Market Rumours

2010/09/17 17:59*DJ Japan To Fight Yen's Rise, Agreed At 1st Meeting Of Kan's New Cabinet - Kyodo

2010/09/17 17:40=DJ UPDATE: PBOC Official Comments On Yen Intervention, Says Stronger Dollar Good
BEIJING -A People's Bank of China official said Friday that 'appreciation of the U.S. dollar would be good,' in response to a question about Japan's intervention in the foreign exchange market to suppress the value of the yen. Zhang Jianhua, head of the central bank's research bureau, was speaking to on the sidelines of a forum. He didn't elaborate. His comment was the first by a Chinese government official on the intervention, and was in line with recent warnings from Beijing about the dangers of a weak dollar. A major portion of China's $2.45 trillion of foreign exchange reserves, the world's biggest, is invested in U.S. dollar assets, and China is the largest foreign holder of U.S. Treasurys ahead of Japan. Data issued Thursday showed China's holdings of long-term U.S. assets rose $3.0 billion to $846.7 billion in July, following net sales of $24.0 billion in June. Sixty-five percent of China's forex reserves are invested in dollar assets, state-run China Securities Journal reported earlier this month, citing an unnamed government official. In its annual financial stability report on Friday, the People's Bank of China warned that large swings in the dollar's value could harm the global economic recovery. A rapid appreciation in the dollar would put pressure on the prices of basic materials, affecting resource-dependent economies, while a rapid depreciation could lead to inflation, asset price bubbles and financial instability, the report said. In a book published this month, Lou Jiwei, the chairman of China's $300 billion sovereign-wealth fund, wrote that China could diversify its assets away from the dollar if the U.S. maintains a loose monetary policy that threatens to weaken the dollar.
2010/09/17 17:32DJ BOJ Expects Current Account Balance To Rise Y2.27 Tln Tue Vs Y17.13 Tln Fri
TOKYO -The Bank of Japan Friday forecast its current account balance will increase by Y2.27 trillion to Y19.4 trillion Tuesday, indicating it expects to keep the money market flush with liquidity following the government's yen-selling foreign exchange market intervention this week. The BOJ's current account balance, which stood at Y17.13 trillion Friday, comprises the funds that financial institutions in Japan keep at the central bank that they can use for lending or other needs. Tokyo markets are closed Monday for a national holiday.
2010/09/17 17:17*DJ Greece To Sell EUR300M 13-Week Treasury Bills Sep 21

2010/09/17 17:15DJ ECB's Weber: Ratings Agencies Need Regulatory Scrutiny
OESTRICH-WINKEL, Germany -Ratings agencies will need regulatory scrutiny in future, Deutsche Bundesbank President Axel Weber said Friday. Weber, a member of the European Central Bank's governing council, said that this should be a part of what he called a process of 'fixing the financial system in its totality,' that is, going beyond the narrow issues of bank capital standards and remuneration practices. 'Ratings agencies also have a systemic importance, because their actions affect the finances of whole countries and financial systems,' Weber told an audience of business school students.
2010/09/17 17:09*DJ 3-Month Euribor Unchanged At 0.879% Vs Thursday

2010/09/17 16:56DJ ECB Nowotny:Inflation Stable;Non-Standard Measures To Be Unwound 1st
VIENNA -The inflation outlook for the euro zone remains stable and gives no reason for concern, European Central Bank governing council member Ewald Nowotny said Friday. 'As seen today, the inflation risks are very much stable,' Nowotny said, speaking to journalists ahead of a trade union convention. 'There are potential upside risks to inflation from the economic growth, but not in a material way,' Nowotny said, signaling that the development in consumer prices doesn't provide an urgent reason for policy changes at the ECB. Still, Nowotny said it 'is quite obvious the interest rates are not in a long-term equilibrium.' He declined to comment on the outlook for ECB policy, but did say that the non-standard measures implemented by the ECB in the course of the global financial crisis, to ensure a solid flow of liquidity, must be unwound before the bank starts considering raising rates. 'In the process of exit policy this [interest rate changes] is to be discussed in a later stage of the sequence,' Nowotny said. 'The first thing to discuss is with regard to non-conventional measures, as they are not part of the normal instrument of the ECB,' he said.
2010/09/17 16:39=DJ Forex Focus: Aussie Should Outshine The Commodities

2010/09/17 16:33*DJ Moody's Analyst: Japan FX Intervention Was Unavoidable

2010/09/17 16:32=DJ DATA SNAP: Euro-Zone Current Account Deficit Steady In July
LONDON -The euro zone's current account deficit was unchanged in July, despite an increase in the currency area's goods trade surplus. The European Central Bank Friday said the seasonally adjusted current account deficit was unchanged at EUR3.8 billion, although the surplus in the trade of goods rose to EUR3.4 billion from EUR2.5 billion. However, that was offset by a decline in the surplus in the trade of services to EUR2.2 billion from EUR2.6 billion in June, and a widening in the deficit on income flows to EUR1.4 billion from EUR1.2 billion, while the deficit on current transfers rose to EUR8.0 billion from EUR7.8 billion. The ECB said there was a combined net outflow of capital from the euro zone of EUR26 billion, sharply up from a net outflow of EUR1 billion in June. Investors withdrew some EUR27.4 billion from the currency area's debt markets, while increasing their holdings of equities by EUR2.4 billion. Website: http://www.ecb.int
2010/09/17 16:22*DJ ECB's Weber: Need To Revisit Bank Regulation Every 2-3 Years

