2010/09/20 17:56DJ EU Rehn:To Publish New Proposals On EMU Governance By End-Sept
TALLINN -The European Commission will publish proposals tightening the fiscal rules of the euro zone in September, Economic and Monetary Affairs Commissioner Olli Rehn said Monday. Talking to reporters on the sidelines of an exhibition to mark Estonia's entry into the euro zone, Rehn said: 'The key to the proposals, due Sept. 29, will be a simplification of the sanctions procedure against countries running excessive budget deficits.' Under the new plans, Rehn said a qualified majority of member states would be necessary to block a Commission proposal for sanctions to be applied.
2010/09/20 17:52*DJ ECB Nowotny:Mainly High-Risk Lending To Be Hurt By Basel III
2010/09/20 17:51*DJ ECB Nowotny:Basel III Can Temporarily Hamper Credit Growth
2010/09/20 17:38*DJ Moody's: UK Rating Could Be Pressured If Bond Yields Rise Sharply
2010/09/20 17:34*DJ Moody's: UK Rtg 'Not Expected To Change In Foreseeable Future'
2010/09/20 17:33*DJ Moody's: UK Balance Sheet Seriously Damaged By Financial Crisis
2010/09/20 17:33*DJ Moody's: UK Aaa Rating Retains Stable Outlook
2010/09/20 17:29*DJ Moody's: Uk Aaa Rating To Withstand Economic Challenges
2010/09/20 17:24=DJ Forex Focus: The Swiss Franc Will Bounce Back
2010/09/20 17:20*DJ Sun Hung Kai: Steady Land Supply Fundamental To Property Market's Long-Term Health
2010/09/20 17:13*DJ Ministry: Exports To Continue Boosting Econ, But Slower Pace
2010/09/20 17:12*DJ 3-Month Euribor Falls To 0.876% Vs 0.879% Friday
2010/09/20 17:12*DJ Ministry: German Private Consumption To Boost Econ In 2H
2010/09/20 17:10*DJ German 9-Month Bubill Bid-To-Cover Ratio 3.5
2010/09/20 17:10*DJ German Econ Ministry: Pace Of Upwing To Slow Down In 2H
2010/09/20 17:10*DJ German Economics Ministry: Upwswing Now More Broad-Based
2010/09/20 17:08*DJ Sun Hung Kai Properties: To Continue Boosting Land Bank
2010/09/20 17:07*DJ German 9-Month Bubills Average Yield Set At 0.5599%
2010/09/20 17:06*DJ Germany Sells EUR1.605B 9-Month Bubills
2010/09/20 17:05*DJ Sun Hung Kai Properties: No Comment On Future Govt Property Market Measures
2010/09/20 16:58*DJ EU Rehn: Full Confidence In Ireland To Tackle Banking Problems
2010/09/20 16:57*DJ Honohan: Rising Cost Of Govt Borrowing A Problem For Budget
2010/09/20 16:56*DJ Honohan: Further Action To Cut Budget Deficit May Be Needed
2010/09/20 16:54*DJ ECB Honohan: Ireland May Not Cut Deficit To 3% Of GDP By 2014
2010/09/20 16:49DJ India Minister: Tight Monetary Policy At Cost Of Growth Not Desirable
NEW DELHI -Indian authorities need to balance policy steps to help tame inflation without sacrificing economic growth, Finance Minister Pranab Mukherjee said Monday. 'Inflation is always a matter of concern. Our constant exercise is to keep inflation at a tolerable level,' Mukherjee told NDTV Profit television channel in an interview. 'But also, the controlling of inflation with tight monetary policy measures is not always desirable.' 'A very delicate balance is to be maintained,' he added. Mukherjee maintained his economic growth forecast of 8.50%-8.75% for the current fiscal year ending March 31.
