2010/09/21 18:00DJ ECB Allots EUR153.771B In Main Refinancing Op At Fixed 1%
FRANKFURT -The European Central Bank Tuesday allotted weekly funds worth EUR153.771 billion to euro-zone banks in its main refinancing operation at a fixed 1%. The ECB satisfied all bids of 109 bidders, who will be able to access the funds from Wednesday. The allotments is about EUR2.2 billion higher than last week. The ECB said Monday that it expects markets will need around EUR345 billion in weekly funds from Wednesday, but revised its estimates to EUR347.3 billion after the results of the tender became known. The ECB also plans to absorb EUR61.5 billion of seven-day funds in an auction Tuesday, aimed to offset the impact of previously created central bank money in the ECB's government bond buys. Website: www.ecb.int
2010/09/21 17:38*DJ Euro Edges Higher After Greek, Irish Auctions Well Received
2010/09/21 17:32*DJ Hungarian 3-Month Treasury Bill Average Yield Set At 5.43%
2010/09/21 17:32*DJ Hungary Sells HUF65B 3-Month Treasury Bills
2010/09/21 17:27*DJ Irish October 2018 Bond Bid-To-Cover Ratio 2.9
2010/09/21 17:27*DJ Irish January 2014 Bond Average Yield Set At 4.767%
2010/09/21 17:27*DJ Irish October 2018 Bond Average Yield Set At 6.023%
2010/09/21 17:26*DJ Irish January 2014 Bond Bid-To-Cover Ratio 5.1
2010/09/21 17:25DJ Spain Sells EUR7.036B 12-Mo, 18-Mo T-Bills, Slightly Above Range
The Spanish treasury sold EUR7.036 billion of 12-month and 18-month treasury bills at auction Tuesday, it said. The amount sold is slightly above the treasury's EUR6 billion to EUR7 billion range. The following are details of the auction, with amounts in euro.
2010/09/21 17:25*DJ Irish/German Yield Spreads Remain Tighter After Auction
2010/09/21 17:24*DJ ECB Allots EUR153.771B In Main Refinancing Op At Fixed 1%
2010/09/21 17:23PRESS RELEASE: Fitch Places ICBC Asia on Rating Watch Positive
The following is a press release from Fitch Ratings: Fitch Ratings-Hong Kong/Singapore-21 September 2010: Fitch Ratings has today placed Hong Kong-based Industrial and Commercial Bank of China Limited's Long-term Issuer Default Rating of 'A-' and Short-term IDR of 'F2' on Rating Watch Positive . At the same time, the agency has affirmed ICBC Asia's Support Rating at '1' and its Individual Rating at 'C'. The placement of ICBC Asia's IDRs on RWP follows ICBC Asia's board approval and offer made by its parent, mainland-based Industrial and Commercial Bank of China Limited (ICBC, 'A'/Stable), to buy the remaining 28% of ICBC Asia it does not already own that is held by minority investors. This transaction will turn ICBC Asia into a 100%-owned subsidiary of ICBC, and Fitch expects this to lead to further strategic and operational integration between the parent and the subsidiary, which further increases the likelihood of support. The privatisation of ICBC Asia is still subject to approvals by regulators and minority shareholders. On the basis of such approvals being granted as currently proposed, Fitch expects to upgrade ICBC Asia's long-term IDR to 'A', consistent with that of its parent, whose own IDR reflects high expectations of support from the Chinese government, if required. The affirmation of ICBC Asia's Individual Rating reflects the bank's continued reliance on corporate lending and wholesale funding, although Fitch acknowledges its currently sound asset quality and reasonable capitalisation. Corporate lending in Hong Kong and mainland China accounted for the bulk of ICBC Asia's loan balance and growth in recent years. Historically, ICBC Asia's profitability lagged behind most of its mid-sized Hong Kong peers due to its less diversified revenue source and reliance on wholesale funding. That said, profitability did improve in H110 to