2010/09/17 16:10*DJ ECB's Weber: International Pressure Will Help Greek Reforms

2010/09/17 16:09DJ JGBs Down, But May Reverse Course On BOJ Easing Speculation
TOKYO -Japanese government bonds were lower Friday as the yen remained on a downward trend and Tokyo shares rallied, prompting investors to let go of safe-haven assets. But dealers said rising JGB yields will likely be short-lived as speculation grows that the Bank of Japan will take additional monetary easing steps in the face of intensifying political pressure. After the Finance Ministry intervened in the foreign exchange market Wednesday, 'government officials have been clearly urging the BOJ to do more to curb the stronger yen and eradicate deflation,' a trader at a Tokyo securities house said. 'Many investors now expect that the BOJ will likely be forced to ease monetary policy further next month. Under such circumstances, they may soon become willing to buy JGBs again,' he added. Earlier in the day, Finance Minister Yoshihiko Noda said he expects the central bank to take action when appropriate, adding that the BOJ shares the government's sense of urgency over the yen's strength and deflation. Another sign that the BOJ may be adjusting toward a looser monetary policy stance was the central bank's decision not to absorb any of the funds that the government poured into the market as a result of its yen-selling intervention, analyst say. The central bank skipped its same-day money market operation on Friday afternoon, meaning that the intervention remained unsterilized in Japanese money markets. 'It remains uncertain whether the so-called unsterilized intervention would lead to monetary easing, but the decision is raising speculation that the bank will loosen monetary policy further,' said Hirokata Kusaba, an economist at Mizuho Research Institute. As of 0600 GMT, the benchmark 10-year JGB yield was up 3.5 basis points at 1.075%, and lead December JGB futures closed at 142.12, down 0.14. The 20-year JGB yield also increased five basis points to 1.840%. The U.S. dollar remained above Y85.50, compared with the 15-year low of Y82.87 hit Wednesday before Japanese authorities started buying dollars and selling yen. The Nikkei Stock Average closed up 1.2% at 9,626.09 Friday. On Friday, Japanese Prime Minister Naoto Kan tweaked his Cabinet, replacing his economy, trade and foreign ministers but retaining Noda as finance minister, ensuring continuity in foreign exchange policy as Tokyo fights a strong yen that threatens the economy. Traders said that the impact of the Cabinet reshuffle on the JGB market would be limited as Kan and Noda will stay in their posts and will likely stick to their previous pledge to rebuild the nation's fiscal health.
2010/09/17 16:05*DJ ECB's Weber: Must Make Growth More Sustainable In Future

2010/09/17 16:01*DJ Euro-Zone Deficit Was EUR3.8B Jun

2010/09/17 16:00*DJ Italy Jul Industrial Orders -3.0% On Mo; +0.7% On Yr

2010/09/17 16:00*DJ Italy Jul Industrial Sales -2.7% On Mo; +8.9% On Yr

2010/09/17 16:00*DJ Euro-Zone Jul Adj Current Account Deficit EUR3.8B

2010/09/17 16:00*DJ ECB's Weber: New Basel Standards Balance Growth, Stability

2010/09/17 15:56*DJ ECB's Weber: Ratings Agencies Need Regulatory Scrutiny

2010/09/17 15:55*DJ ECB Nowotny:Euro Zone Inflation Risks Stable

2010/09/17 15:55*DJ ECB Nowotny: No Pre-Commitment On Future Exit Steps

2010/09/17 15:54*DJ ECB Nowotny:To Unwind Non-Standard Measures Before Rates Change

2010/09/17 15:52*DJ ECB Nowotny:Potential Upside Inflation Risk,Not Material

2010/09/17 15:50DJ Tokyo Shares End Up On Weaker Yen; Consumer Lenders Surge -2-

2010/09/17 15:48*DJ Moody's Analyst: Policy Continuity Important For Japan

2010/09/17 15:47*DJ Moody's Analyst: Fiscal Restraint Positive For Econ Longer-Term

2010/09/17 15:38*DJ Moody's Analyst: Reelection Of PM Kan Credit Positive

2010/09/17 15:37=DJ UPDATE: PBOC Sees Risks Including Inflation, Financial Sector Woes
BEIJING -Though economic confidence is increasing, China still faces many challenges in maintaining a fast and stable growth rate, including inflation risks and possible problems in the financial sector, the People's Bank of China said Friday.Some problems in the financial sector are 'hard to ignore,' the central bank said in its annual financial stability report. In particular, there is a need to improve risk management by local government financing vehicles, which are entities set up by local governments to borrow money from the banking system, it said.China should start the process of securitizing local government financing vehicle loans, it added.Loose monetary conditions in China may also create risks of inflation, asset price bubbles, or bad loans in the banking system, the PBOC said.Domestic credit growth in China is still relatively strong, and the problem of ample liquidity is again becoming prominent as external economic conditions improve, it said.The wide ranging report also touched on risks to the global economic recovery. The scope for further stimulus by major economies is limited due to concerns over fiscal sustainability and asset price bubbles, it said.Big swings in the value of the dollar can also affect the global economic recovery, it said. Rapid appreciation of the dollar can put pressure on the prices for basic materials, affecting resource-dependent economies, it said. Meanwhile, rapid dollar depreciation can lead to global inflation pressures, asset price bubbles, and financial instability.Liquidity creation around the world is causing strong inflows of short-term capital into many 'emerging Asian economies,' the PBOC said. 'In many areas, this is causing excessively fast asset price rises, excessive exchange rate appreciation and foreign exchange reserve accumulation,' the PBOC said.China will maintain its current policy settings of a moderately loose monetary policy and an active fiscal policy, the PBOC said.The central bank also said it will push forward further development on the yuan's cross-border use as part of the country's financial system reform and move toward capital account convertibility.The PBOC said it will increase the scale of the yuan's use in cross-border trade settlement, and gradually increase channels for foreign institutions to obtain and use yuan. It will also push to allow the yuan to be exchanged against various minor currencies on the interbank foreign exchange market, the PBOC said.
2010/09/17 15:16DJ Tokyo Shares End Up On Weaker Yen; Consumer Lenders Surge

2010/09/17 15:13=DJ WORLD FOREX: Euro Up Vs Dollar, Yen On Strong Asian Equities -3-