2010/09/20 16:13DJ PRECIOUS METALS: Gold, Silver Rise, Short Of Friday Records In Asia
2010/09/20 15:55*DJ India Minister: Tight Monetary Policy At Cost Of Growth Not Desirable
2010/09/20 15:52*DJ India Finance Minister:Inflation A Matter Of Concern
2010/09/20 15:28DJ HSBC Sells Asian Banknotes Unit To United Overseas Bank For $15M
LONDON -HSBC Holdings PLC (HSBA.LN), a banking services company announced Monday it has entered into an asset purchase agreement to sell the physical assets of its wholesale banknotes business in Asia to United Overseas Bank Limited (U11.SG) or UOB for a total consideration of $15 million in cash.MAIN FACTS:-As part of the agreement, HSBC will also license to UOB the technology system used in connection with its Asian wholesale banknotes business.-HSBC will work with UOB to facilitate the signing of new contracts between UOB and customers and staff of HSBC's Asian banknotes business.-The transaction is expected to complete in the fourth quarter of 2010.-The global wholesale banknotes business, which has been managed out of the United States by HSBC Bank USA through operations in key locations around the world, arranges the physical distribution of banknotes primarily to central banks and large commercial banks.-In June, HSBC Bank USA determined that this largely stand-alone business was not core to its strategy and made the decision to exit the business.-The parts of the business that are not the subject of this sale are being closed.-HSBC was advised on the transaction by HSBC Global Banking and Markets.-Shares closed Friday at 672.70 pence
2010/09/20 15:05*DJ Stoxx 600 Index Up 0.1% After The Open
2010/09/20 15:05*DJ FTSE 100 Up 0.2% After The Open
2010/09/20 15:01DJ German MOF: Recovery To Proceed At Slower Pace
BERLIN -Germany's economic recovery will continue through the end of 2010, though growth will slow from the galloping pace of the second quarter, the finance ministry said Monday in its September monthly report.After a second quarter when the economy grew an annualized 9%, the ministry noted that the manufacturing and construction sectors, in particular, had 'gained considerable breadth.'But more recent indicators, including industrial production which edged up a scanty 0.1% in July and a 2.2% retreat in manufacturing orders over the previous month, show that the pace of growth has since slowed.'The recovery will likely continue through the rest of the year, but with a much lower pace of growth,' the ministry said.The European Commission last week forecast that Germany would grow by 3.4% in 2010. The German government much lower prediction of 1.4% is due for an update next month, and Economics Minister Rainer Bruederle has said the new target will be above 2.5%.Regarding the government's budget finances, the ministry estimates that the government will have less new borrowing than originally planned, the ministry said. 'The expectation is that new net borrowing will be markedly under EUR60 billion,' the report said.Finance Minister Wolfgang Schaeuble told members of parliament as he introduced the government's 2011 budget proposals last week that net new borrowing would be between EUR50 billion and EUR60 billion this year.The ministry's report showed that tax revenue was up 3.6% in August against the corresponding month in 2009. Federal tax revenue were also up, by 3.2% against the previous year.
2010/09/20 14:58*DJ Gold Hits Fresh Records; Spot At $1,283.20/Oz, Dec Comex $1,284.90/Oz
2010/09/20 14:48*DJ Hang Seng Index Rises 0.1% To 22,003.07; Reverses Losses
2010/09/20 14:46DJ France To Lower 2010 Public Deficit Target To 7.8% Of GDP - Report
PARIS -The French government is expected to revise its 2010 public deficit forecast to 7.8% of gross domestic product, down from the current 8%, at the end of September, French daily Le Figaro reports Monday, citing unnamed sources.Last week, budget minister Francois Baroin said the public deficit should be below 8% in 2010.The French government aims to trim the public deficit to 3% of GDP by 2013.Newspaper website: www.lefigaro.fr
2010/09/20 14:10=DJ WORLD FOREX: Euro Up Vs Dollar, Yen; No Japan Intervention Seen -3-
2010/09/20 14:10*DJ HSBC Sees Transaction Completed In The 4Q Of 2010
2010/09/20 14:08*DJ HSBC Holdings To Sell Unit To United Overseas Bank
2010/09/20 14:07*DJ HSBC Holdings To Sell Asian Wholesale Banknotes Unit For $15M
2010/09/20 14:05*DJ HSBC Holdings To Sell Asian Wholesale Banknotes Business
2010/09/20 14:04*DJ German MOF: Pace Of Export Growth Slowing
2010/09/20 14:02*DJ German MOF: Recovery To Proceed At Slower Pace
2010/09/20 14:01*DJ German MOF: Economic Recovery To Continue In 2010
2010/09/20 13:53=DJ WORLD FOREX: Euro Up Vs Dollar, Yen; No Japan Intervention Seen -2-
2010/09/20 13:52DJ BOT: Finance Ministry OKs In Principle Proposed Measures To Spur Outflows
BANGKOK -The Bank of Thailand expects to release the official announcement of its measures to spur outflows within this week, Assistant Governor Suchada Kirakul said Monday.The proposed measures, approved in principle by the Ministry of Finance, include scrapping the limits placed on Thai companies on their overseas investments and loans to subsidiaries aboard, she told reporters.'These measures will not directly the baht rise but they will encourage Thai investment overseas, which could help balance the flows,' Suchada said.
