Balcanoona

. THE chairman of the retailer David Jones was yesterday on the back foot after a shareholder revolt over the company’s decision to axe its long-standing shareholder discount and replace it with an offer to sign up for rewards through its new credit card. When Coles Myer scrapped its card in 2004 a similar backlash was felt. Robert Savage was also on the defensive over his pay packet and that of the company’s other non-executive directors, with one shareholder asking the board to consider cutting its pay given that the retail industry was struggling and the share price had fallen 48 per cent in the past year. He earned $379,020 in 2007-08. Asked if he believed he was overpaid, Mr Savage said he wasn’t. More than 16 per cent of shareholders also showed their displeasure by voting against a proposal to increase the fee pool for non-executive directors from $1. Mr Savage said he had no misgivings about increasing the pool because good board talent was still hard to find and retain.8 million to $2. The increase comes two years after the last increase.3 million. Mr Savage said the larger fee pool was “like an insurance policy” and might not be used. Mr Savage could not reassure shareholders he would not seek another increase in 2010. “Finding those people who meet those qualifications and experience is a very, very, very difficult task,” he said. “Right now is the most difficult time to recruit good experienced qualified directors that I have ever seen,” he said. And13. And13. He highlighted the fact that many retailers impose a surcharge on customers paying with American Express. One shareholder lamented “management’s decision to get into bed with a low-grade credit card company”, referring to the deal with American Express where cardholders pay a $99 annual fee for a credit card. The shareholder said Amex’s use of junk mail in an attempt to sign up new cardholders would diminish David Jones’s “prestigious reputation”. Mr McInnes later said Amex had agreed that it would ensure that customers could use their cards at about 94 per cent of retailers surrounding David Jones stores without being hit with the fee. About 70 per cent of the customers to have signed up for the new credit card had been existing store cardholders, he said. Mr Savage said the credit card was a “significant source of profit” for the company, while Mr McInnes said the take-up of the credit card was “much better than we expected”. The remaining 30 per cent to have signed up for the credit card did not have a store card. Of these, half had decided to keep their store card as well. It had been whittled down in 2005, when it was 3 per cent and up to 7. The shareholder discount, of 2 per cent off purchases, will end in February and save the company $2 million. This move saved the company $3. This move saved the company $3.5 million. It is a concern to shareholders because the DJs register has a high proportion of retail investors, with more than 65,000 of David Jones’s 76,000 shareholders owning 5000 shares or fewer. Shares in the company have fallen 48 per cent in the past year, less than its discretionary peers at 59 per cent but more than the benchmark ASX 200 index. . Mr Savage said he believed the company would be able to increase its dividend even though sales were falling. “Provided we achieve our targets we have enough headroom to be able to increase the dividend.” The company’s profit is expected to rise between 5 and 10 per cent this year, despite a sharp fall in sales, which could be as much as 7.5 per cent down on last year.

. Interbank dollar funding rates edged up on Friday, revealing anxiety about cash supplies as banks prepare to close their books for the year-end even as many of them used government guarantees to issue debt. US banks’ direct borrowing from the Federal Reserve at the discount window fell in the latest week, but the Federal Reserve’s presence in commercial paper market rose, Fed data showed on Friday. Banks’ overall borrowings from the Fed averaged $US283. 26, versus an average $US296.18 billion per day in the week ended Nov. Banks’ primary credit discount window borrowings averaged $US93.82 billion per day the week before.63 billion per day in the latest week, versus $US91. Primary dealer and other broker dealer borrowings were $US57.55 billion the previous week. 26, versus $US46.89 billion as of Nov. 19.61 billion on Nov. Credit extended to American International Group, Inc. Credit extended to American International Group, Inc. 26.59 billion per day in the week ended Nov.31 billion as of Nov. The Fed’s lending to banks to enable them to purchase asset-backed commercial paper from money market mutual funds was $US53.92 billion on Nov. 26, versus $US61. Proceeds from the US Treasury’s sales of Treasury bills in the Fed’s supplementary financing account, which are helping to fund the Fed’s support of financial institutions, were $US479. 