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$ / baril 24,04 5,02% 18,37% 41,08% (-)35,36% 146,31% BIGGEST MOVERS Price on d-1 Last Price Return on d-1 Return on 31/12/01 Return on max 33,20 OMEGA PHARMA 35,05 5,57% 21,35% (-)34,49% 16 = + 22,87 MOBISTAR 23,70 3,63% 29,16% 0,00% 21,79 INTERBREW 22,25 2,11% (-)27,64% (-)41,60% BEL20 33,01 KBC 32,57 (-)1,33% (-)13,61% (-)56,80% 4 = - 42,65 BEKAERT 42,00 (-)1,52% (-)2,94% (-)28,21% 35,49 ALMANIJ 34,79 (-)1,97% (-)7,23% (-)73,28% 130,90 MUENCH. RUECK N 137,50 5,04% (-)54,91% (-)60,09% 40 = + 16,58 ING GROEP 17,31 4,40% (-)39,56% (-)56,67% 17,75 NOKIA 18,50 4,23% (-)36,12% (-)49,65% Euro StoXX 50 11,60 VIVENDI UNIVERS 11,40 (-)1,72% (-)81,46% (-)85,50% 10 = - 47,66 SIEMENS N 46,78 (-)1,85% (-)37,08% (-)48,05% 12,13 AHOLD KON.<br><br> 11,70 (-)3,54% (-)63,72% (-)68,71% 55,37 MERCK & CO 56,56 2,15% (-)3,81% (-)39,59% 7 = + 17,38 MCDONALDS CORP 17,75 2,13% (-)32,94% (-)81,29% 25,19 SBC COMMS 25,64 1,79% (-)34,54% (-)56,26% DJIA 23,38 HONEYWELL INTL 22,71 (-)2,87% (-)32,85% (-)43,23% 23 = - 36,90 CITIGROUP 35,82 (-)2,93% (-)29,04% (-)35,78% 55,49 WAL-MART STORES 53,68 (-)3,26% (-)6,72% (-)54,94% 2 Business news at a glance Our sources are the following : Bloomberg (B), Financial Times Information (FT ou AFX), Les Echos (E) and Vie Financière (VF) Economic Overview DEM German Growth Rate Stagnates in 3Q, Bundesbank Says Frankfurt, Nov. 18 (Bloomberg) -- Germany's economic growth rate stalled in the third quarter as companies scaled back spending on machinery and tools, the Bundesbank said. Gross domestic product expanded 0.3 percent from the previous three-month period, the same rate as in the preceding two quarters, the Bundesbank said in its November report.<br><br> Germany accounts for about a third of the economy of the dozen nations sharing the euro. Companies including Deutsche Telekom AG, Europe's largest phone operator, and Dresdner Bank AG, the country's No. 3 lender, are reporting losses as demand wanes.<br><br> The benchmark DAX stock index has shed more than a third this year. ``What's missing the most is the hope for an improvement, which has always been a prerequisite for stronger investments and employment,'' the Bundesbank said. Business confidence dropped for a fifth straight month and unemployment rose to the highest in almost four years in October.<br><br> The economy will grow 0.2 percent this year and one percent next, a panel of advisers to the government known as the ``Five Wise Men'' said in their annual assessment of the economy. German growth in the third quarter was led mainly by exports of industrial goods and improved consumer spending, the central bank said. At the same time, waning pessimism among shoppers means that consumer spending will be ``moderate,'' the bank added.<br><br> The Federal Statistics Office will publish official figures on Thursday morning. `Reluctant to Spend' ` `Consumers are still reluctant to spend,'' said Wolfgang Urban, chief executive officer of KarstadtQuelle AG. Germany's biggest department-store operator said today 2002 earnings will drop by more than a third, hurt by slumping demand.<br><br> Stagnating growth is putting pressure on the European Central Bank to lower interest rates as early as Dec. 5, when its 18-member rate-setting council next meets. The European Commission last week pared its growth forecast for the region as demand slows, stock markets fall and executives are becoming more pessimistic.<br><br> ``The weakening outlook for growth this year and next leads us to expect that inflation rates will come down, and the ECB council will have to take that into consideration,'' ECB council member Ernst Welteke told reporters in Marburg, Germany, on Wednesday. Italy's economy, Europe's fourth-biggest, expanded 0.3 percent from the second quarter, when it expanded 0.2 percent, the government said Thursday. Growth in the Netherlands was 0.1 percent, a separate report showed.<br><br> German economic growth may grind to a halt at the end of the year and a quick recovery next year is not in sight because of ``higher taxes and costs and rising unemployment,'' the German banking association BDB said in a report published today. Taxes, Jobs, Growth Faltering economic growth in Germany is curbing tax revenue. The government plans to boost revenue by raising 66.7 billion euros ($67.3 billion) in four years by raising taxes and abolishing subsidies and tax breaks.<br><br> ``The deterioration in the labor market intensified in the third quarter'' in Germany, France, Italy and Spain, said Silvia Pepino, an economist at J.P. Morgan Chase & Co. in London.<br><br> The ECB ``is moving closer to a policy easing.'' ECB Council member Klaus Liebscher said the economy probably won't reach ``potential'' growth of 2 to 2.5 percent before the second half of 2003. An index of European manufacturing prices fell in October from September while prices charged in the dozen nations' service industries continued to contract last month. Consumer price inflation in the region reached 2.3 percent in October, a report today showed.<br><br> The bank aims to keep inflation below 2 percent. Inflation ``The medium- term outlook for prices has improved,'' ECB Chief Economist Otmar Issing said in an interview published on Tuesday. ``It's important to note that inflation expectations have declined'' among consumers.<br><br> Investors expect the ECB to trim its main rate from the current 3.25 percent before the end of the year, making credit cheaper for consumers and companies in the 12 nations from Portugal to Finland. The implied yield on the three-month Euribor contract for December is at 2.95 percent, compared with a yield of the current three-month lending rate of 3.10 percent. From a year ago and adjusted for work day effects, Germany's GDP grew about half a percent in the third quarter, the Bundesbank said.<br><br> USD La bulle des placements monétaires menacée d'éclatement aux Etats-Unis (Agefi) L'instauration par la Fed de taux courts réels négatifs pourrait entraîner une décollecte des fonds monétaires américains. Un tel mouvement favoriserait une réorientation des liquidités dans l'économie et vers Wall Street Les Américains sont acculés à modifier leur comportement d'épargne. En effet, en ramenant les taux d'intérêt réels en territoire négatif, la Fed ne tente pas seulement d'inciter les entreprises à investir, mais elle va également amener les consommateurs, dernier bastion de la croissance, à casser leur tirelire.<br><br> Devant le marasme boursier de ces dernières années, les Américains se sont bien naturellement réfugiés sur les placements monétaires. Rien que pour la semaine s'achevant le 4 3 novembre dernier, les dépôts à terme aux Etats-Unis ont bénéficié d'un afflux supplémentaire de capitaux de 21,7 milliards de dollars, Stock Exchanges ASIA Asian Stocks: Japan's Mizuho, UFJ Plunge; Taiwan Banks Decline Tokyo, Nov. 19 (Bloomberg) -- Japanese stocks fell as Mizuho Holdings Inc.<br><br> and UFJ Holdings Inc. slumped to records on concern the government will seize some lenders. The Topix stock index is the world's second-worst performer this month, eroding the value of banks' shareholdings and making it more likely they will need a bailout after new rules are outlined for counting bad loans this month.<br><br> ``The biggest fear in the market is that some banks may be nationalized,'' said Atsushi Osa, who helps oversee $4.1 billion at Sumitomo Marine Asset Management Co. ``It's too risky for investors to take large bets.'' Osa is keeping his stake in banks below the Topix index's 7.4 percent weighting. The Topix slid 1.3 percent to 813.44 as of 2:07 p.m.<br><br> in Tokyo and is headed for its lowest close since September 1984. Banks accounted for almost a quarter of the decline. Elsewhere in Asia, Taiwan's TWSE Index dropped 1.3 percent, led by financial companies such as Hua Nan Financial Holdings Co., on concern reforms in the financial industry are slowing.