2010/09/17 15:13DJ Forex Options: Dollar/Yen Options Fall; Upside Hedges Sold
TOKYO -Dollar/yen options extended their falls in Tokyo Friday, as some players exited upside hedges and demand for downside hedges declined as the underlying exchange rate stayed in a Y85.50-Y86.00 band in the morning.An options dealer at a major Japanese bank said investors exited dollar-call/yen-put contracts, expecting the greenback's gains against the yen to be limited as Japanese exporters are selling the dollar, capping its rise.The dealer said one player sold two-week dollar-call/yen-put options contracts at a strike price of Y86.50 with implied volatilities of 11.5% for about $150 million.Since this contract benefits the holder if the exchange rate is above the set price at the contract's expiry, the deal suggests the person thinks the greenback will be below Y86.50 in two weeks.Foreign exchange traders said they expect massive dollar sales by Japanese exporters around the Y86.00-Y86.50 level toward the end of the quarter.The options dealer said some investors also sold contracts to avoid their devaluation as Japanese markets go into a three-day weekend. Monday is a national holiday in Japan.Benchmark volatilities have fallen sharply since surging Wednesday when Japan's Ministry of Finance intervened the currency market, causing significant fluctuations in the exchange rate.Benchmark one-month at-the-money dollar/yen volatilities dropped to 10.50%/11.20% in Tokyo Friday from 10.80%/11.50% in New York Thursday.The options dealer said benchmark volatilities may fall to 10.00% in the near term.Market participants are paying attention to U.S. consumer price index data for August, scheduled for release at 1230 GMT. They will look to these data to assess the likelihood of the U.S. Federal Reserve easing policy further at its Sept. 21 meeting.The median forecast of economists polled by is for the U.S. consumer price index to rise by 0.3%, the same as in July.If the data suggest inflation is slowing significantly, that could fuel expectations the U.S. monetary authorities will take more easing steps soon, weakening the dollar against other currencies.
2010/09/17 15:06=DJ WORLD FOREX: Euro Up Vs Dollar, Yen On Strong Asian Equities -2-

2010/09/17 15:02*DJ FTSE 100 Up 0.5% After The Open

2010/09/17 14:42=DJ INTERVIEW: Japan Pension Fund Head: To Sell Y4T Of Assets This FY

2010/09/17 14:24=DJ BOE WATCH: MPC Hopes To Retain Trust Despite High Inflation

2010/09/17 14:23=DJ DATA SNAP: German August PPI 0.0% On Month; +3.2% On Year
FRANKFURT -Prices at the factory gate in Germany for August rose less than expected owing to relatively tame price increases in the energy sector, data from the federal statistics office showed Friday.German producer prices rose 3.2% on the year and remained unchanged from the previous month, the office said.Economists in a poll of economists had expected an increase of 3.5% from a year earlier and an on-month increase by 0.3%.In August, energy prices by and large were lower, the office said, which contributed to the lower-than-expected showing. When adjusted for the volatile energy component, the ex-energy index rose 0.4% from July and 2.5% on the year, the office said.Website: www.destatis.de
2010/09/17 14:23=DJ WORLD FOREX: Euro Up Vs Dollar, Yen On Strong Asian Equities

2010/09/17 14:02*DJ Nikkei Stock Average Closes Up 1.2% At 9626.09

2010/09/17 14:01*DJ German Aug PPI Excl Energy +0.4% On Mo; +2.5% On Yr

2010/09/17 14:01*DJ German Aug PPI Unch On Month; +3.2% On Year

2010/09/17 14:01*DJ German Aug PPI Forecast +0.3% On Mo; +3.5% On Yr

2010/09/17 13:53DJ Thai Finance Minister: Central Bank Proposes 5 Measures To Stem Baht Rise
BANGKOK -Thailand is considering three out of five measures proposed by the Bank of Thailand to help curb the baht's strength, Finance Minister Korn Chatikavanij said Friday. The measures should help reduce pressure on the rising baht, Korn told reporters. He said the baht will likely continue to rise due to a still-weak U.S. economy.
2010/09/17 13:53*DJ Spot Gold Hits Fresh Record, $1,279.85/Oz

2010/09/17 13:52DJ PBOC Official Comments On Yen Intervention, Says Stronger Dollar Would Be Good
BEIJING -U.S. dollar appreciation would be good, Zhang Jianhua, head of the People's Bank of China's research bureau, said Friday in response to a question about Japan's intervention in foreign exchange markets to suppress the value of the yen.Zhang was speaking to on the sidelines of a forum. He declined to elaborate.
2010/09/17 13:36*DJ Indian Rupee Near Three Month High On Strong Euro, Local Stocks

2010/09/17 13:35*DJ Dollar Falls To INR45.94, Last Seen June 22

2010/09/17 13:32DJ BP Completes Relief Well Drilling For Oil Spill - CNN
BP PLC has completed drilling an undersea relief well that intersects the blown undersea pipeline responsible for the massive Gulf of Mexico oil spill earlier this year, CNN reported Friday on its website. The completion means that BP will be able to inject large amounts of mud--heavier than oil--from the new well into the blown one that would lead to sealing off the leak permanently, CNN said. An undersea explosion at the Deepwater Horizon rig in April caused a massive spill, leaking as much as 5 million barrels of crude, according to some estimates, in the Gulf of Mexico and onto U.S. coastlines along the Mississippi River delta. The leak was initially capped in mid-July. Full story: http://news.blogs.cnn.com/2010/09/17/drilling-on-gulf-relief-well-is-finished/
2010/09/17 13:24*DJ Thai Fin Min: Expect Baht To Rise Further

2010/09/17 13:23*DJ Thai Fin Min: Ministry Considering 3 Of BOT's Proposed Measures

2010/09/17 13:22*DJ Thai Fin Min: Central Bank Proposes 5 Measures To Stem Baht Rise