19. 26, versus $US508.05 billion as of Nov. 19. 19. The Fed’s balance sheet liabilities were $US2. . 26 versus $US2.171 trillion on Nov. 19. The Federal Reserve continued to increase its role in the US commercial paper (CP) market with net portfolio holdings of the Fed’s Commercial Paper Funding Facility rising to $US294.09 billion as of Nov. 26 versus $US270.88 billion on Nov. 19, data on Friday showed. Total US commercial paper outstanding rose to $US1.640 trillion in the week ended Nov. 26, up $US26.2 billion from a week earlier. The asset-backed commercial paper segment, which had helped to fuel the erstwhile housing boom that has turned to bust, expanded by $US5.8 billion to a total of $US746.8 billion in the latest week. Unsecured financial issuance rose by $US16.0 billion in the latest week, after rising by $US11.2 billion the previous week. Worst not over yet Reinforcing the view that the worst was not yet over in money markets, European Central Bank President Jean-Claude Trichet said pumping in billions of euros and dollars into the system was still vital, and cutting back the amounts was still not an option. The ECB is one of a string of central banks pumping in massive amounts of cash into markets to prevent banks from running out of money. In Japan, the central bank carried out its biggest daily cash injection since lifting its quantitative easing policy two years ago as credit risks weighed. Markets were also anticipating further interest rate cuts as central banks battle to shore up growth, with the ECB and the Bank of England monetary policy decisions due next Thursday. The US Federal Reserve, which is getting close to the end of its easing cycle, is expected to cut again at its December meeting. London interbank offered rates for three-month dollars rose to 2.21688% from 2.20250% on Thursday. Rates across the other maturities were also a touch higher. The cost of borrowing three-month dollars, euros and sterling relative to expected central bank rates across all three currencies rose, most notably for sterling. “I don’t expect to see any magical reduction in Libor rates,” said Padhraic Garvey, head of investment grade strategy at ING in Amsterdam. “The Fed is probably going to cut again and I don’t think Libor rates will match that cut. I think they will underperform that cut. We are still in as bad a situation now as we were a number of months ago,” he said. Spreads remained elevated despite evidence banks in Britain and in the United States were able to raise more funds under government guarantees. JPMorgan Chase sold $US6 billion of FDIC-backed bonds, Morgan Stanley sold $US5.25 billion and Goldman Sachs sold an inaugural $US5 billion. Even the Federal Reserve’s latest programme – a $US800 billion plan to buy mortgage- and consumer-related securities – has yet to bring down money market risk spreads. The Bank of England said it would offer 20 billion pounds when it holds an auction of three-month sterling funds on Dec. 2. Counterparty risk worries remained very high, against a backdrop of deteriorating economic data though the volatility seen in stock market seemed to be ebbing. The premium for three-month Libor borrowing over market-based expectations of official policy rates across all three currencies as measured by Overnight Index Swaps widened, particularly for sterling. As banks prepare to dress up their balance sheets for year-end accounting purposes they’re keeping as much of that funding as possible on their own books. One measure of that is the latest European Central Bank data that showed that euro zone financial institutions parked 204.998 billion euros in overnight deposits at the ECB as of Nov. 27. Although this was slightly down from the 216.9 billion euros the day before, it still highlights banks’ preference to keep large amounts of cash in the central bank vaults rather than lend out. The amount is still more than a quarter of the 790.503 billion euros the ECB has outstanding in open market operations as nervous banks continue to hoard money rather than lend it on interbank markets in fear that a borrower could become the next casualty of the financial crisis.