<br><br> Hong Kong's Hang Seng Index fell 0.2 percent as exporters such as Johnson Electric Holdings Ltd. declined on concern that consumer spending will slow in the U.S., the city's second-largest overseas market. South Korea's Kospi index rose 0.6 percent, while benchmarks in Singapore and China were mixed.<br><br> Benchmarks fell in the rest of the region. India is closed today for a public holiday. Banks Mizuho, the world's largest bank by assets, fell as much as 16 percent to 99,700 yen, the lowest since the three-bank holding company began trading as a single stock in September 2000.<br><br> The shares, which are allowed to fall as much as 20,000 yen daily, lost 13 percent, or 15,000 yen, at 103,000 at 2:55 p.m. in Tokyo. Shares in UFJ, Japan's fourth-largest bank, fell by their daily limit of 10,000 yen after Moody's Investors Service cut the credit ratings on the preferred shares sold by two units to junk status.<br><br> UFJ shares have fallen every trading day this month except for Nov. 12. Japan's Minister for Financial Services Heizo Takenaka said he will this month disclose how he plans to implement a bank reform plan outlined Oct.<br><br> 30. Investors are concerned banks will have to recognize more loans as bad, forcing them to seek government bailouts as they use their capital to provision for loan losses. Mizuho had 5.5 trillion yen of bad loans, which was 5.7 percent of its total loans, and UFJ had 6.5 trillion yen of bad loans, which was 13 percent of its total loans as of March 31.<br><br> The nation's seven biggest lenders had a total 26.8 trillion yen of loans deemed unlikely to be repaid as of March 31, 49 percent more than the year before. The Nikkei 225 Stock Average shed 0.1 percent to 8339.90. Nippon Telegraph & Telephone Corp.<br><br> dropped after sales declined for the first time in five decades and it cut its full-year profit forecast. NTT fell 2.6 percent to 449,000 yen. Its NTT DoCoMo Inc.<br><br> unit, Japan's largest cell-phone company, declined 3.2 percent to 211,000 yen. Taiwan Reforms The TWSE fell 64.11 to 4726.50. Hua Nan, Taiwan's fifth- largest financial company, slumped 6.8 percent to NT$22.10.<br><br> CTB Financial Holding Co., the sixth largest, dropped 6.7 percent to NT$16.80. The TWSE Bank/Insurance Index slid 3.3 percent, its biggest drop since Aug. 5.<br><br> Taiwan Premier Yu Shyi-kun said yesterday the government's decision to scrap some curbs on loans by community associations and credit cooperatives was an ``adjustment'' of policy. The government hadn't changed its plans to reform the financial industry, Yu said in a statement. Some investors were concerned that the policy change means a slowdown in reforms in the industry.<br><br> ``This turnaround will reduce the effectiveness of financial reforms,'' said Ellen Shen, who helps manage $43 million in stocks at Ta Chong Investment Trust Corp. ``A slowdown in reforms means a rebound in earnings next year won't be so strong.'' Shen said she sold financial stocks yesterday. Exporters The Hang Seng fell 36.26 to 9883.83, ending a five-day, 3.5 percent advance.<br><br> Johnson Electric, which gets a third of its revenue from North America, lost 1.2 percent to HK$8.40. Li & Fung Ltd., which buys Asian-made garments on behalf of U.S. companies such as Abercrombie & Fitch Co., declined 2.5 percent to HK$7.90.<br><br> Wal-Mart Stores Inc., the world's largest retailer, said it expects November sales at stores open at least a year to gain between 2 percent to 4 percent. ``Christmas sales won't be positive'' and that doesn't bode well for companies including Johnson Electric and Li & Fung, said Marco Mak, head of research at Tai Fook Securities Group Ltd. China Resources Enterprise Ltd.<br><br> shed 2.6 percent to HK$7.60. The company, controlled by China's foreign trade ministry, said its third-quarter net income slipped 16 percent after profit from real-estate developments dropped by more than four-fifths. Hynix The Kospi added 3.54 to 668.65.<br><br> Hynix Semiconductor Inc. surged 13 percent to 465 won and was the most active stock by value. Its creditors, including Korea Exchange Bank, are considering a syndicated loan to BOE Technology Group Co.<br><br> to help it buy Hynix's flat-panel display business, said Korea Exchange Bank spokesman Lee Sung Shik. Korea Exchange is Hynix's largest creditor. Yonhap News earlier reported that creditors had decided to make the loan to BOE Technology.<br><br> Korean Air Co. fell 2.1 percent to 13,800 won after crude oil prices had their biggest gain in seven months. Crude oil for December delivery gained 4.6 percent to $26.60 a barrel at the market close on the New York Mercantile Exchange.<br><br> 4 EUR European bourses off highs as Wall St turns lower (FT) European bourses looked a little shaky in mid-afternoon trade as Wall Street gave up its opening gains and drifted lower. But banking and oil stocks continuing to push ahead, while insurers and pharmaceutical shares also remained buoyant. The pan-European FTSE Eurotop 100 index was up rose 1.1 per cent to 2,047.51, off a high of 2,063.60, while the Xetra Dax index in Frankfurt was 0.9 per cent stronger.<br><br> The CAC 40 in Paris firmed 1.5 per cent and London's FTSE 100 climbed 0.8 per cent. In spite of the recent resilience of markets in Europe, some analysts remained cautious. "With equities rallying cash is underperforming, so in the short-term there is a feeling that people need to put money to work in the market," said David Thwaites, European equity strategist at BNP Paribas in London.<br><br> "The fourth-quarter rebound may have further to run, but its still a technical rally, and with little sign of a pick-up in capital expenditure I am still wary of the prospects for next year," he added. Shares in New York provided encouragement in Europe as they got off to a firm start. The Dow Jones Industrial Average was down 0.3 per cent within half an hour of the start of business, while the Nasdaq Composite was 0.1 per cent weaker firmer.<br><br> But oil stocks moved higher in Europe as UN weapons inspectors. arrived in Iraq. Reports over the weekend claimed that terror attacks had been foiled in both the UK and Kuwait.<br><br> BP rose 1.5 per cent while TotalFinaElf firmed 1.7 per cent and Royal Dutch added 1.3 per cent. In London, January Brent was up 30 cents a barrel at $23.65. Among the banks, Barclays rose 3.4 per cent, HVB added 3.6 per cent and BNP Paribas firmed 3.1 per cent.<br><br> Drugs stocks were in focus in Europe following weekend reports that the UK's GlaxoSmithKline was one of several companies considering making a bid for the pharmaceutical arm of Germany's Bayer . Bayer shares rose 4.3 per cent but GSK fell 2.2 per cent. Meanwhile, Roche of Switzerland announced it was licensing a number of cancer drugs from UK group Antisoma .<br><br> Antisoma more than doubled in value while Roche moved 1.2 per cent higher. In the insurance sector, troubled group Swiss Life said it had priced shares in its SFr1.1bn cash call at SFr79 each, a discount of more than 50 per cent to Friday's closing price. The shares traded 8.1 per cent higher.<br><br> Scor , the French insurer, reversed an early fall to trade 13 per cent higher after it reported a full-year net loss that was much bigger than the market had expected. It also said it would go ahead with a huge rights issue. The company vowed to return to profit next year.<br><br> But rival group AGF slipped 1.1 per cent after it warned it would take additional "substantial" provisions in the second half due to falling financial markets. Munich Re gained 5.8 per cent after Deutsche Bank upgraded the stock to "hold" from "buy". DB highlighted that the stock had underperformed the rest of the European market and the insurance sector by 14 per cent since October 22.<br><br> Zurich Financial , meanwhile, is reportedly considering the sale of its UK fund management business, Threadneedle Investment Managers, in a bid to shore up its battered finances. Zurich shares gained 4.1 per cent. In the UK, shares in stockbroker Teather & Greenwood rose 1.5 per cent after it confirmed it was in exclusive negotiations to sell its asset management business.