News You Can Use

ASIA

China May Cut Fuel Oil Imports by 11% in 2007, PetroChina Says China, the world's second-biggest oil user, may cut imports of fuel oil by as much as 11 percent this year because of rising purchasing costs and falling demand from non-state-owned refineries, PetroChina Co. said. Imports may fall to between 25 million and 26 million metric tons this year, compared with 28 million tons in 2006.

Paulson's Push for Stronger Yuan Weakened by China's Global Investing Boom The combination of a trade surplus that reached $27 billion in October and rising foreign investment increased currency reserves ninefold this decade to $1.46 trillion, according to data compiled by the People's Bank of China. The State Administration of Foreign Exchange said yesterday it will triple the amount of money overseas institutions can invest in yuan- denominated stocks and bonds to $30 billion.

Overseas acquisitions by Chinese companies climbed to almost $28 billion this year, compared with $19 billion in all of 2006, according to data compiled by Bloomberg. The government has approved funds to raise the equivalent of $42.2 billion to invest abroad as of Sept. 30, according to central bank data.

Japan Machine Orders Rise at Double Expected Pace on Asian, European Sales Japan's October machinery orders rose at twice the pace economists forecast, signaling companies will increase spending to meet Asian and European demand for chips, cars and electronics.

RATES AND BONDS

Fed's Favored Inflation Measure Says Rates Can't Decline as Traders Expect The gauge dubbed the five-year five-year forward breakeven inflation rate suggests bets on lower Fed funds rates may be too bold. The fact that the rate stayed steady for much of the past two months as pessimism about the economy grew bolsters that view.

UBS Writes Down $10 Billion, to Sell Stake to Singapore, Mideast Investors UBS AG will write down U.S. subprime mortgage investments by $10 billion, the biggest such loss by a European bank, and replenish capital by selling stakes to investors in Singapore and the Middle East.

AGRICULTURE

Soybeans Advance to 34-Year High in Asia; Wheat Gains to Two-Month High Soybeans extended gains to a 34-year high on speculation rising global demand will result in smaller inventories for the oilseed next year than the government has predicted. Wheat rose to a two-month high.

OTHER

Derivative Trades on Exchanges Increased 27% to $681 Trillion Last Quarter Derivatives traded on exchanges surged 27 percent to a record $681 trillion in the third quarter, the biggest increase in three years, the Bank for International Settlements said.

Currency Carry Trades Outperform Stock Markets With Lower Risk, BIS Says Traders that borrow in countries with low interest rates and use the proceeds to buy currencies of countries higher rates tend to outperform major stock markets while offering less risk, according to the Bank for International Settlements.

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