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UPDATE 1-IMF push hints at emerging market frustration in G20

* Emerging powers frustrated over impact of euro zone crisis* Developing countries powerless to spur euro debt solutionBy Catherine BremerPARIS, Oct 14 (Reuters) - A short-lived push by developing economies at G20 talks to give the IMF more resources hinted at the frustration simmering among emerging powers who are powerless to halt a euro zone crisis that is hurting their own prospects.Several developing countries in the Group of 20 advocated ramping up the International Monetary Fund's firepower as finance deputies met in Paris, but the plan was rejected by the United States and others.China, Brazil and India all favour bolstering the IMF's capital, G20 sources said, and Russian and Mexican officials told Reuters they were open to the idea, with Mexico's deputy finance minister explaining that more tools and funds should be deployed to curb the contagion spreading from Greece.The fact bigger G20 powers moved to quash the idea even before finance chiefs sat down for their opening dinner gave a hint of the tensions hanging over the G20 talks, as the euro zone battles to come up with a convincing crisis resolution plan and stem fears the world is sliding into another recession."The atmosphere is complex. There is a sense of urgency, of crisis," Mexican Deputy Finance Minister Gerardo Rodriguez said.Japanese Finance Minister Jun Azumi said emerging country G20 ministers feared the euro crisis would spur further outflows from their economies into safe havens like the yen."What was different from the meeting in Washington DC was that some countries voiced concern that the European crisis could have severe repercussions for emerging economies," he said. "They pointed out that retreat of capital, mainly to Europe, could slow growth in BRICS and Asian economies."Mexico, which has had to cut its 2012 growth outlook to 3.5 percent from 4.2 percent as economic turmoil rocks the rich world, wants to see the euro crisis brought to a halt, he said."We are worried about the situation because this lack of a deep-rooted solution to the challenges that have arisen in Europe has provoked this contamination towards other emerging countries, including Mexico," Rodriguez told Reuters."It's a concern we are obviously bringing to the table (in Paris) with the idea that they take more concrete, more decisive actions and succeed in halting this atmosphere of uncertainty."RESENTMENT MOUNTSThe G20 finance talks come just over a week before an Oct. 23 European Union summit where Paris and Berlin have promised that a plan will be endorsed to stem the euro zone debt crisis.Emerging market powers -- who have a new voice in global policymaking through the G20 but still have little ability to spur on any euro zone action plan -- are angry that while EU leaders dither, investors are ditching high-risk assets."Our market is suffering from pressures on the European market," said Russian Deputy Finance Minister Sergei Storchak"We have experienced crazy volatility," he said. "There are no fundamental factors in Russia behind such volatility."Central banks from Ankara to Brasilia have come out to defend their currencies as sell-offs in emerging market stocks, bonds and currencies have rekindled memories of a mass flight to safe-haven assets during the 2008-09 financial crisis.Countries like Mexico, which have battled to win investor credibility, resent being punished by financial markets because of a crisis of confidence in Europe, where fiscal profligacy by peripheral euro states has now infected banks in core nations."This is not desirable for emerging economies like Mexico where we have very solid fundamentals, our public finances are in order, we're accumulated reserves and we have tried to be responsible in public debt and the banking sector," Rodriguez said.The United States and other key G20 powers will also pile pressure on EU leaders in Paris to announce a concrete solution to the euro crisis before France's G20 presidency wraps up with a Nov 3-4 summit in Cannes, but they do not want new IMF funding that could dilute their sway over the lender.U.S. Treasury Secretary Timothy Geithner said Europe had ample resources to solve its crisis without extra IMF funds."We need to remain focused on the Europeans solving this crisis, and avoid focusing on non-central issues like increasing the resources of the IMF. And not everyone agrees," Canadian Finance Minister Jim Flaherty said.The idea of more IMF firepower has been mooted before and on Monday Brazilian Finance Minister Guido Mantega said the Paris G20 would discuss it. One emerging market source said $350 billion could be an appropriate sum to inject.Indian Finance Minister Pranab Mukherjee said a "careful assessment" should be made of the IMF's liquidity provisions.The IMF is already weighing whether to expand its rescue lending capacity via debt issuance or bilateral borrowing, and one G20 source said the IMF could soon make short-term credit lines available to healthy countries hit by liquidity crises.