<br><br> France Telecom jumped 5.1 per cent after the European Commission ruled it could go ahead with the sale of its TDF broadcasting unit to a consortium. Telecom said the disposal would net it ¬1.6bn. Telia , the Swedish telecoms group, said that 94.8 per cent of shareholders in Finnish operator Sonera backed its takeover bid.<br><br> By crossing the 90 per cent threshold, Telia will now have to launch a mandatory cash bid for the remaining shares. Sonera rose 1.7 per cent, while Telia added 1.2 per cent. Finnish mobile phones maker Nokia rose 2.9 per cent following reports that it was forecasting an increase in global handset sales next year despite its pessimism about the outlook for the US and European economies.<br><br> Anglo-Dutch steel group Corus pared an early rise to trade 2 per cent weaker amid continued concerns about its outlook and prospects. Late on Friday, Arcelor , the world's biggest steelmaker, reported third-quarter earnings that were ahead of analysts' expectations. The shares rose 5.6 per cent on Monday.<br><br> In the retailing sector, Germany's Karstadt Quelle dipped 2.2 per cent after it said it would report sharply lower full-year earnings. The company announced a rise in third-quarter pre-tax profits to ¬54.1m from ¬49.7m a year ago. Dutch rival Ahold fell 1.4 per cent after it said it would bring forward the release of its third-quarter earnings to Tuesday from November 26.<br><br> It gave no reason. USA U.S. Stocks Fall for First Day in Three as Wal-Mart, Financials Decline New York, Nov.<br><br> 18 (Bloomberg) -- U.S. stocks fell for the first day in three after Wal-Mart Stores Inc. said November sales will lag its most optimistic forecast, sparking concern consumer spending may slow.<br><br> ``There is concern on how companies are doing this quarter,'' said Andrew Galligan, who helps oversee $2 billion at TimesSquare Capital Management. ``We need insight on the Christmas selling season.'' Financial shares slid after Fannie Mae said its growth slowed last month and CBS's ``60 Minutes'' reported UnumProvident Corp., the largest U.S. disability insurer, denied legitimate claims to cut costs.<br><br> AT&T Corp. dropped after a Lehman Brothers Inc. analyst discouraged investors from buying the stock.<br><br> The Standard & Poor's 500 Index declined 9.47, or 1 percent, to 900.36. Wal-Mart contributed a fifth of the loss. The Dow Jones Industrial Average fell 92.52, or 1.1 percent, to 8486.57.<br><br> The Nasdaq Composite Index dropped 17.45 or 1.2 percent, to 1393.69 Some 1.27 billion shares traded on the New York Stock Exchange, 13 percent below the three-month daily average. About four stocks fell for every three that rose on the exchange and the Nasdaq Stock Market. Reports of rising retail sales, better-than-expected consumer sentiment and declining initial jobless claims have fueled a six- week advance from five-year lows.<br><br> On the other hand, concern that a possible war in Iraq may crimp consumer confidence is deterring some investors. United Nations arms inspectors arrived there today. ``The uncertainty, if we are going into a war 5 with Iraq and when we are going to, is hurting the markets more than an actual war,'' said Bob Benson, a senior market strategist at Banc of America Capital Management, which oversees $229 billion in St.<br><br> Louis. ``The longer it drags out, the more effect it has on the equity markets.'' Wal-Mart Falls Wal-Mart fell $1.81 to $53.68. The world's largest retailer said it expects November sales at stores open at least a year will rise at the low end of its forecast for 2 percent to 4 percent gains.<br><br> This would be the fourth time in five months that sales came in at the low end or below Wal-Mart's target. Rival Target Corp. declined $1.51 to $31.38 and Kohl's Corp.<br><br> fell $2.33 to $64.57. ``People don't believe this rally'' that sent the S&P 500 up 17 percent the past six weeks, said Todd Leone, head of block trading at SG Cowen Securities Corp. ``We have heard all the positive stuff about retailers, but Wal-Mart is not positive.'' Fannie Mae slid $1.55 to $63.<br><br> The biggest buyers of mortgage loans dropped for a second day after saying Friday its portfolio of loans, which accounts for two-thirds of its profits, declined. UnumProvident dropped $1.24 to $17.31. Former employees and policyholders told ``60 Minutes,'' a television news show, that executives of the insurer ordered employees to meet cost-savings targets by refusing to pay claims regardless of their merit.<br><br> The report was broadcast two days after a federal judge upheld a $7.6 million award against the company and issued an injunction forcing it to stop setting targets for claim denials. A company spokesman didn't return calls for comment. Citigroup Inc., the largest financial-services company, fell $1.08 to $35.82.<br><br> It said a $1 million donation to the 92nd Street YM-YWHA in 1999 was linked to its former analyst Jack Grubman's efforts to get his children admitted to the Y's nursery school. All sides deny there was a quid pro quo, the Wall Street Journal said. AT&T Tumbles AT&T lost 35 cents to $13.51.<br><br> Lehman analyst Blake Bath expects the largest U.S. long-distance phone company to shut down or sell its consumer business by the end of 2003, he wrote in a note to clients. Blake cut his rating to ```underweight'' from ``equalweight.'' After exchanges closed, AT&T completed the $55 billion sale of its cable-television unit to Comcast Corp.<br><br> and carried out a reverse stock split. The latter will swap investors one share for every five they now own. Merck & Co.<br><br> rose $1.19 to $56.56. The second-largest U.S. drugmaker said its drug Zetia boosted the efficacy of cholesterol treatments using drugs known as statins, according to a study published in the American Journal of Cardiology.<br><br> Bristol-Myers Squibb Co. gained 49 cents to $24.54. Its Abilify schizophrenia treatment won regulatory approval.<br><br> The drug may have more than $700 million in yearly sales, analysts have said. The company has had a series of regulatory and development setbacks with heart and cancer medicines. Johnson & Johnson fell $1.07 to $59.08.<br><br> Medicines Co.'s Angiomax, a cheaper rival to its blood thinning drug, compared well in a clinical trial. Medicines rose $3.30 to $16. MetLife Inc.<br><br> declined $1.04 to $25.95. The biggest U.S. life insurer's third-quarter earnings report ``did not adequately address'' issues including investment gains and losses, the effect of the stock market on earnings and capital needs, Salomon Smith Barney Inc.<br><br> analyst Colin Devine wrote in a note to clients. Devine cut MetLife to ``underperform'' from ``in-line.'' Reliant Resources Inc. dropped 23 cents to $1.85.<br><br> The energy trader said it may consider bankruptcy if it can't restructure billions of dollars in debt, the Houston Chronicle reported, citing regulatory filings. Texas Instruments Rises Texas Instruments Inc . rose 61 cents to $17.<br><br> Bear, Stearns & Co. analyst Charles Boucher said sales of personal computers are better than expected and demand for mobile phone components may top forecasts this quarter. Boucher raised fourth-quarter revenue estimates for the chipmaker.<br><br> Tenet Healthcare Corp. climbed $2.42 to $18.75. The hospital operator is among stocks favored by Charles Jobson, a portfolio manager at the hedge fund Delta Partners LLC, Barron's reported.<br><br> UAL Corp . jumped 55 cents to $3.50. The parent of United Airlines said it will trim $1.3 billion in employee pay as it seeks to find cost cuts totaling $5.8 billion over the next 5 1/2 years to secure a federal loan guarantee and avoid bankruptcy.