. The US dollar was mixed on Friday in quiet trading over the US Thanksgiving holiday weekend. The 15-nation euro slid to $US1.2899 on Wednesday in New York.2708 in late trading on Friday in New York from $US1.2900 in the afternoon. .5412 on Friday from $US1. The British pound rose to $US1.5489 on Thursday in Europe.5350 on Wednesday in New York, but was down slightly from its price of $US1.65 Japanese yen on Friday afternoon from 95. Meanwhile, the US dollar slipped to 95. On Thursday, the dollar was worth 95.73 late Wednesday. Currency markets were quiet on Thursday, with US stock markets closed and a shortage of new economic data, and “there’s little in the way of fundamentals that suggest today will be much different”, said James Hughes, a currency analyst at CMC Markets.31 yen in Europe.2133 Swiss francs on Friday from 1. In other New York trading, the dollar rose to 1.2386 Canadian dollars in late trading from 1.2035 francs late on Wednesday, and gained to 1. Gold for current delivery closed at $US816.2271 on Wednesday. AP .20 per troy ounce on Friday on the New York Mercantile Exchange

. Undercut by tight credit and a weak economy, November US auto sales are expected to have dropped by some 30% from a year earlier, extending a year-long downturn that has pushed Detroit-based automakers to the brink of failure. US automakers, struggling to conserve cash as they battle for survival, are poised to report sales declines of about 35%. Japanese automakers such as Toyota Motor Corp are also certain to have been hit by collapsing demand in the world’s biggest vehicle market. General Motors Corp and Chrysler LLC have both warned it would be difficult to survive without urgent government funding. November sales are due for release on Tuesday, the deadline for US automakers to submit turnaround plans requested by Congress for considering $US25 billion in government loans for the cash-strapped industry. “There’s a bottom somewhere but I’d like to know where it is,” Kondo told in an interview on Friday. Honda Motor Co Executive Vice President Koichi Kondo said US auto demand looked “bad” again in November, adding Honda’s sales decline would be only slightly narrower than the 28% drop posted in October. Analysts expect US light vehicle sales to be down from 28% to 34% in November from a year earlier.5 million and 11. The seasonally adjusted annual rate of sales, a key indicator tracked by analysts and the auto industry, is likely to come in between 10.1-million-units rate recorded in November 2007.5 million vehicles, down from the 16. Analysts said the only modestly encouraging aspect to November sales is likely to be that the annualised sales rate will have come in a bit higher from the 10. The year-to-year decline in November sales would mark the 13th consecutive monthly drop in US auto sales, extending a slump expected to be running at least through 2009.6-million rate for October, bolstered by aggressive discounting by the automakers.6-million rate for October, bolstered by aggressive discounting by the automakers. Nissan began its own zero-percent offer and GM rolled out a “Red Tag” sale with lower vehicle prices and cash-back offers. Toyota extended a zero-financing offer it had launched in October during November. Analysts have said some form of government assistance is more likely than not amid growing concern about the risks to the US economy from failing to prevent a collapse of one of the Detroit automakers. All eyes on bailout The November sales data will be watched in Washington, where US lawmakers are scheduled to reconvene to review the restructuring plans submitted by the US automakers and consider their request for a $US25 billion rescue package. High gas prices and a weak housing market weighed on US auto sales earlier in 2008, but the plunge in consumer confidence to near record lows in the wake of the credit market turmoil has pushed out expectations for a recovery to 2010 and beyond. On the other hand, the high-profile debate about the risk of a bankruptcy by GM or Chrysler could have hurt their sales in November, JPMorgan analyst Himanshu Patel said.3 million units in 2008 – the lowest level in 15 years – and 12. Standard & Poor’s expects US light vehicle sales of 13.1 million in 2007.3 million units in 2009, down from 16. He forecast an annualized sales rate of 10. He forecast an annualized sales rate of 10.5 million units for November. Lache expects GM sales to be down 42% from a year ago, Ford sales down 33% and Chrysler off 45%. . Dealer inventories at the end of October topped 100 days of supply for the first time, based upon October’s low selling rate, led by GM’s inventory totaling 125 days of supply. “I tend to look at October as abnormally low,” said Robert Schnorbus, chief economist at industry-tracking firm J.D. Power & Associates. November sales will likely show a marginal improvement from October because of the incentives on offer across the industry, he said. “I think we will see the relentless declines stop. Even if we don’t get a bounce-back, there will be some relief the market has not gone below 10 million units,” Schnorbus said.

. Coca-Cola’s growth will slow in Europe in the short term due to the economic crisis but the drinks company expects to remain the market leader as rivals also suffer, its Europe chief said on Friday. Dominique Reiniche, president of Coca-Cola’s European operations, told in an interview she did not expect the company to cut prices even though consumers felt the pinch from the worst financial meltdown in 80 years. Last month, Coke came out on top against PepsiCo Inc in the so-called cola wars, posting a better-than-expected 14% rise in quarterly profit as its main competitor cut its 2008 forecast. Europe is growing and we have some momentum, but we may suffer some slowdown like many others . “The crisis will affect our growth rate… it will certainly moderate our growth,” Reiniche said. We will feel the impact, but we will continue to win market share. “I think we are part of the real world and if the world is slowing down, then our growth will slow down. In a way we need this sparkle in a crisis to get some optimism and I think in the long term we will continue to sparkle,” she added. “Coke stands for optimism, a little sparkle every day. “The crisis will affect the overall growth rate and affect the whole industry,” she said. Reiniche said the food and drinks industry as a whole had “enough resilience” to cope with the economic downturn. “I think in these times of very rough seas, rough weather, our industry has the right fundamentals to weather the storm. “I think in these times of very rough seas, rough weather, our industry has the right fundamentals to weather the storm. Pepsi blamed its poor results on the fact people were drinking more water from the kitchen tap to save money, a point with which Reiniche agreed.” Real economy A day after Coke posted positive revenues, Pepsi announced a poor profit and cut its full-year forecast, as the credit crunch creeps in to the real economy. “It is an alternative and is part of the choice, but we need to make sure we offer the right commercial beverages that people can afford. “When you are short of money sometimes, you get back to tap water,” she said.” However, Reiniche said she did not expect Coke to reduce its prices despite consumers eating out less and making fewer trips to supermarkets. If we do this, we will win in the marketplace. But I wouldn’t say we will reduce prices,” she said. “Affordability may change and we have to make sure we must remain affordable. We must vary promotions and offer some more value offers. “We are working on promotional products, offering more choice in bundle packs.”

