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LONDON (AFP)--U.S. Treasury Secretary Timothy Geithner warned the European Commission that E.U. plans to regulate hedge funds and private equity groups could trigger a transatlantic row, the Financial Times reported Thursday.

Geithner hit out at a draft E.U. directive that would impose tighter restrictions on the investment funds in a letter to the E.U.'s internal market commissioner, Michel Barnier, the paper reported. Proposed new rules might damage U.S.

hedge funds, private equity groups and banks by curbing their ability to do business with Europe, Geithner argued in the one-page letter sent on March 1. The changes would restrict the access of E.U. investors to funds based outside the 27-nation bloc, and non-E.U.

funds would also be forced to comply with new rules in order to do business inside the bloc. The directive could also force E.U.-based investment funds to use local banks for parts of their business, said the report. Other areas that could cause tension include rules on remuneration and rules on borrowing.

European diplomats were to meet Thursday to try to reach agreement on the new proposals before presenting them to E.U. finance ministers on Tuesday, said the paper. The plan would have to be passed by the bloc's lawmakers.

As well causing alarm in the U.S., moves to regulate hedge funds have raised fears in the City of London, which is home to 80% of Europe's financial services funds. (END) Dow Jones Newswires March 10, 2010 22:45 ET (03:45 GMT)

LONDON (AFP)--U.K. police are investigating expenses claimed by a lawmaker, reports said Thursday, as four other parliamentarians face court appearances over a scandal that has rocked the political system. Labour lawmaker Harry Cohen is facing a criminal investigation after claiming about GBP70,000 ($105,000) of a parliamentary housing allowance, the Daily Telegraph and BBC reported.

The disclosure is the latest twist in a political saga that erupted in May, when leaked details of expense claims showed elected members of parliament were using public money to buy everything from flatscreen TVs to massage chairs. The BBC said the investigation of Cohen was at an early stage and prosecutors hadn't yet been consulted on whether charges should be brought. London's Metropolitan Police refused to confirm whether he was being investigated or how many other cases were being looked at.

"A small number of cases remain subject to consideration by the joint Metropolitan Police Service and Crown Prosecution Service assessment panel," said a spokesman. "We have never confirmed or denied any individuals' names." The housing payment--one of the main sources of controversy during the scandal--is meant to cover the cost of lawmakers' keeping a second home. This is distinct from a property the elected members must register as their main home, where they are required to spend the majority of their time.

Cohen, an elected member of the U.K.'s lower chamber the House of Commons, had designated one property, in Colchester, southwestern England, as his main home for several years. However, during part of this time he was found to have been living almost exclusively in the property he had named as his second home, in his London constituency, while renting out the property named as his main home. He has already apologized to lawmakers after being strongly criticized by a parliamentary committee and was stripped of a retirement payment due to be paid when he stands down in the coming election.

The new investigation came ahead of court appearances Thursday by four lawmakers, accused of theft by false accounting over their expenses claims. Three Labour members of the elected House of Commons and one Conservative member of the unelected House of Lords were set to appear at a London court--their first appearances since being charged. They face up to seven years in prison if found guilty.

(END) Dow Jones Newswires March 10, 2010 22:00 ET (03:00 GMT)

SYDNEY (AFP)--Australia joined international condemnation Thursday of Israel's plan to build 1,600 new homes in Jerusalem, saying the move was "not helpful" to building peace with the Palestinians. "I share the view that this is a bad decision at the wrong time, and it's not a helpful contribution to the peace process," Foreign Minister Stephen Smith told Sky News. Israel's interior ministry on Tuesday said it had approved the construction of 1,600 new housing units in Ramat Shlomo, a Jewish settlement in the mainly Arab eastern sector of Jerusalem.

