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 European stocks retreated from a five-month high as US home sales rose less than forecast, adding to concern that gains in equities have outpaced the outlook for economic growth.
Saint-Gobain, Europe's largest building-materials supplier, led construction shares lower, falling 2%. BP Plc paced losses in oil and gas shares. National Bank of Greece rose for an eighth day as talks between Greek officials and private creditors entered a third day.
The benchmark Stoxx Europe 600 Index slipped 0.3% to 255.85 at the close of trading, having earlier fallen as much as 0.6%. The gauge has still advanced 4.6% in 2012, the best start to a year since 1997.
The Stoxx 600 rose 2.7% this week, a fifth straight advance, amid signs the US economy is recovering, Europe will contain its debt crisis and speculation that China will ease lending curbs to spur economic growth.
National benchmark indexes fell in 12 of the 18 western European markets Friday. France's CAC 40, the UK's FTSE 100 and Germany's DAX Index all slid 0.2%. Greece's ASE rallied 2.7% to a two-month high.
GERMANY
German stocks retreated, with the benchmark DAX Index trimming its fifth weekly advance, as Bayer and Deutsche Telekom dropped and US home sales rose less than economists had forecast.
Bayer and Deutsche Telekom decreased more than 1% as analysts downgraded the stocks. Commerzbank, Germany's second-biggest lender, jumped 6.3%, leading rising shares.
The DAX slipped 11.87, or 0.2%, to 6,404.39 at the close in Frankfurt, its first drop this week. The gauge posted a 4.3% weekly rally as Spain and France sold bonds at lower yields and a report showed that fewer Americans than predicted had filed claims for jobless benefits. The broader HDAX Index also dropped 0.2% Friday.
Bayer declined 1.3% to 53.52 Euros as Germany's largest drugmaker was downgraded to "neutral" from "buy" at Nomura Holdings Inc.
Deutsche Telekom lost 1.4% to 8.82 Euros as the phone company was cut to "hold" from "add" at Commerzbank.
RWE, Germany's second-largest utility, slid 2.6% to 26.94 Euros. Profit margins at coal-fired plants in Germany may slide as much as 15% as more renewable energy and fossil-fuel plants boost capacity in Europe's biggest market this year and next, Societe Generale SA said.
Commerzbank jumped 6.3% to 1.72 Euros, extending Thursday's 15% gain. The lender Thursday said it had reached more than halfway to its goal of raising capital and can find all the remaining money without asking for state aid.
Lenders have until the end of Friday to tell national regulators how they plan to meet their capital targets. The European Banking Authority, the agency that drew up the rules, will discuss the findings at meetings with supervisors in London on 8-9 February, it said.
Germany's Commerzbank said Thursday it has found a way to increase its capital cushions, as required by regulators to protect against possible losses from the Eurozone debt crisis, without taking more state aid.
The bank said it would plug a €5.3 billion ($6.8 billion) capital shortfall identified by the European Banking Authority by "relying on its own strength." The German government already owns 25% of the bank after a previous bailout.
Commerzbank said it will raise €6.3 billion in capital by holding back cash from its quarterly earnings and cutting back on risky investments. The bank has until June 30 to find the additional financial padding.
Commerzbank's capital needs had been a point of concern in a banking system shaken by Europe's crisis over too much government debt in some countries. The EBA is pushing banks across Europe to raise €115 billion ($147.56 billion) in new capital by June 30 to strengthen the banking system. The crisis affects banks because they hold large amounts of government bonds, whose prices have been affected by fears of default.
European officials are trying to prevent losses from the crisis from making banks cut off loans to businesses. That could hurt the economy and deepen what is expected to be at least a mild Eurozone recession.
Commerzbank said it had already found €3.0 billion of the required capital by the end of last year by setting aside €1.2 billion in fourth-quarter profits and by cutting its risky loans, securities holdings and other investments by €1.6 billion. Reducing loans and investments - so-called risk weighted assets - reduces the amount of capital needed to backstop against any potential losses on those investments.
It added it would find the rest by the deadline using similar methods, saying that it would also save up to €250 million by compensating some employees in stock instead of cash, depending on how many employees participate.
Commerzbank needed state aid in the wake of the financial crisis that followed the collapse of US investment bank Lehman Brothers in 2008. It has since been buffeted by Greece's financial difficulties; it wrote down €798 million in Greek bonds in the third quarter, saying it had taken a loss of 52% on its holdings.
Banks are increasing their capital in a tough environment. It is difficult to raise money from investors by issuing shares due to fears about the banking system. At the same time the EBA is pressing banks not to find the money by cutting back on loans to businesses.
Commerzbank cautioned that its plans to meet the capital requirement depended on there being no further deterioration of the economy and, in particular, no further escalation of the government debt crisis. It said that it still has other options if need be, including issuing equity capital instruments.