2010/09/20 13:46DJ Nomura: Advising Former AIA CFO On Launching A Reinsurance Company
HONG KONG -Japanese bank Nomura Holdings Inc. (8604.TO) said Monday it is seeking to raise funds for a new Hong Kong-based reinsurer being set up by three industry veterans including the former chief financial officer of American International Group Inc.'s Asian unit, Steve Roder. A person familiar with the situation said Monday the proposed company is seeking to raise between US$500 million and US$1 billion from professional long-term investors. The two other founders of the new reinsurer, which will focus on Asian markets, are Franz Josef Hahn, who will become its chief executive. Hahn had served senior roles at Swiss Re and Munich Re AG. The remaining founder is Eckart Roth, who previously worked at Munich Re and will be named chief underwriting officer. Roder will become chief financial officer of the new company, Nomura said. Nomura, which is also advising the new company, said the formation of the reinsurer is subject to the approval of Hong Kong's insurance regulator.
2010/09/20 13:44=DJ WORLD FOREX: Euro Up Vs Dollar, Yen; No Japan Intervention Seen
2010/09/20 13:24DJ RBA Governor: Part Of Managing Upswing Will Clearly Fall To Monetary Policy
SYDNEY -Higher interest rates will likely be needed to contain a strengthening Australian economy as it is overwhelmed by the biggest mining and energy boom since the 19th century, Reserve Bank of Australia Governor Glenn Stevens said Monday. In a speech in regional Victoria state, Stevens reminded financial markets that monetary policy will have more to do in the near future as inflation appears likely to bottom out soon, with the economy on track to grow at above average rates in 2011. International shocks are still a risk to the outlook for the A$1.3 trillion commodity-rich economy but the stimulatory impact of 60-year highs in the price of exports relative to imports will be strong. 'If downside possibilities do not materialise, the task ahead is likely to be one of managing a fairly robust upswing. Part of that task will, clearly, fall to monetary policy,' he told business people in Shepparton. Stevens also used the speech to revisit the idea that monetary policy is a blunt tool, noting that it affects different parts of the economy differently, but adding the RBA must make policy decisions with regard to average national conditions. 'Monetary policy can't make those differences disappear. In the end, however, if monetary policy can help to deliver reasonable macroeconomic stability, that will offer the best chance for any industry, any region, any business or any individual to succeed on their merits,' he said. The speech is the second hawkish warning from a senior RBA official in a week, with Assistant Governor Phil Lowe saying Thursday the economy is operating at close to full capacity. One of the factors likely prompting the urgency from the RBA is that interest rate futures earlier this month started to factor in some chance the next move in interest rates would be down. The RBA has been sidelined since May, having hiked its cash rate target by 150 basis points in the months prior to 4.50%, a move which led the world's other central banks, many of which still have rates close to zero. Having left interest rates on hold at a policy meeting in September, Stevens said then they are only appropriate 'for the time being'. The comments prompted a reversal in thinking in financial markets which now have priced in a 68% chance rates will be higher by December. Stellar prices for coal and iron ore, plus an investment binge in the area of liquefied natural gas production, are revving the engines of the economy, with Australia's major trading partners now grouped tightly in Asia, the fastest growing region of the globe. Stevens expects the stimulatory effect of the resources boom will outpace the contractionary impact on the economy as government stimulus is slowly withdrawn. 'We think Australia's terms of trade, after reaching a 60-year high in the current quarter, will probably decline a bit but remain high,' he said. 'We expect that this high level of relative export prices will add to incomes and spending, even as the stimulative effects of earlier low interest rates and budgetary measures continue to unwind,' he added. The strength of investment will lift economic growth above its long-term trend rate of around 3.0% in 2011, Stevens said. Stevens also said the interconnectedness of the economy will likely result in the rapid transfer throughout of any trade shocks, good or bad. 'The way the economy works will naturally tend to help this occur, as will various other policy devices. That is what is supposed to happen in a well-functioning, integrated national economy,' he said.
2010/09/20 12:58DJ RBA Governor Says Retail Conditions Not As Tough As They Were
MELBOURNE -Reserve Bank of Australia Governor Glenn Stevens said Monday that retail conditions in Australia aren't as tough as they were, but consumers are likely to remain somewhat cautious. 'We talk to 25 retailers every month and I think things are not as tough as they were,' Stevens told a business forum in Shepparton, Victoria state. However, Stevens said Australia's likely entering an era where 'consumers are going to be a bit more cautious than they were.'