The controversial move has infuriated Palestinians, who consider settlements to be a major hurdle to a peace accord, and who want occupied east Jerusalem as the capital of a future state. "Israel has the right to exist as a state in a context of peace and security, and the Palestinian people have their own state as well, also existing in a context of peace and security," Smith said. "But the starting point for that has to be an effective peace process, and this has not been a helpful contribution to try to get the peace process back on the road." Israel's plans have been condemned by a number of Western countries, including the U.K.

and key ally Washington. (END) Dow Jones Newswires March 10, 2010 21:32 ET (02:32 GMT)

JAKARTA (Dow Jones)--PT Bank Permata (BNLI.JK) has raised IDR700 billion ($76 million) by selling 10-year unsecured subordinated medium-term notes to its shareholder Standard Chartered PLC (STAN.LN). The note, which was priced at par, carries a coupon of 275 basis points over the rate for Bank Indonesia's three-month money market notes, Bank Permata said Thursday. "This issuance further strengthens Permata's balance sheet and gives us even greater flexibility to take advantage of growth opportunities in the Indonesian banking market as they emerge," President Director David Fletcher said in a press release.

Standard Chartered holds a 44.5% stake in Bank Permata, with PT Astra International (ASII.JK) owning 44.5%, and the public the remaining 11%. -By Linda Silaen; Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com (END) Dow Jones Newswires March 10, 2010 19:41 ET (00:41 GMT)

(Updates with foreign secretary making comments; adds background) LONDON (AFP)--The U.K. on Wednesday urged the Afghan government to intensify efforts and find a political solution with the Taliban to bring the conflict there to an end. Speaking in the U.S., Foreign Secretary David Miliband urged Afghan President Hamid Karzai to match international efforts by intensifying a search for a political agreement.

"My argument today is that now is the time for the Afghans to pursue a political settlement with as much vigor and energy as we are pursuing the military and civilian effort," Miliband said. "The political settlement needs to be external as well as internal, involving all of Afghanistan's neighbors." A settlement needed to involve "those parts of the insurgency willing permanently to sever ties with al Qaeda, give up their armed struggle and live within the Afghan constitutional framework," he said. The work of international forces alone wouldn't be enough to secure Afghanistan after more than eight years of war, Miliband told an audience at the Massachusetts Institute of Technology.

"While violence of the most murderous, indiscriminate and terrible kind started this Afghan war, politics will bring it to an end on the back of concerted military and civilian effort," he said. His remarks link into the aims of a peace plan launched by Karzai at a major international conference in London in January, which involves attempts to draw militants back to civilian life with job offers and other incentives. "Some insurgents are committed to al Qaeda's extremist agenda.

There will never be reconciliation with them--they must be beaten back," Miliband said. "But the majority are not. They share conservative Islamic beliefs and, linked to that, strong views about what is a just social order." It emerged at the London meeting that Kai Eide, then-U.N.

Special Representative to Afghanistan, had already met Taliban insurgents in Dubai to explore peace talks. Miliband also called for the foundations of a new national political framework to be laid at a council of Afghan leaders April 29. The number of U.S.

and North Atlantic Treaty Organization personnel is expected to swell to 150,000 later this year, boosted by a U.S. troop surge that Western powers hope will end the grueling conflict. The U.K.

provides the second-largest contingent of servicemen after the U.S., with about 10,000 in the country, and the conflict has so far claimed more than 270 U.K. lives. (END) Dow Jones Newswires March 10, 2010 20:02 ET (01:02 GMT)

LONDON (Dow Jones)--CEA, the federation of European insurers and reinsurers, said Thursday that the capital requirements being drafted under the Europe-wide Solvency II capital regime is excessive and could have negative effects on countries' economies. The CEA, consisting of 33 insurance associations in Europe, said in a report that insurers are concerned that implementing the measures being proposed by the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) "may revert to the dated and simplistic Solvency I approach of adding 'prudence on top of prudence' in the financial requirements they impose." "We believe there is still time to get Solvency II right, and our report is intended to facilitate constructive debate on the detail of Solvency II with Ceiops and the European Commission within the framework set by the Council and the European Parliament," said CEA President Tommy Persson. The CEA said Ceiops and the European Commission should take a "balanced approach" in drafting Solvency II, which is set to be implemented in October 2012.

Citing recent data from J.P. Morgan and Standard & Poor's, the CEA said current Ceiops advice papers would demand up to 65%–75% more capital than a previous industry-wide quantitative impact study. "The cumulative effects of more prudent methodologies for measuring assets and liabilities, more conservative standard capital requirement calibrations and more restrictive treatment of eligible own funds would result in an even higher capital increase of 80%–100%," CEA said.