HKD1,229m, representing a return on assets of 1% . Although ICBC Asia's Tier-1 capital adequacy ratio is among the lowest in Hong Kong (end-H110: 8.3%), its parent holds all of its subordinated debts and is likely to provide capital support if needed. Any changes in ICBC Asia's Individual Rating are more likely to reflect fundamental changes in wholesale funding and/or concentration risks within the loan book. ICBC Asia is the principal Hong Kong subsidiary of ICBC with 44 branches in the territory and a wholly-owned subsidiary on the mainland. The bank provides retail, commercial and corporate banking services in Hong Kong and offers offshore banking services to its parent's mainland corporate customers. ICBC Asia's strategy and operations are increasingly integrated with those of its parent as the bank provides increased financing and other banking services to its parent's mainland corporate clients. Contacts: Primary AnalystJonathan CornishSenior Director+852 2263 9901Fitch Limited 28/F Tower Two, Lippo Centre89 QueenswayHong Kong SAR Secondary AnalystJoyce HuangAssociate Director+886 2 8175 7602 Committee ChairpersonAnanda BhoumikSenior Director+91 22 4000 1720 Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215, Email: shivani.sundralingam@fitchratings.com; Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable Criteria available at 'www.fitchratings.com': 'Global Financial Institutions Rating Criteria,' dated '16 August 2010'. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteriahttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
2010/09/21 17:21*DJ Bunds Stable After Irish Bond Auction Results
2010/09/21 17:21*DJ Greek 13-Week Treasury Bill Bid-To-Cover Ratio 6.25
2010/09/21 17:20*DJ Greek 13-Week Treasury Bill Uniform Yield Set At 3.98%
2010/09/21 17:19*DJ 10Y Irish/German Yield Spread At 396Bps After Auction
2010/09/21 17:19*DJ Greece Sells EUR390M 13-Week Treasury Bills
2010/09/21 17:17*DJ ECB Wellink: Won't Forecast Big Rise In Market Rates In 4Q-Report
2010/09/21 17:16*DJ Ireland Sells EUR1B October 2018 Bond
2010/09/21 17:16*DJ Ireland Sells EUR500M January 2014 Bond
2010/09/21 17:07*DJ 3-Month Euribor Rises To 0.879% Vs 0.876% Monday
2010/09/21 17:02*DJ BOJ Expects Curr Acct Balance To Fall Y1.21T Wed Vs Y19.39T Tue
2010/09/21 17:01*DJ Tropical Storm Lisa Forms In Eastern Atlantic Ocean - NHC
2010/09/21 16:42*DJ Spanish 18-Month Treasury Bill Maximum Yield Set At 2.190%
2010/09/21 16:41*DJ Spanish 12-Month Treasury Bill Maximum Yield Set At 1.938%
2010/09/21 16:41*DJ Spain Sells EUR1.757B 18-Month Treasury Bills
2010/09/21 16:39*DJ Spain Sells EUR5.279B 12-Month Treasury Bills
2010/09/21 16:30*DJ UK Aug PSNCR +GBP5.8B Vs +GBP10.3B Year Ago
2010/09/21 16:30*DJ UK Aug PSNB +GBP15.3B Vs +GBP13.5B Year Ago
2010/09/21 16:30*DJ UK Aug PSNB Was Expected At +GBP13.0B
2010/09/21 16:23DJ Alumina Market To Be More Balanced In 2011 -Rio Tinto Alcan
Manama, BAHRAIN -The global alumina market will move closer to balance in 2011, a senior Rio Tinto Alcan executive said Tuesday. Rhodri Harries, the senior vice president of the aluminum producer's commercial, energy and carbon products division, said he expects the market to be between 0.5 million metric tons and 1.5 million tons long next year. 'This is much closer to balance than we've seen for some time,' he said. 'But even though there's a small surplus, this isn't very large in the context of a global market of around 80 million tons--it's just a week's supply,' he added. Alumina is the key ingredient used to make aluminum, the metal used in the automotive and construction industries. Rio Tinto Alcan is the aluminum unit of U.K.-listed miner Rio Tinto PLC . Harries was speaking at the Metal Bulletin aluminum conference in Bahrain.
