Jeeson Augustine's View on Economy & Finance: Market Rumours

2010/09/08 18:01*DJ German Jul Indus Output Forecast +1.0% MM

2010/09/08 18:01*DJ German Jul Unadjusted Indus Output +7.3% YY

2010/09/08 18:00*DJ German Jul Indus Output Adj +0.1% MM; +10.9% YY

2010/09/08 18:00*DJ Moody's: Default Rate Falls To 5.0% In August 2010

2010/09/08 17:59*DJ 10Y Portuguese/German Yield Spread At 360Bp After PGB Sale

2010/09/08 17:58*DJ Portuguese April 2021 Bond Bid-To-Cover Ratio 2.6

2010/09/08 17:57*DJ Portuguese April 2021 Bond Average Yield Set At 5.973%

2010/09/08 17:57*DJ Portugal Sells EUR378M April 2021 Bond

2010/09/08 17:56*DJ Portuguese September 2013 Bond Bid-To-Cover Ratio 1.9

2010/09/08 17:55*DJ Portuguese September 2013 Bond Average Yield Set At 4.086%

2010/09/08 17:54*DJ Portugal Sells EUR661M September 2013 Bond

2010/09/08 17:54*DJ Fitch: BP Upgrade Reflects Improved Liquidity To Address Financial Payouts

2010/09/08 17:52*DJ Fitch: BP Upgrade Reflects Improved Visibility Of Potential Liability

2010/09/08 17:47*DJ Fitch Upgrades BP plc to 'A'; Outlook Stable

2010/09/08 17:37*DJ Japan Decides To End Subsidy Program For Eco-Friendly Cars - Kyodo

2010/09/08 17:31*DJ Ireland's Sovereign CDS Rise Nearly 20 Bps From Tuesday - CMA

2010/09/08 17:30*DJ Ireland's 5-Year Sovereign CDS Trade At 400 Bps - CMA

2010/09/08 17:20=DJ DATA SNAP: UK July Manufacturing Output Rises At 15-Year High

2010/09/08 17:13DJ HK Dollar Down Late Due To Declines In Local Shares
HONG KONG -The Hong Kong dollar fell against the U.S. dollar Wednesday due to declines in local shares, though a U.S. bank's sales of the U.S. unit pared the Hong Kong dollar's decline. Traders said they expect the U.S. dollar to maintain its strength in the near term amid a general increase in risk aversion, due to the U.S. dollar's status as a safe-haven currency. They said they expect the U.S. dollar to trade between HK$7.7690 and HK$7.7740 Thursday. In late Asian trade, the U.S. dollar was at HK$7.7716, up from HK$7.7685 late Tuesday. The U.S. unit was fixed at HK$7.7719 earlier Wednesday. 'Some local banks are buying the U.S. dollar for short-covering, and the weaker local stocks also prompted some selling of the local currency,' said a senior trader at a Singapore bank. Hong Kong shares fell 1.5% to 21,088.86 Wednesday due to profit-taking after a five-day winning streak and because of a sharp decline in China Mobile following Vodafone's sale of its stake in the index heavyweight. 'There is a lot of speculation that after Vodafone's sale of their stake in China Mobile, they need to buy the U.S. dollar, to be exchanged back to the British pound in the U.K.,' a trader at a U.K. bank said. Vodafone, the world's biggest mobile operator by revenue, said late Tuesday it sold its 3.2% stake in China Mobile for GBP4.3 billion before tax and transaction costs. Vodafone sold the shares at HK$79.20 each. 'Despite the weakening risk appetite, I spotted a U.S. bank selling (the U.S. dollar) near the level of HK$7.7730, in a transaction of about US$200 million to US$300 million, forming a strong resistance there,' the trader at the Singapore bank said. The one-year U.S. dollar/Hong Kong dollar forward contract was quoted at a discount of 165 points to the spot rate, unchanged from late Tuesday.

2010/09/08 17:11*DJ 3-Month Euribor Falls To 0.880% Vs 0.881% Tuesday

2010/09/08 17:01*DJ Sarkozy Refuses To Drop Plan To Raise Retirement Age

2010/09/08 16:41DJ Russia 1Q 2010 Annual GDP Growth Revised To 3.1% From 2.9%
MOSCOW -Russia's gross domestic product grew 3.1% in the first quarter from the corresponding period a year earlier, rather than 2.9% as previously estimated, the Federal Statistics Service said Wednesday.

2010/09/08 16:36*DJ ECB's Weber: Periphery Has To Pay Higher Premia Now

2010/09/08 16:36*DJ ECB's Weber: Peripheral States Will Preserve Market Access

2010/09/08 16:33*DJ UK July Manufacturing Strongest On Year Since December 1994

2010/09/08 16:32*DJ UK Jul Industrial Production +0.3% On Mo; +1.9% On Yr

2010/09/08 16:32*DJ UK Jul Indus Production Forecast +0.5% MM, +2.1% YY

2010/09/08 16:32*DJ UK 3Mo Mfg Output +0.9%; 3Mo Industrial Production +0.6%

2010/09/08 16:32DJ EU Commission Wants Stress Tests On Regular Basis -Report
FRANKFURT -The European Union should conduct stress tests on a regular basis to assess the resilience to shocks of its biggest banks, EU internal markets and services commissioner Michel Barnier told German daily Handelsblatt for its Wednesday edition. 'I am of the opinion that we have to conduct the stress test on a regular basis in the future,' Barnier said. He suggested that the stress tests could be repeated next year. A set of tests conducted in July helped to increase transparency and diminish investors' fears about the state of the European banking sector. The European Commission is the EU's executive arm. Website: www.handelsblatt.de

2010/09/08 16:30*DJ UK Jul Mfg Output +0.3% On Mo, +4.9% On Yr

2010/09/08 16:30*DJ UK Jul Mfg Output Was Forecast At +0.3% MM, +5.0% YY

2010/09/08 16:25DJ Japan Govt Sengoku: Paying Very Close Attention To Forex Rates
TOKYO (Nikkei/Dow Jones)--Japan's top government spokesman Yoshito Sengoku said Wednesday he is watching developments in the currency markets more closely than ever after the yen rose to a fresh 15-year high against the dollar earlier in the day.'Finance Minister Yoshihiko Noda said he would take decisive steps (to stem the yen's rapid rise), so I am waiting for his decision on any action,' Sengoku said at a press conference in Tokyo.Noda said earlier Wednesday that the government would take 'decisive steps,' including intervention, if necessary.The dollar fell to a fresh 15-year low of Y83.34 Wednesday. As of 0755 GMT, the greenback stood at Y83.59.

