OVERSEAS MARKETS

Optimistic investors push up Asian stocks
Asian markets inched up Thursday because investors considered the U.S. government's "stress tests" of major banks as a positive step forward. Tokyo's Nikkei 225 gained 1.1%, the MSCI index of Asia-Pacific stocks outside Japan climbed 0.8%, while Hong Kong's Hang Seng fell 0.8%. International Herald Tribune/Reuters (26 Feb.)

RBS confirms £24.1 billion loss
The Times (London) (26 Feb.)

Darling to offer £600 billion in guarantees to save banks
U.K. Chancellor Alistair Darling will offer guarantees worth as much as £600 billion against troubled assets to give Royal Bank of Scotland and Lloyds TSB a chance to survive. The figure is much larger than expected, and the move exposes British taxpayers to unprecedented liabilities related to bad debt. The banks agreed to boost lending to companies and home buyers. The Times (London) (26 Feb.)

2009 doesn't have to be total loss for Asia-Pacific
Asia-Pacific economies apparently have a chance to shift from decline to moderate growth in this year's second half. Many governments adopted stimulus programs, but they are likely to be ineffective until consumer confidence is somehow improved to increase consumption and encourage lenders to make credit available again to businesses and individuals. FinanceAsia.com (26 Feb.)

Research firm expects mild contraction for Brazil's GDP
Despite the Brazilian government's efforts to support growth, the Economist Intelligence Unit forecast a mild decline for the nation's economy this year, with growth anticipated to return in 2010. Brazil's GDP is projected to contract 0.5%, compared with a previous estimate of 1.6% growth, according to the company. The Economist (25 Feb.)

EC lets Google join case against Microsoft over browsers
The European Commission agreed to allow Google to participate in an antitrust case against Microsoft as an "interested third party." The lawsuit accuses Microsoft of restricting competition for Web browsers by building its Internet Explorer into its Windows operating system. International Herald Tribune (25 Feb.)

BMB Islamic exec shares developments in shariah finance
Humayan Dar, CEO of BMB Islamic U.K., explained some of the opportunities and challenges in the world of shariah-compliant finance. He said there is little in conventional finance that cannot be replicated in Islamic finance. "Even sophisticated fund structures, such as private equity, hedge funds or specialist funds, are being set up so they are shariah-compliant," he said. "We, at the BMB Group, have recently formed a private-equity joint venture with Emerging Markets Partnership to invest in emerging markets. BMB Islamic is also helping an investment bank to set up a Middle East infrastructure." FinanceAsia.com (26 Feb.)