Business news for Tue, 18 Dec 2007 & with word cash. 25 news.

CHINA is studying extra lending curbs to prevent overheating in the world's fastest-growing major economy, according to a central bank official. The People's Bank of China is considering requiring a larger proportion of new deposits to be set aside as reserves, said a central bank official who declined to be named because he's not authorized to speak publicly. It's also studying larger reserve requirements for bigger banks with faster loan growth. Targeted curbs would restrain lending growth without hurting cash flow and profits at banks that haven't been taking on as many new deposits. The central bank raised the reserve ratio this month to 14.5 percent, the highest in at least 20 years, as excess liquidity fuels inflation and asset bubbles, Bloomberg News said. "A higher reserve ratio on new deposits will directly curb banks' ability to use the money to increase lending," said Wang Qian, an economist at JPMorgan Chase & Co in Hong Kong. "The central bank is

ALUMINUM Corp of China Ltd, the nation's largest alumina producer, raised its spot alumina price by 10.53 percent yesterday, the second rise in a month as supply tightens. The price has risen to 4,200 yuan (US$569) per ton from 3,800 yuan, the Beijing-based company, commonly known as Chalco, announced on its Website. Current cash prices of imported alumina, used by smelters to produce aluminum, at Chinese ports including insurance and freight, are above US$470 per ton, Chalco said. "Alumina supplies on both international and domestic markets are tight," it added. Chalco raised price to 3,800 yuan a ton from 3,500 yuan on November 27. Analysts attributed the price rise to increasing demand and some disruptions in alumina refineries. Chalco's smaller domestic competitors have also raised prices. Chalco shares closed 2.31 percent lower at HK$15.26 (US$1.95) in Hong Kong after hitting a low of HK$14.66 yesterday. It was up 0.28 percent to close at 36.3 yuan (US$4.90)

The bank of England also made a cash infusion, while warning of a 'self-reinforcing' downward spiral in credit.

THE European Central Bank extended unlimited amounts of two-week cash to the markets today, an unprecedented step aimed at easing a global credit squeeze that risks choking off the commercial bank lending on which business depends.

Alistair Darling was brought on to be a grey, unremarkable chancellor. He's fast turning into the Nick Leeson of British politics. Leeson, you will remember, was the rogue trader who played double or quits - hoping his small mistake would go away if he gambled even more. But he ended up sinking Barings. Darling should have allowed Northern Rock to be flogged to Lloyds when he had the chance. This small mistake led to a £30bn loan. Today, he's doubled it to £60bn. And remember, he cannot guarantee the safe return of this cash - your money. The

Affymetrix Inc. has agreed to buy USB Corp., which makes and markets a line of molecular biology and biochemical reagent products, for about $75 million in cash.

Toledo, Ohio, like other old-line industrial cities, hopes to cash in on the demand for alternative energy. The city once known as North America's glass capital wants to reinvent itself by focusing on the production of "solar cells."

The European Central Bank extended unlimited amounts of two-week cash to the markets Tuesday, an unprecedented step aimed at easing a global credit squeeze that risks choking off the commercial bank lending on which business depends.

The ECB found strong demand for its offer to lend euro-zone banks extra money to get them through year-end, lending $502 billion for two weeks in its bid to ease persistent money-market tensions.

The ECB dishes out EURO350 billion THE European Central Bank (ECB) is keen these days to spew cash into troubled markets. On Tuesday December 18th it accepted bids from 390 banks for close to EURO350 billion in short-term money, at below-market rates (between 4.21% and 4.45%). Is this is a $500 billion Christmas present, or a justifiable measure to avert an unseasonal crisis? Certainly, it was a response to a sudden jump in two-week rates to over 4.9% the day before--a sign that banks were hoarding more liquidity than usual at this time of year, to tide them over the Christmas period. ...

In the wake of the sub prime mortgage credit crisis, the European Central Bank has made an unprecedented offer: it's offering banks unlimited funds at below-market rates in the hope that it will keep the cash flowing.

LONDON (MarketWatch) -- Mervyn King, governor of the Bank of England, told a Treasury committee that the rise in inter-bank spreads is not due to any shortage of cash, but rather to concerns about where derivative losses come to rest, and over the past four weeks, growing doubts about the health of the U.S. economy. The coordinated action was to demonstrate central banks were working together and to show they were conscious of bank concerns. He said there's a misunderstanding about central bank injections, noting for example that the European Central Bank in net terms has injected "hardly any" funds into the euro-area banking system.

Following up on its vow to raise money by selling its drugs to other companies, PDL BioPharma of Redwood City announced Monday that a Japanese company has agreed to buy a PDL drug used in bone marrow transplants for $200 million in cash.

Alan Greenspan, former chairman of the U.S. Federal Reserve, suggested Sunday that a tax break or other government financial help for homeowners facing the mortgage crunch would be the best political fix for the economy.

Kingfisher Plc, Europe's biggest home improvements retailer, said yesterday it had agreed to sell its BandQ Taiwan joint venture stake for US$106.5 million in cash to partner Test Rite International.

Diversified manufacturer Ingersoll-Rand Co. Ltd. on Monday said it agreed to acquire Trane Inc., an indoor heating and air conditioning systems maker, for about US$10.1 billion in cash and stock to expand its climate control business.

As the holiday shopping season heads into the home stretch, retailers are hoping for ringing cash registers. But economic indicators show storm clouds might be on the economic horizon, Anthony Mason reports.

Lure of cash infusion without raising taxes or cutting services entices Blagojevich, Daley, lawmakers Already one of the nation's most prolific betting markets, Illinois could see casino gambling double under proposed expansion contemplated by Gov. Rod Blagojevich and the General Assembly.

Smart consumers know better than to fall for promises of "free money." Especially when the "transaction" requires you to first ...

Related, the real estate giant behind such Manhattan landmarks as the Time Warner Center, is drumming up needed cash from Mideast investment groups. The company, one of the nation's largest developers, will get $1.4 billion from its new investors.