<br><br> The Russell 2000 Index of smaller stocks fell 3.34, or 0.9 percent, to 382.58. The Wilshire 5000 Total Market Index, the broadest measure of U.S. shares, dropped 85.02, or 1 percent, to 8499.03.<br><br> Based on changes in the Wilshire, the market value of U.S. stocks lost $102.02 billion. 6 After Hours Trading Agilent Shares Rise, Stock Index Futures Decline New York, Nov.<br><br> 18 (Bloomberg) -- Agilent Technologies Inc. shares rose during extended trading hours after the maker of testing and measurement equipment said sales topped forecasts and that it will eliminate 2,500 more jobs. Most stocks extended their declines after the 4 p.m.<br><br> close of the New York Stock Exchange as 150 million shares changed hands, according to the Nasdaq Stock Market. That compares with trading of some 1.27 billion shares on the Big Board earlier in the day. Six of the 10 most active stocks declined, including Intel Corp.<br><br> and Microsoft Corp. The Nasdaq 100 Index, which follows those and other large companies traded on the Nasdaq, slipped 1.06 to 1044.13, adding to a 16.09 loss from regular trading. Agilent, among the stocks that advanced the most after 4 p.m., rose 8.5 percent to $14.75.<br><br> Stock index futures fell. December futures on the Nasdaq 100 Index dropped 2.50 to 1047.50, pointing to little change when the regular trading session resumes Tuesday morning. Standard & Poor's 500 Index futures fell 1.20 to 898.80.<br><br> U.S. stocks fell for the first day in three during regular trading hours after Wal-Mart Stores Inc. said November sales will lag its most optimistic forecast, sparking concern consumer spending may slow.<br><br> The Nasdaq Composite Index slipped 17.45, or 1.2 percent, to 1393.69. The Standard & Poor's 500 Index declined 9.47, a 1 percent drop, to 900.36. Following are other companies whose shares may fluctuate in U.S.<br><br> markets Tuesday. Stock symbols are in parentheses after company names. Bowater Inc.<br><br> (BOW): The newspaper maker's senior unsecured debt rating was lowered by Moody's Investors Service to Ba1, below investment grade, because low newsprint prices make it more difficult for the company to pay off its debts, the ratings company said in a statement. Bowater rose 70 cents to $33.75. Medtronic Inc.<br><br> (MDT): The maker of heart-regulating devices said in a release distributed by Business Wire that revenue in the second quarter ended Oct. 26 increased to $1.89 billion. The average estimate of analysts surveyed by Thomson First Call was $1.82 billion.<br><br> Medtronic fell 79 cents to $46.55. MDU Resources Group Inc. (MDU ): The electricity and natural gas supplier said in a release distributed by Business Wire that it plans to sell about 2.1 million shares of common stock to pay debt and for other corporate purposes.<br><br> MDU was unchanged at $24.59. TXU Corp. (TXU): The electricity company said in a statement that it received a request for information from the U.S.<br><br> Securities and Exchange Commission about the company's dividend cut last month. TXU rose 17 cents to $15.57. NASDAQ-100 After Hours Indicator SM Value Current Value Net Change % Change 1044.13 1.06 0.1 1045.19 NASDAQ- 100 11/18/2002 4:00PM Close Time Exchange Rates JPY Yen Declines on Concern Banks May Require Government Bailout London, Nov.<br><br> 18 (Bloomberg) -- The yen had its biggest drop against the dollar in six weeks as Japanese financial stocks fell on concern tougher standards for assessing bad loans may lead the government to seize control of some banks. Japan's currency fell to 120.94 per dollar at 9 a.m. in London, from 120.32 late Friday.<br><br> It has shed 2.9 percent in the past three months. The dollar was little changed at $1.0104 per euro, from $1.0087. Shares of UFJ Holdings Inc.<br><br> and Mizuho Holdings Inc. dropped on speculation the government may buy banks' preferred shares to help bail them out, diluting the value of the securities. Japan's Topix bank-stock index fell 1.9 percent to its lowest close since Oct.<br><br> 3, 1984, dimming demand for the currency, traders said. Japan's banking system ``is always in the back of investor's minds,'' said Michael Burckhart, head of foreign exchange at Landesbank Hessen-Thueringen in Frankfurt. ``We're back to the usual reaction, which is selling yen.'' The Financial Services Agency is scheduled to provide 7 details this month on its plans to aid banks.<br><br> Investors are concerned lenders, which have more than $420 billion of loans that aren't being repaid, may be forced to accept some government control. ``The weak Japanese banking sector continues to be a worry and is negative for the yen,'' said Minori Takeuchi, chief foreign- exchange analyst in the Tokyo office of J.P. Morgan Chase & Co.<br><br> The yen may fall to 122, she said. 26.8 Trillion Yen UFJ fell 8.3 percent. Shares of Japan's No.<br><br> 4 lender by assets have lost 48 percent this month. Standard & Poor's said it may cut the credit ratings of UFJ Holdings' main units. Japan's seven biggest lenders had 26.8 trillion yen ($221 billion) of loans deemed unlikely to be repaid as of March 31 -- 49 percent more than the year before.<br><br> A bailout of banks would be the third in five years, after the government spent 9.3 trillion yen rescuing lenders in 1998 and 1999. Write-offs of bad loans at major banks could cut Japan's economic growth by 3.4 percentage points and put 1.5 million people out of work in the next two years, Nikko Salomon Smith Barney Ltd. estimates.<br><br> The yen also fell after Japanese Chief Cabinet Secretary Yasuo Fukuda said reports the government would draft an extra budget of 5 trillion to 6 trillion yen are ``speculative.'' The remark heightened concern the government doesn't have a plan to revive an economy that has had three recessions in a decade. `Renewed Pressure' Prime Minister Junichiro Koizumi last week said he will outline an extra spending package on Friday to cover a tax-revenue decline of as much as 2.8 trillion yen, and measures to create jobs and help small companies. ``Concerns about the stability of the banking sector and the ability of the government to revive the economy are putting renewed pressure on the yen,'' said Sonja Marten, a currency strategist at Dresdner Kleinwort Wasserstein in Frankfurt.<br><br> The Bank of Japan said it would start buying stock from banks on Nov. 29 as part of its program to limit their losses from declining share prices. The bank said last month it would buy 2 trillion yen of shares from lenders.<br><br> The euro, little changed near a four-month high against the dollar, may rise on speculation government reports this week will show France and Germany, Europe's two biggest economies, grew in the third quarter. Both countries probably expanded 0.3 percent, according to Bloomberg News surveys. Germany's central bank is due to release its growth report at 11 a.m.<br><br> London time. The French report is due on Friday. Demand for the currency may also pick up as speculation mounts that the European Central Bank will cut interest rates by half a percentage point, to 2.75 percent, at its meeting on Dec.<br><br> 5, analysts said. ``The German and French figures will provide more catalysts for becoming bullish on the euro,'' said Monica Fan, a senior currency strategist at RBC Capital Markets Europe Ltd. ``With the market pricing in a higher chance of a 50 basis-point cut, there is stronger momentum for the euro.'' Iraq Movements in currencies may be limited in coming weeks as investors wait to see whether United Nations arms inspectors uncover illegal weapons in Iraq, analysts said.<br><br> Inspectors arrive in the country today after a four-year absence, and are scheduled to begin inspections on Nov. 27. The UN Security Council last week approved a resolution outlining new conditions for inspections and threatening ``serious consequences'' if Iraq doesn't comply.<br><br> The resolution says Iraq has until Dec. 8 to prepare a comprehensive list of its chemical, biological or nuclear weapons. ``Until it's more clear how the inspections are going, there's likely to be low currency volatility,'' said Steve Barrow, a currency strategist at Bear Stearns International.