It said policyholders would be hurt the most because higher capital requirements mean the prices of many life and non-life insurance products would increase. "At the macro-economic level, the report demonstrates that overly prudent capital requirements would restrict the insurance industry's role not only as a risk-absorber but also as an institutional investor financing long-term economic growth. The likely under-funding of pensions would also have serious social costs," it said.

Separately, the U.K.'s Financial Services Authority said Wednesday that insurance companies "could face capital erosion" under current Solvency II proposals, which would impose a significant strengthening of the liability calculation for annuities. The FSA said U.K. insurers should be well prepared and keep themselves up to date on how Solvency II is panning out.

"We expect there will need to be a substantial increase in activity to prepare for Solvency II this year if firms are to be ready in time," it said. Phil Smart, Head of Solvency II at consultancy KPMG said "it is clear that the FSA isn't totally convinced by the activity it has seen to date on Solvency II." "October 2012 is looming and the regulator is worried great swathes of insurers won't be ready," Smart said. -By Vladimir Guevarra, Dow Jones Newswires.

Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com (END) Dow Jones Newswires March 10, 2010 20:00 ET (01:00 GMT)

(Updates with Merck comment in ninth paragaph.) By Jennifer Corbett Dooren Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The Food and Drug Administration said Wednesday it's conducting a safety review of certain bone-building drugs like Fosamax and Boniva to see if they increase the risk of femur fractures. The review involves a class of drugs known as bisphosphonates, which are commonly prescribed to treat osteoporosis and are designed to build bone mass. Drugs in the class include Actonel, marketed by Sanofi Aventis SA (SNY) and Procter & Gamble Co.

(PG), Boniva, marketed by Roche Holding AG (RHHBY) and GlaxoSmithKline PLC (GSK), and Merck & Co.'s (MRK) Fosamax. The agency said it was looking at reports about whether there's an increased risk of atypical subtrochanteric femur fractures--fractures in the bone just below the hip joint--in some patients who have been on the drugs for several years. However, the FDA said, "the data that FDA has reviewed have not shown a clear connection between bisphosphonate use and a risk of atypical subtrochanteric femur fractures.

Two studies presented Wednesday at the American Academy of Orthopaedic Surgeons' annual meeting suggested the drugs might adversely affect bone quality and increase risk of atypical fractures of the femur, or the main bone in the thigh when used for four or more years. The FDA said it had requested information from drug manufacturers in 2008 after seeing case reports about femur fractures occurring in women with osteoporosis using bisphosphonates. "FDA's review of these data did not show an increase in this risk in women using these medications," the agency said in a statement posted to its Web site Wednesday.

The agency also cited a 2008 study that found similar femur fracture rates among women taking bisphosphonates compared to women not taking the drugs. The study found that the femur fractures had many features in common with osteoporotic hip fractures. However, the agency said it would work closely with outside experts, including members of the recently convened American Society of Bone and Mineral Research's Subtrochanteric Femoral Fracture Task Force, to gather additional information.

Merck, which makes Fosamax, said it has not seen any increased fracture risk with the drug at any skeletal site in clinical studies. Fosamax, which is also available as a generic drug, was approved in 1995 and was the first bisphosphonate approved in the U.S. The company said it has several ongoing studies to investigate fracture risks.

The FDA said people currently taking the medications should not stop taking them but said they should talk to their doctors if they develop new hip or thigh pain. The agency asked doctors to report any side effects seen with bisphosphonates to the agency. Bisphosphonates are designed to work by slowing or stopping bone loss by partially blocking the body's natural process that's involved in removing and rebuilding bone tissue.

The drugs have been shown to increase bone mass and stop or slow the progression of osteoporosis. But researchers said Wednesday that while the drugs are effective at increasing the quantity of bone, it's possible they might cause brittle bones over the long-term that are more susceptible to fractures. One study by researchers at Columbia University looked at the bone structure of 111 postmenopausal women with osteoporosis, 61 of whom had been taking bisphosphonates for a minimum of four years and compared it to 50 people taking calcium and vitamin D supplements.

"In the early treatment period, patients using bisphosphonates experienced improvements in all parameters, including decreased buckling ratio and increased cross-sectional area," Melvin Rosenwasser, an orthopaedic surgeon for Columbia University Medical Center, said in a statement. "However, after four years of use, these trends reversed revealing an association between prolonged therapy and declining cortical bone structural integrity." Rosenwasser said the drugs are still very effective at preventing bone loss and the findings from the study shouldn't change treatment practices. He said additional studies are needed.