. Seizing The Wall Street Journal for his News Corp media empire would be an audacious master stroke for Rupert Murdoch – unless he tops it by trying to buy The New York Times Co. .” The book, which Random House’s Doubleday unit will release on Dec. “He really contemplates how he can get The New York Times,” said Wolff, author of “The Man Who Owns the News: Inside the Secret World of Rupert Murdoch. “I’ve watched him go through the numbers, plot out a Times merger with the Journal’s backroom operations and fantasise about the staff quitting en masse,” Wolff wrote. 2, features Murdoch playing with the the idea of how he would run the Times Co. In an excerpt from the book published in Vanity Fair earlier this year, Wolff raised the idea of buying the paper instead. Murdoch has said that he wants to use the Journal to compete with the Times. Murdoch took a similar tack when he offered a 65% premium to Dow Jones shareholders in 2007, prying it from the Bancroft family. “Certainly as the (Times) share price falls and pressure on the company becomes greater, there’s a certain softness which he can begin to mold,” Wolff told . Several obstacles block the path. He doubts that Murdoch approached the Times, but Murdoch would try to beat other offers that arise first. Also, U. The Ochs-Sulzberger family controls the Times Co and despite a recent slashing of the dividend and a tanking stock price, wants the paper to stay independent. government rules also could prevent him from buying another big paper in the same market where he already owns broadcasting and other print properties.S.6 billion purchase of Dow Jones, a deal that would have been much cheaper had he waited a few months more. He also could face the wrath of investors already upset over the $US5. Wolff said Murdoch cares little about what investors think. News Corp stock has dropped 60% since then and Murdoch has warned investors that advertising declines would result in lower operating income in the 2009 fiscal year.. Rather, he acts on impulse or in the case of the MySpace online social network, “somebody convinced him there was value here and. someone else wanted it, in this case Viacom .. .

. The global financial crisis took a fresh toll on economies from Asia to Europe on Friday, with Japan and India suffering setbacks and Sweden the latest European nation to fall into recession. Japan slipped deeper into recession with factory output tumbling 3.1 per cent and consumer spending dropping 3. The figures were “stunningly bad,” said Societe Generale’s chief Asia economist, Glenn Maguire.8 per cent in October, official data showed. Rising economic powerhouse India, struggling with extremist attacks in the financial capital Mumbai, said its economic growth slowed to 7. “Japan’s industrial activity is set to worsen in the near-term, perhaps by an unprecedented degree, as exports to the US have plunged over the past year,” he warned.6 per cent in the third quarter of 2008 from 7. While still a respectable performance at a time when many developed economies are in recession, the slowdown in India highlighted the extent to which the US-born financial crisis has spread around the world.9 per cent in the second. The global economic crisis has prompted investors to pull their cash out of developing economies such as Russia that are still seen harbouring risk, and to transfer it to more established havens. The Russian central bank raised its key refinancing interest rate again to 13 per cent from 12 per cent on Friday to “lower the level of capital outflows and contain inflationary tendencies”.3 per cent in October in a sign that the export-driven economy was slowing faster than expected. There was also bad news from South Korea, where industrial production fell 2. Some analysts see little prospect of a recovery in the current climate of fear and gloom over the global economy. Some analysts see little prospect of a recovery in the current climate of fear and gloom over the global economy.17 per cent. In a shortened session after Thursday’s Thanksgiving Day holiday, the Dow Jones Industrial Average closed up 1.23 per cent and the Standard & Poor’s 500 broad-market index rose 0. The Nasdaq composite rose 0. Al Goldman at Wachovia Securities said the market was testing whether selling pressures had been exhausted and if the rally can hold.96 per cent. “If the stock market can show cumulative buying despite bad data, the market would be saying it has discounted the economic and credit market problems. “We believe the economic news will remain very negative well into 2009,” he said.46 per cent.” European stock exchanges limped ahead, with the London FTSE 100 index gaining 1.38 per cent while in Frankfurt the Dax rose 0.38 