<br><br> Raw Materials Crude Oil Has Biggest 4-Day Gain in 2 Months on Iraq Concerns Singapore, Nov. 19 (Bloomberg) -- Crude oil had its biggest four-day gain in two months on concern Iraq won't allow full access to UN weapons inspectors, which would spark a conflict with the U.S. that may disrupt oil supplies.<br><br> Inspectors returned to Baghdad yesterday for the first time in four years to search for biological, chemical and nuclear weapons. Chief UN arms inspector Hans Blix said they made progress in the first day of talks yesterday as U.S. and U.K.<br><br> aircraft attacked Iraqi defense sites, the Associated Press reported. ``All the hints from the U.S. administration is that they are still prepared for an invasion of Iraq and from our perspective, we see a substantial risk of a spike higher in oil prices,'' said Brian Redican, a senior economist at Macquarie Bank Ltd.<br><br> in Sydney. Crude oil for December delivery rose as much as 17 cents, or 0.6 percent, to $26.88 a barrel in after-hours, electronic trading on the New York Mercantile Exchange at 12:24 p.m. Singapore time.<br><br> It's risen 6.7 percent since Nov 14., the biggest four-day gain since Sept. 9. In yesterday's floor trading in New York, the contract rose $1.20, or 4.7 percent, the biggest one-day percentage gain since April 17.<br><br> Prices have risen 35 percent this year partly on concern that a U.S. attack on Iraq would disrupt supplies from a region that pumps more than a quarter of global oil supply. Iraq holds the world's largest oil reserves after Saudi Arabia.<br><br> U.S. President George W. Bush said he would use the North Atlantic Treaty Organization summit this week, and a meeting with Russian President Vladimir Putin in St.<br><br> Petersburg, to keep making the case that Hussein poses a danger to the world. ``The concern is over Iraq and the potential for that situation to introduce instability into a key oil- producing region,'' said Jonathan Leak, senior vice president of risk management at World Fuel Services Corp. in Atlanta.<br><br> ``What nobody knows is whether Saddam will torch his own oilfields or lob Scud missiles'' into neighboring countries. Military Intervention 8 ``Saddam Hussein is going to give the U.S. the absolute minimum to put off military intervention,'' said Jim Cox, a managing director at Pixley Group LLC, a San Francisco-based brokerage.<br><br> ``As soon as we see anything belligerent out of Iraq, I think we'll see a $2 pop'' in crude-oil prices. Blix and Mohamed ElBaradei, director-general of the International Atomic Energy Agency, are in Baghdad to prepare for inspections set to begin Nov. 27.<br><br> The UN Security Council resolution, approved on Nov. 8, threatens ``serious consequences'' if Iraq fails to cooperate. Iraq, which produces about 3 percent of the world's oil, has until Dec.<br><br> 8 to provide the UN with a comprehensive report on its weapons programs. ElBaradei told Qatar-based Al-Jazeera television that inspections may take as long as a year to complete. Attacks The raids by U.S.<br><br> and U.K. aircraft over Iraq were the third and fourth since Iraq agreed last week to allow inspectors to return. The U.S.<br><br> and U.K. declared ``no-fly'' zones over Iraq after the 1991 Persian Gulf war to protect Kurds in Iraq's north and Shiite Muslims in the south from Hussein's forces. Iraq doesn't recognize the zones.<br><br> U.S. officials said Iraqi attacks on planes patrolling the no- fly zones constitute a ``material breach'' of the UN Security Council resolution. Bush travels to Prague later today to seek support from other NATO leaders for a potential assault on Iraq.<br><br> He said the Iraqi leader's response to the UN demand that he disclose Iraq's weapons arsenal will determine whether the U.S. takes military action against Iraq. `Time to Declare' The U.S.<br><br> has been building up its Strategic Petroleum Reserve, an emergency stockpile held in underground caverns for use in times of national emergency. The reserve rose to 592 million barrels last week, the highest level in its 25-year history, Energy Department figures showed. The amount is equal to 324 days worth of shipments from Persian Gulf countries, based on department figures for August imports.<br><br> U.S. imports from the region dropped 31 percent in the year through August, mostly because of a decline from Iraq. The government wants to fill the reserve to its 700 million- barrel capacity to strengthen U.S.<br><br> energy security. At the current pace of deliveries, the reserve will be full by 2005, the department said. Gains Limited The gain in the oil price was limited by overproduction among members of the Organization of Petroleum Exporting Countries.<br><br> ``The fact that OPEC has been producing more does provide a reason for why oil prices might be below $25 a barrel,'' Redican said. ``On the other hand, you have quite a substantial risk of a disruption in oil supplies in the next couple of months.'' OPEC, which produces about a third of the world's oil, said it exceeded its own production quotas by between 1.5 million and 2 million barrels a day. Some Other Headlines Allemagne : la Bundesbank estime à 0,3% la croissance au T3 L' Allemagne comptera 4,4 mlns de chômeurs en janvier Allemagne /Eichel - Besoins de financement de E18,9 mds en 2003 L' Allemagne va taxer toutes les plus-values boursières Zone euro : accélération de l'inflation à 2,3% Inflation- La Comm.<br><br> Européenne maintient sa prévision malgré la stat d'octobre Banque of Japan : Les rachats d'actions aux banques commenceront le 29 nov U.S. October Consumer Price Index Probably Rose on Increased Energy Costs Agilent dans le rouge au T4, à l'équilibre avant charges Ahold avance à mardi ses résultats du T3 craintes de profit warning Altran - Le titre dévisse après les conclusions de l'audit Arinso boekt in 3e kwartaal EUR 0,75 miljoen nettowinst Bayer cèderait sa pharmacie à GlaxoSmithKline Canal Z sauvé Moody's place la note de Deutsche Telekom sous surveillane négative Diageo: prix de vente abaissé pour Burger King. Ericsson: la justice suédoise refuse la remise en liberté d'un suspect Glaverbe l dope le bénéfice net d'Asahi Glass au 1er semestre Hannover wil overname Gilde door Interbrew verhinderen Nissan confirme un bénéfice semestriel record, en hausse de 25% Nokia prévoit une hausse du marché mondial des téléphones portables Scor : action en baisse sur perte 9 mois et avertissement.<br><br> Sun Micro doute d'un prochain retour aux bénéfices Umicore confirme ses prévisions UAL détaille son plan de redressement: 10.000 suppressions d'emplois Vallourec prévoit c.a. 2002 en baisse proche 2,5 mds EUR contre 2,55 mds EUR 9 Company News ABB ABB's Debt, Asbestos Claims Push It to the Brink of Bankruptcy Zurich, Nov. 19 (Bloomberg) -- In February 2001, ABB Ltd., Europe's largest electrical engineering company, agreed to a joint venture with Fuhrlaender AG, a German wind turbine maker, to build power- generating windmills in Spain.<br><br> The deal, ABB said, would help it generate $1 billion in annual revenue by 2005. ``The day after we agreed to it, they sent out a press release with pictures of our products,'' says Walter Lutz, who's in Fuhrlaender's marketing department. ``We were surprised by how fast ABB moved.'' Then nothing happened.<br><br> Almost two years later, Fuhrlaender is still waiting to build the windmills. ``We never heard back,'' says Lutz. ``There were big plans, but no results.'' That could be the epitaph for ABB, created by the 1988 merger of Sweden's Asea AB and Switzerland's BBC Brown Boveri Ltd.<br><br> By early November, the company was trying to stave off bankruptcy amid an ill-timed, costly expansion into Eastern Europe and Asia and while dealing with asbestos liabilities at a U.S. subsidiary that could cost as much as $4 billion. Since the beginning of the year, ABB shares have plummeted 77 percent, closing yesterday at 3.65 Swiss francs in Zurich.