The bank said that it hoped to have capital buffers of 11% against its loans, investments and other securities holdings by June 30. The requirement is to have 9%, though that also includes the financial impact of a simulated partial debt default by a country.
Germany sold two-year treasury notes at record low yield in an auction on Wednesday as credit rating downgrades of other Eurozone nations and concerns over a Greek default increased demand for the safe-haven debt.
The country raised Eur 3.439 billion from the auction which had a target of Eur 4 billion, the Bundesbank said. The sale attracted bids totaling Eur 7.586 billion.
The yield on the December 2013 paper fell to 0.17% from 0.29% in an auction on December 14. Demand was 2.2 times the offer, up from 1.4 in the previous auction.
The German government on Wednesday downgraded its 2012 growth outlook as sovereign debt crisis is likely to dampen demand from Eurozone economies.
The largest Eurozone economy is expected to grow only 0.7% this year, down from the prior estimate of 1%, the Berlin-based Economy Ministry said in its annual economic report. The growth momentum will be underpinned by private spending.
The ministry projects export growth to ease sharply to 2% from 8.2% in 2011. At the same time, annual growth in imports is seen falling to 3% from 7.2% last year.
The RWI institute projects 0.6% growth in 2012, in line with the central bank estimate. The largest Eurozone economy expanded only 0.5% in the third quarter of 2011.
Wednesday, the ministry said the jobless rate will be 6.8% in 2012, down from 7.1% in 2011.
FRANCE
In Paris the CAC40 slipped 0.2%, to close at 3321.50.
Société Générale rose 4.5%
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France's growth outlook for 2012 is looking grimmer than ever, a Reuters poll showed, making the government's deficit-cutting goal harder to reach and piling pressure on President Nicolas Sarkozy just weeks before a re-election battle.
A poll of some 20 economists, conducted over the past week, showed France probably entered a mild recession in the fourth quarter of 2011, contracting by 0.2% between October and December, then by 0.1% in the first months of 2012.
The downturn will be short-lived, the poll showed, with gross domestic product expanding again in the second quarter.
But the recovery will be lacklustre, with the economy eking out just 0.1% growth for the full year, well below a previous forecast of 1.0% in a poll conducted in October.
The government is also forecasting growth of 1.0%, and its target of cutting the deficit to 4.5% of GDP this year is based on that prediction.
Sarkozy's conservative government will determine early next month whether to revise its growth forecast when a budget update is reviewed, a source said on Wednesday.
France raised Eur 8.59 billion on Monday at the first debt sale the country held after rating agency Standard & Poor's downgraded its triple A credit rating late last week.
The debt management agency Agence France Tresor placed Eur 4.503 billion of 12-week fixed-rate short-term discount Treasury bills or BTFs at an average yield of 0.165%, up from 0.023% at the previous sale on January 3.
The agency also sold Eur 2.192 billion of 25-week T-bills at an average yield of 0.281%, up from 0.034% in the previous auction on December 19.
The country also sold Eur 1.895 billion of 51-weeks paper at an average yield of 0.406%, slightly less than 0.454% paid in the previous sale.
Rating agency S&P downgraded France and eight other Euro area countries on Friday of last week. The rating action was a severe blow to President Nicolas Sarkozy's efforts to keep the debt crisis at bay as France prepares for Presidential elections this Spring.
France Telecom is in advanced talks to sell its 35% stake in Orange Austria to Hong Kong-based conglomerate Hutchison Whampoa, according to media reports on Monday.
The deal may value the whole of Orange Austria at 1.4 billion Euros, or $1.78 billion, and is part of France Telecom's strategy to reduce its footprint in Europe in order to cut down on costs. Orange Austria is owned by France Telecom and private equity firm Mid-Europa Partners.
According to media reports, the sale of the Austrian mobile company would probably include spectrum, some infrastructure, and the prepaid business, which operates under the brand 'Yesss!.
Orange Austria is the third-largest mobile business in Austria, with around 20% of the market. In 2010, the group recorded revenue of 578 million Euros and net loss of 9 million Euros.
France Telecom's Chief Executive Officer Stephane Richard has said that he plans to focus on bolstering the company's presence in emerging markets, especially in Africa and the Middle East, and exit slower growing European markets.
France Telecom, in late December, agreed to sell its Swiss mobile subsidiary, Orange Communication S.A, to private equity group Apax Partners for 1.6 billion Euros.
In late October, France Telecom said that its revenues for the third quarter, excluding the impact of regulatory measures, declined 0.5% from last year, reflecting lower mobile device sales.
BELGIUM
The Bel 20 in Brussels ended the week at 2,199.08, up 0.11%.
