Market Rumours

2010/07/30 17:30DJ Forex Options: Dollar/Yen Volatilities Up As Spot Hits 8-Mo Low
TOKYO -Dollar/yen currency options rose Friday in Tokyo as the underlying exchange rate fell to its lowest level in eight months, increasing demand for hedges against further falls. The U.S. unit dropped to Y86.17 late Friday afternoon in Tokyo, its lowest level since Dec. 1, 2009. Benchmark one-month at-the-money dollar/yen volatilities were up at 10.50%/11.20% from 10.30%/11.00% Thursday in New York. One player bought a three-month dollar-put option with a strike price of Y77.00, implied volatility of 15.20% and a face value of $200 million, an options dealer at a major Japanese bank said. The contract would profit if the dollar is trading below the strike price at the time of its expiry. While dealers say such sharp falls in the greenback are unlikely, the currency may face further selling that could push it below Y86.00, particularly if the advance estimate of U.S. gross domestic product for the April-June quarter, due at 1230 GMT, is worse than expected. The median forecast of economists surveyed by Dow Jones Newswires is for the report to show 2.5% annualized expansion, down from the 2.7% rise in the January-March quarter. Option prices could rise further next week if the GDP figure is weak, as investors may look to buy short-term hedges against further dollar slides ahead of a key monthly jobs report next Friday.

2010/07/30 17:25=DJ DATA SNAP: Euro-Zone Inflation Highest Since Nov 2008 In July
LONDON -Consumer prices across the 16 countries that use the euro rose at the fastest pace in 20 months in July, bringing inflation back in line with the European Central Bank's definition of price stability. The European Union's official statistics agency Eurostat said the flash estimate of the annual consumer price index in the euro zone rose 1.7% on the year in July, matching economists' forecasts. In June, the consumer price index gained 1.4%. July's figure marked the fastest pace of price growth since November 2008 when inflation was 2.1%. The pickup in the euro-zone inflation rate largely reflected an acceleration in food and energy price rises, analysts said. In Spain, consumer prices rose 1.9% on the year in July, up from 1.5% in June. In Germany, inflation was 1.2%, stronger than 0.8% the previous month. The ECB defines price stability as inflation of close to but just below 2%. The full breakdown of euro-zone July inflation data will be published Aug. 16. Website: http://ec.europa.eu/eurostat

2010/07/30 17:24=DJ DATA SNAP: Euro-Zone Unemployment Steady At 10.0% In June
LONDON -The euro zone's jobless rate was steady at 10.0% for a fourth consecutive month in June in a fresh sign that unemployment may have peaked in the currency area, figures released by the European Union's Eurostat agency showed Friday. The data, which are in line with the market consensus estimate from a Dow Jones Newswires survey of economists last week, suggest the currency area's sovereign debt crisis hasn't had an immediate impact on the labor market. Eurostat said 6,000 more people joined unemployment queues across the euro zone in June, far less than the upwardly revised 41,000 increase seen in May. Nevertheless, Eurostat estimated that there were 15.8 million unemployed people across the euro zone in June, more than the combined populations of Austria and Ireland. The euro zone's still-high jobless rate, which has risen from 7.2% in early 2008, suggests there is unlikely to be a swift recovery in consumer demand. The rate compares with 9.5% in the U.S. in June and 5.2% in Japan in May. Economic data suggest that euro-zone economic growth picked up in the second quarter, but economists expect the pace of expansion to slow in the latter half of 2010 as many countries cut government spending in an effort to reduce their budget deficits. The breakdown of the figures showed that the unemployment rate in Germany was steady at 7.0% in June, while in France it rose to 10.0% from 9.9% in May and in Italy it dipped to 8.5% from 8.6%. More up-to-date figures released by Germany's federal labor office Thursday showed the number of unemployed people in Europe's biggest economy dropped by 20,000 in July. However, there was little sign of improvement in some of the peripheral countries that have suffered fierce recessions. Spain's unemployment rate rose to 20.0% in June from 19.8% the previous month, while Ireland's rate inched up to 13.3% from 13.2% in May. Eurostat also said the unemployment rate in the wider EU was steady at 9.6% for a fifth consecutive month in June. Eurostat website: www.ec.europa.eu/eurostat

2010/07/30 16:53DJ Japan PM Kan: Fiscal Reforms Unavoidable No Matter Who Is PM
TOKYO -Japan's prime minister Naoto Kan pledged Friday to press ahead with efforts to mend the nation's fiscal woes, including cuts to budgetary waste. 'Fiscal reforms are an unavoidable issue no matter who is prime minister or which party is the ruling party,' Kan said at a news conference. 'I want to work steadily on fiscal reforms from now on.' Kan said he first wants to reduce wasteful spending, although he didn't elaborate.