2010/09/20 12:38*DJ BOT: Planned Measures Will Indirectly Curb Baht Appreciation
2010/09/20 12:33*DJ BOT: Expects Official Announcement On Measures This Week
2010/09/20 12:33*DJ BOT: Finance Ministry OKs In Principle Proposed Measures To Spur Outflows
2010/09/20 12:26DJ CIC Official Suggests To Control On Large Financil Cos' Expansion
2010/09/20 12:09*DJ Former AIA CFO's Proposed Reinsurer Seeking US$500M-US$1B Capital-Source
2010/09/20 12:04*DJ Nomura: Advising Former AIA CFO On Launching A Reinsurance Company
2010/09/20 11:27*DJ RBA: World Growth Won't Be As Strong Over Next Year As Last
2010/09/20 11:26*DJ RBA: Tighter Asia Policy To Mean Growth Unlikely As Fast As 1H10
2010/09/20 11:26*DJ RBA: Global Economy Continues To Present A Mixed Picture
2010/09/20 11:25*DJ RBA: Even With Households Cautious, GDP Likely To Rise Above Trend
2010/09/20 11:25*DJ RBA: Trade Boom To Add To Incomes; Outpace Cuts In Government Stimulus
2010/09/20 11:24*DJ RBA: Fall In Inflation Won't Go Much Further
2010/09/20 11:18DJ Barclays Works On Radical Contingency Plans -Report
Barclays PLC (BCS, BARC.LN) is working on contingency plans to make radical changes in an attempt to head off more draconian U.K. government measures, U.K. newspaper The Times reported on Monday, citing unspecified industry insiders. The bank is looking at ways to ring-fence its deposits and is considering whether to put its investment banking arm, Barclays Capital, into a separate legal entity, the newspaper said. The debate will be ratcheted up as the Banking Commission publishes its first paper on Friday looking at how to make the banking system safer, The Times said. Newspaper Web site: http://thetimes.co.uk -; dennis.baker@dowjones.com
2010/09/20 11:15DJ First Pacific To Issue US$300 Mln 10-Year Bond - Sources
SINGAPORE -Hong Kong investment group First Pacific Co. Ltd. (0142.HK) plans to issue a US$300 million 10-year bond, people familiar with the transaction said Monday.Early pricing guidance for bond is a yield of 7% and the bonds are expected to be priced late Monday, the people said.Credit Agricole and Standard Chartered Bank are arranging the sale.
2010/09/20 11:06=DJ FOREX VIEW: All's Quiet On The Yen Front, For Now
2010/09/20 10:40*DJ First Pacific Initial Pricing Guidance For Bonds About 7% Yield - Sources
2010/09/20 10:36*DJ First Pacific To Issue US$300 Mln 10-Year Bond - Sources
2010/09/20 10:30DJ CIC Official Suggests To Control On Large Financil Cos' Expansion
2010/09/20 10:21DJ ZTE Corp: No Significant Impact From European Commission Probe
SHANGHAI -Chinese telecommunications equipment maker ZTE Corp. (ZTCOY, 0763.HK) said Saturday the European Commission's antisubsidy investigation into data-card products imported from China wouldn't have any significant impact on the company, due to the relatively small size of the revenue generated from such products. The Shenzhen- and Hong Kong-listed company said in a statement that it has substantially completed the preparation of its responses to the questionnaires related to the investigation and has submitted its defense to the European Commission through its attorneys. 'The company will continue to closely monitor the progress of investigations, offer cooperation with the European Commission in its investigations and actively adopt measures in response to further progress of the matter,' it added. ZTE didn't disclose the exact size of its sales of such data card products in Europe. China's Ministry of Commerce said Thursday it is seriously concerned about investigations by the European Union into data card products, also known as wireless wide-area networking modems, from China. The comments come after the EU said in its official journal that it was conducting an antisubsidy investigation into the devices. The ministry said the EU's investigations, which include an antidumping investigation, will disrupt normal trade and hurt the interests of EU consumers. It added that China reserves the right to respond under World Trade Organization rules.
2010/09/20 10:15DJ PBOC Survey: Inflation Expectation Increased
2010/09/20 10:15DJ Thai Fin Min: Measures To Curb Baht Rise Up To Central Bank
BANGKOK -The Bank of Thailand will decide on what measures to implement to curb the baht's rise, Finance Minister Korn Chatikavanij told a breakfast meeting hosted by CNBC Monday.He said the U.S. is unlikely to face another recession, although global growth rates will remain disappointing.Last week, Korn told Parliament that the central bank has proposed five measures, mainly designed to boost capital outflows from domestic players, to the Ministry of Finance to contain the rising baht.