<br><br> The falling stock price has reduced ABB's market value to $2.8 billion, down from a peak of $57 billion in February 2000. After reporting a record $691 million full-year loss in 2001, the company had produced another $82 million in losses by the third quarter of this year. More Debt Than Cash As of Sept.<br><br> 30, ABB had more debt, $5.5 billion, than cash, $3.9 billion. On Oct. 31, Moody's Investors Service cut ABB's credit rating for the fifth time since March to junk-status Ba2 from Baa3 and said the company needed to take ``decisive and rapid'' steps to cut costs to avoid a further downgrade.<br><br> On Nov. 8, the company announced plans to shed at least 10,000 jobs. ``ABB's stock is like buying an option: There's an incredible amount of risk,'' says Richard Mandl, who helps manage 10 billion Swiss francs ($6.86 billion) at Union Bancaire Privee, a Zurich- based private bank.<br><br> ``There are a lot of people who are very unhappy about what's happened with ABB. Trust has been damaged.'' In the 1990s, management consultants and securities analysts around the world praised the company as a model industrial corporation. (suite du texte à disposition sur simple demande) Ahold Ahold Cuts Full-Year Forecast as 3rd-Qtr Profit Drops Amsterdam, Nov.<br><br> 19 (Bloomberg) -- Royal Ahold NV, the Dutch owner of Stop & Shop and Giant supermarkets, lowered its annual earnings forecast for a second time this year after third-quarter profit dropped 15 percent. The world's largest food distributor expects earnings per share, excluding currency effects, goodwill and one-time costs, to fall 6 percent to 8 percent this year. The previous forecast was for a gain of at least 5 percent.<br><br> Ahold confirmed its 2003 outlook, which targets sales growth of between 4 percent and 5 percent excluding acquisitions as well as earnings growth excluding the effect of currencies. Net income for the 12 weeks ended Oct. 6 fell to 257.6 million euros ($260 million), or 26 cents a share, from 304.2 million euros, or 33 cents, in the year-ago period, Ahold said in an e-mail statement.<br><br> The company was expected to report a 3 percent decline in earnings to 296 million euros, according to the average estimate of seven analysts surveyed by Bloomberg News. Forecasts ranged from 290 million euros to 310 million euros. Arcelor Arcelor CEO Says Prices to Renault, Peugeot Will Rise Luxembourg, Nov.<br><br> 18 (Bloomberg) -- Arcelor SA, which makes the steel for one in three European cars, expects to raise prices to automakers such as Renault SA and PSA Peugeot Citroen by 5 percent, boosting earnings as an economic recovery falters. An increase would be the first in as long as eight years, Arcelor Managing Director Guy Dolle said in a telephone interview. Price talks that began a few weeks ago will set terms for two- to three-year contracts.<br><br> U.S. steelmakers have already won increases of between 5 percent and 10 percent, and producers in Europe may get the lower end of that range, Dolle said. The outlook bolsters Arcelor's expectations that profits will improve for at least the next two quarters.<br><br> The world's biggest steelmaker and rivals such as Corus Group Plc and ThyssenKrupp AG have curbed production to raise prices three times this year. A fourth increase planned for January is still on track, Dolle said. ``Nobody is anticipating any recovery before the second half of next year, but we are not so pessimistic for the car industry in Europe,'' the managing director said.<br><br> For profits, ``the fourth quarter will be better than the third and the first will be better than the fourth.'' Arcelor shares rose as much as 41 cents, or 3.8 percent, to 11.31 euros in Paris and were at that level as of 10:51 a.m. The shares are down 19 percent this year on investor concern that demand won't rebound any time soon. Renault shares were 64 cents higher at 49.79 euros, while shares in PSA Peugeot were up 66 cents at 44.27 euros, both in line with France's CAC 40 Index.<br><br> Luxembourg-based Arcelor on Friday reported net income of 50 million euros ($50 million), or 10 cents a share, compared with a pro forma 73 million euros, or 15 cents, a year earlier. Sales rose 3.3 percent to 6.4 billion euros. The company was formed from the combination of Usinor SA of France, Arbed SA of Luxembourg and Aceralia Corporacion Siderurgica SA of Spain.<br><br> 10 Advanced Micro Advanced Micro Expects 4th-Qtr Charges of $300 Mln to $600 Mln Sunnyvale, California, Nov. 18 (Bloomberg) -- Advanced Micro Devices Inc. said it expects restructuring and other special charges in its fourth quarter of $300 million to $600 million, inclusive of charges associated with restructuring and cost- cutting initiatives announced last Thursday.<br><br> AMD also expects to record a charge to income tax expense in the fourth quarter to establish a 100 percent valuation allowance against its net deferred tax assets, the company said in a statement distributed by Business Wire. Cegetel 3 Vivendi 3 Vodafone 3 Royal bank of Scotlan Royal Bank of Scotland Backs Rival Bids for France's Cegetel London, Nov. 19 (Bloomberg) -- Whatever the outcome of the battle between Vodafone Group Plc and Vivendi Universal SA for control of Cegetel SA, France's No.<br><br> 2 phone company, Royal Bank of Scotland Plc wants to make sure it's on the winner's side. Royal Bank, which fell to seventh place this year among arrangers of syndicated loans in Europe from fifth in 2001, agreed to help lend Vodafone 3.5 billion euros ($3.5 billion), Vodafone said last month. The U.K.'s No.<br><br> 2 bank is also among four lenders talking to Vivendi about a 1.3 billion-euro loan to raise its stake, people familiar with the situation said. ``It's hard to see how a bank can be doing its best for both clients in that situation,'' said Tom Donaldson, a former J.P. Morgan & Co.<br><br> banker and author of ``Thinking About Credit.'' ``There are obvious potential conflicts of interest.'' Banks are fighting harder to win business as a slump in stock markets and acquisitions erodes earnings. Goldman Sachs Group Inc., which helped Vodafone on more than $300 billion of takeovers, is advising Vivendi on Cegetel after Vodafone retained UBS Warburg to help on its bid for the French phone company. Royal Bank is ``looking to get the business whatever happens,'' said Stan Hurn, head of loans at HSBC Holdings Plc until 1998.<br><br> ``They want to keep their feet in both camps.'' Banks can back more than one bidder as long as the teams involved are kept isolated from each other to avoid conflicts of interest, bankers said. The practice of using separate teams to arrange loans for rival bids has increased as banks merge, shrinking the pool of lenders capable of providing large acquisition financings, they said. `Consolidating Bank Market' ``This is a feature of a consolidating bank market,'' David Morley, head of banking at London-based law firm Allen & Overy, said in an interview.<br><br> ``Very few banks can put up large amounts of money very quickly.'' The number of credit institutions in the European Union fell to 8,023 in 2001 from 9,260 in 1998, according to the European Central Bank. Royal Bank helped reduce the pool in 2000 when it bought National Westminster Bank Plc. ABN Amro Holding NV and Citigroup Inc., which committed funds for Vodafone's bid for Cegetel, have also agreed to lend money to Vivendi as it seeks to cut 19 billion euros of debt.<br><br> Royal Bank is alone in committing acquisition finance to both sides in the Cegetel battle. Cegetel vs France Telecom Vivendi, then know as Cie. Generale des Eaux, created Cegetel to compete with France Telecom SA as the French phone market opened up to competition in the mid 1990s.