2010/09/17 13:19DJ BOJ Skips Friday Afternoon Operation; Leaves MOF Intervention Unsterilized
TOKYO -The Bank of Japan skipped its same-day money market operation on Friday afternoon, meaning that it didn't absorb any of the funds that the Ministry of Finance poured into the market as a result of its yen-selling intervention on Wednesday.
2010/09/17 13:07DJ PBOC Changes Monetary Policy Committee Members; Adds ICBC Chairman
BEIJING -China on Friday announced changes to the members of the People's Bank of China monetary policy committee, a consultative body that advises the central bank on monetary policy decisions.Industrial & Commercial Bank of China Ltd. Chairman Jiang Jianqing has been appointed to the committee, as has recently appointed PBOC Vice Governor Du Jinfu, a statement posted on the central government's website said.Former PBOC Vice Governor Su Ning and China Development Bank President Jiang Chaoliang have stepped down from the board, the statement said.The statement was dated Tuesday, but was posted on the central government's website on Friday.The monetary policy committee has 15 members, including PBOC Gov. Zhou Xiaochuan and other top central bank officials. The committee also includes officials from other government agencies such as the Ministry of Finance and the statistics bureau, as well as some academics and top bankers.
2010/09/17 13:06DJ Japan PM Announces New Cabinet; Keeps Noda As Finance Minister
TOKYO -Japanese Prime Minister Naoto Kan tweaked his Cabinet Friday, replacing his economy, trade and foreign ministers but retaining Yoshihiko Noda as finance minister, ensuring continuity in foreign exchange policy as Tokyo fights a strong yen that threatens the economy.The personnel changes likely don't signal any shifts in Japan's economic policies but rather a move by Kan to consolidate his position after defeating a challenge to his leadership by political heavyweight Ichiro Ozawa in a ruling party presidential election Tuesday.Kan's decision to keep Yoshito Sengoku as Chief Cabinet Secretary underscores a steady-as-she-goes course on key policies. Kan also kept Shozaburo Jimi as Financial Services Minister.For Minister of State for Economic and Fiscal Policy, Kan named Banri Kaieda, who will take over from Satoshi Arai. Kaieda was formerly Committee on Financial Affairs chairman.The prime minister tapped Akihiro Ohata for Minister of Economy, Trade and Industry, replacing Akira Naoshima.Kan named Seiji Maehara as his new Minister for Foreign Affairs. Maehara takes the helm from Katsuya Okada, whom Kan named as the ruling Democratic Party of Japan's new Secretary General.Sumio Mabuchi takes over the post of transport minister from Maehara.
2010/09/17 12:58DJ Japan PM Announces New Cabinet; Keeps Noda As Finance Minister
TOKYO -Japanese Prime Minister Naoto Kan tweaked his Cabinet Friday, replacing his economy, trade and foreign ministers but retaining Yoshihiko Noda as finance minister, ensuring continuity in foreign exchange policy as Tokyo fights a strong yen that threatens the economy.The personnel changes likely don't signal any shifts in Japan's economic policies but rather a move by Kan to consolidate his position after defeating a challenge to his leadership by political heavyweight Ichiro Ozawa in a ruling party presidential election Tuesday.Kan's decision to keep Yoshito Sengoku as Chief Cabinet Secretary underscores a steady-as-she-goes course on key policies. Kan also kept Shozaburo Jimi as Financial Services Minister.For Minister of State for Economic and Fiscal Policy, Kan named Banri Kaieda, who will take over from Satoshi Arai. Kaieda was formerly Committee on Financial Affairs chairman.The prime minister tapped Akihiro Ohata for Minister of Economy, Trade and Industry, replacing Akira Naoshima.Kan named Seiji Maehara as his new Minister for Foreign Affairs. Maehara takes the helm from Katsuya Okada, whom Kan named as the ruling Democratic Party of Japan's new Secretary General.Sumio Mabuchi takes over the post of transport minister from Maehara.
2010/09/17 12:55DJ IMF: Bank Indonesia's Monetary Policy Stance Appropriate For Now
JAKARTA -Bank Indonesia's current monetary policy stance is appropriate given that inflation is within the target range and the risk that hiking rates now could attract more volatile portfolio capital, the International Monetary Fund said Friday.'Looking ahead, Directors advised that Bank Indonesia should signal its readiness to respond to rising inflationary pressures to anchor inflation expectations within the 4%-6% target range,' the IMF said in its latest assessment of Indonesia's financial system stability. The fund estimates inflation will reach 5.9% by the end of this year.After cutting its overnight rate by a total of 300 basis points during the global downturn, Bank Indonesia has kept the rate unchanged at 6.50% since August last year to help the economy to recover while inflation eased. Inflation has gained pace in the last two months, but Bank Indonesia avoided raising its policy rate and instead sought to curb liquidity by requiring commercial banks to raise their mandatory primary reserves at the central bank from Nov. 1. Expectations for 2011 are that inflation will be at the top end of the target range and several risk factors could push it higher, the IMF said.'Thus, unwinding monetary accommodation may need to start in the second half of 2010,' it added.Thomas Rumbaugh, division chief in the IMF's Asia & Pacific Department and mission chief for Indonesia, said that Bank Indonesia's move to increase the banks' reserve requirement 'is a step in the right direction.'The fund cautioned that administrative measures to fuel credit growth should be avoided since such actions could conflict with banks' prudential policies and risk management practices.Bank Indonesia earlier this month introduced a measure to encourage commercial banks to lend. It requires commercial banks to maintain lending-to-deposit ratios between 78% and 100%.The IMF said that while the banking system appears adequately capitalized, its stress tests showed that Indonesian banks are vulnerable to credit risk, with the mid-sized to large banks most at risk.If there are shocks to the economy, the IMF said that the non-performing loan ratio could peak at 31.5% in the third quarter of 2011 from 3.5% currently, and capital for a number of banks could fall below the regulatory minimum level, with a few becoming insolvent. Small banks, with significant capital and liquidity buffers, would weather the stress scenarios better than large and mid-sized banks, and private banks better than the four state-owned banks. Foreign-owned banks appeared relatively resilient in the tests, although seven could become under-capitalized and one insolvent.The IMF said that the rupiah exchange rate is broadly in equilibrium, but added that attaining the appropriate policy mix to manage volatile capital inflows is an ongoing challenge.'In this respect, the package of measures announced on June 16 could help improve monetary operations and lower volatility of short-term capital flows,' it said referring to the introduction of a month-month holding period for Bank Indonesia's certificates, and the introduction of longer maturities for these securities.The IMF maintained that the Southeast Asia's largest economy will likely grow 6% this year, supported by a recovery in investment. It expects Indonesia's economic growth rise to 7% in the medium term as infrastructure development takes hold.It added that phasing out energy subsidies is key to boosting the government's budget ability to finance infrastructure projects.
2010/09/17 12:37*DJ PBOC Official Was Responding To Question On Japan FX Intervention

2010/09/17 12:36*DJ PBOC Official: US Dollar Appreciation 'Would Be Good'

2010/09/17 12:27DJ Japan PM Kan Set To Order Drafting Extra Budget For Fiscal Stimulus -Kyodo
TOKYO -Japanese Prime Minister Naoto Kan will order government officials to draft an extra budget for fiscal 2010 to finance an additional stimulus package worth several trillion yen, Kyodo News reported Friday, citing sources close to the matter. The draft supplementary budget will be deliberated on at an extraordinary Diet session expected to convene later this month at the earliest.
2010/09/17 12:25*DJ Japan PM Kan Keeps Yoshito Sengoku As Chief Cabinet Secretary