Consumer sentiment in Belgium declined in January to its lowest level since mid-2009, data released by the National Bank of Belgium revealed Thursday.
The consumer confidence indicator fell to -16 from -12 in December, when it climbed from November's -14. The latest reading is the lowest since July 2009, the bank said.
Expectations regarding the domestic economy deteriorated, following a strong improvement in the previous month. The corresponding indicator tumbled to -22 from -10.
The index reflecting expectations on unemployment rose to 34 from 31, indicating a deterioration in the assessment. The view on the financial situation of households was stable, with the score remaining unchanged at -5.
Belgians were also less upbeat regarding savings and the relevant index fell to -4 from -1.
Belgium sold Eur 2.96 billion of treasury bills on Tuesday and the country's one-year borrowing costs declined.
The Belgian Debt Agency planned to raise Eur 3 billion from the sale.
The agency sold Eur 1.76 billion of 3-month bills at yield of 0.429%, up from 0.264% paid in the previous sale on January 3. The bid-to-cover ratio, however, improved to 2.24 from 2.13.
The country placed Eur 1.2 billion of its 12-month T-bills at a yield of 1.162%, down from 2.167% in an auction in December. Demand was 2.06 times the offer, less than the 2.21 in the previous sale.
THE NETHERLANDS
In Amsterdam the AEX headed into the weekend on 320.31, a drop of 0.05% on the day.
Bulgarians and Romanians are ready to work for very low wages in Belgium, thus undercutting the local labour market, according to Belgian State Secretary for Repression of Fiscal and Social Fraud John Crombez.
Crombez's first task at his new office will be to cope with the problem that employees from the two EU newcomers are posing, according to local media.
Currently, some 5343 Bulgarians are living in Belgium, compared with just 892 in 2007, when the country joined the European Union. The number of Romanians residing in Belgium has grown from 5193 to 23 204 over the last five years.
Bulgarians and Romanians working in Belgium are most frequently employed in the fields of construction, agriculture and healthcare.
Crombez considers tightening the control when it comes to companies hiring foreign workers, Belgian newspapers have reported.
Belgium is among European Union member states that officially prolonged the temporary ban on Bulgarian and Romanian workers for two more years, until the beginning of 2014.
SWITZERLAND
Zurich's SMI drew a line under the trading week at 6,122.67, down 1.16% for the Friday session.
Switzerland is considering new legislation to ease banking secrecy in a bid to fight money laundering, the police and justice department said on Wednesday.
The Federal Council wants to amend the the law on money laundering to allow authorities to send "specific financial information such as bank account numbers, information on transactions and capital or account balances," to foreign partners, the department said in a statement.
This will help in "the fight against money laundering and the financing of terrorism" and "strengthen the integrity of Switzerland as a financial centre," it said.
The draft law aims to extend the powers of the Money Laundering Reporting Office of Switzerland (MROS) so it can demand information from third-party intermediaries after a suspicious transaction has been carried out.
Bern on Wednesday approved the draft amendment bill to be submitted for consultation by April 20 this year. In the interim period, cantons and political parties are to establish their positions on the subject.
The MROS has not been able to provide foreign partners with financial information such as bank account numbers because such information is covered by provisions on "banking secrecy or official secrecy," the Swiss department said.
This has had a negative impact on Switzerland, officials said, since many countries apply the principle of reciprocity and thus do not provide any financial information to the MROS.
In addition, since July 2011, the Egmont Groupt, representing 127 financial intelligence units, has threatened to suspend Switzerland because it is the only member that does not share information with partner authorities.
"Such a suspension could damage the reputation of Switzerland as a financial centre," say Swiss authorities who want to "dismantle the obstacle of secrecy in executing administrative assistance."
Overnight stays in Switzerland's accommodation facilities decreased modestly in November, preliminary data released by the Federal Statistical Office showed Monday.
Visitor overnight stays in Switzerland's hotels decreased 0.2% year-on-year to around 1.8 million in November.
Stays by international visitors dropped 2% annually, while overnight stays by domestic visitors increased 2% during the month.
In the January-December period, overnight stays declined 2% from the corresponding period last year to around 33.1 million. Stays by foreign visitors and domestic visitors decreased 3.3% and 0.2% respectively during the period.
Switzerland's producer and import price index decreased from last year in December, data released by the Federal Statistical Office showed Monday.
The producer and import price index decreased 2.3% on an annual basis in December. The domestic producer price index dropped 2.2% year-on-year, while import prices fell by 2.6%.
Month-on-month, the import and producer price index moved up 0.3% in December, with domestic producer prices rising 0.2% and import prices growing 0.5%.
In the year 2011, the producer price index dropped 0.9% from last year. Domestic producer prices fell 1.1% and import prices dropped 0.5% during the year.