2010/09/08 16:17DJ Rio Tinto Eyeing Russian Fertilizer Company Uralkali -Vedomosti
MOSCOW -Mining giant Rio Tinto Ltd. has sent a delegation to visit the operations of potash fertilizer producer OAO Uralkali and to meet with major shareholder billionaire Suleiman Kerimov about the possibility of buying a 10% to 15% stake, Vedomosti reports Wednesday. Rio Tinto's visit to the Russian city of Berezniki began last week, the newspaper reports, citing three unidentified people close to Uralkali and its shareholders. Rio Tinto is prepared to buy 10% to 15% of Uralkali based on a $15 billion valuation for the whole company, the newspaper reports, citing one of its sources. Representatives of Rio Tinto, Uralkali, and the Russia's company's shareholders declined to comment to the newspaper. At 0657 GMT, Uralkali shares were up 3% at RUB147, compared with an advance of 0.3% on Russia's Micex Index. Newspaper website: www.vedomosti.ru

2010/09/08 16:09*DJ ECB's Weber: Hopes To Complete Basel III Talks Next Week

2010/09/08 16:06=DJ PRECIOUS METALS: Gold Edges Nearer To Record In Asia

2010/09/08 16:02*DJ ECB's Weber: Expects Moderate Growth With Price Stability

2010/09/08 15:59DJ JGBs Rise As Stronger Yen Fans Concern Over Japan's Economy
TOKYO -Long-term Japanese government bonds rose on Wednesday as an even stronger yen exacerbated concern over the outlook for the country's export-reliant economy, prompting investors to seek safe-haven assets. The U.S. dollar briefly plunged to a fresh 15-year low against the yen at Y83.34 during the Asian trading session, which drove the Nikkei Stock Average downward 2.2% to 9,024.60. Demand was tepid at an auction of 30-year JGBs earlier in the day amid lingering worries over Japan's fiscal discipline, but growing risk aversion made market participants eager to boost long-term debt holdings. 'Fears are clearly intensifying that the sharp appreciation of the yen will drag on Japan's economy further,' said Masashi Shimominami, a bond market analyst at Mizuho Securities. 'Unless the yen weakens, investors will likely buy long-term JGBs actively and the yields could extend declines.' As of 0600 GMT, the benchmark 10-year JGB yield was down 1.5 basis points at 1.125%, and lead September JGB futures closed at 141.78, up 0.23. The five-year yield also fell 5.5 basis points to 0.285% as market participants speculated that the yen's strength could force the Bank of Japan to ease monetary policy again in the near term, traders said. BOJ Gov. Masaaki Shirakawa on Wednesday said at a parliamentary session that the central bank stands ready to implement further easing measures if the nation's economic condition deteriorates. 'We are now concerned about downside risk (to Japan's economy). If downside risk materializes and the economy worsens at a faster pace than we expect, we will take additional measures,' Shirakawa said. The BOJ is aware that the stronger yen hurts business sentiment and the bank 'will take policy actions in a timely and appropriate manner if necessary,' he added. However, the yield curve didn't flatten as the 30-year JGB auction results turned out weaker than expected. The Ministry of Finance sold Y549.7 billion worth of the 2.0% bonds at a lowest price of 99.75, lower than traders' expectations for 99.90-100.00. 'Many investors are concerned about whether the Japanese government will retract its pledge to rebuild the country's fiscal health and instead implement large-scale economic-stimulus measures,' a trader at a Tokyo securities house said. Ichiro Ozawa, a powerful member of the ruling Democratic Party of Japan and advocate of higher fiscal spending, is challenging Prime Minister Naoto Kan for leadership of the DPJ in what is seen as a close race. The party will vote on Sept. 14, with the winner almost certain to become the nation's prime minister. If elected, Ozawa has vowed to implement a series of costly stimulus measures promised by the DPJ in its 2009 Lower House election manifesto, fanning fears that an Ozawa premiership could worsen the country's already debt-ridden condition by issuing more bonds to finance such steps. Those concerns have sent longer-dated yields sharply higher over recent weeks. 'Before the DPJ presidential race is over, it will be very difficult to dabble in superlong-term debt,' the trader added.

2010/09/08 15:57*DJ Dollar At MYR3.1120 Vs MYR3.1250 Late Tuesday

2010/09/08 15:51*DJ ECB's Weber: No Fear Of Double-Dip Recession, Deflation

2010/09/08 15:51*DJ ECB's Weber: Tighter Capital Standards Won't Hurt Economy

2010/09/08 15:50*DJ ECB's Weber: Crisis' Effects Will Be Felt For Years To Come

2010/09/08 15:50*DJ ECB's Weber: Can't Say That The Crisis Is Over

2010/09/08 15:42=DJ DATA SNAP: UK House Prices Rose For Second Month In Aug

2010/09/08 15:42DJ French Budget Deficit Was EUR93.1B At End-July
PARIS - France's budget deficit narrowed to EUR93.1 billion on July 31, from EUR108.8 billion a year earlier, the country's budget ministry said Wednesday. Public spending for the first seven months of the year amounted to EUR236.1 billion, up from EUR215.2 billion a year earlier, the budget ministry said. Revenues for the same period were EUR159.7 billion, up from EUR133.8 billion a year earlier, the ministry added.***********Budget ministry website: www.budget.gouv.fr