2010/09/17 12:24*DJ Japan PM Kan Keeps Shozaburo Jimi As Financial Services Minister

2010/09/17 12:24*DJ Japan PM Kan Taps Banri Kaieda For Econ Minister

2010/09/17 12:23*DJ Japan PM Kan Taps Akihiro Ohata For Trade Minister

2010/09/17 12:22*DJ Japan PM Kan Keeps Yoshihiko Noda As Finance Minister

2010/09/17 12:21*DJ Japan PM Kan Taps Seiji Maehara For Foreign Minister

2010/09/17 12:20*DJ Japan PM Kan Announces New Cabinet Lineup

2010/09/17 12:10*DJ BOJ Skips Afternoon Ops; Suggests Will Leave Entire FX Intervention Wed Unsterilized

2010/09/17 12:08*DJ BOJ Skips Same-Day Money Market Operation In Afternoon

2010/09/17 12:04DJ PBOC: Risk Of Inflation, Asset Bubbles, Bad Loans May Rise
BEIJING -The People's Bank of China said Friday that loose monetary conditions may create risks of inflation, asset price bubbles, or bad loans in the banking system.Domestic credit growth in China is still relatively strong, and the problem of ample liquidity is again becoming prominent as external economic conditions improve, the central bank said in its annual financial stability report.
2010/09/17 12:01=DJ BIG PICTURE: The Twin Deficits Command Attention Again

2010/09/17 11:57*DJ PBOC: PBOC Vice Gov Du Jinfu To Become Monetary Policy Committee Member

2010/09/17 11:52*DJ PBOC: Former PBOC Vice Gov Su Ning To Leave Monetary Policy Committee

2010/09/17 11:51*DJ PBOC: ICBC Chairman Jiang Jianqing To Become Monetary Policy Committee Member

2010/09/17 11:51*DJ PBOC Announces Changes To Monetary Policy Committee

2010/09/17 11:29=DJ Bank of Japan Facing Pressure To Do More After Intervention

2010/09/17 11:26DJ INTERVIEW: No Need For Long Japan Intervention Program -EX-MOF Utsumi

2010/09/17 11:16*DJ PBOC: Risk Of Inflation, Asset Bubbles, Bad Loans May Rise

2010/09/17 11:08*DJ Japan PM Kan Decides To Compile Extra Budget For Fiscal 2010 - Kyodo

2010/09/17 11:01=DJ US Export Plan Hones In On Small Businesses, Developing Nations

2010/09/17 10:54*DJ PBOC: To Start Securitization Of Local Government Finance Platfrom Loans

2010/09/17 10:50*DJ PBOC: To Quickly Launch Deposit Insurance Scheme

2010/09/17 10:37*DJ PBOC: Need To Strengthen Management Of Local Government Finance Vehicles

2010/09/17 10:37DJ Thai Central Bank To Launch Forex Measures By End-Sept - Report
BANGKOK -The Bank of Thailand plans to introduce measures by the end of this month to prevent excessive strength in the baht, Thai-language daily Post Today reported Friday, citing central bank board member Satit Rungkasiri. He didn't give details of the plans but said it would be more flexible than capital controls. Newspaper website: http://www.posttoday.com
2010/09/17 10:37=DJ HEARD ON THE STREET: Tokyo's Yen Shift Poses Trader Puzzle

2010/09/17 10:35*DJ PBOC: Liquidity Flows Causing Excess FX Reserve Buildup In Some Countries

2010/09/17 10:35*DJ PBOC: Reversal Of Liquidity Flows Could Damage Emerging Economies

2010/09/17 10:35*DJ PBOC: Limited Room For Further Stimulus In Major Economies

2010/09/17 10:34DJ Japan PM Taps Banri Kaieda As Econ Minister - Report
TOKYO -Japanese Prime Minister Naoto Kan is considering choosing Committee on Financial Affairs Chairman Banri Kaieda to serve as economy minister in revamped Cabinet, the Asahi Shimbun reported Friday. Separately, NHK reported that Renho will retain her position as state minister for administrative reform.
2010/09/17 10:33*DJ PBOC: Large Fluctuations In US Dollar Could Impact Global Recovery

2010/09/17 10:32*DJ PBOC: Liquidity Flows Causing Currency Appreciation Pressure In Some Countries

2010/09/17 10:30*DJ PBOC: Short-Term Liquidity Flows Causing Inflation Pressures In Some Countries

2010/09/17 10:29*DJ PBOC: Short-Term Liquidity Is Flowing Toward Emerging Asian Markets

2010/09/17 10:27*DJ PBOC: To Continue Active Fiscal Policy, Moderately Easy Monetary Policy

2010/09/17 10:26*DJ PBOC: Different Countries' Exit From Stimulus Can Cause Mkt Fluctuations

2010/09/17 10:25*DJ Japan DPJ Approves New Party Leadership Including Secretary General Okada -Kyodo

2010/09/17 10:25*DJ PBOC: Low Global Interest Rates May Create Inflation Pressures

2010/09/17 10:10DJ Japan Noda: Will Intervene In Forex Market If Needed
TOKYO -Japan's finance minister said Friday the government will intervene again in the foreign exchange market to tame the yen's strength if necessary, emphasizing his resolve to prevent any unduly sharp rises in the currency. 'I will continue to monitor market developments while maintaining a sense of gravity,' Yoshihiko Noda said at a news conference after a Cabinet meeting. 'As we have been saying, our basic stance is that we will take decisive steps, including intervention, if necessary, and I'd like to maintain this stance.'
2010/09/17 10:04*DJ IMF: Indonesia 2010 Growth Likely To Be 6%; 7% In Medium Term

2010/09/17 10:03*DJ Ex-MOF Utsumi: MOF Should Always Be Ready To Act Again

2010/09/17 10:03*DJ IMF: Indonesia Inflation To Be Still Within Target

2010/09/17 10:01*DJ Utsumi: No Chance Of Coordinated Intervention With Other Countries

2010/09/17 09:59*DJ Japan Ex-MOF Utsumi: No Need For Japan To Keep Intervening In FX

2010/09/17 09:58*DJ Ex-MOF Utsumi: Intervention Was 'Effective'; Timing 'Wonderful'