<br><br> It retained 44 percent of the company, and sold the rest to Britain's BT Group Plc, San Antonio-based SBC Communications Inc., and Germany's Mannesmann AG to speed its development. Vodafone received its stake in Cegetel, which owns French mobile phone company SFR, when it bought Mannesmann in 2000. In addition to its 15 percent stake in Cegetel, the world's biggest mobile phone company owns 20 percent of SFR.<br><br> It bid about 13.1 billion euros for the 85 percent of Cegetel it does not own in October to plug the largest hole in its European network of mobile phone coverage. BT, which owns 26 percent of Cegetel, and SBC, which owns 15 percent, have accepted a 6.3 billion-euro offer from Vodafone for their stakes. Under a confidential shareholder pact, Vivendi has the right to preempt this deal and buy Cegetel first.<br><br> The company has until Dec. 10 to make its own offer. Acquisition Finance To help finance that offer, Vivendi is considering raising its 1.3 billion-euro loan, it said in a statement to the French market regulator, the Commission des operations de bourse, last week.<br><br> Royal Bank, Credit Lyonnais SA, Credit Agricole Indosuez and Credit Suisse First Boston are the lenders, the people familiar said. Vodafone lined up its loan to increase its stake in Cegetel last month. Royal Bank will lend the money with ABN Amro, Citigroup, Bank of America Corp., Barclays Plc, and WestLB AG, the mobile phone company said Oct.<br><br> 21. ``Whether a bank is allowed to do this is ultimately up to the client,'' Donaldson said. ``It would have been extremely unusual in my day.'' Royal Bank of Scotland spokesman Shaun Gamble, Vodafone spokesman Bobby Leach and Vivendi spokesman Antoine Lefort declined to comment.<br><br> Credit Lyonnais spokesman Bertrand Hugonet and Rebecca O'Neill, a spokeswoman for CSFB, also declined to comment. Anne Robert, a spokeswoman for Credit Agricole Indosuez couldn't be reached for comment. France Telecom France Telecom Faces Further Debt Reduction Setback on Casema Paris, Nov.<br><br> 19 (Bloomberg) -- France Telecom SA faced another setback in efforts to lower its 70 billion euros ($70 billion) of debt yesterday, when Liberty Media Corp. ended an agreement to buy a Dutch cable- TV unit for $751 million. Liberty, controlled by billionaire John Malone, said it was unable to renegotiate an accord with Europe's No.<br><br> 2 phone company after Dutch regulators voiced concern about the Casema purchase. ``It's one more disappointment in their disposal program,'' said Simon Kirton, who helps manage $3.6 billion at Aberdeen Asset Management in London and doesn't own France Telecom shares. ``Without 11 that, the balance sheet looks very stretched.'' France Telecom's borrowings quadrupled during a European expansion led by former Chief Executive Officer Michel Bon.<br><br> His successor, Thierry Breton, is now more dependent than ever on a share sale backed by the government to raise the 15 billion euros needed to meet debt payments next year, investors said. ``What's important is how they get the debt down,'' said Thierry Girardet, who helps manage about $50 million at Fival SA in Paris, including France Telecom shares. The French government, France Telecom's largest shareholder with a 56 percent stake, has pledged to provide support the company in any way it can.<br><br> One option being considered is the creation of a state-owned company that would sell government bonds to finance its portion of a share sale by the former phone monopoly, the government has said. Government Backing Breton, who was named by the government last month, has said he'll outline a plan to lower debt by early December. Bon quit after the company posted first-half loss of 12.2 billion euros.<br><br> ``Under normal circumstances, losing out on this sale would be meaningful,'' said Joseph Dvirgilio, a credit analyst at Societe Generale in London. ``But given the magnitude of the debt and the assumption that the government is going to provide some capital to bail them out, at the end of the day it's not.'' France Telecom shares have fallen 71 percent this year. The Paris-based company's credit ratings are one level above junk.<br><br> The cancellation comes after talks to sell a stake in European satellite operator Eutelsat SA broke down earlier this year and France Telecom abandoned plans to shed a stake in Italian phone company Wind SpA. France Telecom still plans to sell Casema and has already started discussions with potential acquirers, it said in a faxed statement yesterday. A spokeswoman declined to give more details.<br><br> Falling Prices It's unlikely to find another buyer willing to pay the $751 million Liberty was offering, investors said. German rival Deutsche Telekom AG now expects to raise as much as 2.3 billion euros for its remaining six cable-TV networks, less than half what Liberty offered last year before the sale was blocked by German regulators. French phone rival Vivendi Universal SA, also struggling to reduce its debt, has had to reduce the price on several businesses to complete sales this year.<br><br> ``There are very few other players out there that would have the cash now to be able to buy'' Casema, said Romain Boscher, who helps manage 3 billion euros at Finama Asset Management in Paris. Dutch antitrust regulators said two weeks ago that they were extending their inquiry into Liberty's agreement to buy Casema because of concerns that the deal would hamper competition. Liberty already controls Dutch cable company United Pan- Europe Communications NV.<br><br> The combination of United and Casema would have given Liberty 60 percent of the Dutch cable market, regulators said. KarstadtQuelle KarstadtQuelle Earnings to Drop on Revamp, Travel Dusseldorf, Germany, Nov. 18 (Bloomberg) -- KarstadtQuelle AG, Germany's biggest department-store operator, said 2002 earnings will drop by more than a third, hurt by the cost of store renovations, slumping German demand and lower profit from tourism.<br><br> Profit before tax and goodwill this year will fall to 250 million euros ($253 million) from 382 million euros last year, Chief Executive Officer Wolfgang Urban said. KarstadtQuelle expects earnings next year to remain at the same level as in 2002. The owner of Karstadt department stores and rival Metro AG are trying to reduce the proportion of sales they make in Europe's biggest economy, where unemployment last month approached a four- year high.<br><br> KarstadtQuelle gets 90 percent of sales from Germany, and plans to cut that to 75 percent by expanding the Quelle mail-order business in the U.K., Scandinavia and Central and Eastern Europe. ``The retail industry is still looking bad, especially in the department-store business,'' said Soenke Timm, who helps manage 8 billion euros at Helaba Invest GmbH and sold the stock in May. ``I am cautious on how the German sales will develop.'' Shares of KarstadtQuelle were down 4 cents to 19.8 euros at 11:15 a.m.<br><br> in Frankfurt after earlier touching 18.50 euros. The stock has declined 55 percent this year, while Metro, whose Kaufhof department stores compete with Karstadt, lost 42 percent. Metro reported a 58 percent gain in third-quarter net as it cut costs and boosted sales at its Cash & Carry wholesaling chain and consumer-electronics unit outside Germany.<br><br> Sales to Decline Karstadt expects full-year sales to fall 3 percent. Earnings before tax in the third quarter rose to 54 million euros from 50 million euros. The pretax loss excluding one-time costs and the Thomas Cook tourism business narrowed to 2 million euros from 16 million euros in the year-earlier quarter.<br><br> ``Consumers are still reluctant to spend and are being selective and price-conscious when they do,'' Urban told reporters. KarstadtQuelle aims to increase its stake in the German unit of Home Shopping Europe from the current 10 percent to raise its share in the country's 1.2 billion-euro television shopping market ``in the medium- term'' to 30 percent. German retailers tend to earn more in the second half, which includes the Christmas holiday season, while costs are spread more evenly throughout the year.