2010/09/08 15:38DJ Bank Of France Confirms 3Q GDP Expected Up 0.3%
PARIS -France's economy is still expected to expand by 0.3% in the third quarter, the Bank of France said Wednesday, noting that business sentiment in industry was unchanged in August from July, while sentiment in the services sector was off slightly.The forecast for 0.3% growth in gross domestic product in the bank's latest monthly report was unchanged from the figure it penciled in in July.'In August, industrial activity remained stable overall in comparison with the previous month. The decline in the automotive sector was offset by growth in other sectors,' the Bank of France said, noting that order books picked up slightly in August, while inventories of final goods were consistent with targeted levels. The capacity utilization rate dipped slightly.'Forecasts [...] point to a rebound in production in the months ahead,' the Bank of France said.The business sentiment index for industry was unchanged in August from July at 101, while the index for the services sector eased to 95 from 96.'Activity in the services sector remained unchanged following several months of growth in spite of the rise observed in the information systems services,' the bank said.It said French prices decreased slightly in August, while staff levels continued to rise at the same pace as in July.

2010/09/08 15:37=DJ DATA SNAP: French July Trade Gap Widens To EUR4.18B Vs EUR3.72B

2010/09/08 15:28*DJ Japan Govt Sengoku: To Await MOF Decision On Forex

2010/09/08 15:27*DJ Japan Govt Sengoku: Paying Very Close Attention To Forex Rates

2010/09/08 15:22DJ Tokyo Shares Fall As Yen Surge Darkens Corporate Outlook -2-

2010/09/08 15:17DJ Tokyo Shares Fall As Yen Surge Darkens Corporate Outlook

2010/09/08 15:05DJ Forex Options: Yen Options Up As Dollar At 15-Year Low Vs Yen
TOKYO -Dollar/yen options rose in Tokyo Wednesday as investors expressed anew their concern over just how strong the yen might become over the next few weeks.The Japanese currency marked a fresh 15-year high at Y83.34 to the dollar during Asian trade, prompting Japanese exporters to show significant interest in buying option contracts to hedge against downside risk to the U.S. currency. A strong local unit is damaging for exporters because it deflates profits earned overseas when they are repatriated.Dealers in Tokyo said these investors are interested in buying two-week yen-call options with a strike price of Y81. Such a contract would benefit the buyer should the dollar fall below Y81 from its current Y83.34 during the next two weeks. Others were speculating that the greenback will fall below Y74 to mark an all-time low within the coming year.Benchmark one-month at-the-money dollar/yen volatilities may keep rising if the yen continues its ascent. The benchmark figures were at 12.15%/12.85% in Tokyo from 12.00%/12.70% in New York overnight.'Our focus is the yen, and nothing else. Dealers are closely paying attention to how much more room the yen has to strengthen,' a senior dealer at a major Japanese bank said.Dealers added global share prices, if they weaken further, could be a trigger for investors to buy the safe-haven yen even more aggressively.

2010/09/08 15:04*DJ Stoxx Europe 600 Index Dn 0.1% After The Open

2010/09/08 15:03*DJ FTSE 100 Dn 0.5% After The Open

2010/09/08 15:00*DJ UK Halifax House Prices Were Forecast -0.5% MM, +4.4% YY

2010/09/08 15:00*DJ UK Halifax Aug House Prices +0.2% On Mo, +4.6% On Yr

2010/09/08 14:57*DJ Euro Hits CHF1.2811 On EBS; Fresh All-Time Low

2010/09/08 14:49=DJ WORLD FOREX: Yen Hits New High Despite Japan Warnings -3-

2010/09/08 14:48*DJ French Budget Deficit Was EUR108.8B At End July 2009

2010/09/08 14:48=DJ WORLD FOREX: Yen Hits New High Despite Japan Warnings -2-

2010/09/08 14:48*DJ French Jul Trade Gap EUR4.18B

2010/09/08 14:47*DJ French Budget Deficit At EUR93.1B At End July

2010/09/08 14:46DJ New Capital Buffer Rules To Have Limited Impact On Bank Lending - Report
SYDNEY -New international regulations compelling banks to increase capital buffers at times of rapid credit growth won't crimp lending in Australia, a new report said Wednesday. While there is some merit to the theory of forcing banks to increase their liquidity holdings during good times in an effort to reduce risk in the banking system, such a move won't directly hurt the ability of businesses and individuals to get loans, said Scott Manning, banking analyst at JPMorgan. Late last month, the Basel Committee mapped out a proposal of possible debt instruments that could be included as a liquid asset, though committee discussions remain ongoing. Releasing the latest JPMorgan/Fujitsu Australia Mortgage Industry Report, Manning said the new regulations may cause banks to increase lending rates in order to claw back the return-on-equity drag associated with holding higher levels of capital. 'Importantly, the repricing response to higher capital levels would be insufficient to slow down rates of credit growth based on the current range of credit buffers being discussed,' he said. 'Further, the consequences of paying lower distributions would likely be accepted by shareholders given this is typically the result of higher credit growth as banks deploy capital to grow,' he added. The comments come ahead of a deadline for submission to the Basel Committee July 2010 consultation paper on Sept. 10.

2010/09/08 14:42=DJ DATA SNAP: German Export Machine Slows In July

2010/09/08 14:32*DJ BoF: French 3Q GDP Expected Up 0.3%; Forecast Unch From Before

2010/09/08 14:28=DJ WORLD FOREX: Yen Hits New High Despite Japan Warnings

2010/09/08 14:21=DJ FX ASIA: Asian Reserves Up In Aug As Central Banks Intervene

2010/09/08 14:20*DJ German July Seasonally Adj Exports Down 1.5% On Month, Up 18.7% On Year

2010/09/08 14:20*DJ German Current Account Surplus Below EUR11.0 Bln Forecast

2010/09/08 14:19*DJ German July Current Account Surplus EUR9.0B Vs EUR10.6B July '09

2010/09/08 14:17*DJ German July Trade Surplus EUR13.5 Bln Vs EUR14.3 Bln In July '09