2010/09/17 09:43=DJ SouFun's IPO To Launch Friday, Prices At Top End
Of The IPO of Chinese real estate website SouFun Holdings Ltd. will launch on Friday, as the American depositary shares were priced late Thursday at the top end of the company's target from earlier this month.The initial public offering of 2.9 million American depositary shares was priced at $42.50 per ADS, according to SouFun. The ADSs will trade Friday on the New York Stock Exchange under the symbol SFUN.SouFun's stock had originally been slated to price Monday and trade Tuesday before getting bumped up to this week's calendar. The company's change in plans was first highlighted in a research note earlier this week by Scott Sweet, managing director of research firm IPOBoutique.com.Sweet raised his rating on the deal Wednesday, saying he expects it to attract investor interest and perform well.Beijing-based SouFun's website offers real estate, home furnishing and home-improvement content and advertisements, as well as property listings. The company, which was formed in 1999, now operates 63 offices to focus on local market needs. Its revenue and earnings have been growing throughout the economic downturn.China's housing market is still expanding rapidly, and online marketing is a relatively new method of advertising in the country, so there's strong potential for growth among Internet-based real estate services such as SouFun.On the downside, the Chinese government has expressed concerns about a real estate bubble; earlier this month, officials indicated the country remains committed to putting a damper on the hot housing market.The most recent real estate-related IPOs from China seem to be struggling. Both China Real Estate Information Corp. , which went public in October 2009, and real estate brokerage firm IFM Investments Ltd. , which launched in January, are trading below their IPO prices of $12 and $7, respectively.Deutsche Bank AG and Goldman Sachs Group Inc. are managing SouFun's IPO.
2010/09/17 09:42*DJ Japan PM Taps Banri Kaieda As Econ Min - Report

2010/09/17 09:19*DJ Japan PM Kan To Name Ohata As Trade Minister -Kyodo

2010/09/17 09:18*DJ Japan PM Kan To Retain Kitazawa As Defense Minister - Kyodo

2010/09/17 09:07*DJ Japan Noda: Expect BOJ To Keep Supplying Adequate Funds

2010/09/17 09:06*DJ Japan Noda: Expect BOJ To Continue Very Easy Policy

2010/09/17 09:04*DJ Japan Noda: Think BOJ Has Same Sense Of Urgency On Yen

2010/09/17 09:02*DJ Japan Noda: Intervention Alone Can't Beat Deflation

2010/09/17 09:00*DJ Japan Noda: Japan Econ In Severe State; Deflation Continuing

2010/09/17 08:58*DJ Japan Noda: Prolonged Yen Rises Undesirable For Japan Economy

2010/09/17 08:55*DJ Japan Noda: Before Intervention, Forex Moves Continuously One-Sided

2010/09/17 08:54*DJ Japan Noda: Will Intervene In Forex Market If Needed

2010/09/17 08:52*DJ Japan Noda: Don't Have Any Defense Line For Dollar/Yen

2010/09/17 08:52*DJ Japan Fin Min Noda: Intervention Aimed At Curbing Excess Forex Moves

2010/09/17 08:49*DJ Japan Fin Min Noda: Want To Closely Monitor Markets

2010/09/17 08:34*DJ BOJ Skips 0030 GMT Market Op; Suggests Leaves Some FX Intervention Funds In Market

2010/09/17 08:19*DJ Japan Cabinet Resigns Ahead Of Reshuffle - Ministers

2010/09/17 08:12*DJ Rio Tinto Shares Up 1.2% Early

2010/09/17 08:07DJ Low Chance Of Interest Rate Hike By PBOC In Near Term -Report
SHANGHAI -There is a very low chance of an interest rate hike by China's central bank in the near term, the state-run Shanghai Securities News reported Friday, citing unnamed sources.China's consumer price index rose 3.5% from a year earlier in August, the biggest rise since October 2008, which prompted speculation that Beijing might raise interest rates to offset rising prices. Currently, China's one-year yuan lending rate is 5.31%, and its one-year yuan deposit rate is 2.25%.People's Bank of China adviser Li Daokui said Wednesday that raising deposit interest rates would benefit the country's financial stability.Newspaper website: http://www.cnstock.com
2010/09/17 08:03*DJ Nikkei Stock Average Opens Up 0.8% At 9581.65

2010/09/17 08:02*DJ Lead December JGB Futures Open Down At 142.15 Vs 142.26 Thu

2010/09/17 07:50DJ Morgan Stanley's Roach: Fed Policy Mandate Should Cover Bubbles

2010/09/17 07:49DJ BOJ Expects Current Account Balance At Y17.10 Tln Fri Vs Y15.09 Tln Thu
TOKYO -The Bank of Japan's latest forecast showed it expects its current account balance to increase by Y2 trillion Friday, indicating that it doesn't plan, at least for now, to soak up the yen that the government sold Wednesday in its massive foreign exchange market intervention. The central bank forecast that its current account balance--a key liquidity level in the Tokyo money market--will rise to Y17.10 trillion Friday from Y15.09 trillion Thursday. The funds from the Ministry of Finance's yen-selling spree will settle Friday, two days after it intervened in the foreign exchange market for the first time in more than six years to curb the Japanese currency's ascent. The extra yen liquidity will be reflected in the BOJ's current account balance, the funds that financial institutions in Japan keep at the central bank, which they can use for lending or other needs.
2010/09/17 07:47*DJ Lead Nikkei Futures Open Up 105 Points At 9530 On SGX

2010/09/17 07:02*DJ BOJ's Balance Forecast Suggests BOJ Won't Sterilize All Wed FX Interventions

2010/09/17 06:58*DJ BOJ Expects Current Account Balance At Y17.10 Tln Fri Vs Y15.09 Tln Thu

2010/09/17 06:24DJ CREDIT MARKETS:Steady Issuance; Commercial Paper Declines

2010/09/17 06:18DJ BOE Posen: Credit Easing Seen As "Plan B" To Boost Economy
WASHINGTON -Bank of England Monetary Policy Committee member Adam Posen said Thursday that if necessary the bank could move from quantitative easing to "heavy-duty" credit easing."Because we haven't bought any private sector assets or minimal private sector assets--we've bought 98% gilts--we can shift to doing private sector purchases," Posen said at a seminar organized by Macroeconomic Advisers, a policy and forecasting group.Posen called the move a "plan B" but wouldn't say whether or not such a move is likely.In February, the BOE completed purchases of GBP200 billion of mostly U.K. government bonds, also called gilts, with freshly created central bank money. It launched this quantitative easing policy in March 2009.Credit easing would move the bank into purchase of private sector assets.The BOE's Monetary Policy Committee kept its policy stance unchanged at its meeting this month, but it has left the door open to restarting its quantitative easing program should conditions deteriorate.
2010/09/17 05:52=DJ US Small-Cap Stocks Slip As Energy, Industrials Weigh-2-

