Lucchini owners, creditors reach accord on debt-sources


Creditor banks have agreed to accept 100 million euros in partial debt repayment, which is less than the 180 million euros they were earlier expecting, another source said.Lucchini, owned by Russia’s steel tycoon Alexei Mordashov and his steel group Severstal , has been locked for months in debt restructuring talks with Italian banks Intesa Sanpaolo , Unicredit , Banca Monte dei Paschi di Siena and French lender BNP Paribas .

@7 months ago with 122 notes
#Lucchini #owners #creditors #reach #accord #on #debtsources 

Papandreou begs Greeks to help avert ‘catastrophe’


In an interview with the weekly Proto Thema newspaper, Papandreou said the government was fighting to stop Greece defaulting on its debts but the road ahead was hard.”I would very much like to guarantee everyone an immediate solution, a better life today,” he told the newspaper in an interview which hit newsstands on Saturday.”I would be the happiest man in the world if I could do that but I can’t and I have a duty to be honest and tell this truth to every Greek citizen,” he said.Next week parliament is due to pass measures including pay and pension cuts and thousands of layoffs in the public service.Greece’s two main union federations have called a 48-hour general strike which is expected to shut down much of the country to coincide with the vote on Wednesday and Thursday.Separate strikes by customs officials and municipal workers are expected to deepen the misery of ordinary Greeks by creating fuel shortages and leaving garbage to pile up in the streets.On Saturday, thousands of demonstrators filled Syntagma Square outside parliament as part of worldwide demonstrations attacking the financial system.However, Papandreou dismissed any suggestion that Greece could afford to walk away from a debt burden estimated to reach 162 percent of gross domestic product this year.He said he would be seeking the support of European partners at a summit in Brussels next week — the latest in a long line of emergency efforts to contain the crisis, which has spread from Greece to engulf Ireland and Portugal and to threaten the much bigger Spanish and Italian economies.”All our efforts aim at safeguarding our country’s interests, the interest of the vast majority of citizens who would experience a real catastrophe if Greece defaulted,” Papandreou said.NOT ATLASHe said that Europe had to help Greece tackle a crisis that now threatens the whole euro zone.”We are not Atlas which can take all Europe’s problems on his shoulders,” he said, referring to a Greek mythological figure who supported the heavens on his shoulders. “If Europe cannot solve its problems, the consequences will be unpredictable for all of us in Europe.”Papandreou’s ruling PASOK party has seen its ratings drop sharply in recent months as it meets the tough terms of European Union and International Monetary Fund aid, and has faced daily protests by groups ranging from taxi drivers to lawyers and municipal workers.At least two of Papandreou’s deputies have threatened to vote against part of a new package. The government’s slender majority is expected to hold up, with support from smaller opposition parties, for the new austerity bill, however.Papandreou said the ruling party would have no reason to exist if it did not “live up to the historical challenges of its era,” and ruled out quitting his post.”All these months, I had to deal with challenges none of my predecessors have ever experienced,” he said. “But I have never thought of quitting, giving up the battle.”The government’s term ends in 2013 but many analysts see snap elections on the horizon.

@7 months ago
#Papandreou #begs #Greeks #to #help #avert #catastrophe 

UPDATE 1-Ubiquiti shares rise in Nasdaq debut


Oct 14 (Reuters) - Shares of wireless equipment maker Ubiquiti Networks Inc rose in their stock market debut on Friday.The stock was at $17.34 in morning Nasdaq trading, 15.6 percent above the IPO price.Ubiquiti broke a two-month drought in the U.S. IPO market. On Thursday, it sold 7.04 million shares for $15 each, the bottom of a lowered price range.The company makes wireless networking and video surveillance equipment. For the year ended June 30, it posted a net income attributable to common stockholders of $4.98 million on revenue of $197.87 million. Seventy percent of that revenue came from overseas.As of June 30, Ubiquiti had about 92 full-time-equivalent employees in four offices globally. It has no direct sales force, but instead relies on distributors, resellers and original equipment manufacturers.Underwriters on the IPO were led by UBS Investment Bank , Deutsche Bank Securities and Raymond James.