2010/09/08 14:09DJ EU's Barnier Favors Regular Banking Stress Tests - Report
FRANKFURT -The European Union's internal market commissioner, Michel Barnier, said financial institutions should be subjected to further stress tests, the daily Handelsblatt reported Wednesday.'I'm certainly of the opinion that stress tests should be conducted on a regular basis in future,' Barnier was quoted as saying.The tests carried out in July served to calm markets by providing transparency, he noted. The next tests will be conducted next year, after the January start for new E.U. financial supervisors, Barnier added.The London-based European Banking Authority will then decide how often, and in what way, the tests will be held, he said.Barnier dismissed financial industry criticism of too much regulation, noting that banks are responsible for the worst financial crisis since 1929. 'Bankers behaved irresponsibly, immorally, and unethically,' he said.He also rejected the idea that Europe places higher financial burdens on banks than the U.S. Barnier said regulatory progress is being made, and he expects U.S. banks to apply Basel capital requirements by the middle of next year, at the latest.Newspaper website: http://www.handelsblatt.com-Frankfurt Bureau, ; 49-69-29725-500.

2010/09/08 14:07DJ BOJ Leaves Economic Assessment Unchanged In Sept Report

2010/09/08 14:02*DJ Nikkei Stock Average Closes Down 2.2% At 9024.60

2010/09/08 13:53DJ New Zealand Says Quake Bill May Reach $2.7 Billion
WELLINGTON --The repair bill from the Christchurch earthquake is likely to reach NZ$4 billion ($2.7 billion), the New Zealand Treasury said Wednesday, doubling previous official estimates. 'The cost faced by the EQC , individuals, and insurance costs will probably be of the order of NZ$4 billion,' Treasury Secretary John Whitehead told reporters.

2010/09/08 13:50DJ BOJ Leaves Economic Assessment Unchanged In Sept Report
TOKYO -The Bank of Japan said the nation's economy 'shows further signs of moderate recovery' in September, keeping its assessment unchanged for the fourth straight month since upgrading it in May. However, in its monthly economic report released Wednesday, the BOJ used a weaker tone on the country's economic outlook, saying 'Japan's economy is likely to recover at a moderate pace, although the pace of improvement is likely to slow temporarily.' The central bank also made minor downgrades to individual economic elements in the report, saying exports and industrial production are still increasing, though at a slower pace. The BOJ also said recovery in private consumption may temporarily weaken due to receding effects of government stimulus policy and hot weather but it is expected to stay on a recovery trend. On Tuesday, the BOJ's policy board decided to leave its policy interest rate at 0.1%, unchanged since December 2008, and took no further unconventional easing steps. Under intense pressure from the government as well as from markets to do more to fight the yen's rise, the BOJ on Aug. 30 expanded a special lending program at an emergency policy meeting. The central bank decided to offer financial institutions Y10 trillion of six-month cheap loans, in addition to the Y20 trillion in three-month loans it has been offering over the past few months.

2010/09/08 13:16*DJ New Zealand Says Quake Bill Likely To Reach About $2 Billion

2010/09/08 13:10*DJ BOJ: Pace Of Decline In Consumer Price Index Likely To Slow

2010/09/08 13:09*DJ BOJ: Exports Expected To Continue Increasing Moderately

2010/09/08 13:05*DJ BOJ: Exports, Production Increasing At Slower Pace

2010/09/08 13:05*DJ BOJ: Pace Of Econ Recovery Likely To Slow Temporarily

2010/09/08 13:03*DJ BOJ: Japan Econ Likely To Recover At Moderate Pace

2010/09/08 13:02*DJ BOJ: Japan Econ Shows Further Signs Of Moderate Recovery

2010/09/08 13:01*DJ BOJ Leaves Economic Assessment Unchanged In Sept Report

2010/09/08 12:56DJ Groupe BPCE May Buy 20% Stake In Bank Of Guangzhou - Report
SHANGHAI -French mutual bank Groupe BPCE may buy a 19.9% stake in Bank of Guangzhou Co., the maximum stake foreign firms can take in Chinese lenders, ahead of the bank's listing in the coming three years, the state-run Guangzhou Daily reported Wednesday, citing unnamed sources. The Guangzhou government is selling part of its 90% stake in the small regional bank to help meet regulatory requirements for initial public offerings that cap local governments' holdings in listed banks at 30%, the report said. Bank of Guangzhou, which has assets of around CNY130 billion, is planning to list in Shanghai within three years, the report said, adding the bank aims to boost its net profit to more than CNY5 billion from its 2010 target of CNY2 billion within five years. BPCE has hired accounting firm PricewaterhouseCoopers to carry out due diligence on Bank of Guangzhou, and it may sign an agreement with the Chinese bank on the purchase in November, the report said. BPCE, which was formed from the merger of Banque Populaire and Caisse d'Epargne in 2009, is France's second-largest bank by assets after BNP Paribas SA. Newspaper website: http://gzdaily.dayoo.com

2010/09/08 12:40*DJ BNP Paribas Cut To Underperform From Mkt Perform By Bernstein

2010/09/08 12:32*DJ No Oil Leaks Resulting From Damaged Platform -Sinopec Official

2010/09/08 12:29*DJ Hong Kong-Listed Sinopec Corp Owns Damaged Platform -Company Official

2010/09/08 12:27*DJ Oil Platform Mostly Used For Repairing Wells -Sinopec Official

2010/09/08 12:26=DJ BIG PICTURE: White House May Be Missing Growth Opportunity

2010/09/08 12:02*DJ Euro Falls To Y105.80 On EBS; Lowest Since Aug 24

2010/09/08 11:47*DJ Dollar Falls Below Y83.51 On EBS To Fresh 15-Year Low

2010/09/08 11:27DJ JPMorgan, Daewoo Securities, Samsung Securities To Manage Woori Sale - Source
SEOUL -The South Korean government has mandated JPMorgan Chase & Co. , Daewoo Securities Co. and Samsung Securities Co.to manage the sale of its 57% stake in Woori Finance Holdings Co. , currently valued at KRW6 trillion ($5.09 billion), a person familiar with the situation said Wednesday.The government selected the three firms from a shortlist of eight, the person told . The government had said it would pick two domestic firms and one foreign firm for the sale sometime this week.The government is seeking to sell all or most of its stake in Woori, South Korea's largest financial holding company by assets. It will pick a preferred bidder for the stake by the first quarter of 2011.