Another, separate study, by researchers at the Hospital for Special Surgery in New York, looked at bone samples taken from 21 post-menopausal women who were treated for femoral fractures. Of these, 12 patients had a history of bisphosphonate treatment for an average of 8.5 years, while nine women hadn't been treated with the drugs. The study found that patients who had been treated with bisphosphonates had a reduction in bone tissue heterogeneity compared with women who had not received the drugs, which researchers said suggests there might be differences in some bone-quality parameters.

-By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294; jennifer.corbett@dowjones.com (END) Dow Jones Newswires March 10, 2010 19:10 ET (00:10 GMT)

By Michael Aneiro Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Companies are aggressively tapping the debt markets once again, taking advantage of renewed confidence and risk appetite among global bond investors. The corporate bond market has digested an enormous $27.7 billion in new supply so far this week, according to Dealogic, making it the busiest week in a month and on pace to be the busiest since the first week of the year. Borrowers range from highly rated industrials to financial firms on federal support, such as GMAC.

On top of that, an affiliate of Citigroup (C) on Wednesday sold $2 billion of trust preferred securities, a debt-equity hybrid not counted in the bond total. Credit markets, which had pulled back sharply last month, have witnessed a broad rebound in recent days, as macroeconomic concerns--namely the prospect of a Greece debt default--have abated. Risk premiums for corporate bonds, which had risen last month, have fallen again, allowing companies to seize the opportunity to borrow cheaply.

As a result, both the investment-grade and high-yield bond markets are seeing large new deals this week. DirecTV Holdings (DTV) sold $3 billion in bonds, while Novartis Capital (NVS) sold $5 billion in a three-part deal, and Bank of America (BAC) sold $2.5 billion. Foreign borrowers have also taken advantage of lower rates in the U.S., as both the Bank of England and Royal Bank of Scotland (RBS) sold $2 billion five-year notes this week.

Investors' thirst for yield has invigorated the riskier high-yield bond market as well. Besides GMAC, which sold $1.5 billion in new notes on Wednesday, MGM Mirage, a company that teetered on the edge of insolvency last year, on Tuesday sold $845 million of secured notes at a yield of just 9%. "The market has definitely found its footing," said Andrew Feltus, fund manager at Pioneer Investments.

"Once you found good pricing, the market stabilized, fund inflows are there again and deals are flying off the shelf." A raft of more upbeat economic data has helped to spur borrowing. Investors' search for higher returns has boosted demand for corporate debt at a time when Treasury yields remain near historic lows. To be sure, some market watchers are skeptical of the rally.

"I'm a little surprised with the quickness with which risk premiums have narrowed, especially since the jury is still out on the underlying vitality on the U.S. economy," said John Lonski, chief economist at Moody's Investors Service. "Although February payrolls figures exceeded expectations, recent expectations on home sales and motor vehicles have been down, so it's still mixed signals.

The credit market is risking a reversal in the event that forthcoming economic releases disappoint." Still, issuers and investors are busy, not only in the U.S. nor just in the corporate market. The European primary bond market was also busy Wednesday, as sentiment continues to improve there after Greece's well received EUR5 billion 10-year bond offer last week.

Non-financial issuers sold EUR4.2 billion of new bonds Monday and Tuesday, a sum that already exceeds 60% of issuance in the entire month of February. Investors were even willing to buy debt from cash-strapped municipal borrowers like California and Detroit, if the yield is right. Both are expected to pay 5% or more for their deals.

California, besieged by unemployment and the housing collapse, is marketing a $2 billion deal. The first billion opened to retail investors Wednesday received demands for $1.2 billion. Detroit, with steep job losses from the decline of the auto industry, is expected to sell $250 million in bonds to help bridge its budget gap.

Corporate issuance had been on a torrid stretch for nearly a year but sagged last month. Riskier investments like junk bonds, which posted returns of 57.4% amid a remarkable 2009 rally, suddenly began to look overvalued. High-yield bond funds, which had recorded 22 consecutive weeks of inflows, saw investors withdraw $1.9 billion during two weeks in February.