2010/09/17 05:47DJ US Fed Total Discount Window Borrowings Wed $52.60 Bln
WASHINGTON - The U.S. Federal Reserve's balance sheet contracted slightly in the latest week as the central bank's holdings of U.S. Treasury securities grew.The Fed's asset holdings in the week ended Sept. 15 dipped to $2.299 trillion, from $2.309 trillion a week earlier, the Fed said in a weekly report released Thursday.In the latest week, the Fed's holdings of U.S. Treasury securities rose to $794.65 billion on Wednesday from $789.89 billion a week earlier. Holdings of mortgage-backed securities fell to $1.092 trillion Wednesday from $1.103 trillion in the previous week.Meanwhile, total borrowing from the Fed's discount lending window slid to $52.60 billion Wednesday from $52.94 billion a week earlier. Borrowing by commercial banks fell to $24 million Wednesday from $29 million a week earlier.U.S. government securities held in custody on behalf of foreign official accounts decreased to $3.196 trillion, from $3.214 trillion in the previous week.U.S. Treasurys held in custody on behalf of foreign official accounts crept upward to $2.444 trillion from $2.404 trillion in the previous week.Holdings of agency securities dropped to $752.52 billion from the prior week's $809.96 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.
2010/09/17 05:40=DJ US Blue Chips Edge Higher; Tech Fuels Nasdaq 7-Day Win Streak-2-

2010/09/17 05:39DJ Longer-Dated Treasurys Fall; 30-Year Yield Hits 1-Month High

2010/09/17 05:25=DJ WORLD FOREX: Yen Stays Down Post-Intervention; Euro Gains Vs. Dollar

2010/09/17 05:18=DJ US Blue Chips Edge Higher; Tech Fuels Nasdaq 7-Day Win Streak

2010/09/17 05:13DJ US M1 Fell $7.5B In Sept 6 Week; M2 Rose $11.1B
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 fell by $7.5 billion to $1.771 trillion, while M2 rose $11.1 billion to $8.701 trillion.The figures are preliminary estimates for the week extending through Sept. 6 and are subject to revisions.More details on the report, along with weekly information on the Fed's custody holdings, repurchase agreements, Treasury portfolio and free reserves, can be found on the Internet at http://www.federalreserve.gov/releases/.
2010/09/17 05:05=DJ US Small-Cap Stocks Slip As Energy, Industrials Weigh

2010/09/17 04:32*DJ Foreign Central Banks Treasury Holdings At $2.444T

2010/09/17 04:32*DJ Foreign Central Banks Agency Debt Holdings At $752.52B

2010/09/17 04:32*DJ Foreign Central Bk Custody Holdings At $3.196T As of Wed - Fed

2010/09/17 04:31*DJ US Fed Total Discount Window Borrowings Wed $52.60B

2010/09/17 04:19=DJ OIL FUTURES: Crude Settles -$1.45 At $74.57/B On Oversupply

2010/09/17 04:10*DJ Nasdaq Closes Up 2 (0.1%) At 2303; Tech, Materials Climb

2010/09/17 04:09*DJ DJIA Closes Up 22 (0.2%) At 10595 As Hewlett-Packard, Cisco Gain

2010/09/17 04:06DJ Republican Leader Rejects Compromise With Obama On Tax Cuts
WASHINGTON --The top Republican in the House of Representatives called Thursday for a full extension of tax cuts enacted during the Bush administration, rejecting any compromise with President Barack Obama.House Minority Leader John Boehner of Ohio dismissed the latest call by Obama to extend tax cuts for all but the wealthiest Americans."Republicans in the House and Senate are united that this is not the time to increase taxes on anyone in America," Boehner said.The latest comments suggested a hardening of the Republican position since Sunday, when Boehner seemed to hint at a compromise and said he might vote for renewing a tax cut program which did not include top earners if that were all he could get.Fomenting the row are tax cuts passed by former president George W. Bush in 2001 and 2003, when no one was predicting the current economic crunch.The cuts were programmed to expire this year -- unless Congress votes to renew them.Obama proposes extending the tax cuts for two years, but not for households earning over $250,000 a year, arguing that America cannot afford handouts to top earners.Boehner called Thursday for "an honest up or down vote on stopping all the coming tax hikes," and said that if that happens, "I'm confident that the American people will not see an increase in their taxes."The comments came a day after Obama told Republicans to stop "playing games" and back an extension to middle class tax cuts.Obama accused Republicans of blocking the move just to ensure the richest Americans also get a handout he said the country could not afford. Officials say extending the cuts to the top earners would cost $700 billion over 10 years.
2010/09/17 03:53DJ US Sen Baucus Unveils Revised Business Tax Extension Bill

2010/09/17 03:36DJ PRECIOUS METALS:Lower Dollar, Equities Push Gold To Fresh Record

2010/09/17 02:37*DJ OIL FUTURES: Crude Settles -$1.45 At $74.57/Bbl On Oversupply

2010/09/17 02:36=DJ SouFun's IPO Launch Accelerated To This Week -Source

2010/09/17 02:27DJ US Senate Passes Small Business Bill By 61-38 Vote

2010/09/17 01:55*DJ Comex December Gold Settles At Record $1,273.80 An Ounce

2010/09/17 01:47DJ European Stocks Fall As Disappointing Data Hurts Confidence

2010/09/17 01:41*DJ Comex December Gold Above $1,274/Ounce As Dollar Lower

2010/09/17 01:40*DJ Comex Gold Futures Poised For Fresh Record Settlement

2010/09/17 00:58DJ Germany Econ Min: No Contradiction Between Budget Cuts, Growth
LONDON -Public sector spending cannot keep rising forever and the German government is determined to restore "sound public finances", Economics Minister Rainer Bruederle said Thursday.There is "no contradiction between budget cutting and getting growth," he said.Speaking at a conference in London, Bruederle said the German government is "changing gear away from a crisis response."He said the state's larger role in the economy, in response to the economic crisis, cannot be permanent.Germany has come under criticism from some governments for not doing more to boost domestic demand to help stimulate the global economy.Bruederle said the German economy was now recovering well, with growth of more than 2.5% expected this year.
2010/09/17 00:55DJ Eurozone Chief Juncker Hits Out At Japanese Currency Moves
BRUSSELS --Luxembourg Prime Minister Jean-Claude Juncker Thursday hit out at Japanese action on currency markets to stem the rise of the yen, saying his eurozone partners 'don't like unilateral intervention.'
2010/09/17 00:54*DJ Bill Allows Small Firms To Partially Write Off Cost Of Health Insurance