2010/09/08 11:12=DJ BOE WATCH:MPC Likely On Hold But Risk Of Stimulus Seen Rising

2010/09/08 10:53DJ BOJ Governor: Have Been Supplying Ample Funds To Financial Firms
TOKYO -Bank of Japan Gov. Masaaki Shirakawa said Wednesday the central bank has been pumping adequate funds into the market, suggesting he doesn't think the BOJ needs to take more easing measures anytime soon. 'We have been supplying ample funds to financial institutions, and we haven't heard them say that they are facing a liquidity problem,' Shirakawa said at a parliamentary session. He also said the quantitative easing policy the BOJ took for five years through 2006 had only a limited effect in propping up the economy and pushing up prices, suggesting an unwillingness to resume such steps. But Shirakawa said the BOJ is paying more attention to the downside risks to Japan's economy, and he is aware that the yen's current strength hurts business sentiment, and that the central bank will take policy steps in a timely and appropriate manner, if necessary.

2010/09/08 10:40DJ BOJ Gov Shirakawa: To Take Additional Steps If Economy Worsens
TOKYO -Bank of Japan Gov. Masaaki Shirakawa said Wednesday that the central bank stands ready to implement further easing measures if the country's economic conditions deteriorate. 'We are now concerned about downside risks (to Japan's economy). If the downside risks materialize and the economy worsens at a faster pace than we expect, we are ready to take additional measures,' Shirakawa said at a parliamentary session.

2010/09/08 10:31DJ Japan Finance Official: Need Effective Form Of Forex Intervention
DJ Japan Finance Official: Need Effective Form Of Forex Intervention TOKYO -A senior Japanese Finance Ministry official said Wednesday the governement needs to create an effective form of foreign exchange intervention, Kyodo News reported. Hiroshi Okushi said the government will act when appropriate through the preparation of necessary steps, Kyodo reported.

2010/09/08 10:28DJ Japan Finance Minister: Decisive Steps Include Forex Intervention
TOKYO -Japan's finance minister said Wednesday the government will take 'decisive' steps against the rising yen if necessary and that those measures include foreign-exchange market intervention. It was the first time for Yoshihiko Noda to clarify that he sees currency-market intervention as a policy option. His comments reveal how serious Japan's currency authorities have become about the idea of intervening to sell the yen to curb its strength. 'We will take decisive steps--which of course include intervention--when it becomes necessary,' Noda said during a parliamentary committee session. 'While keeping in mind how , we will take decisive measures.' Until now, Noda had repeatedly threatened 'decisive' steps but was vague on whether those steps would include intervention.

2010/09/08 10:19*DJ BOJ Shirakawa: Yen Rise Is One Of Major Downside Risks To Japan Econ

2010/09/08 10:14DJ Shui On Land: To Issue Up To CNY2.72 Bln Worth Of Convertible Bonds
J Shui On Land: To Issue Up To CNY2.72 Bln Worth Of Convertible Bonds HONG KONG -Chinese property developer Shui On Land Ltd. said Wednesday it plans to issue up to CNY2.72 billion worth of yuan-denominated convertible bonds that will be settled in U.S. dollars to fund its property operations and potential acquisitions. Hong Kong-listed Shui On Land, controlled by businessman Vincent Lo, said in a statement it plans to issue CNY2.04 billion worth of convertible bonds that will mature on Sept. 29, 2015. The bonds' annual interest is 4.5%, payable semi-annually. The developer has the option of increasing the issue by CNY680 million worth of bonds, the statement said. Shui On has property developments in mainland cities such as Shanghai, Hangzhou and Chongqing. Standard Chartered PLC is the sole bookrunner for the deal.

2010/09/08 09:55DJ Japan Finance Minister: Will Take Decisive Steps Vs Yen When Needed
TOKYO -Japan's finance minister reiterated Wednesday that the government would take 'decisive' steps against the yen's strength when deemed necessary, after the currency touched a fresh 15-year high versus the dollar overnight. 'We will take decisive steps when necessary,' Yoshihiko Noda said during a parliamentary committee session. The greenback dropped to a fresh 15-year low of Y83.51 against the yen in New York trading hours Tuesday. As of 0120 GMT Wednesday, the dollar stood at Y83.64.

2010/09/08 09:54*DJ BOJ Shirakawa: To Take Additional Steps If Econ Worsens

2010/09/08 09:50*DJ Japan Finance Official: Will Take Needed Steps When Time Right -Kyodo

2010/09/08 09:50*DJ Japan Finance Official: Need Effective Form Of Forex Intervention

2010/09/08 09:48*DJ BOJ Shirakawa: Difficult To Judge Whether Yen Rise Is Good Or Bad For Now

2010/09/08 09:48*DJ BOJ Shirakawa: Yen Rise May Benefit Japan Econ In Long Run Due To Lower Import Costs

2010/09/08 09:46*DJ BOJ Shirakawa: Closely Watching If Recent Yen Rises Damage Business Sentiment

2010/09/08 09:44*DJ BOJ Shirakawa: Yen Rise Could Hurt Exports, Corp Profits

2010/09/08 09:39*DJ Japan Noda: Decisive Steps Include Forex Intervention

2010/09/08 09:33DJ BOJ Nishimura: Need To Pay Attention To Downside Risks In Economy, Prices
TOKYO -A Bank of Japan deputy governor said Wednesday that downside risks to the country's economy and prices are increasing due to the recently unstable financial markets.'Recent foreign exchange and share price movements are unstable...and we need to pay attention to downside risks in the economy and prices,' said Kiyohiko Nishimura at a Lower House parliamentary committee.He also noted global economic outlook uncertainties are increasing, especially in the U.S.