"Equity markets started sliding, risk products weakened and funds got hit by redemptions," Feltus said. "The secondary market got cheaper and it didn't make sense for companies to issue new notes." Several companies postponed planned new offerings in mid-February. But fund inflows rebounded later in the month as prices recovered; smaller deals returned to market, building up to the larger deals that have emerged this week.

And the optimism may feed on itself. "Thinner risk premiums and related jump in issuance follow from an increase in confidence, which may help fulfill expectations of a firmer or fuller economic recovery," Lonski said. The cost of protecting U.S.

corporate debt has also fallen, as key derivatives indices that measure credit default swaps continue to strengthen this week. Risk premiums on European corporate credit-default swaps also tightened sharply Wednesday. Sovereign debt credit default swap risk premiums were also tighter Wednesday, with Greece's five-year CDS closing to 273.5 basis points from 291 basis points Tuesday, according to CMA DataVision.

-By Michael Aneiro; Dow Jones Newswires; (212) 416-2203; michael.aneiro@dowjones.com (Kellie Geressy, Kelly Nolan, Stan Rosenberg, Carol Dean, Ainsley Thomson and Mark Brown also contributed to this report.) (END) Dow Jones Newswires March 10, 2010 17:58 ET (22:58 GMT)

(Updates with additional information from FDA and adds new study data starting in the third paragraph.) By Jennifer Corbett Dooren Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The Food and Drug Administration said Wednesday it's conducting a safety review of certain bone-building drugs like Fosamax and Boniva to see if they increase the risk of femur fractures. The review involves a class of drugs known as bisphosphonates, which are commonly prescribed to treat osteoporosis and are designed to build bone mass. Drugs in the class include Actonel, marketed by Sanofi Aventis SA (SNY) and Procter & Gamble Co.

(PG), Boniva, marketed by Roche Holding AG (RHHBY) and GlaxoSmithKline PLC (GSK), and Merck & Co.'s (MRK) Fosamax. The agency said it was looking at reports about whether there's an increased risk of atypical subtrochanteric femur fractures--fractures in the bone just below the hip joint--in some patients who have been on the drugs for several years. However, the FDA said, "the data that FDA has reviewed have not shown a clear connection between bisphosphonate use and a risk of atypical subtrochanteric femur fractures Two studies presented Wednesday at the American Academy of Orthopaedic Surgeons' annual meeting suggested the drugs might adversely affect bone quality and increase risk of atypical fractures of the femur, or the main bone in the thigh when used for four or more years.

The FDA said it had requested information from drug manufacturers in 2008 after seeing case reports about femur fractures occurring in women with osteoporosis using bisphosphonates. "FDA's review of these data did not show an increase in this risk in women using these medications," the agency said in a statement posted to its Web site Wednesday. The agency also cited a 2008 study that found similar femur fracture rates among women taking bisphosphonates compared to women not taking the drugs.

The study found that the femur fractures had many features in common with osteoporotic hip fractures. However, the agency said it would work closely with outside experts, including members of the recently convened American Society of Bone and Mineral Research's Subtrochanteric Femoral Fracture Task Force, to gather additional information. The FDA said people currently taking the medications should not stop taking them but said they should talk to their doctors if they develop new hip or thigh pain.

The agency asked doctors to report any side effects seen with bisphosphonates to the agency. Bisphosphonates are designed to work by slowing or stopping bone loss by partially blocking the body's natural process that's involved in removing and rebuilding bone tissue. The drugs have been shown to increase bone mass and stop or slow the progression of osteoporosis.

But researchers said Wednesday that while the drugs are effective at increasing the quantity of bone, it's possible they might cause brittle bones over the long-term that are more susceptible to fractures. One study by researchers at Columbia University looked at the bone structure of 111 postmenopausal women with osteoporosis, 61 of whom had been taking bisphosphonates for a minimum of four years and compared it to 50 people taking calcium and vitamin D supplements. "In the early treatment period, patients using bisphosphonates experienced improvements in all parameters, including decreased buckling ratio and increased cross-sectional area," Melvin Rosenwasser, an orthopaedic surgeon for Columbia University Medical Center, said in a statement.