2010/09/17 00:53*DJ Bill Creates New $30B Lending Facility For Small Firms

2010/09/17 00:53*DJ Bill Also Raises Limits On Small Business Expensing Of Equipment

2010/09/17 00:52*DJ US Senate Votes 61-38 To Pass $12B Small Business Bill

2010/09/17 00:40=DJ Russian Ruble Hits 7-Month Low; Ctrl Bank Intervention Looms

2010/09/17 00:32DJ US Senate Defeats Attempt To Permanently Extend Research & Development Tax Credit
WASHINGTON -The U.S. Senate on Thursday defeated an attempt by Sen. Orrin Hatch (R., Utah) to attach a measure permanently extending a research and development tax credit to legislation aimed at providing assistance to small businesses.A move to extend the research and development credit would cost roughly $100 billion over the next decade. The measure expired at the end of 2009 along with a raft of other tax credits aimed at businesses and individuals.Hatch's measure would have required the Senate to stop consideration of the small business legislation until the Senate Finance Committee amended the bill to include the extension of the R&D credit.It would have further delayed the passage of the bill that has already been on the Senate floor for more than a month.Hatch's attempt comes just a week after President Barack Obama similarly called for the R&D credit to be made permanent as part of another round of fiscal stimulus intended to prime the pump of the U.S. economy.Obama's proposed package appears to have fallen on deaf ears in Congress where there is little enthusiasm by Democrats about pushing for further spending measures before the November mid-term elections.The Senate is expected to pass the wider small business bill shortly. It would then have to go back to the House where lawmakers there could take it up next week.The legislation includes a range of initiatives intended to help small business owners get better access to credit and also several tweaks to taxes aimed at providing temporary reprieve to firms.
2010/09/17 00:28*DJ SouFun's IPO Launch Accelerated To This Week - Source

2010/09/17 00:25=DJ Senators Urge Action On Chinese Currency Undervaluation
U.S. senators on Thursday called for action by Congress and the Obama administration targeting China's undervaluation of the yuan.U.S. lawmakers have grown increasingly frustrated with Beijing's currency policy, which economists say is between 20% to 40% undervalued and contributes to the over $40 billion monthly trade deficit. Anger has been exacerbated by the slow economic recovery and unemployment hovering near 10% during an election cycle.While the administration has taken a soft diplomatic tone, legislators in both chambers have proposed bills that would penalize imports from companies that have artificially manipulated currencies.Senators in the Senate Banking Committee harangued U.S. Treasury Secretary Timothy Geithner, appearing before the panel in a hearing on Chinese industrial policy, for not calling Beijing a currency manipulator in its regular currency report.'The time for action has long since come; in fact, it is long overdue,' said Sen. Christopher Dodd (D., Conn.), chairman of the Senate Banking Committee.'China basically does whatever it wants while we grow weaker and they grow stronger,' Dodd said.Sen. Richard Shelby (R., Ala.) added that 'the time for talking has long passed, and the time for action has arrived.'Dodd also criticized Japan's currency intervention earlier this week. 'Currency intervention by Japan, China or any other nation represents a gap in international cooperation on exchange rate policy,' the centerpiece of global economic governance, he said.With lawmaker ire rising, Geithner issued his strongest rhetoric yet before the panel in his testimony.China's move toward a more flexible exchange rate has been 'too slow,' Geithner said.'China needs to allow significant, sustained appreciation over time to correct this undervaluation and allow the exchange rate to fully reflect market forces,' he added.'We are very concerned about the negative impact of these policies on our economic interests, and are pursuing a carefully designed, targeted approach to address these problems,' Geithner said.
2010/09/17 00:11*DJ Eurozone Chief Juncker Hits Out At Japanese Currency Moves

2010/09/17 00:02=DJ CIC Chairman: Should Reduce Dollar Assets If Fed Stays Loose
BEIJING -China should reduce dollar assets in its foreign exchange reserves if the U.S. continues to pursue a loose monetary policy that threatens to weaken the dollar, Lou Jiwei, chairman of China's sovereign wealth fund the China Investment Corporation, wrote in an article included in a book published this month. 'For China, the chief means to reduce economic risks are to strengthen regulating the capital inflow, control the liquidity through hedging, monitor relevant assets markets, and divert forex reserve to non-dollar assets,' he said in the book, Post-Crisis Global Economic Balance and U.S.-China Cooperation, which was compiled for a conference involving Chinese and U.S. economists that took place this week in Beijing. An official with the Chinese organizer of the conference said Lou submitted the piece for inclusion in the book about three weeks ago. It isn't clear when Lou wrote it, but the article contains several references to an announcement by Washington in December that is described as having been made recently. The publication of Lou's comments comes after China, the largest holder of U.S. debt, has slowed the pace at which it amasses U.S. Treasurys and has started buying more South Korean and Japanese government bonds, in a bid to lessen its reliance on the dollar, both for investment and trade. Lou also said that China's monetary policy is very much restricted by U.S. monetary policy, and called for a tighter monetary policy and a looser fiscal policy by Washington. He said that that 'will be beneficial to the healthy development of the global economy'. 'The timing of the Federal Reserve's exit from the current extremely easy monetary policy is a key factor in determining whether China and other emerging market countries can control their asset bubble,' he said. 'A relatively more stringent monetary policy would reduce the anticipation of the U.S. dollar depreciating, restrain the U.S. dollar carry-trade, reduce global liquidity and provide greater policy room for emerging market countries in their management of asset bubbles and inflation,' Lou said. A CIC spokesman couldn't immediately be reached for comment Thursday.