2010/09/08 09:26*DJ BOJ Shirakawa: To Take Policy Steps In Timely And Appropriate Manner

2010/09/08 09:23*DJ Euro Hits Y106.09 On EBS; Lowest Since Aug. 25

2010/09/08 09:22DJ Japan Government: Strong Yen Is Big Downside Risk For Economy
TOKYO -The yen's surge poses a large threat to Japan's economic outlook and could prompt some companies to shift their domestic investment overseas, a government official said Wednesday. 'I want to emphasize my feeling of crisis that the strong yen poses a very large downside risk to the economy,' the official said. The Cabinet Office official, who was briefing reporters on July machinery orders data, said that the yen's strength is creating uncertainty over whether Japanese companies will invest in Japan or shift their planned investment to other countries. He added that the Cabinet Office maintained its assessment on machinery orders, saying that they show signs of picking up.

2010/09/08 09:22*DJ Shui On Land: To Use Proceeds For Property Ops, Acquisitions

2010/09/08 09:21*DJ Shui On Land: Convertible Bonds Due 2015, With 4.5% Annual Interest

2010/09/08 09:20*DJ Nikkei 225 Stock Average Down More Than 2.0% At 9039.02

2010/09/08 09:17*DJ Shui On Land: To Issue Up To CNY2.72 Bln Worth Of Convertible Bonds

2010/09/08 09:12*DJ Japan Noda: Yen Uptrend Taking Root

2010/09/08 09:10*DJ Japan Noda: Yen Rises Partly Due To Narrowing US-Japan Rate Gaps

2010/09/08 09:06*DJ Japan Fin Min Noda: Will Take Decisive Steps Vs Yen When Needed

2010/09/08 09:06*DJ Japan Fin Min Noda: Have Strong Concern Over Impact Of Yen Rises

2010/09/08 09:06*DJ Japan Fin Min Noda: Yen Moves Clearly One-Sided

2010/09/08 09:03*DJ BOJ Shirakawa: Paying More Attention To Japan's Econ Downside Risks

2010/09/08 09:02*DJ BOJ Shirakawa: BOJ Has Been Supplying Ample Funds To Fincl Firms

2010/09/08 08:49DJ UK Job Growth Slows In August As Business Confidence Eases-Survey
LONDON -The pace of new permanent and temporary job placements in August by recruitment agencies slowed to the lowest level since October 2009 as vacancies fell on growing fears over the pace of the U.K.'s economic expansion, a survey shows Wednesday.The monthly Report on Jobs, conducted by the Recruitment and Employment Confederation and KPMG, found that the slower increase in new appointments also led to the lowest increase in permanent salaries in seven months while temporary wages grew at the slowest level in five months.'We are concerned about the U.K. jobs market,' said REC Chief Executive Kevin Green. 'Growth is rapidly slowing as public sector job freezes start to bite and private sector employers' confidence remains fragile.'The news comes ahead of the government's comprehensive review, expected 20 October, where further and more specific details of the raft of sharp public spending cuts will be unveiled.In a bid to reduce the record budget deficit, Chancellor of the Exchequer George Osborne announced various cost cutting measures in his austerity June budget which are expected to lead to up to 600,000 public sector job cuts over the next four-and-a-half years. Other measures included a 2.5 percentage point increase in the U.K.'s sales tax--to be implemented in the new year--which will also likely mean a steep slowdown in consumption in 2011.All of these concerns appear to now be weighing on business confidence and output levels which is reflected in the slower pace of growth of various measures, including the U.K's jobs market which has so far weathered the deepest recession since World War II fairly well.The survey also highlights a widening disparity between public and private sector employment plans, said Bernard Brown, partner and head of business services at KPMG.'Whereas demand for staff is growing in the private sector, many public sector organisations have started redundancy programs,' Brown said. 'In the months ahead we will see a substantial reduction in public sector headcount as the cuts begin to bite.' By sector, demand for permanent staff was strongest in the engineering and construction sector, followed by executive and professional and then IT and computing. Only a marginal increase was reported in demand for nursing and medical care staff.In the temporary job market, demand for blue collar staff was the strongest, followed by engineering, then hotel and catering staff. Demand for nursing and medical appointments was once again the lowest, the survey showed.While public sector jobs reduction plans are already beginning to be put in place, the government has said that the recovery of the private sector will lead to net growth in employment in 2011 and beyond.'The big question is whether the private sector can create new jobs in sufficient numbers and quickly enough to offset the downturn in the public sector,' Brown said.

2010/09/08 08:39DJ Japan Jul Core Machinery Orders +8.8% On Mo; Expected +1.8%
TOKYO -Japanese private-sector machinery orders rose at a faster-than-expected pace of 8.8% in July from the previous month, an upbeat sign after recent months of weak readings in this key leading indicator of business investment.The seasonally adjusted increase built on a rise of 1.6% in June, which followed a steep decline of 9.1% in May, data released by the Cabinet Office showed.The median forecast by economists surveyed by and the Nikkei pointed to an increase of 1.8% in July from the previous month.Private-sector orders for machinery are closely watched by economists because they provide an advance glimpse of business investment, which accounts for 15% of annual economic output.The core figures exclude ships and equipment ordered by electric power companies, which are typically large and can swing from month to month, obscuring the underlying trend.Compared with the year-earlier month, core machinery orders were up 15.9%, unadjusted for seasonal factors.