per cent while in Frankfurt the Dax rose 0.09 per cent. The region continued to feel the fallout from the financial crisis. Britain’s Royal Bank of Scotland said the government would end up with a 57. . RBS said ordinary shareholders had agreed to take up only 0.24 per cent of the share issue, with the government then taking up the balance, as provided for in its recapitalisation plan for the British banking system. Sweden fell into recession in the third quarter after its economy contracted 0.1 per cent for two successive quarters, the national statistics agency (SCB) said. Sweden joins Ireland, Italy and Germany as European Union members now in recession. In Hungary, Japanese car manufacturer Suzuki said it would lay off 1,200 people at a plant near Budapest. Taiwanese electronics company Foxconn said it would lay off 1,500 workers at two Hungarian plants, the MTI news agency said. Italy’s government said it had adopted measures including tax credits to help families and companies cope with recession. One news report valued the aid at 4 billion euros ($A7.85 billion). In Spain, the collapse of the once-booming property sector, which has dragged Europe’s fifth-largest economy to the brink of recession, continued. Major developer Habitat filed for creditor protection and its rival, Colonial, said it risked doing the same. With developed nations focused on efforts to boost their own recession-hit economies, the World Bank urged donors not to abandon poor countries hit by the financial crisis. Developing countries “find themselves at the mercy of a crisis not of their making”, World Bank president Robert Zoellick said ahead of a UN development conference this weekend.

. Iran, Kuwait and Qatar’s oil ministers said on Friday OPEC was likely to delay a decision on whether to cut crude production until next month’s meeting in Algeria. “Here we will prepare some data and maybe the final decision will be in Algeria,” Iran’s Gholam Hossein Nozari told reporters on his arrival in the Egyptian capital ahead of an OPEC meeting on Saturday. Qatar’s Abdullah al-Attiyah also said a decision to cut production to shore up prices which have slumped to about $US50 a barrel “will likely be taken in Algeria..” “We have to discuss the statistics . We will go to Oran (Algeria).. We are here to talk,” Attiyah said. Kuwait’s Mohammad al-Olaim said he believes OPEC ministers will need to review more information before they make a decision on production. OPEC ministers are holding consultations in Cairo at the weekend before meeting in Algeria on December 17. “The situation clearly says a decision (to cut) should be taken. “We still need to see more information on the market which won’t be available for another 10 days to two weeks,” Olaim told reporters. I think any decision could be taken in Algeria. .” The ministers said the market was oversupplied and inventories very high.” The ministers said the market was oversupplied and inventories very high… Nozari declined to be drawn into the size of the production cut although Iran has been pushing for a reduction of between one million and 1. the highest average in the past five years,” Attiyah said. “We think about to balance the market – demand and supply,” Nozari said when asked about the size of the cut OPEC should decide.5 million barrels per day.5 million bpd but the market has continued to slump. Only the previous month, ministers agreed at a meeting in Vienna to reduce production by 1. . Oil prices have declined by around two-thirds since peaking at more than $US147 a barrel in July

. Germany’s second biggest bank, Commerzbank, said on Friday it will take over No.3 Dresdner Bank sooner than expected and for nearly half the original price, calming investors who feared the deal might fall through. As it buys a remaining 40 per cent stake in Dresdner from insurance giant Allianz, Commerzbank will finalise the takeover in January instead of the second half of 2009, and cut the deal’s price nearly by half. Commerzbank already owns 60 per cent of Dresdner and will pay 1. “Commerzbank will achieve 100 per cent of Dresdner Bank a lot earlier than originally assumed,” it said.75 billion) for the remainder.4 billion euros ($A2. The bank said the total price for Dresdner would come to 5.792 billion ($A19.124 billion euros ($A10 billion), about 48 per cent less than the original price tag of 9. “We are accelerating the transaction and thus speeding up the integration process,” Commerzbank chairman Martin Blessing said.2 billion).” An Allianz statement quoted chief executive Michael Diekmann as saying: “Given the current situation in the financial markets, an accelerated takeover of Dresdner Bank by Commerzbank is advantageous for all parties