"However, after four years of use, these trends reversed revealing an association between prolonged therapy and declining cortical bone structural integrity." Rosenwasser said the drugs are still very effective at preventing bone loss and the findings from the study shouldn't change treatment practices. He said additional studies are needed. Another, separate study, by researchers at the Hospital for Special Surgery in New York, looked at bone samples taken from 21 post-menopausal women who were treated for femoral fractures.

Of these, 12 patients had a history of bisphosphonate treatment for an average of 8.5 years, while nine women hadn't been treated with the drugs. The study found that patients who had been treated with bisphosphonates had a reduction in bone tissue heterogeneity compared with women who had not received the drugs, which researchers said suggests there might be differences in some bone-quality parameters. -By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294; jennifer.corbett@dowjones.com (END) Dow Jones Newswires March 10, 2010 17:20 ET (22:20 GMT)

LONDON (Dow Jones)--The U.K. opposition Conservative party saw its lead over the governing Labour Party lift to five points in the latest YouGov poll commissioned by The Sun newspaper. The poll, published late Wednesday, showed the Conservatives picking up 37% of support, Labour with 32% and the smaller opposition Liberal Democrats with 17%.

The Conservatives have seen a once double-digit lead slip in recent months ahead of a general election that must be held by June 3. One poll in late February put them just two points ahead of Labour. However in recent days, the Conservatives had seen their poll lead widen again to between four and nine points.

In Tuesday's YouGov/Sun poll, the Conservatives were four points ahead, picking up 36% of support versus Labour's 32% and the Liberal Democrats 20%. Most commentators believe the Conservatives may need as much as a 10-percentage-point national lead at the election to be confident of commanding a parliamentary majority. YouGov is conducting almost daily polls through the election.

-By Laurence Norman, Dow Jones Newswires; 44207 842 9270; laurence.norman@dowjones.com (END) Dow Jones Newswires March 10, 2010 17:07 ET (22:07 GMT)

(END) Dow Jones Newswires March 10, 2010 17:08 ET (22:08 GMT)

By Jennifer Cummings Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--International companies trading in New York closed higher Wednesday as upbeat data on U.S. wholesale inventories helped push up financial stocks. The Bank of New York index rose 0.6% to 134.28.

The European index climbed 0.6% to 123.43, driven by the strength in the financial sector. Insurers were among the gainers, with U.K.-based Prudential PLC (PUK, PRU.LN) up 2.3% at $15.98 and France-based AXA SA (AXA, CS.FR) up 2.1% at $21.93. Among banks, Allied Irish Banks PLC (AIB, ALBK.DB) rose 4.2% to $3.70, and Royal Bank of Scotland Group PLC (RBS, RBS.LN) climbed 2.6% to $12.03.

Tech stocks also gained Wednesday, as Dutch semiconductor equipment maker ASML Holding NV (ASML, ASML.AE) rose 1.3% to $34.49, and Switzerland-based semiconductor company STMicroelectronics NV (STM, STM.MI) gained 1.9% to $9.30. Meanwhile, Kinetic Concepts Inc. (KCI) secured a win Wednesday in its effort to protect its key wound-therapy franchise, which represents the bulk of company sales, after a federal-court jury decided that U.K.-based medical-device company Smith & Nephew PLC (SNN, SN.LN) infringed on two key patents.

Smith & Nephew shares fell 2.2% to $50.88. The Asian index climbed 0.4% to 130.95. Solar stocks traded mostly higher, recovering from a slump earlier in the week.

LDK Solar Co. Ltd. (LDK) climbed 9.8% to $6.97, and Solarfun Power Holdings Co.

(SOLF) rose 4.4% to $6.90. China Southern Airlines Co. (ZNH, 1055.HK, 600029.SH) continued a rally that came on the news of a recapitalization plan resulting in higher book value per share.

Morgan Stanley raised its rating to equalweight from underweight, and Macquarie raised its price target on the stock, saying the operational outlook in 2010 remains positive. Shares gained 8.4% to $22.44. The Latin American index rose 0.7% to 389.81 as the emerging-markets index climbed 0.7% to 312.72.