2010/07/30 15:46DJ Spain May Lose Aaa Rating: Moody's - Bloomberg
Spain is likely to lose its Aaa credit rating after the country was put under review for possible downgrade in June, Bloomberg News reported on its website Friday, citing Moody's Investors Service. 'Spain is very highly rated and I can't say where that rating will end up, but it's likely to go down a bit,' Steven A. Hess, senior credit officer at Moody's, told Bloomberg in an interview in Sydney on Thursday.

2010/07/30 14:42=DJ US Steel Caucus Urges Obama To Take Action On Anshan Investment
BEIJING -The U.S. Congressional Steel Caucus said Thursday it is urging President Barack Obama to take action against a Chinese steelmaker's plans to invest in the U.S., and said the response from Treasury Secretary Timothy Geithner on the matter was "inadequate" and "disappointing."The Steel Caucus said in a statement it sent another letter to the White House on Thursday, expressing its concern about the impact on U.S. jobs and national security from the planned investment by China's Anshan Iron & Steel Group Corp. in a newly built steel plant by closely held Steel Development Co. in Amory, Miss., as part of broader cooperation with the U.S. company.Anshan's planned investment is modest, but it has drawn criticism from some U.S. lawmakers concerned over the Chinese government's ownership of the firm and Beijing's plans to snap up resources overseas. China has called for the U.S. not to politicize the issue, and commerce ministry spokesman Yao Jian said last week calls for an investigation into the investment amount to protectionism."The American steel industry and the steelworkers we represent are desperately struggling in this economy to compete on a fair playing ground with China, which is why we find it necessary to take action in the fight against unfair Chinese trading practices," the letter said, according to the statement.The Steel Caucus said it was disappointed with Geithner's response after it petitioned him July 2 to investigate Anshan's investment plans.The U.S. Department of the Treasury replied in a letter on July 12, saying that the Committee on Foreign Investment, chaired by Geithner, "takes very seriously its obligation to protect national security while maintaining an open investment environment." It didn't react directly to the request about a thorough investigation.The director of the news department at Anshan Iron said she was unaware of the latest development and declined to comment on the matter.Qi Xiangdong, deputy secretary-general of the semi-official China Iron and Steel Association, said the U.S. Treasury Department is already taking care of the matter and declined further comment.

2010/07/30 14:29=DJ DATA SNAP: German June Retail Sales A Touch Below Forecast
FRANKFURT -Retail sales in Germany in June fell by 0.9% from May in real, seasonally adjusted terms, but were up 3.1% from June 2010, the Federal Statistics Office Destatis said Friday. The monthly drop was greater than the 0.3% decline forecast by analysts polled by Dow Jones Newswires ahead of the release. The year-on-year increase was also exaggerated by the fact that June had one more shopping day this year than in 2009, Destatis said. Destatis compiles its retail sales data on the basis of seven of Germany's largest states, which account for some 76% of the national total. The figures exclude sales of motor vehicles and fuel. Destatis said sales of food, drink and tobacco rose 1.0% on the year, while sales of non-food goods were up 5.1%. Over the first half of the year as a whole, retail sales were up 0.5% in nominal terms but down 0.4% in real terms. Website: www.destatis.de

2010/07/30 13:40DJ IMF Backs More Stimulus To Help Subdued US Recovery
WASHINGTON (AFP)--The International Monetary Fund on Friday said more stimulus spending might be needed to aid a slow U.S. economic recovery, wading into a toughly-fought political debate in Washington. Warning that the 'economic recovery has been slow by historical standards,' and that 'the outlook remains uncertain,' the IMF's directors said more stimulus spending might be needed.