involved. IHS Global Insight senior economist Timo Klein told AFP the market had been expecting a move, but added: “I would not have guessed that it would be such a dramatic difference in price. Klein said nailing down a deal gave Commerzbank “planning certainty which in these times of so much uncertainty is a value in its own right,” and added: “This of course applies also to Dresdner Bank and Allianz. Klein said nailing down a deal gave Commerzbank “planning certainty which in these times of so much uncertainty is a value in its own right,” and added: “This of course applies also to Dresdner Bank and Allianz.4 per cent in Commerzbank, but will also be forced to devalue assets by an additional 600 million euros ($A1.” Allianz will own a stake of 18. Investors welcomed the deal, and shares in Commerzbank gained 4.2 billion) in the fourth quarter of 2008, a spokesperson told AFP.195 euros on Friday in afternoon Frankfurt trading while the DAX index of German blue chips was down by 1. . Allianz shares had climbed by 5.12 per cent overall.20 euros.67 per cent to 63. It asked the government this month for 8. It asked the government this month for 8.2 billion euros ($A16.1 billion) from a banking sector rescue fund. A bank spokesperson told AFP the money would be used to reinforce its capital base and not to buy Dresdner. The takeover reinforces Commerzbank’s position as the second biggest German bank behind Deutsche Bank, with around 11 million private clients.

. US and European stock markets posted modest gains on Friday, after advances in Asia, with strong showings in the banking centre and despite unease after the deadly attacks in Mumbai. On Wall Street the Dow Jones Industrial Average overcame initial losses at the start of a shortened session after Thursday’s Thanksgiving Day holiday and was up 1.10 per cent at 8,822. The tech-heavy Nasdaq had shed 0.75 at the closing bell.29.05 per cent to finish at 1,531. Andrew Busch at BMO Capital Markets said the attacks in Mumbai had underscored the fragile geopolitical situation. “The markets appear to be saying that they are worried, but not excessively so. “While the loss of life in Mumbai is horrific, the financial markets are reacting by selling risk and this is manifested in selling equities and buying US dollars,” Busch said.” Mumbai itself ended 0. The Mumbai developments add to the reasons to be negative for the stock markets. Much of the attention on Wall Street focused on the retail sector, with Americans kicking off the critical holiday shopping season.73 per cent higher as investors ignored the coordinated attack by gunmen across the Indian metropolis that had forced India’s biggest stock market to shut on Thursday. In London the FTSE 100 index finished 1. . The index was up 13.01 points, ending one of its best weekly showings ever. In Paris the CAC 40 added 0.41 per cent on the week, a performance not seen since its creation in the 1980s.68, capping its strongest weekly showing – 13.38 per cent on Friday to finish at 3,262. In Frankfurt the Dax was less robust, rising just 0.24 per cent – since its creation in 1987.44 points.09 per cent on Friday to 4,669. The US government at the start of the week announced a $US20-billion ($A30 billion) bailout for Citigroup, along with $US306 billion ($A465 billion) in loan guarantees. The US government at the start of the week announced a $US20-billion ($A30 billion) bailout for Citigroup, along with $US306 billion ($A465 billion) in loan guarantees. The Treasury Department later said it would make $US800 billion ($A1.22 trillion) available to the financial system to get credit flowing again. European banking issues got a boost on Friday after the British government said it would become a majority owner of the Royal Bank of Scotland under a sweeping recapitalisation of the crippled bank that will hand the state a 58-per cent stake. RBS gained 0.55 per cent on the news, with Standard Chartered rising 10.12 per cent and Schroders 6.14 per cent. In Frankfurt Commerzbank added 4.87 per cent and Allianz 9.03 per cent. Commerzbank, Germany’s No.2 lender, is to take over No.3 Dresdner Bank sooner than expected and for close toly half the original price. Elsewhere in Europe there were gains of 0.28 per cent in Amsterdam, 0.51 per cent in Brussels, 0.83 per cent in Milan, 0.69 per cent in Madrid and 3.12 per cent on the Swiss Market Index. Earlier in Asia, Tokyo closed up 1.66 per cent, Hong Kong won 2.5 per cent, Seoul gained 1.2 per cent and Sydney jumped by 4.3 per cent. Shanghai however closed down 2.44 per cent as investors collected profits on property and financial stocks after massive cuts to Chinese interest rates had triggered a rally in the previous session, dealers said.