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#UPDATE #1Ubiquiti #shares #rise #in #Nasdaq #debut 

REFILE-COMMODITIES-Copper, oil lead commodities decline on China growth fears


* China imports of both commodities slows, raising concerns about economy* Gold, grains steady ahead of weekend debt crisis meetingBy Jane LeeKUALA LUMPUR, Oct 13 (Reuters) - Copper and crude oil fell in Asian trading on Thursday after China’s trade surplus narrowed, raising concerns about growth in the world’s second-largest economy at a time when the global outlook remains uncertain.Copper on the London Metal Exchange declined from a two-week closing high reached on Wednesday, while U.S. crude lost 0.9 percent. Worries that China will not be able to prop up global demand as Europe teeters on the brink of recession and the U.S. economic recovery stalls have sent commodity prices lower.Soybeans and wheat also dropped after the U.S. Department of Agriculture raised global supply estimates.Investors fear a slowdown in Chinese demand for crude and copper means domestic factories will reduce their usage of oil products and industrial materials. The Asian nation consumes more than one-tenth of crude in the world and about a third of the world’s copper.China’s exports increased 17.1 percent last month from a year ago, slowing from a 24.5 percent gain in August, and imports climbed 20.9 percent, compared with August’s 30.2 percent rise, the customs office said on Thursday.”The world economy isn’t looking very rosy,” said Brynjar Bustnes, an analyst at JPMorgan in Hong Kong.”Demand will remain weak in the fourth quarter (in China),” he said.Concern about the slowdown in China added to the gloomy outlook as Europe remains mired in its debt crisis after nations in the euro zone area faced bigger losses on their holdings of Greece debt.Brent crude for November LCOc1 fell 16 cents to $111.20 a barrel by 0636 GMT, after a gain of 11.6 percent over the previous six sessions.U.S. November crude CLc1 slipped 75 cents to $84.82 a barrel, after tumbling to an intraday low of $84.64.Three-month copper on the London Metal Exchange fell to $7,370 a tonne, after touching $7,544.75, its highest since Sept. 28, in the previous session, and closing 3.2 percent higher.LME copper has risen 7.2 percent from the start of the month to Wednesday’s close, after losing a quarter of its value in the three months through Sept. 30.”Copper’s spot demand remains steady and I think Chinese consumers are willing to restock in a limited way when we see more technical clarity,” said Zhou Jie, an analyst at CiFCO Futures in Shanghai.GOLD AND GRAINSGold prices held steady as investors are waiting for the G20 meeting this weekend in Paris, where finance ministers and central bank governors are expected to press Europe to find an urgent solution to its debt crisis.Spot gold edged down 0.3 percent to $1,672.29 an ounce by 0639 GMT, off a 2-1/2-week high of $1,691.60 reached in the previous session.U.S. gold GCcv1 fell 0.5 percent to $1,674.30 an ounce.In the grains market, prices fell as the U.S. government report heightened concern that consumption will slow just as harvests swell.World grain supplies will be much healthier next year than previously forecast, the U.S. Department of Agriculture said in a monthly report on Wednesday.Chicago Board of Trade November soybeans fell 0.6 percent to $12.32 a bushel, while December wheat was steady at $6.27-1/2 a bushel. December corn slipped 0.4 percent to $6.38-1/4 a bushel.(With additional reporting by Florence Tan and Carrie Ho; editing by Miral Fahmy)

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#REFILECOMMODITIESCopper #oil #lead #commodities #decline #on #China #growth #fears 