<br><br> KarstadtQuelle began reporting quarterly earnings under International Accounting Standards this year. Loew 9s Lowe's 3rd-Qtr Net Rises 35% as Sales Increase 18% Wilkesboro, North Carolina, Nov. 18 (Bloomberg) -- Lowe's Cos., the world's No.<br><br> 2 home-improvement retailer, said third- quarter earnings rose 35 percent as the company expands into bigger cities in the Northeast. Net income increased to $339.2 million, or 43 cents a share, from $250.5 million, or 32 cents, a year earlier. Sales increased 18 percent to $6.41 billion in the three months ended Nov.<br><br> 1, Lowe's said in a 12 statement. Lowe's said it opened 18 stores in the quarter. The company is entering higher-profit cities such as Philadelphia and Boston, where larger rival Home Depot Inc.<br><br> dominates. Sales at stores open at least a year rose 4.1 percent, Lowe's said. Shares of the Wilkesboro, North Carolina-based company rose 61 cents to $42.50 Friday in New York Stock Exchange composite trading.<br><br> The stock has fallen 8.4 percent this year, compared with a 44 percent decline for Atlanta-based Home Depot National Century Financial Enterprises National Century Files Chap. 11 Bankruptcy Protection Dublin, Ohio, Nov. 18 (Bloomberg) -- National Century Financial Enterprises Inc., facing lawsuits alleging financial mismanagement over $3 billion of financing it provided to health care companies, filed for Chapter 11 bankruptcy protection.<br><br> Dublin, Ohio-based National Century made the filing in U.S. Bankruptcy court in Columbus, Ohio, according to electronic court documents. The case was assigned to judge Donald Calhoun Jr.<br><br> The bankruptcy is likely to hurt more than 100 health care companies that rely on National Century's financing to meet their everyday expenses, as well as large investors, including Alliance Capital Management, that bought some of the $3.35 billion of bonds sold by the company. ``It is very clear to us that National Century will not viable financing option going forward,'' Eugene Dauchert, general counsel of Durham, North Carolina-based PhyAmerica Physicians Group Inc., said in an interview before the filing. National Century buys medical bills from health-care providers and packages them into so-called asset- backed bonds, which are then sold to investors.<br><br> The bills bought by the company provided its clients with the money needed to meet expenses, including payroll costs. National Century Offices Searched by FBI, More Workers Fired Dublin, Ohio, Nov. 17 (Bloomberg) -- National Century Financial Enterprises Inc.<br><br> offices were searched by FBI agents as the health-care financing company, under investigation after it stopped paying its clients, fired more employees and at least two board members resigned. The Federal Bureau of Investigation served the Dublin, Ohio- based company's remaining employees, and restructuring firm Alvarez & Marsal, hired to assess National Century's finances, with a search warrant for books and records Saturday, said Alvarez & Marsal spokeswoman Rebecca Baker. ``Everyone involved is cooperating fully with the FBI,'' Baker said in a telephone interview.<br><br> James Turgal, a spokesman in the Cincinnati office of the FBI, did not return a call. National Century, which provided funding to more than 100 health-care companies throughout the U.S., stopped doing so after its bonds were downgraded 12 steps to speculative grade, or junk, by Moody's Investors Service, slashing their value and blocking National Century's access to the market. The credit rating downgrade followed the revelation that the company's $325 million reserve created to protect bondholders had been spent.<br><br> Already, at least two clients, deprived of funds, have sought bankruptcy protection. `Higher Shortfalls' In their review of National Century's books over the past few days, Alvarez & Marsal consultants found under-collateralized loans and ``significantly higher shortfalls'' in funding than National Century had previously estimated, Baker said. National Century buys medical bills from health-care providers and sells securities backed by their cash flow, called asset-backed bonds.<br><br> The bills bought by the company provided its clients with the money needed meet expenses, including payroll costs. The company, which provided more than $3.35 billion of financing to health-care companies, now faces lawsuits alleging mismanagement. Its bondholders include Alliance Capital Management and others.<br><br> Baker declined to comment on whether National Century will file for bankruptcy and said ``a company in this situation is looking to explore all of its options.'' PhyAmarica, a National Century client that supplies 1,600 emergency- room doctors 185 hospitals in 29 states, filed for Chapter 11 bankruptcy protection Monday. `High and Dry' ` `National Century abruptly with no notice to anybody stopped funding,'' he said. ``The health-care providers that were funded by National Century were suddenly cut off and left high and dry.<br><br> It is very clear to us that National Century will not be a viable financing option going forward.'' PhyAmerica's filing followed that of Andover, Mass.-based Med Diversified Inc.'s Tender Loving Care Health Services Inc. subsidiary in Lake Success, N.Y., on Monday. On Wednesday, Med Diversified sued J.P.<br><br> Morgan Chase & Co. and Bank One Corp. as trustees of NPF VI and NPF XII, the financing vehicles which sold the bonds, for allowing National Century to allegedly tap the reserves.<br><br> Rx Medical Services Corp., a Ft. Lauderdale, Florida-based operator of diagnostic laboratories, said in a regulatory filing that it also may pursue protection from creditors as it seeks payments from National Century. ``Some clients have been harmed mostly by the failure of National Century to continue buying their receivables,'' said Columbus, Ohio attorney Charles Cooper, who is representing a Columbus doctor suing National Century and 25 to 30 health-care organizations that may file lawsuits against the firm.<br><br> In addition they are restricted from selling the receivables elsewhere because National Century has liens on them, he said. National Century, which once had employed about 326, cut its ranks further Friday down to 102 employees, Baker said. The company fired 111 employees on Nov.<br><br> 7 and 8. Following a Wednesday board meeting at the company's headquarters, ``several board members resigned,'' she said. Two of the board members, whose resignations are effective today, include company founders Donald Ayers and Barbara Poulsen, the wife of former National Century chief executive Lance Poulsen, who was forced to resign on Nov.<br><br> 8. Thomas Mendell and Harold Pote, of J.P. Morgan Chase & Co., are board members, National Century spokesman James Nickell has said.<br><br> 13 Nippon Telegraph & Telephone NTT Returned to Profit in First Half on Cost Cuts Tokyo, Nov. 18 (Bloomberg) -- Nippon Telegraph & Telephone Corp. had a fiscal first-half profit compared with a year-ago loss after Japan's largest phone company cut spending as sales slowed.<br><br> NTT had group net income of 33.2 billion yen ($274 million), or 2,055.01 yen a share, in the six months ended Sept. 30 compared with a loss of 232.1 billion yen, or 14,383.45 yen, a year ago. Sales fell 1.6 percent to 5.37 trillion yen from 5.46 trillion yen.<br><br> NTT, Japan's former government monopoly for domestic phone services, paid 100,000 workers to take lower-paying jobs and cut investment to boost profitability. The company is paring spending as sales at its fixed-line business fall and growth slows in Japan's mobile-phone market. The company's earnings for the April to September period were released for the first time according to new U.S.<br><br> accounting standards. Analysts declined to provide forecasts for the p

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