2010/07/30 12:49DJ Japan's Auto Production Up 25.9% On Year In June
TOKYO -Production of cars, trucks and buses in Japan increased 25.9% from a year earlier in June, rising for the eighth consecutive month, the Japan Automobile Manufacturers Association said Friday.Vehicle output rose to 861,045 vehicles in June, up from 683,922 vehicles in the same month a year earlier, the association said.Domestic vehicle demand totaled 448,831, up 17.4%.In the January-June period, overall auto production rose 45.8% to 4.84 million vehicles, the first on-year increase for the six-month period in two years. Website: http://www.jama.or.jp/eng/

2010/07/30 12:11PRESS RELEASE: Fitch Assigns Final Ratings to First Financial Holding's Bond Issues
The following is a press release from Fitch Ratings: Fitch Ratings-Taipei/Hong Kong-29 July 2010: Fitch Ratings has today assigned a final National Long-term rating of 'AA-(twn)' to Taiwan-based First Financial Holding Company Limited's (First Holding) proposed 5-year TWD2bn senior unsecured bond issue.At the same time, the agency assigned a final National Long-term rating of 'A(twn)' to First Holding's 7-year TWD5bn subordinated bond issue. The company's senior unsecured bonds and subordinated bonds carry fixed coupon rates of 1.60% and 2.25% respectively, corresponding to different due dates of 22 July 2015 and 22 July 2017. The final rating on the senior unsecured bonds is in line with First Holding's current National Long-term rating of 'AA-(twn)', and is in compliance with Fitch's rating criteria on senior bond instruments of financial institutions. The subordinated bonds are rated two notches below First Holding's National Long-term rating, which is in line with Fitch's revised hybrid notching criteria (for more information, please see 'Rating Hybrid Securities' available on www.fitchratings.com). The rating of the subordinated bonds mainly reflects the debt issue's feature of loss absorption through coupon and principal deferrals once First Holding's capital adequacy ratio falls below the regulatory minimum requirement of 100%. At end-2009, First Holding's capital adequacy ratio was 119.69%. The equity credit assigned to this subordinated bond is 25%. Applicable criteria available on Fitch's website at www.fitchratings.com: 'Rating Hybrid Securities', dated 29 December 2009 and 'Equity Credit for Hybrids & Other Capital Securities', dated 29 December 2009. Contacts: Sophia Chen, Stephanie Liu, Jonathan Lee, Taipei, +886 2 8175 7600. Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(twn)' for National ratings in Taiwan. Specific letter grades are not therefore internationally comparable. Media Relations: Karen Cho, Hong Kong, Tel: +852 2263 9935, Email: karen.cho@fitchratings.com.

2010/07/30 09:34DJ White House 'Strongly Supports' House Drilling Bill
WASHINGTON -The Obama administration Thursday said it 'strongly supports' an offshore drilling bill that is up for a vote Friday in the U.S. House of Representatives, including a controversial measure to discard the limit on damages that companies must pay for spills like the one in the Gulf of Mexico. Eliminating the cap on damage claims that companies must pay for offshore oil spills is viewed by oil and gas producers as the most onerous part of the legislation. Without a limit to liability, insurers have indicated that they will stop offering insurance, leaving offshore drilling only to the major oil companies that are able to self-insure against disasters. 'The Administration strongly supports the repeal of the limit on economic damages liability for offshore drilling, which has served as an implicit subsidy for the oil and gas industry for two decades,' according to a statement that laid out the administration's position. 'Removing the arbitrary limit on liability for damages caused by offshore drilling will create the incentive for the oil and gas industry to comply with new standards and seek out and implement best practices for safety.' The White House said it had concerns with one provision relating to 'the exclusive economic zone' with respect to U.S. obligations under international trade and investment agreements. The White House said that it 'looks forward to working with Congress to improve the bill as it proceeds through the legislative process.'

2010/07/30 09:22=DJ NY Fed:Tri-Party Repo Task Force To Publish Monthly Summary Stats
NEW YORK -In a first step toward improving the crucial tri-party repo market, a New York Federal Reserve-sponsored group Thursday said that it will publish monthly statistics on tri-party repo margins by asset class.The Payments Risk Committee said that the Tri-Party Repo Infrastructure Reform Task Force, charged with crafting changes for the tri-party repo market, will publish at the end of each month summary statistics on the entire population of securities allocated in U.S.-based tri-party repo transactions for which the two clearing banks, J.P. Morgan Chase & Co. (JPM) and Bank of New York Mellon Corp. (BK), serve as agents. The task force, in its final tri-party repo market recommendations report in May, said it would be releasing statistics this summer.The tri-party repo market is a key part of the overall U.S. repo market where market participants obtain financing against collateral and their counterparties to invest in cash secured by that collateral. The U.S. repo market is key because it contributes significantly to the liquidity and efficiency of the U.S. Treasury and agency securities markets.The tri-party task force has been working since late 2009 to develop a set of recommendations for improving and mitigating risks related to the infrastructure supporting tri-party repo transactions, given the important role such transactions play in supporting the liquidity and efficiency of U.S. securities markets. The publishing of monthly statistics is the first recommendation to be implemented.Summary statistics will be collected by the two clearing banks and summarized by the Federal Reserve Bank of New York. Summary statistics are now available on the New York Fed's website for June and July 2010, at www.newyorkfed.org/tripartyrepo.Summary information on market concentration, represented by the three largest dealer holdings, will also be shown both by asset group and in total. The data will be obtained as of the close of business on the seventh business day of each month; this timing was selected because it is recognized as a typical business day that minimizes potential distortions, such as mortgage-backed securities settlement days.The website will also include other information that will keep market participants and the public informed on the task force's activities and recommendations.