AUSTRIA
The ATX in Vienna rounded out the week on 2,019.73, up 0.94%.
Austria avoided an expected economic downturn late last year and remains healthy, Finance Minister Maria Fekter told parliament on Thursday.
The economy expanded 0.3% in the third quarter versus the second quarter. The flash estimate for the final 3 months of the year is due on Feb 15.
"The Wifo (research institute) forecast for things to go downhill in the fourth quarter and third quarter of last year didn't happen. That means our economy is healthy and well under way, and I am confident that this will also be the case in 2012," she said.
The government uses Wifo forecasts to help set economic policy. Wifo expects the export-driven Austrian economy to eke out 0.4% growth this year after expanding 3.2% in 2011.
Fekter said her conservative People's Party and its Social Democrat coalition partners were still working on a package to improve state finances, a goal reinforced by Standard & Poor's decision to cut Austria's debt rating by one notch to AA+.
Telekom Austria was cut one level Friday by Moody's Investors Service after the company's weak operating performance strained the former phone monopoly's finances.
The operator was cut a notch, to Baa1 from A3, on the "expectation that Telekom Austria's operating performance will remain weak," Moody's said in a statement. The investment-grade rating is three levels above junk credit. The outlook is stable.
The Austrian government's 28.4% stake in the operator spared Telekom Austria from being cut by another grade, Moody's said. The company, which owns mobile networks in seven eastern European countries, may face liquidity constraints as it pays back 1 billion Euros ($1.29 billion) of debt this year.
Telekom Austria cut its 2011 and 2012 dividend forecasts by half on 16 December, citing the adverse economic climate and investments that will weight on its cash flow. Private-equity investor Ronny Pecik, who controls 20.1% of the company through shares and options, had criticized Telekom Austria's dividend policies.
Austria's producer price inflation slowed for the second straight month in November, data released by Statistics Austria showed Thursday.
The output price inflation slowed to 3.3% in November from 3.4% in October. In September, the inflation rate was 3.5%.
Producer prices of energy products climbed 10.4% annually, contributing the most to the overall growth in November. Prices of intermediate goods rose 2%, while prices in the capital goods industry advanced 0.9%. There was a 2.3% year-on-year increase in consumer goods prices during the month.
Month-on-month, output prices moved up 0.2% in November, recovering from the previous month's 0.1% decline.
Austria's consumer price inflation eased in December, data released by Statistics Austria showed Monday.
Inflation slowed to 3.2% in December from 3.6% in November. In October, the rate of inflation was 3.4%.
Consumer prices of food and non-alcoholic beverages rose 4% year-on-year, while clothing and footwear prices advanced 2.7%. There was a 3.7% annual growth in housing costs and utility prices during the month, and a 4.5% increase in transportation costs.
Compared to November, consumer prices edged up 0.2% in December, the agency said.
At the same time, the harmonized index of consumer prices (HICP), measured under the EU methodology, increased 3.4% in December, slower than the previous month's 3.8% growth. Month-on-month, the HICP moved up 0.2% during the month.
In the year 2011, the average annual inflation was 3.3%, higher than 1.9% recorded in 2010. The HICP inflation for the year was 3.6%.
SWEDEN
The OMX in Stockholm completed a hectic trading week on 1,033.30, down 0.44%.
Sweden should establish a new committee based at its central bank with responsibility for the country's financial stability, a Swedish research body said in a report Thursday.
The Centre for Business and Policy Studies, or SNS in Swedish, said that for fiscal and monetary policy to be credible they need financial stability.
"But where the responsibility for that financial stability on a macroeconomic lies is today unclear," SNS said. To rectify this, "a financial committee should be established at the Riksbank but be kept separate from the monetary policy decision making process," SNS said.
One of the report's authors, Anna Larsson a researcher at Stockholm University, told an audience here that a new committee announced on Wednesday was a "step in the right direction" but only a temporary measure.
The Riksbank and Sweden's financial regulator said on Wednesday that they would set up a council to meet twice a year to evaluate risks to the economy.
In its report SNS examined the fiscal and monetary rules which Sweden has established and followed in recent years. Here Sweden is like the "best boy in class", report author Morten Ravn said.
The report said that the budget surplus target of 1% of gross domestic product and inflation target of 2% have been positive for the economy and should be left in place.
EQT, the Swedish private equity business with €18bn in committed capital, is reportedly considering shifting the management of its funds to onshore European domiciles following clarification of EU regulation.
EQT cites further clarification of the regulations around alternative investment management and managers as the reason for its move.
This means future funds are likely to be managed out of the UK, Netherlands, or Luxembourg.
EQT's website claims it runs 14 private equity funds involved in buyouts, financing and infrastructure, with more than €10bn invested in some 100 companies.