Telecommunications stocks were mostly higher, including Brazilian companies Brasil Telecom SA (BTM, BRTO4.BR), which was up 6.4% at $22.21, and Tele Norte Leste Participacoes SA (TNE, TNLP4.BR), which gained 5.4% to $18.74. Financial stocks were also strong, including Argentine banks Grupo Financiero Galicia (GGAL, GGAL.BA), up 5% at $5.30, and BBVA Banco Frances SA (BFR, FRAN.BA), up 2.8% at $6.61. Empresas ICA SAB de CV (ICA, ICA.MX) said Wednesday it's restating its 2009 results after slashing its estimated deferred tax liabilities following a review of tax regulations.

Mexico's largest construction and engineering concern said its net profit for the fourth quarter of last year was 0.02 peso a share, compared with a previously reported net loss of 0.89 peso a share. Shares rose 2.9% to $10.12. -Jennifer Cummings, Dow Jones Newswires; 212-416-2474; jennifer.cummings@dowjones.com (END) Dow Jones Newswires March 10, 2010 17:02 ET (22:02 GMT)

(Adds recommended damages, updates with closing stock prices.) By Jon Kamp Of DOW JONES NEWSWIRES Kinetic Concepts Inc. (KCI) secured a win Wednesday in its effort to protect its key wound-therapy franchise, which represents the bulk of company sales, after a federal-court jury decided that Smith & Nephew PLC (SNN) infringed on two key patents. The victory sent Kinetic shares to two-year highs.

It also set the stage for a possible injunction to stop Smith & Nephew from selling in the U.S. while the appeal process plays out. Smith & Nephew said it doesn't plan to leave the U.S.

market and that it will seek to overturn Wednesday's verdict. Still, the jury ruling in the U.S. District Court for the Western District of Texas could soften immediate threats against Kinetic's main business by giving prospective Smith & Nephew customers pause.

"In short, this should prevent a further erosion of the U.S. market" for Kinetic until key patents expire in 2014, JPMorgan analyst Michael Weinstein said. The jury recommended about $1 million in damages, mainly related to lost profits, although the judge in the case will officially decide this later.

Kinetic shares rose 14.3% to close at $49.50. Earlier in the session it crossed $53, for the first time in two years. Investors may have expected a ruling that Kinetic's patents were valid, but not infringed, because that was the outcome from a similar case years earlier.

Kinetic developed the market for so-called negative-pressure wound therapy, which comprised about 70% of the company's $2 billion in sales last year. More than three quarters of those sales came from North America, which is why the U.S. patent trial is so important.

The companies are battling in other countries as well. The patents at issue involve foam dressing used with vacuum-pressure systems used to treat serious wounds. Kinetic licenses its key wound-therapy patents from Wake Forest University.

Kinetic issued a brief statement with comments from Chief Executive Catherine Burzik, who said the trial exemplifies protections for innovators like Wake Forest and Kinetic. The San Antonio-based company said it would seek such an injunction "to prevent further infringement by Smith & Nephew." Smith & Nephew, known for orthopedics, doesn't have a major presence in this wound-treatment market thus far, but would like to take a bigger slice. The company said Wednesday that it is "surprised and disappointed" with the trial outcome.

"We remain firm in our belief that we do not infringe any valid U.S. patents," said Robin Carlstein, senior vice president for Smith & Nephew Advanced Wound Devices, in a statement. The company also noted that the verdict on the validity of Kinetic's patents is only advisory for now, and that the company will continue to pursue its invalidity claims before the court.

Shares of the U.K.-based company declined 2.2% to close at $50.88. In an interview Monday, Smith & Nephew Chief Executive David Illingworth said the company had no intention of leaving the U.S. market, and that there would be an appeal regardless of the verdict.

"We are absolutely committed to these products and the marketplace," Illingworth said. - By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com (END) Dow Jones Newswires March 10, 2010 16:15 ET (21:15 GMT)

By Bradley Davis Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The euro shook off lingering concerns over sovereign debt Wednesday to gain against the dollar and yen after strong Chinese data lent credence to a global recovery gaining traction. A successful sale of a Portuguese government bond also allayed some concerns over debt-strapped nations in the eurozone periphery, helping the common currency march higher. Growth-sensitive currencies were also in demand, with the Australian dollar, which is closely tied to China's voracious appetite for commodities, soaring to a seven-week high against the greenback.