Paulson braces investors for the worst


The firm told investors on Tuesday that as much as a quarter of its assets could depart in a “worst-case” scenario if all people who are eligible cash out by the end of the year.Paulson’s team hosted a call to go over last month’s results only a few days after he notified investors that one of Paulson & Co’s biggest funds is down 47 percent for the year.Many of Paulson’s funds have lost big this year, as the well-known money manager bet wrong that the U.S. economy would revive sooner rather than later.However, in the days leading up to the investor call, some on Paulson’s team had been telling brokers and others on Wall Street that at least 20 percent of the $30 billion in assets the fund manages could be redeemed. The deadline to get out of the biggest funds — the Advantage funds — is coming up on October 31.Outsiders have long said Paulson is in no danger of collapsing because about 40 percent of the assets are owned by the billionaire stock picker and his dozen or so most trusted lieutenants.But some analysts working in the $2 trillion hedge fund industry say with Paulson’s funds slumping so badly, some of his top employees could look to leave at year’s end and cash-in their chips.Some of Paulson’s employees — whose money has been locked up for years — will receive the final installment of their bonus for 2008 this year, say people familiar with the hedge fund.For some time Paulson had structured bonuses to vest over a four-year period. That practice has been scrapped this year so that bonuses for 2011 — a year where Paulson’s flagship Advantage Fund is off 32 percent and its Advantage Plus cousin is down 47 percent — would be paid immediately.Consultants who track personnel movements in the hedge fund industry believe that there will not be a mass exodus from Paulson. The man who earned $5 billion personally last year will still be able to pay his roughly 120 employees very well considering the management fees he will earn on $30 billion in assets.One recruiter in the industry said he has not yet received any resumes from Paulson employees.”He has huge management fees and his team will likely still be compensated very well so I think they will stick it out — everyone can have a bad year,” said the person who asked not to be named because he is fielding calls from many hedge fund firm employees.One critical point is that industry consultants and bankers on Wall Street are fairly sure Paulson will not be able to attract new money now even though he promised not to charge performance fees on new money.

@7 months ago
#Paulson #braces #investors #for #the #worst 

Europe tempted to save Greek trauma for later


By Neil Unmack The author is a Reuters Breakingviews columnist. The opinions expressed are his own. Euro zone leaders may be trying to tweak the Greek debt swap to impose marginally deeper losses on private creditors than agreed in July. That wouldn’t help Greece much, but it would stagger the pain for banks, and Greece’s public creditors. Greece’s creditors originally agreed to a 21 percent haircut on their bonds, in the 135 billion euro swap agreed as part of the country’s second bailout. Euro zone officials are now contemplating a 30-to-50 percent haircut, officials told Reuters. But part of that would simply come from changing market conditions, suggesting banks may simply use a higher discount rate to value the new securities they would get in exchange for their bonds. In other words, the larger apparent haircut could be more of an accounting trick than a way to lighten Greece’s debt load. The swap agreed in July used a below-market discount rate of 9 percent to value coupons on the new 30-year bonds. But yields for 30-year Greek debt have risen since July to 17 percent. Twiddle the discount rate to 15 percent, and banks losses jump to 39 percent, even though the terms of the deal haven’t changed. Greece’s budget deficit this year will be larger than forecast in July, largely because austerity is biting hard. The swap may also need tweaking to lighten Greece’s interest costs and cut the deficit. Cutting the interest rate offered to creditors by a full two percentage points — to 2 percent — would be a step in the right direction, increasing the haircut to some 52 percent. But Europe seems to be hesitating to go that far. There may be advantages to a more gentle approach for both banks and politicians. Banks would stagger losses over time, taking some pain now and some later. And they would preserve the benefits of the July swap, which protects their principal by getting Greece to collateralise the new bonds with risk-free securities; this means lower losses in the future restructuring. Euro zone governments can argue they have extracted more from bondholders, and delay the day when they have to take losses on their own loans to Greece. Moreover, Athens would still be slaving under a heavy debt load, keeping it under pressure to reform. But Europe’s leaders should understand that the risk of the crisis dragging on, or even getting worse increases if the debt problem isn’t tackled for good now.