Conni Jonsson, managing partner, was reported last year suggesting that the company might opt for a so-called "Channel Islands solution".
Sweden's unemployment rate exceeded economists' expectations in December, data from a survey by AMV showed Tuesday.
The unemployment rate remained unchanged from last year at at 4.7% in December, indicating stability in the labour market. Economists expected the jobless rate to be 4.6%.
The number of unemployed persons decreased modestly to 214,304 in December from 216,020 a year earlier.
There were 49,477 new vacancies reported at the end of December, higher than 46,033 reported a year earlier.
DENMARK
Copenhagen's OMX closed out the Friday trading session on 405.46, down 0.87%.
Denmark, home to the world's biggest household debt burden, Won't lose its top credit rating any time soon as stable public finances and a current account surplus offset the risks, Fitch Ratings and Standard & Poor's said.
"Denmark is not a country we are particularly worried about," Fitch Managing Director Edward Parker said in an interview in Stockholm Thursday. "We are not expecting over the near term to be taking negative action on Denmark."
Denmark, which is struggling to emerge from a burst housing bubble and regional banking crisis, is lagging behind its Scandinavian neighbors on economic growth and budget deficit reduction. Still, bond investors are rewarding the government for a public debt burden that's half the Euro area's average and snapping up Denmark's debt. The Nordic country pays about 10 basis points less than Germany to borrow for 10 years.
Investors haven't been swayed by Denmark's record private debt burden, which at 310% of disposable incomes in 2010 is the world's biggest, Exane BNP Paribas estimates. Instead, markets have focused on public debt in their hunt for havens.
Small Danish financial institution Vestjysk Bank said on Thursday it was considering asking the government to come to its aid by converting a hybrid loan into equity, which could put the government in control of the bank.
Vestjysk Bank, which got a state hybrid capital loan of 1.44 billion crowns ($248.20 million) to help it through the financial crisis, could become the 11th small Danish bank to be taken over by administrators since the crisis began in 2008.
The tiny bank, which nonetheless ranks as Denmark's eighth biggest, has also issued 7.7 billion crowns in government-guaranteed bonds, which mainly mature this year and next year.
Shares in Vestjysk Bank slid 12.5% to 14.0 crowns by 10.46 GMT, putting the bank's market capitalisation at about 175 million crowns.
"The bank, as part of its constant assessment of its capital position, is investigating the possibilities for partially utilising the conversion option linked to the bank's acceptance of state capital," Vestjysk Bank A/S said in a statement.
"An eventual conversion could, depending on the point in time of conversion and amount converted, lead to the state being the main shareholder in the bank," said Vestjysk Bank.
It added, however, that so far it had not applied to the authorities for conversion of the loan into equity and said that there had been no change in its financial position that would necessitate a conversion.
Denmark's output prices increased from last year in December, data released by Statistics Denmark showed Monday.
Domestic supply prices increased 4.1% on an annual basis in December. Prices of Danish-produced goods rose 6% year-on-year, while prices of imported goods rose 3% during the month.
Prices of raw materials meant for industries rose 5.3% during the month, while prices of raw materials for agriculture dropped 0.9%. There was a 16.8% annual growth in fuel and lubricant prices during the month.
On a monthly basis, domestic supply prices moved up 0.1% in December, the agency said.
FINLAND
In Helsinki the OMX finished the week at 5,887.16, down 0.31%.
Finland is one of four countries in the Eurozone to have retained its Standard & Poors AAA rating for creditworthiness.
The credit rating agency downgraded its rating for nine other Eurozone countries on Friday.
The news led to an initial one% decline of the Euro against the US Dollar. This was later followed by a slight recovery.
Standard & Poors warned that Finnish prospects are still negative, which means that downgrades in 2012 and 2013 are still possible.
According to S&P Finland's creditworthiness faces pressures stemming from the EU's inability to make decisions to resolve the debt crisis in the Eurozone.
Finland has retained its highest rating with two other rating agencies - Fitch and Moody's.
Finland's producer price inflation slowed to the lowest in twenty-two months in December, data released by Statistics Finland showed Tuesday.
The producer price inflation slowed sharply to 1.8% in December from 3.7% in November, which was unchanged from October. The latest rate was the lowest since February 2010, when output prices increased 1.2%.
Prices of goods sold in the domestic market advanced 2.2% annually, while prices of goods meant for the overseas market moved up 1.3% in December.
At the same time, the export price index moved up 1.3% year-on-year in December, while the import price index climbed 4.6%.
On a monthly basis, producer prices edged down 0.4% in December, after holding flat in the previous month.
Nokia will publish its fourth quarter and annual results 2011 on Thursday January 26, 2012 at approximately 1pm Finnish time. The press release will be available on the Nokia website immediately after publication.