"There's still money on the sidelines that people are waiting to put in," said Brian Kim, currency strategist at UBS in Stamford, Conn. "When there's a bit of an entry point, they'll try to come in slowly," bidding up assets correlated to global growth, even though Kim said currencies remained in tight ranges. Late Wednesday, the euro was at $1.3653 from $1.3601 late Tuesday, according to EBS via CQG.

The dollar was at Y90.56 from Y89.97, while the euro was at Y123.63 from Y122.36. The U.K. pound was at $1.4966 from $1.4989.

The dollar was at CHF1.0704 from CHF1.0753. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 80.451 from 80.580. As a result, Deutsche Bank's PowerShares U.S.

Dollar Index Bearish exchange-traded fund was up 0.04% from late Tuesday, while its PowerShares U.S. Dollar Index Bullish was down 0.17%. The two exchange-traded funds are based on Deutsche Bank currency futures indexes, whose composition mirrors that of ICE's Dollar Index.

The dollar and euro gained strongly against the Japanese yen as the positive Chinese data pointed to the global economy emerging from the doldrums, leading investors away from the safe-haven yen. The greenback soared to its highest level in two weeks against the yen, while the euro posted a more than 1% gain against the Japanese currency. The euro gained further on the sale of a long-dated Portuguese government bonds, with Portugal's Treasury and Government Debt Agency reporting a sale of a more-than-planned EUR990 million of the bond after planning to sell only EUR750 million.

The successful Portuguese bond issue helped allay some fear over the European debt crisis, said Brian Dolan, chief currency strategist at Forex.com in Bedminster, N.J. The gap between yields on 10-year Portuguese benchmark bonds and German bunds--the eurozone standard-bearer--tightened Wednesday, indicating an easing of investor concern. But the euro should remain under pressure, analysts said, as the belt-tightening plans of peripheral nations still need to be implemented.

To see the euro's moves against the dollar, please see: http://dowjoneswebservices.com/chart/view/3612 Overnight, the rally in risk appetite was stoked by the report that Chinese exports in February rose 45.7% from a year earlier, official trade data showed Wednesday, a pickup from January's 21.0% increase. The jump was mainly due to a low comparison base, as exports in February last year fell at their fastest rate during the international financial crisis. Imports, meanwhile, grew 44.7% in February, on a year-on-year basis, the data reported.

Meanwhile, the Reserve Bank of New Zealand late Wednesday in New York trading held its key interest rates at a record low 2.5% and reiterated it would begin to remove monetary stimulus and expects to hike rates in mid-2010. J.P. Morgan analysts interpreted the bank as sending an accommodating tone, "not in any hurry" to increase rates until readings on economic data confirm a robust recovery.

The Swiss National Bank meets Thursday, and is not expected to raise key rates, though investors will be listening closely for any clues on the bank's policy of intervention in currency markets. Traders suspected the SNB intervened Wednesday when Swiss franc briefly dropped against the euro. In line with its usual policy, the SNB would not comment.

The bank is thought to have intervened on a small scale several times this year to stem franc strength. -By Bradley Davis, Dow Jones Newswires; 212-416-2654; bradley.davis@dowjones.com (END) Dow Jones Newswires March 10, 2010 16:12 ET (21:12 GMT)

SYDNEY (Dow Jones)--Chief Executive Michael Fraser says AGL Ltd. (AGK.AU) could join with Royal Dutch Shell PLC (RDSB) in a future liquefied natural gas project in Queensland state if Shell's joint bid with PetroChina (PTR) for Arrow Energy Ltd. (AOE.AU) succeeds, according to a report in Thursday's Australian Financial Review.

The bid has reignited interest in AGL's stake in the Moranbah coal seam gas field, in which Arrow is its joint venture partner. Fraser told the paper he would consider selling AGL's stake in Moranbah if there were an offer from Shell, but would also be likely to accept any offers to sell gas from Moranbah into Shell's LNG facilities. "If [a sale to Shell] was what represented the best outcome then that is what we ultimately would do," he told the paper.

Newspaper Web site: http://www.afr.com -By Sydney bureau; 61-2-8272-4680; djnews.sydney@dowjones.com (END) Dow Jones Newswires March 10, 2010 16:03 ET (21:03 GMT)