2010/09/20 10:13DJ PBOC Adviser: Floating Deposit Rates Better Than Small Rate Hike
2010/09/20 10:10*DJ OIL FUTURES: Nymex October Crude Breaches $74/Bbl; Up 36c
2010/09/20 09:45=DJ FOREX WEEK AHEAD: Market On Edge Ahead Of Fed Meeting
2010/09/20 09:24*DJ Thai Fin Min: Global Growth Rates To Remain Disappointing
2010/09/20 09:18*DJ Thai Fin Min: Measures To Curb Baht Up To Central Bank
2010/09/20 08:42*DJ Thai PM: Baht Still In Line With Regionals
2010/09/20 08:41*DJ Thai PM: Reiterates 7%-8% 2010 GDP Forecast
2010/09/20 08:31DJ PBOC Adviser: Floating Deposit Rates Better Than Small Rate Hike
BEIJING -China should consider letting bank deposit rates float freely to offset inflation instead of introducing a small interest rate hike that wouldn't be effective in curbing rising consumer prices, an adviser to the Chinese central bank said Saturday. 'In theory it's not right to see negative interest rates for a long time,' said Xia Bin, an adviser to the People's Bank of China and an influential economist, in a lecture at a local university. 'However, the markets are quite fragile right now. If the government hikes interest rates, it wouldn't be easy for it to receive the understanding [from people],' said Xia. 'Even if it wants to hike rates, the scale wouldn't be too big. So it wouldn't be effective for [managing] the real economy.' Instead, it might be a better idea if Beijing pushes ahead with letting deposit rates float freely, Xia added. Xia's comments came during an intensifying debate over whether Beijing needs to tighten monetary policy after the country's monthly inflation figure reached a nearly two-year high. China's consumer price index rose 3.5% in August, its biggest gain since October 2008 and higher than July's 3.3% increase. The increase was well above the country's one-year benchmark deposit rate of 2.25%, meaning real interest rates are negative. China doesn't let banks offer deposit rates above benchmark deposit rates. Xia also said while the Chinese economy is expected to slow further, likely by 1 percentage point each quarter in the current and next quarters, its full-year growth can still hit between 8% and 9%. China's gross domestic product expanded 11.7% in the first quarter and 10.6% in the second.
2010/09/20 08:08*DJ Rio Tinto Down 1.2% At A$74.60 Early
2010/09/20 07:53DJ BOE: Cost Of New Consumer Lending May Reflect Bank Capital Building
LONDON -The widening of the gap between interest rates on new lending to households in the U.K. and the Bank of England's key policy rate since the financial crisis may reflect the need of banks to build more capital, as well as higher borrowing costs, a paper by the central bank released Monday found.The report analyzed the contribution to new lending rates of funding costs, credit risk charges and a 'residual,' which included operating costs and the mark-up charged over marginal costs.After falling to very low levels during the boom, the financial crisis spurred lenders to demand much larger amounts of compensation to account for their exposure to credit risk, which has contributed to the rise in new lending rates.But BOE Chief Economist Spencer Dale said although higher spreads on long-term wholesale funding costs had been key in pushing up the cost of new lending, other factors had played a role.'The larger residual needs to be interpreted with caution but, among other things, it is consistent with lenders increasing mark-ups over marginal costs for new lending, which may reflect a need to build higher capital levels within the banking sector,' he said.Earlier this month, international financial officials agreed to significantly increase the amount capital banks have to set aside against potential losses, but gave them several years to adapt to the new rules, in an attempt to reduce the risk of future market turmoil.Monday's report, by Richard Button of the central bank's Financial Institutions Division, and Silvia Pezzini and Neil Rossiter of the Monetary Assessment and Strategy Division, found that the mark-up on new lending likely reflected a number of factors.'An increase in the mark-up is consistent with a desire by lenders to improve the net interest margin given the low return on the stock of existing loans and the higher cost of retail deposits,' it said.'It may also have been influenced by a reduction in the degree of competition within the banking sector following consolidation.'The authors said that while if lending were more expensive, it could dampen demand, if the higher costs reflected bigger mark-ups, it could potentially increase institutions' capacity to lend.They noted that boosting bank capital was desirable if it didn't significantly restrict the supply of credit to households and firms.'Building up higher levels of capital in the banking sector reduces the likelihood that lenders will default and reduces the losses to creditors if lenders do default,' they said. 'This should lower market participants' perceived riskiness of the lenders and correspondingly lenders' marginal funding costs, thus enabling them to reduce the price of new lending to households while preserving mark-ups.'
2010/09/20 07:42*DJ United Overseas Bank Ltd. To Buy Banknotes Business In Five Asian Markets From HSBC >U11.SG