2010/09/08 08:23=DJ BOJ Likely To Stand Pat At First Of Two October Meetings -Poll
TOKYO -The Bank of Japan will likely leave its super-easy monetary policy unchanged at the first of two policy board meetings in October, a poll showed Tuesday, but the bank may take further action if the yen rises sharply or the country's economic recovery slows.Following the central bank's decision earlier Tuesday to keep its current policy steady, nine out of 10 BOJ watchers surveyed said they expect the BOJ to leave its policy interest-rate target at 0.1%, where it has been since December 2008, and to take no further easing steps after the bank's next policy board meeting on Oct. 4-5.But as entrenched deflation and a strong yen threaten the stability of Japan's economic recovery, analysts said the BOJ retains a bias toward further easing and could take additional measures later this year.Some analysts said the BOJ could take action as soon as Oct. 28, when policy board members will again gather for a meeting. At the second meeting in October, the policy board is also set to release its semiannual outlook for the economy and prices.Under intense pressure from the government as well as from markets to do more to fight the yen's rise, the BOJ Aug. 30 expanded a special lending program at an emergency policy meeting. The bank decided to offer financial institutions Y10 trillion worth of six-month cheap loans, in addition to the Y20 trillion in three-month loans it has been offering over the past few months.

2010/09/08 08:23*DJ Japan Govt Keeps Assessment On Machinery Orders, Says Picking Up

2010/09/08 08:20*DJ Japan Govt: Stronger Yen Could Hurt Japan Capex Outlook

2010/09/08 08:20*DJ Japan Govt: Strong Yen Is Big Downside Risk For Econ

2010/09/08 08:14DJ Japan July Unadjusted Current Account Surplus Up 26.1% On Year
TOKYO -Japan's current account surplus grew 26.1% from a year earlier in July to Y1.676 trillion, the Finance Ministry said Wednesday, marking the first gain in three months and boding well for the nation's export-led economic recovery.The rise beat a 12.8% on-year increase forecast by economists polled by and the Nikkei. In June, the surplus narrowed 18.2% from a year earlier.The current account is the broadest measure of Japan's trade with the rest of the world, and measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment. Web site: http://www.mof.go.jp/bpoffice/e1c004.htm

2010/09/08 08:12*DJ BOJ Nishimura: Need To Pay Attention To Downside Risks In Econ, Prices

2010/09/08 08:11*DJ BOJ Nishimura: Forex, Japan Stocks Unstable Recently

2010/09/08 08:11*DJ BOJ Nishimura: Global Econ Uncertainties Increasing, Especially US

2010/09/08 08:09*DJ Rio Tinto Shares Down 1.8% Early

2010/09/08 08:03*DJ Lead September JGB Futures Open Up At 141.77 Vs 141.55 Tuesday

2010/09/08 08:03*DJ Nikkei Stock Average Opens Down 1.4% At 9098.86

2010/09/08 07:54*DJ Japan Jul Trade Surplus Y916.1B; +110.0% On Yr

2010/09/08 07:54*DJ Japan Jul Trade Surplus Y916.1B

2010/09/08 07:53*DJ Japan Jul Unadj Goods & Svc Surplus Y738.3B; +387.4% Y/Y

2010/09/08 07:53*DJ Japan Aug Broad Measure Of Liquidity +0.4%

2010/09/08 07:53*DJ Japan Jul Unadj Goods & Svc Surplus Y738.3B

2010/09/08 07:53*DJ Japan Aug M3 Money Stock +2.1%

2010/09/08 07:52*DJ Japan Jul Core Machinery Orders +15.9% On Year

2010/09/08 07:52*DJ Japan Jul Core Machinery Orders +8.8% On Mo; Expected +1.8%

2010/09/08 07:52*DJ Japan Aug M2 Money Stock +2.8%

2010/09/08 07:51*DJ Japan Jul Unadjusted Curr Acct Surplus Y1.676T; +26.1% Y/Y

2010/09/08 07:51*DJ Foreigners Net Buyers Y369.2B Japan Bonds In Aug

2010/09/08 07:51*DJ Foreigners Net Sellers Y105.0B Japan Stocks In Aug

2010/09/08 07:51*DJ Japan Aug Bank Lending -2.0% On Yr

2010/09/08 07:50*DJ Japan Jul Curr Acct Surplus Y1.676T; Expected Surplus Y1.500T

2010/09/08 07:50*DJ Japanese Net Buyers Y4.938T Foreign Bonds In Aug

2010/09/08 07:50*DJ Japanese Net Buyers Y262.4B Foreign Stocks In Aug

2010/09/08 06:59*DJ Euro Hits $1.2676 On EBS; Lowest Since Sept 1

2010/09/08 06:07DJ ECB's Trichet: Bank Capital Must Be 'Reinforced'
WASHINGTON --Banks on both sides of the Atlantic must be better prepared for hard times, the head of the European Central Bank said Tuesday in the midst of renewed concerns about the health of Europe's banks."Bank capital has to be reinforced" Jean-Claude Trichet told CNBC, as fears about the rigidity of recent European bank "stress tests" dominated global stock markets.

2010/09/08 05:56=DJ US Small-Cap Stocks Post First Drop In Five Sessions-2-

2010/09/08 05:53DJ CREDIT MARKETS: High-Grade Debt Surges Post-Holiday

2010/09/08 05:43=DJ US Stocks Fall, Snapping Four-Day Winning Streak-2-

2010/09/08 05:25=DJ WORLD FOREX: Dollar Falls Vs Yen But Gains Vs Euro

2010/09/08 05:11=DJ Pemex Refinery Hit By Explosion In Northern Mexico
MEXICO CITY -Mexico's government-owned oil company Petroleos Mexicanos, or Pemex, confirmed, through a spokeswoman, that an explosion happened Tuesday at its Cadereyta refinery near the U.S. border.The Nuevo Leon state Civil Protection agency said the explosion occurred just after 10:30 a.m. EDT, local newspaper El Universal said on its website.The plant is located 22 miles (37 kilometers) east of the business capital of Monterrey.A Pemex spokeswoman confirmed there was an explosion at the refinery, but said that the company had no immediate information on casualties.El Universal said that six people were reported injured, while the Monterrey newspaper El Norte said there were unconfirmed reports of deaths.Cadereyta, in Nuevo Leon state, processed 217,000 barrels a day of crude oil in 2009, accounting for close to 17% of Pemex's refining output that year. The refinery has a capacity of 270,000 barrels a day.Pemex produced 1.47 million barrels a day of refined products at its six refineries in the first seven months of this year, including 445,000 barrels a day of gasoline.