Nokia's analyst conference call will begin at 3pm Finnish time. A webcast of the conference call will be available Here at http://www.nokia.com/global/about-nokia/investors/financials/reports/results---reports/.
Nokia publishes in stock exchange releases a summary of its interim reports only. The stock exchange releases include a quarter-specific link to the complete interim reports with tables in PDF-format. The complete fourth quarter and annual results 2011 report with tables will be available Here http://www.results.nokia.com/results/Nokia_results2011Q4e.pdf.
Investors should not rely on summaries of Nokia's interim reports only, but should review the complete interim reports with tables.
NORWAY
Oslo's OBX pulled the curtains on the trading session Friday at 365.18, down 0.75%.
As credit ratings for European countries continue to be downgraded, investors are seeking a stable alternative in the form of Scandinavian government bonds. One place they are doing so is Norway.
Yields on 10-year Norwegian government bonds dropped to 1.81% earlier this month from 2.4% in September 2010, bringing them almost at par with safe-haven German bunds.
Even though yields in Norway had risen back to 2.13% by Wednesday, the country has been able to avoid the worst of the economic slowdown in Europe. The economy was growing at an annual rate of roughly 3.8% at the end of the third quarter.
Norwegian banks tightened credit standards for households and corporates in the final three months of 2011, according to the central bank's quarterly bank lending survey published Thursday.
The lenders said they expect somewhat tighter credit standards for households and unchanged credit standards for enterprises in the first quarter of 2012.
Meanwhile, corporate credit demand decreased in the fourth quarter of 2011, while household credit demand increased. Responding to the survey, the banks said they expect broadly unchanged household credit demand and reduced corporate credit demand.
Lending margins rose on both household and corporate loans in the fourth quarter and banks expect lending margins to continue to rise somewhat on both household and corporate loans ahead.
Norges Bank's bank lending survey was conducted during December 22, 2011 to January 9, 2012.
Norway's merchandise trade surplus increased to the highest in around three years in December, data released by Statistics Norway showed Monday.
The trade surplus climbed 10.8% from last year to NOK41.19 billion in December, hitting the highest level since 2008.
Export of goods increased 6.3% from last year to NOK81.25 billion during the month. Shipments of crude oil advanced 6.7% annually, while dispatches of natural gas climbed 8.1%.
The value of imports moved up 2% year-on-year to NOK40.06 billion in November, while on a monthly basis, arrivals decreased 8.8%.
In the January-December period, the value of exports increased 12.5% from the corresponding period a year earlier, while imports rose 9.3%, the agency said.
SPAIN
The IBEX in Madrid drew to a close Friday on 8,561.90, down 0.49%.
Spain passed its biggest test of market sentiment so far this year on Thursday, selling more longer-term debt than hoped as the government pressed ahead with efforts to reform an ailing economy aided by a European Central Bank backstop.
The sale, which included benchmark 10-year paper and followed a strong auction of shorter bonds last week, meant Madrid had already covered 19% of its funding needs for 2012 and raised hopes of a revival in demand for debt from other parts of the Euro zone's struggling periphery.
It also signalled markets have largely shrugged off last week's salvo of Euro zone rating downgrades from Standard & Poor's, an impression reinforced by a strong bond sale in Paris.
Spain's first 10-year bond offering since mid-December raised more than forecast at 3 billion Euros, at a yield of 5.403% that broadly met expectations and marked a drop of more than 150 basis points since the same bond was last sold in November.
Bankinter, a Madrid-based mortgage lender, took 5 billion Euros ($6.45 billion) in three- year loans from the European Central Bank and will put some of the funds to work by lending them out.
The bank will lend the money in higher-yielding loans and also use it to acquire short-duration government bonds and buy back its own debt, Chief Executive Officer Maria Dolores Dancausa said in a news conference in Madrid Friday.
As many as 523 Euro-area lenders took money from the ECB's injection of 489 billion Euros into the banking system last month. Spanish banks' average borrowings from the ECB rose in December to 118.9 billion Euros, the highest level in 18 months, after lenders tapped the loans.
Spain successfully raised Eur 6.61 billion from the sale of its bonds maturing in 2016, 2019 and 2022 on Thursday, far exceeding the maximum target set for the auction, reports said.
The Spanish Treasury had planned to raise between Eur Eur 3.5 billion and Eur 4.5 billion from the sale. The yield on the 10-year debt reportedly declined and demand was stronger than the previous auction on November 17.
The latest bond sale was the first since Standard & Poor's downgraded Spain by two-notches to 'A' from 'AA-'. Investors have apparently shrugged off the credit rating downgrade news as indicated by the debt auction results this week. Spanish debt yields also declined at a Treasury bills auction on Tuesday, the first debt sale since the S&P downgrade last week.