@7 months ago with 67 notes
#Europe #tempted #to #save #Greek #trauma #for #later 

WRAPUP 3-U.S. retail sales rise, economy seen accelerating


* Sales ex-cars, gas, building supplies up 0.6 percent* Data suggests stronger Q3 GDP than had been expectedBy Jason LangeWASHINGTON, Oct 14 (Reuters) - U.S. retail sales in September grew at the fastest pace in seven months as consumers shook off concerns about a weak stock market and political gridlock, giving a bit more momentum to the economic recovery.The data, which beat economists’ expectations and eased concerns the U.S. could slip back into recession, overshadowed a separate report showing a surprise drop in consumer confidence in early October.The Commerce Department said on Friday that retail sales rose 1.1 percent in September, with strong auto purchases providing a big boost. Sales for August and July were revised higher as well.”Reports of the consumer’s demise have been greatly exaggerated,” said Stephen Stanley, chief economist at Pierpont Securities in Stamford, Conn.U.S. stocks rose on the retail data and on growing optimism the euro zone would be able to contain its debt crisis. Prices for U.S. government debt fell as investors took on more risk.Consumer spending accounts for about two thirds of U.S. economic activity, and the report suggested the economy had more vigor over the past three months than earlier believed.Economists across Wall Street bumped up forecasts, with Macroeconomic Advisers saying the country’s economic output likely grew at a 2.7 percent annual rate in the third quarter, six-tenths of a point more than its previous view.”It looks like third-quarter GDP is going to be better than the first and second quarter combined,” said John Canally, an investment strategist and economist for LPL Financial in Boston.However, signs the U.S. recovery is strengthening — growth averaged under a 1 percent pace in the first half of the year — have not dispelled recession risks. A slowdown in Europe, where debt-laden countries are enacting austerity measures, could still weigh heavily on the United States.CONSUMER RESOLVEConsumer confidence plunged over the summer as a bruising battle over the U.S. budget slammed stock prices and pushed the nation to the brink of default.After a modest reprieve in September, consumer sentiment for October sagged to 57.5 in the preliminary Thomson Michigan survey for October, with expectations dropping to its weakest level in more than 30 years.But September’s reasonable spending pace showed the crisis of confidence might not keep shoppers out of stores.Indeed, Americans lined up on Friday to buy Apple Inc’s latest iPhone as it went on sale.”Obviously consumers are still willing to go out and shop,” said Gary Thayer, a strategist at Wells Fargo Advisors in St. Louis, Missouri. “If the economy takes a clear turn for the worse we would expect sales to suffer, but at least this time the shock to confidence has not derailed consumer spending.”Within the retail report, sales of motor vehicles and parts rose 3.6 percent last month, the biggest gain since March 2010. Earlier this month, data showed U.S. auto sales rose to an annual rate of 13.1 million vehicles in September, a five-month high.The U.S. economy took a hit earlier in the year from a spike in gasoline prices and a March earthquake in Japan that clogged global supply conduits, hurting auto output and sales.While car sales are now bouncing back, even excluding autos, retail sales increased 0.6 percent in September, above forecasts for a 0.3 percent gain.Separate reports on Friday showed higher growth in business inventories during August — which also helps growth — as well as an unexpected rise in import prices in September.

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#WRAPUP #3US #retail #sales #rise #economy #seen #accelerating 