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MIDEAST STOCKS-Gulf bourses slip; Dubai at 31-week low on bank news

ENBD dropped 4.3 percent to a 27-week low after sinking 1.6 percent on Tuesday, while the Dubai index slipped 0.3 percent to its lowest close since March 7.Investors said they saw little benefit from the takeover for ENBD as it would probably have to deal with any losses accumulated by Dubai Bank. But they also predicted the downside would be minor."We estimate that even in the worst case scenario, the impact on ENBD, based on simplistic assumptions, is likely to be limited," EFG Hermes said in a note. "DB is a much smaller entity compared to ENBD."In Oman, shares fell 0.8 percent to a seven-week low, led by weakness in bank stocks."We saw strong selling pressure from asset managers in the country," said Adel Nasr, United Securities brokerage manager in Muscat. "They started to liquidate and foreign institutionals have their own fears over the European crisis. They want to keep cash on the side."Heavyweight Bank Muscat shed 0.8 percent, Bank Dhofar slipped 0.2 percent and National Bank of Oman declined 2.6 percent. Bank Muscat reported a 15.8 percent increase in third-quarter net profit on Wednesday, edging ahead of analysts' forecasts.In Kuwait, telecoms operator Zain fell 1.1 percent. Affiliate Zain Saudi reported a narrower third quarter loss on Wednesday but the results still missed estimates; its stock ended flat.SAUDI ARABIASaudi Arabia's shares fell for a second day as investors booked profits in insurance stocks. The kingdom's benchmark index slipped 0.2 percent while the insurance index fell from Tuesday's four-month high, dropping 1.6 percent.The market showed very little reaction to Washington's accusation that Iran backed a plot to kill the Saudi ambassador to the United States.Investors have grown used to tensions between Saudi Arabia and Iran and it is not yet clear if the plot accusation will develop into a full-blown crisis. Also, foreign investment in the Saudi market is at low levels for economic reasons, so the market is not vulnerable to a sudden pull-out.In Egypt, foreign institutions and funds bought into beaten-down stocks with heavyweight Orascom Construction Industries (OCI) climbing 4.5 percent. The index rose 0.8 percent, trimming its 2011 losses to 43.3 percent."There is talk in the market that foreign institutions and funds are snapping up Egyptian blue chips, which are at very low prices," said Osool Brokerage's Mohamed Swefy.But a sharp rebound of the index off an intra-day low of 3,820 points in the past three days, to a close of 4,050 on Wednesday, suggests the market may have found a fairly solid bottom because of cheap valuations, though many analysts think an extended rally is unlikely given political tensions.Qatar's benchmark index bucked the regional trend and rose 0.8 percent to a two-week high. Traders said institutions were buying in ahead of quarterly earnings, and were attracted by cash dividends from bank stocks at year-end.Commercial Bank of Qatar gained 2.8 percent, Qatar National Bank rose 0.6 percent and Doha Bank climbed 1.3 percent.WEDNESDAY'S HIGHLIGHTSDUBAI* The index slipped 0.3 percent to 1,384 points.OMAN* The index fell 0.8 percent to 5,519 points.KUWAIT* The measure declined 0.2 percent to 5,848 points.SAUDI ARABIA* The index slipped 0.2 percent to 6,105 points.EGYPT* The index rose 0.8 percent to 4,050 points.QATAR* The index advanced 0.8 percent to 8,418 points.ABU DHABI* The benchmark slipped 0.3 percent to 2,487 points.BAHRAIN* The measure fell 0.7 percent to 1,148 points.

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EU sets out tough rules on medicines information

The latest proposals from the European Commission amend those made in 2008, following criticism that the original ideas went too far in loosening restrictions governing communications between pharmaceuticals companies and patients.John Dalli, European commissioner for health and consumer policy, said in a statement the new proposals would "further strengthen the control of authorized medicines."The new proposals from the Commission, the executive arm of the European Union, would allow information in only certain areas, such as information on the label and on packaging leaflets, information on prices and clinical trials, and instructions for use.An earlier idea of letting drugmakers publish information about medicines on websites or in print -- for example, in health supplements in newspapers -- has been rejected under the new proposals, which state: "A publication in general print media will not be permitted."The tough line may disappoint drugmakers wanting more leeway to provide information directly to consumers in Europe, which they argue is needed in part as a counterbalance to sometimes unreliable data provided on the Internet.But the Commission's new line was welcomed by the European Public Health Alliance (EPHA), which represents healthcare professionals and patients, for keeping advertising at bay."The previous proposal was just a disguised way of giving pharmaceutical companies enough flexibility to promote their products directly to the public, in order to boost the sector's growth," said Monika Kosinska, the group's secretary general.NO U.S.-STYLE TV ADVERTSIn fact, the European pharmaceutical industry had never asked for a green light for U.S.-style direct to consumer (DTC) advertising, which some company executives anyway now view as a costly mistake.DTC advertising of prescription drugs is only permitted in the United States and New Zealand, and the practice has been widely attacked by U.S. consumer groups, especially in the wake of the 2004 withdrawal of Merck & Co's heavily promoted painkiller Vioxx.Instead, drugmakers in Europe would like to steer a middle course between full-on television adverts and zero communication."Those citizens seeking information on their disease or therapy should be able to access it in both user-friendly formats and in their own language," the European Federation of Pharmaceutical Industries and Associations said on Tuesday.Consumer groups have long resisted any loosening of restrictions, arguing that drugmakers cannot be trusted to provide unbiased information.The European Consumers' Organization BEUC said the redrafting of the plans were a first tangible effect of the decision to move competence on pharmaceuticals policy from the Commission's industry division to the directorate responsible for health.

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