Spain saw its borrowing costs decline on Tuesday in the first debt auction since rating agency Standard & Poor's downgraded its credit rating last week.
The Spanish Treasury raised Eur 4.88 billion from 12-and 18-month treasury bills sale versus its target of between Eur 4 billion and Eur 5 billion.
The yield on the 12-month debt fell to 2.049% from 4.050% at an auction on December 13. The country paid 2.399% on the 18-month paper, down from 4.226% in the previous sale.
Demand for 12-month bills was 3.54 times the offer, up from 3.14 in December. The bid-to-cover ratio for the 18-month debt, however, fell to 3.23 from 4.97.
Standard & Poor's downgraded nine Eurozone nations last Friday, including the top-rated France and Austria. Spain received a two-notch rating cut to 'A' from 'AA-'.
Investors have apparently shrugged off the credit rating downgrade news as indicated by the debt auction results this week. Elsewhere Friday, the European Financial Stability Facility raised Eur 1.501 billion from the sale of its new six-month bills, data from the Bundesbank revealed.
The Euro area rescue fund sold the 6-month paper at an average yield of 0.2664%. Demand was 3.1 times the amount on offer. The debt offering came just a day after S&P cut EFSF credit rating to 'AA+' from 'AAA'.
PORTUGAL
Lisbon's PSI General concluded the week Friday at 2,165.68, up 0.15%.
Portugal is trading in default territory after investors offloaded the country's bonds this week amid rising fears of contagion, hurting a government debt auction on Wednesday. Worries are mounting that the private sector and Greece will fail to agree a restructuring package for Athens' debt.
Portuguese 10-year bond yields, which have an inverse relationship with prices, jumped to a new Euro-era high of 14.40% in London on Wednesday.
Portugal does not have a bond maturing until June, when €10bn is due for repayment. Its borrowing needs are also modest at €17.5bn. However, investors worry about Portugal's painfully slow growth, which could impact on its ability to service its debts.
Many investors were forced to sell Portuguese bonds after Standard & Poor's downgraded the country to junk on Friday. Other funds sold Portuguese debt after Lisbon was removed from Citigroup's European Bond Index, which these investors track, because of its fall to junk status.
All three main credit rating agencies, S&P, Moody's, and Fitch, rate Portugal as junk, below investment grade. In the Eurozone, only Greece is also rated junk by all the agencies.
The markets are pricing in a 65% chance that Portugal will default over the next five years, according to credit default swaps. These instruments, which protect some investors from default, while others use them as a speculative device, leapt to record highs this week.
Portuguese bond prices have slumped to levels considered by many investors to be in default territory. Bond prices for benchmark 10-year debt were trading at slightly over 50% of par on Wednesday morning, recovering from levels below 50% on Monday.
Portugal successfully raised the maximum amount it planned at an auction of its treasury bills on Wednesday, which was the first sale since Standard & Poor's downgraded the country's rating last week.
The debt agency IGCP raised Eur 2.5 billion from the sale of Portugal's 3-,6- and 11-month paper. The agency planned to raise between Eur 2 and Eur 2.5 billion from the auction.
The country sold Eur 1.25 billion of the December 2012 bill at an average yield of 4.986%, down from 5.902% in the previous sale on April 6 last year. The bid-to-cover ratio for the 11-month paper was 2.1 compared with 2.6 in the previous auction.
This was the first auction with nearly a year maturity since the country raised Eur 455 million in the April 6 auction at higher cost and it sought a bailout from the European Union the same day.
The 6-month T-bill was placed on a yield of 4.740%, down from 5.250% in a sale on November 16. The country sold Eur 754 million of the security. Demand was 3 time the offer, down from 4.1 in the previous sale.
The 3-month debt was placed at a yield of 4.346%, unchanged from the previous auction on January 4. The agency raised Eur 496 million from the sale. The bid-to-cover ratio rose to 4.1 from 2.4.
ITALY
The FTSE Mibtel in Milan closed the week on 15,632.10, down 0.13%.
Italy's banks, led by UniCredit, were the biggest users of the special three-year funding mechanism launched by the European Central Bank in December, according to a new report.
UniCredit - Italy's biggest bank by assets - took €12.5bn of three-year money under the facility, closely followed by Intesa Sanpaolo, with €12bn, and Monte dei Paschi di Siena, which took €10bn, the report from analysts at Morgan Stanley says.
The data, submitted to Morgan Stanley but not previously disclosed, underlines just how reliant banks in the peripheral Eurozone nations are on emergency mechanisms put in place by the European authorities.
The take-up of ECB money by the big Italian banks, amounting to more than €50bn in aggregate, means they have already covered 90% of their total funding needs for 2012.