TIMELINE-Libya’s civil war nears end


Feb. 24 - Anti-government militias take control of central coastal city of Misrata after evicting forces loyal to Gaddafi.Feb. 26 - The U.N. Security Council imposes sanctions on Gaddafi and his family, and refers the crackdown on rebels to the International Criminal Court.Feb. 28 - EU governments approve sanctions against Gaddafi and his closest advisers.March 5 - The rebel National Transitional Council (NTC) in Benghazi declares itself Libya’s sole representative.March 17 - The U.N. Security Council votes to authorise a no-fly zone over Libya and military action — to protect civilians against Gaddafi’s army.March 19 - The first air strikes halt the advance of Gaddafi’s forces on Benghazi and target Libya’s air defences.April 30 - A NATO missile attack on a house in Tripoli kills Gaddafi’s youngest son and three grandchildren, his government says.June 27 - The ICC issues arrest warrants for Gaddafi, his son Saif al-Islam and intelligence chief Abdullah al-Senussi on charges of crimes against humanity.Aug. 21 - Rebels enter Tripoli with little resistance. Gaddafi makes audio addresses over state television calling on Libyans to fight off the rebel “rats”.Aug. 23 - The rebels overrun Gaddafi’s fortified Bab al-Aziziya compound in Tripoli, trashing the symbols of his rule.Aug. 29 - Gaddafi’s wife, his daughter Aisha and two of his sons enter Algeria. Aisha Gaddafi gives birth in a clinic in a border town hours after crossing the frontier.Sept. 1 - Libya’s interim rulers meet world leaders at a conference in Paris to discuss reshaping Libya. Gaddafi, on the 42nd anniversary of his coming to power, urges his supporters to fight on.Sept. 8 - Interim prime minister Mahmoud Jibril arrives in Tripoli on his first visit since it was taken by his forces.Sept. 11 - Libya startes producing oil again. Niger says Gaddafi’s son Saadi has arrived there.Sept. 13 - Interim government chief Mustafa Abdel Jalil makes his first speech in Tripoli to a crowd of about 10,000.Sept. 15 - France’s Nicolas Sarkozy and Britain’s David Cameron land in Libya to a heroes’ welcome.Sept. 16 - The U.N. Security Council eases sanctions on Libya, including on its national oil company and central bank. The U.N. General Assembly approves a request to accredit interim government envoys as Libya’s sole representatives at the U.N., effectively recognizing the NTC.Sept. 20 - U.S. President Barack Obama calls for the last of Gaddafi’s loyalist forces to surrender as he announces the return of the U.S. ambassador to Tripoli. Gaddafi taunts NATO in a speech broadcast by Syrian-based Arrai television station.Sept. 21 - The interim rulers say they have captured most of Sabha, one of three main towns where Gaddafi loyalists have been holding out since the fall of Tripoli. Gaddafi’s birthplace Sirte and the town of Bani Walid continue to resist.Sept. 25 - The first Libyan crude oil to be shipped in months sails from the eastern port of Marsa el Hariga for Italy.Sept. 27 - NATO says Libya’s interim rulers have taken full control of the country’s stockpile of chemical weapons and nuclear material.Oct. 12 - Government fighters capture Gaddafi’s son Mo’tassim after he tried to escape Sirte.Oct 13 - NTC forces say they have control of the whole of Sirte except neighbourhood ‘Number Two’ where Gaddafi forces are surrounded.

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#TIMELINELibyas #civil #war #nears #end 

RLPC-Norilsk Nickel’s $1.5 bln loan pays L+225 bps


The all-in cost stands at 280-290 basis points, depending on how early banks commit to the deal, one banker added.The loan, being arranged by mandated lead arrangers and bookrunners Citi and Societe Generale , marks Norilsk’s first syndicated loan since 2008.The deal, which is for general corporate purposes, has launched to senior syndication and banks are being invited to join as mandated lead arrangers. There will then follow a general phase, a senior loans banker said.On September 30, bankers said Norilsk was looking to raise around $3.5 billion to buy back shares. The board approved on September 13 a buyback of 7.7 percent of its stock at $306, a total of $4.5 billion.Norilsk could use the new deal to go towards that buyback, but either way the firm is still looking to raise $3.5 billion for its funding requirements, the senior loans banker added.In 2008, Norilsk signed a $1.5 billion, three-year syndicated loan arranged and underwritten by Bank of Tokyo-Mitsubishi UFJ, Bayerische Hypo- und Vereinsbank, Calyon, ING, RBS, Societe Generale, Sumitomo Mitsui Finance Dublin, UniCredit HVB and WestLB.The deal was split between a $750 million of secured pre-export financing, a secured $550 million of revolving credit and an unsecured $200 million of revolving credit.The secured tranches paid a margin of 85 bps over LIBOR, while the unsecured tranche paid 100 bps.Norilsk is rated Baa2 by Moody’s, BBB- by Standard & Poor’s and BB+ by Fitch Ratings.Norilsk Nickel declined to comment.

@7 months ago with 17 notes
#RLPCNorilsk #Nickels #$15 #bln #loan #pays #L+225 #bps