2010/09/08 05:05=DJ US Small-Cap Stocks Post First Drop In Five Sessions

2010/09/08 04:48*DJ ECB's Trichet: Bank Capital Must Be 'Reinforced'

2010/09/08 04:44=DJ US Stocks Fall, Snapping Four-Day Winning Streak

2010/09/08 04:40DJ Treasury Prices Jump; Three-Year Notes Sold For Record Low Yield

2010/09/08 04:24=DJ ECB's Stark: 'We Are Conducting A Loose Monetary Policy'
WIESBADEN, Germany -The European Central Bank's policy is no obstacle to economic recovery in the euro zone, a senior ECB official said Tuesday."We are conducting a loose monetary policy," ECB Chief Economist Juergen Stark told a press gathering here. "The policy is accommodative, but also appropriate," he said, explaining that the ECB sees no risk either of inflation or of deflation at the present moment.Stark was speaking less than a week after the ECB decided to continue to allow banks to borrow as much as they wanted from it, on a week by week basis, until at least the end of the year. The ECB also decided to continue offering unlimited three-month credit until the end of 2010.The ECB's continuation of the policy that was initially adopted as an emergency anti-crisis measure has raised some concerns that many of the banks in the euro zone's weaker economies are becoming too dependent on its easy money. However, Stark said he saw no signs of any loss of confidence in the euro, pointing to the area's low inflation rates and expectations that inflation will stay subdued for the foreseeable future.Stark repeated his familiar argument that the deficit and public debt levels of the euro zone are no higher, and in many cases are smaller, than in the U.S., U.K. or Japan. He stressed the expected 2010 U.S. budget deficit was twice that of the euro zone. Even so, he acknowledged that the budgetary situation in the euro area is still "precarious."Stark repeated his support for the Greek government, which was forced to turn to its euro zone partners and the International Monetary Fund for help earlier in the year after markets refused to refinance that country's debt. Stark said that the country had managed "an economic policy u-turn" and repeated his insistence that the fiscal adjustment program prescribed is "realistic." "It is not about preparing a restructuring of Greece's debt."Many market participants fear Greece won't stay the course and will be forced to seek a restructuring. Despite an effective guarantee from the IMF and the EU, the prices for Greek government bonds still reflect substantial fears of a default in that period.

2010/09/08 04:05*DJ Nasdaq Closes Off 25 (1.1%) At 2209; Financials Sink

2010/09/08 04:05*DJ DJIA Closes Down 107 (1%) At 10341; AmEx, Disney Lag

2010/09/08 04:03DJ OIL FUTURES: Crude Settles Down; Economic Concerns Weigh

2010/09/08 03:50*DJ ECB's Stark: Euro Zone Budget Situation Still 'Precarious'

2010/09/08 03:49*DJ ECB's Stark Sees No Loss Of Confidence In Euro

2010/09/08 03:48*DJ ECB's Stark: No Risk Of Inflation Or Deflation

2010/09/08 03:47*DJ ECB's Stark: Policy 'Accomodative, But Approrpiate'

2010/09/08 03:47*DJ ECB's Stark: 'We Are Conducting A Loose Monetary Policy'

2010/09/08 03:46DJ PRECIOUS METALS: Refuge Buying Sends Gold To Record Settlement

2010/09/08 02:52=DJ SEC's Schapiro Eyes New Rules For High-Speed Traders

2010/09/08 02:36*DJ OIL FUTURES: Crude Settles Down 51 Cents At $74.09/Bbl

2010/09/08 02:35*DJ OIL FUTURES: Nymex Crude Closes Down 66 Cents At $73.94/Bbl

2010/09/08 02:25DJ Kansas City, Dallas Fed Wanted To Raise Discount Rate -Minutes

2010/09/08 02:05*DJ Kansas City, Dallas Fed Wanted To Raise Discount Rate - Minutes

2010/09/08 02:03*DJ Most Regional Fed Directors Call For Loose Monetary Policy

2010/09/08 01:57*DJ Haven Buying Sends December Gold To Record Settle $1,259.30

2010/09/08 01:55*DJ Comex Gold Futures Settle At Fresh Record High On Haven Buys

2010/09/08 00:38=DJ ECOFIN: Ministers Back Tougher Fiscal Rules, Split On Taxes

2010/09/08 00:16DJ EU Finance Ministers Backed More EU Scrutiny Of National Budgets
BRUSSELS -European Union finance ministers Tuesday backed a plan to subject national budgets to increased scrutiny before they are approved by national parliaments, part of an effort to prevent fiscal crises like the one that nearly caused Greece to default on its debt earlier this year. The new plan will allow the European Commission, the EU's executive arm, and the European Council, representing the national governments, to review national budgets over a six-month period each year, dubbed the 'European Semester'. The review period will begin in March, based on a report from the commission, the finance ministers said in a statement during their monthly meeting here Tuesday. The council will give policy advice in June and July to individual member states before their parliaments approve the budgets for next year. The plan was proposed earlier this year by the commission and by a task force chaired by European Council President Herman Van Rompuy, in the hopes that budget policies leading to mounting national debt and widening deficits can be stopped before they cause a fiscal crisis.

2010/09/08 00:13=DJ Morgan Stanley Cuts 10-Yr Treasury Yield Call Again On Economy

2010/09/08 00:04DJ SNB Chief Discusses Swiss Franc Strength With Parliament Body
ZURICH -The head of Switzerland's central bank Philipp Hildebrand discussed the franc's recent strength and the central bank's "massive" europurchases with a parliamentary finance committee Tuesday, a statement from the country's parliament said.The SNB has stepped into the market repeatedly in recent months to slow the franc's ascent against the euro, though it appeared to abandon this policy in June, saying signs of deflation had disappeared.The central bank posted a hefty CHF2.8 billion book loss in the first half of the year as the franc's 10% appreciation against the common currency eroded the value of its euro holdings. The statement did not elaborate on the SNB's plans for currency interventions.

Wednesday, 8 September 2010

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