Supporters of the scheme say it has been a vital crutch to ensure the economies of the Eurozone continue to function. After an initial hoarding of cash, the total of €489bn raised by more than 500 banks in the December auction has been put to work. Emergency deposits with the ECB have fallen from a peak of more than €450bn early in the new year to €395bn now.
A second three-year ECB funding auction takes place next month, which Morgan Stanley predicts will generate as much as €400bn more of funding demand.
Banks' normal funding sources - unsecured debt issuance - virtually dried up in the second half of last year. There has been a flurry of issuance by top-rated banks in the first few weeks of January, suggesting that a two-tier banking system may be emerging - comprising groups that have access to normal commercial bond funding and those that are reliant of artificial systemic support.
Italy's current account deficit decreased from last year in November, data released by the central bank showed Wednesday.
The current account deficit declined to Eur3.45billion in November from Eur5.15 billion a year earlier.
The deficit in the goods trade account decreased to Eur1.12 billion in November from Eur2.77 billion last year, while the deficit in the services account narrowed sharply to Eur815 million from Eur1.42 billion
The income account showed a deficit of Eur1.36 billion during the month, higher than the previous month's Eur744 million deficit. The balance in the current transfers account was a deficit of Eur151 million, lower than the Eur212 million deficit recorded in November 2010.
The twelve months ended November, the balance in the current account was a deficit of Eur56.21 billion, higher than the Eur49.09 billion deficit seen in the corresponding period last year.
Italian Prime Minister Mario Monti said that Germany and other creditor nations should do more to help Italy and other indebted nations to lower their borrowing costs.
In an interview to the Financial Times, Monti warned that there would be a powerful political backlash among the Eurozone's struggling periphery if the creditor countries failed to act.
He said that it was in Germany's "own enlightened self-interest" to make use of its strong fiscal weight to lower the borrowing costs of Italy and other struggling governments.
He told FT that the introduction of commonly-backed bonds and increasing the rescue fund's firepower could help calm the nervous investors, an idea fiercely opposed by many in the German government.
Monti noted that Italy was cutting expenditure "for the good of future generations of Italians."
GREECE
In Athens, the Athex Composite ended both the session and the week on 708.18, up 2.67% for Friday.
Economic reforms in highly indebted Greece are coming along slowly, but the Greeks have made many sacrifices and people must be patient, the head of the European Commission's special task force to help rebuild the Greek economy said on Thursday.
Greece meets its private creditors on Thursday for a second day of bargaining on a crucial bond swap deal, with time running out for reaching a compromise needed to avoid an unruly default.
Speaking on German television, Horst Reichenbach stressed the need for a quick agreement and continued disbursement of bailout payments.
"No one I speak with dares to imagine what would happen if the coming weeks do not lead to a good result, if the private banks' participation cannot be agreed and if the next tranche of aid is not paid out," he said on German broadcaster ARD.
With austerity programs hitting Greek household finances hard, public opposition to reform is not surprising, he said.
"It's clear the Greeks have been forced to make enormous sacrifices, and in many areas," he said. "So strikes and demonstrations are not so surprising."
"On the other hand, the political class knows that it must negotiate, that it must perform, that it must convince creditors, and that something must change in Greece."
Sales of Greece's 13-week treasury bills exceeded target at an auction on Tuesday.
The Public Debt Management Agency (PDMA) sold Eur 1.625 billion of 13-weeks paper versus the Eur 1.25 billion on offer. The sale attracted bids totaling Eur 3.630 billion.
The yield fell slightly to 4.64% from 4.68% at the previous auction on December 20. The bid-to-cover ratio was 2.90, compared with 2.91 in the previous sale.
Primary dealers can additionally submit non-competitive bids up to 30% of the amount initially auctioned until January 19, the PDMA said.
Greece's money managers saw a 25% increase in the value of net outflows from mutual funds in 2011 compared with 2010, the Hellenic Fund and Asset Management Association said.
Equity assets managed were negatively affected by a 60% drop last year in the level of the Athens Stock Exchange's FTSE/ASE 20 large-cap index, the Athens-based group said in an e-mailed statement Friday. Equities accounted for 22% of total mutual-fund assets and bonds for 23%.
The total value of UCITS mutual funds stood at 5.2 billion Euros ($6.7 billion) at the end of December, down from almost 8 billion Euros at the end of 2010 and 5.9 billion Euros at the end of the third quarter, according to the statement.
Undertakings for Collective Investment in Transferable Securities, or UCITS, is a regulated European fund format that allows managers to invest in derivatives, according to the European Commission's website.
The total value of assets managed by the association's 35 members, including real-estate and closed-end funds, declined to 8.55 billion Euros as of 31 December from 9.6 billion Euros on 30 September, the association said. | 