2010/07/30 08:01DJ Japan June Core CPI -1.0% On Year; Market Expected -1.1%
TOKYO -Japan's core consumer price index fell 1.0% from a year earlier in June, government data showed Friday, in another sign that the country's economy remains mired in deflation despite the economic recovery. The fall marked the 16th straight month of decline and was slightly better than the median forecast for a 1.1% drop in a poll of economists by Dow Jones Newswires and the Nikkei. The core CPI, which excludes volatile fresh food prices, slid 1.2% in May and 1.5% in April. The latest data show that the pace of falls in the core CPI continues to slow, suggesting that a steady recovery in the broader economy has propped up domestic demand and prevented prices from decreasing further. But some analysts say deflation may linger as the yen stays strong with the outlook for the European and U.S. economies uncertain, dragging on Japan's export-driven economy and reducing the prices of oil, food, metals and other commodities that the country buys from overseas. That could force the Bank of Japan to take additional monetary easing measures as the government is now aiming to put an end to deflation in the fiscal year starting April 2011. Core CPI for the Tokyo metropolitan area--a leading indicator of national trends--declined 1.3% in July, the Ministry of Internal Affairs and Communications said, slightly worse than an expected 1.2% drop.

2010/07/30 07:23=DJ DATA SNAP: UK July Consumer Confidence Slumps After Austerity Budget
LONDON -U.K. consumer confidence slumped in the wake of the government's strict austerity budget to the lowest level in eleven months in July, raising fears that the U.K. economy could still experience a double-dip recession, a monthly survey released by polling firm GfK NOP showed Friday. The headline measure of the consumer confidence survey dropped to -22 in July from -19 in June. The fall was steeper than expected as economists surveyed by Dow Jones Newswires last week had forecast the measure would fall by just one point to -20. According to the survey, consumers became sharply more pessimistic about the general economy over the coming year and were less confident about their own financial situation in the future. 'Given that consumer confidence measures are normally good predictors of what the economy itself will do a few months later, the continuing slide in the index makes a double dip recession look more of a possibility as each month goes by,' said Nick Moon, managing director of Gfk NOP. 'It's possible that respondents are already factoring into their view of the economy over the next 12 months the likely recessionary impact of the government's announcement about the level of spending cuts it wishes to make, but if they are not then the prognosis is even more gloomy.' The coalition government's emergency June budget revealed sharp spending cuts across all departments--which are expected to lead to widespread job losses--and outlined plans to freeze the earnings of public-sector staff who earn more than GBP21,000 a year. The government's additional spending cuts and tax hikes are aimed at eliminating the public sector's huge structural budget deficit by the end of the current parliament in 2015. Prime Minister David Cameron's administration has said that only by taking early action can the country hold onto its AAA credit rating, thus keeping long-term interest rates low and supporting the recovery. While Bank of England Governor Mervyn King and many other economists have welcomed the strict austerity measures and said they will provide a credible framework for reducing the record budget deficit, consumer fears about jobs security and earnings growth are growing, the details of the survey show. Although preliminary data for the U.K.'s second-quarter gross domestic product showed impressive gains of 1.1% on the quarter and 1.6% in annual terms, that strength is widely expected to fade in the second half of the year. By how much remains a hot topic of debate, but King said earlier this week that he believes the government's fiscal measures do not pose a 'significant' risk to U.K. growth. The one confidence measure that rose in July was the 'time to make major purchases sub-index' which rose eight points to -16 in July, likely in response to the decision to raise the U.K.'s sales tax by 2.5% to 20% in 2011. 'This might be people thinking they should buy now before Value Added Tax goes up, or might reflect a view that the poor economic conditions mean there are bargains to be had. It should also be noted that this item was the equal biggest decliner on last month's index, so this may be in part a correction,' Moon said. The research was carried out by GfK NOP on behalf of the European Union Commission between July 2 and 11. Web site: http: www.gfknop.co.uk

