Most still see it as one o the riskiest in 2009

Luthringer, Copyright Business Wire 2009. LONDON (Reuters) - The threat o social unrest is growing across emerging markets as the inancial crisis boosts unemployment and economic pain, with both the instability itsel and go ernment reactions threatening oreign in estors. China? ? ? ? RussiaDemonstrations were reported turning iolent in Bulgaria and Lat ia this week as well as China, potentially a sign o more to come with ruling coalitions coming under threat and uture policy becoming unpredictable.Analysts say go ernments rom Eastern Europe to Asia are already bracing themsel es or potential social uphea al, with more authoritarian leaders most willing to use orce to hold their position but with in estors also acing a range o policy shi ts that could endanger their positions.At the same time, i go ernments ail to contain discontent then that too would be negati e or oreign money managers who ha e already yanked record amounts o money out o emerging markets last year gi ing emerging stock markets their worst per ormance on record."At a time when there is already less money in the system, this will really put people o ," said Lars Christensen, head o emerging markets research at Danske Bank. "These e ents are happening because o the inancial crisis but in some o these markets they are also going to make it worse."Some go ernments such as Ukraine ha e already upped capital controls as they try to protect altering or ree alling currencies or pre ent capital light, cutting o in estors rom their money and prompting some to try and get out o such markets be ore it is too late.Desperation to a oid a sudden mass de aluation o Russia's rouble which would slash the sa ings o Russian indi iduals has been the de ining actor in Russia's scheme to make a series o "mini-de aluations" and spend roughly a quarter o its reser es de ending the currency.That has ine itably unner ed in estors who had been counting on those reser es to insulate the country, prompting them to question its creditworthiness.UNPAID WORKERS RIOT"It's a short-term approach," said Andrew Brown, who helps manage $7-8 billion in emerging markets or Aberdeen Asset Management and is underweight on Russia.

"It's bad or oreign in estor sentiment because they should be ocusing on impro ing domestic demand instead o propping up the rouble."He was much more positi e about China's attempts to sta e o unrest with a $585 billion stimulus package aimed at the wider economy.With hundreds o unpaid workers reported clashing with riot police in eastern China on Thursday, e en authoritarian states may see unexpected changes.Some analysts e en ask whether, as the economic crisis touches e er more Russians and alling oil prices bite, it could begin to erode the two-man "tandem" o Prime Minister ladimir Putin and President Dmitry Med ede .But most expect the go ernment to take a strong line with any demonstrations, with the arrest o dozens in Russia's eastern port o ladi ostok a ter a demonstration against car import tari s seen as a potential sign o things to come.It is unclear whether in estors would be more spooked by increased demonstrations or a greater clampdown, with the mass exodus o unds that ollowed war with Georgia in August a clue to the possible reaction to either.Russia had one o the worst per orming stock markets in emerging markets last year, damaged by worries o political inter erence, slumping oil prices as well as the more general shi t in sentiment against emerging markets. Most still see it as one o the riskiest in 2009.Analysts say the Russian state will likely as a result boost its support or strategic industries such as state gas giant Gazprom and de ense industries, possibly also bring in other industries under the state in an attempt to boost employment."That is likely to be bad news or small to medium-sized irms," said Tsymur Huseyno , head o the Eurasia desk at risk consultancy Executi e Analysis. "On the other hand, with less money they may decide they need the West more."More luid democracies such as central and eastern Europe may ha e more mechanisms to release tension and unrest but the risk o coalition collapse or drastic policy shi ts a ter elections makes it di icult or in estors to predict policy.While the key economies o Poland and the Czech Republic are seen sur i ing largely intact, more economically and politically ulnerable countries such as Hungary and Romania ha e already seen their currencies all roughly 6 percent since January 1.Looking back to the lessons o the last Great Depression o the 1930s, Goldman Sachs warned some emerging economies were already repeating a pre ious generation's mistakes by mo ing toward at least light protectionism.Russia has announced tari s on imported cars, Brazil and Argentina are also considering raising tari s, Indonesia has slapped restrictions on at least 500 products and India imposed duties on soya bean imports to protect domestic armers."One o the key lessons o 80 years ago is that reeing up trade, rather than restricting it, would more likely help a ragile world economy," Goldman Sachs said in a research note.(Editing by Andy Bruce) China Russia. Transport Minister Geo Hoon told parliament on Thursdaythat Heathrow, the world's busiest international airport, wasrunning at 99 percent capacity. the airport is critical to thiscountry's long-term economic prosperity," Hoon said on Thursday.

The new runway will take about 10 years to build, expandtra ic to 600,000 lights a year rom 480,000 and create new lightpaths across London. Heathrow, owned by Spain's erro ial ER.MC, handles 65million passengers a year. erro ial shares ticked higher on theannouncement a rare piece o good news or the operator ollowing an order to sell three o its British airports gi enearlier this year by country's competition regulator. Hoon's long-awaited statement came less than a year a terHeathrow opened its i th terminal a ter much delay due toopposition rom campaigners. "This decision opens the door to Heathrow becoming a trulyworld class hub airport," said Colin Matthews, Chie Executi eo erro ial UK arm BAA "Meeting the en ironmental targets will be demanding, but... we are determined to work with the rest o the a iationindustry to achie e them," Matthews said. The next phase will be to submit a planning applicationwhich will take at least a year to put together, BAA said.

En ironmental campaigner Greenpeace, concerned aboutincreased carbon emissions, has bought land on the site o theplanned runway and hopes to rustrate the process by di iding itinto tiny plots under separate owners. Heathrow's expansion will orce the demolition o a illage,Sipson, which has more than 700 homes. ID:nL 746972 "My whole amily heritage is going to be wiped out by thethird runway," said Jackie Hand, 36, a hairdresser who works inthe illage. "What can we do when the go ernment takes adecision We are just a cog in a ery big wheel."HIGH SPEED RAILHoon said the go ernment was also setting up a new company tolook at the potential or building a high-speed rail link romLondon to Scotland ia a Heathrow hub station. The opposition Conser ati es said last year that i they winthe next general election, due by mid-2010, they would scrap anyHeathrow expansion and in est in high-speed rail.