Provident fell 6% to 183.4 million pounds ($304 million). U.K. life and pension sales were steady at 105 million pounds. Resolution, which is targeting further acquisition in the U.K. life and asset management sector, said it will have 310 million pounds in cash following settlement of the acquisition. The company said its board expects to recommend a final dividend of 2.72 pence a share. Thereafter it expects to pay a dividend of 4.08 pence in respect of each subsequent year.

Friends Provident New Business Sales Drop 6%