2010/07/30 05:40=DJ WORLD FOREX: Euro Hits Near 12-Week High Vs Dollar; US Economy Weighs
NEW YORK - The euro rose above $1.31, hitting its highest point in nearly 12 weeks Thursday as improving euro-zone economic data helped the common currency extend a strong rally that's seen it rise more than 10% since early June.The euro has been perhaps the most visible beneficiary of easing concerns about the European sovereign debt crisis. After hitting a four-year low of $1.1876 on June 7, the currency has steadily gained ground amid confidence that policy makers have forestalled a European sovereign debt default.'It, no doubt, feels like we've had more upward momentum in the euro zone than we have had in the U.S.,' said Daragh Maher, deputy head of global foreign exchange strategy at Credit Agricole CIB in London.Well-received government debt auctions in countries like Spain and Portugal--where much of the sovereign debt concerns were focused--have teamed up with better-than-expected regional economic data to lead the common currency higher. The successful stress tests of European banks have further bolstered the euro.Those signs of stability in European markets have come just as investors zero in on the flagging U.S. economic performance, weighing on the dollar and helping the euro. Investors who had bet record amounts against the euro have been forced to unwind those positions as the currency has advanced, driving it even higher.'We're seeing a questioning of the U.S. health and recovery,' said Phil Streible, senior market strategist at Lind-Waldock in Chicago. The upward revision in weekly jobless claims data released Thursday 'just shows you the recovery is not going to be as quick as what was thought.'At the same time, Streible said, 'There's a lot of optimism building on the euro zone. They pulled themselves out of a dire situation,' though he noted the region still faced stiff challenges.Late Thursday the euro was at $1.3090, up from $1.2988 late Wednesday, according to EBS via CQG, after climbing as high as $1.3107. The dollar weakened to Y86.96 from Y87.44, while the euro was slightly higher at Y113.77 compared with Y113.54. The U.K. pound was higher at $1.5617 from $1.5585. The dollar slipped to CHF1.0414 from CHF1.0569.The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 81.599, down from 82.132. To see the euro's moves against the dollar, please see: http://dowjoneswebservices.com/chart/view/4328Worries over the U.S. economy come as investors take a cautious tone on the high level of U.S. debt, which some say could hobble the dollar. The U.S. government needs to articulate clearly a credible plan to tackle its bulging debt profile in order to keep its triple-A credit rating, Steve Hess, senior credit officer in the sovereign risk group at Moody's, said Thursday in an interview with Dow Jones Newswires.The cautious note sounded over U.S. debt 'plays into the hands' of the European Central Bank,' said Dirk Chlench, currency strategist at Landesbank Baden-Wuerttemberg in Stuttgart.ECB President Jean-Claude Trichet has argued 'the fiscal situation of the euro zone as a whole is better than for the United States,' where California, for example, struggles under massive debt.Despite a spate of weak economic data, Chlench said a yanking of U.S. triple-A status is unlikely, with the U.S., over the long term, set to enjoy better economic and demographic growth than the euro zone and other peers. Maher of Credit Agricole CIB agreed, saying the euro would fall to $1.25 in the next three months as the euro zone's belt-tightening plans sap growth prospects.In the short term, though, analysts say weak U.S. data will continue to weigh on the dollar.Contrasting with the recently weak U.S. data were German labor sector figures that came in better than expected and euro-zone economic sentiment, which strengthened in July to its highest level in more than two years.With the ICE Dollar Index weakening, Deutsche Bank's PowerShares U.S. Dollar Index Bearish exchange-traded fund was up 0.58% late Thursday, while its PowerShares U.S. Dollar Index Bullish was down 0.67%. The two exchange-traded funds are based on Deutsche Bank's currency futures indexes, whose composition mirrors that of the ICE's Dollar Index.

2010/07/30 04:53DJ US Fed Total Discount Window Borrowings Wed $64.17 Bln
WASHINGTON The U.S. Federal Reserve's balance sheet shrank in the latest week as commercial banks continued to retreat from the Fed's discount lending window.The Fed's asset holdings in the week ended July 28 fell to $2.329 trillion from $2.336 trillion a week earlier, the Fed said in a report released Thursday.Total discount window borrowing slipped to $64.17 billion on Wednesday from $65.55 billion a week earlier.Meanwhile, borrowing by commercial banks through the Fed's discount window dropped to $26 million from $49 million a week earlier.The data shows that the Federal Reserve is now earning money on all three piles of assets it acquired as part of its rescue of the American International Group (AIG) and its facilitation of the sale of Bear Stearns to J.P. Morgan Chase & Co. (JPM).The gains are being driven by stronger returns on the holdings of mortgage-backed securities and collateralized debt obligations acquired through the transactions.The Fed reassess the value of the holdings each quarter, and Thursday's data marked the Fed's latest revision.U.S. government securities held in custody on behalf of foreign official accounts rose to $3.151 trillion from $3.139 trillion in the previous week.Treasurys held in custody on behalf of foreign official accounts as of Wednesday increased slightly to $2.319 trillion from $2.308 trillion in the previous week.Holdings of agency securities rose to $831.60 billion from the prior week's $831.15 billion.Further data on the Fed's balance sheet, including a breakdown of district-by-district discount window borrowing, can be found at http://federalreserve.gov/releases/h41/Current/h41.pdf.

2010/07/30 04:47=DJ US Small-Cap Stocks Edge Down, Weighed By Earnings
NEW YORK -U.S. small-capitalization stocks edged down Thursday as weak guidance and high-profile earnings disappointments from utilities and consumer companies added to anxiety over the economic recovery. After wavering between gains and losses all session, small caps slipped into the red late in trading Thursday. Still, with only one full day of trading left in July, both small-cap indexes are on track to close the month with significant gains, boosted by the first half of second-quarter earnings season. "In the beginning of earnings season, you had a lot of sovereign credit fears out of Europe and those dominated the market," said Andrew Ross, partner and equity trader at First New York. "As more earnings were released and some of the fears dissipated as a result of the [European bank] stress tests, the market has rallied substantially." On Thursday, the Russell 2000 index of small-capitalization stocks shed 0.33 point, or 0.05%, to 650.43. The measure is now up 6.7% for July with one day of trading left. The Standard & Poor's SmallCap 600 index edged down 0.27, or 0.08%, to 348.94. The S&P 600 is up 6.4% month-to-date. Investors said disappointing quarterly reports from large-caps Colgate-Palmolive and Kellogg trickled down to depress small-cap consumer staples. "Anything with exposure to the consumer is generally weak today," Ross said. "The direction was certainly dictated by Kellogg and Colgate." Private-label food maker TreeHouse Foods slipped 1.11, or 2.3%, to 47.84. Brewer Boston Beer, maker of Samuel Adams beer, fell 1.52, or 2.1%, to 69.86. Both are traded on the New York Stock Exchange. However, small-cap utilities posted the biggest losses Thursday, following the lead of large-cap utilities, which were stung by disappointing quarterly reports. Energy company Avista (NYSE) dropped 42 cents, or 2%, to 21.13. Natural gas holding company Laclede Group (NYSE) shed 52 cents, or 1.5%, to 34.84. Checking some of the losses, a handful of encouraging earnings boosted small-cap materials Thursday. Paper products maker Clearwater Paper (NYSE) rose 5.99, or 11%, to 61.26, after its second-quarter earnings beat analysts' expectations.

2010/07/30 00:01=DJ BP Hires HSBC To Sell Stake In Vietnam Gas Field - Source
LONDON -BP PLC (BP) has hired HSBC Holdings PLC (HBC) to sell its stake in a natural gas field in Vietnam, a person familiar with the matter said Thursday.BP has said it will sell its Vietnam assets, principally the Nam Con Son gas project, as part of a $30 billion divestment process to raise money to cover the cost of the Gulf of Mexico oil spill.A spokesman Thursday said that the company had informed staff and government that it planned to divest the project, and hoped to have done so by the end of the year, but declined to comment further. The divestments won't include BP's downstream businesses in Vietnam, the spokesman added.A consortium of Indian companies--Oil India Ltd. (533106.BY), GAIL (India) Ltd. (532155.BY), Oil & Natural Gas Corp. (500312.BY) and Indian Oil Corp. Ltd.(530965.BY)--have said they will bid for the assets. BP said last week it would sell oil and gas fields in the U.S., Canada and Egypt to Houston-based Apache Corp. for $7 billion as part of the broader divestment process.BP developed its Vietnam gas project through the 1990s and the project started producing gas in the early part of this century.The value of the asset isn't clear: BP said it put more than $1.3 billion of capital investment into the project at start-up, but declined to say what its current value was.