2010/09/21 16:15DJ Portugal Budget Deficit Rose To EUR9.2B Through August -Fin Min
MADRID -Portugal's central government budget deficit rose by EUR445 million to EUR9.2 billion in the first eight months of the year, the country's finance ministry said late Monday. Revenue for the central government rose 3.3% in January through August, to EUR20.2 billion, including an increase of 13.9%, or EUR983.7 million, in revenue from the value-added tax. Spending rose 2.7% in the same period, the ministry said. The social security system had a surplus of EUR661 million in the first eight months, and the regional governments and other sub-sectors had a surplus of EUR1.15 billion, the finance ministry said.
2010/09/21 16:15DJ EFSF Head Doesn't Expect Emergency Disbursements - Report
FRANKFURT -The head of the European Financial Stability Facility doesn't expect the fund that was set up to aid troubled sovereign borrowers to become active, German daily Handelsblatt reports Tuesday. 'I don't expect an emergency to occur that would require us to access credit and pass it on,' Klaus Regling, the head of the EFSF, is quoted as saying. Commenting on Ireland's difficulties in accessing capital markets, Regling said 'markets sometimes overreact,' the paper reports. 'I believe that markets will calm as soon as Ireland has passed its 2011 budget,' Regling is quoted as saying, adding that the country, formerly known as the Celtic Tiger, hasn't yet approached the fund to discuss possible disbursements Website: www.handelsblatt.com
2010/09/21 16:12*DJ Fitch Places ICBC Asia on Rating Watch Positive
2010/09/21 16:06DJ BNP Paribas CEO: No Capital Hike For Basel III - Report
PARIS -French bank BNP Paribas SA (BNP.FR) won't tap the markets to raise capital to respect the new Basel III capital requirements, Chief Executive Baudouin Prot tells Les Echos newspaper in an interview published Tuesday. 'We are going to continue to put two-thirds of our profit in reserve and to distribute a third of it,' Prot tells the paper. He says he expects the bank to be in line with requirements right through a transition period to Basel III 'without having to raise extra capital.' Still, 'in the coming years,' Prot tells Les Echos, 'the banks doubtless won't have the means to make significant acquisitions paid in cash, without raising capital on the markets,' he tells the paper. Separately, he says BNP Paribas will take a look at acquiring Pioneer, the asset management unit of UniCredit SpA (UCG.MI), which the Italian bank is looking to sell. BNP Paribas isn't interested in acquiring the German private bank BHF, he also says. Newspaper website: www.lesechos.fr
2010/09/21 16:02*DJ Fitch: European Asset Managers Face Business Model Challenges
2010/09/21 15:53DJ PRECIOUS METALS: Gold Edges Down In Asia Ahead Of Fed Meeting
SINGAPORE -Gold traded in a tight range in Asia Tuesday ahead of the U.S. Federal Reserve meeting result expected at 1815 GMT. Many gold longs are looking for the green light on further monetary easing measures from the Fed, said a Singapore-based dealer at a European bank. However, he said that in his opinion gold's rally was getting 'a bit tired,' adding that if the expectations weren't met, a selloff could ensue. 'If we don't breach the $1,283-$1,285 level quickly, then we could finally see a correction.' At 0635 GMT, spot gold was at $1,277.40 a troy ounce, down $1.10 since Monday's New York close, while Tocom August 2011 gold was at Y3,522 a gram, down Y8. Gold's continued strength is directly related to central bank actions that have reinforced its status as an alternative currency, David Rosenberg, chief strategist at Gluskin Sheff, said in a note. He cited the ECB's decision to allow non-investment grade bonds as collateral on its balance sheet, the Fed's decision not to unwind its balance sheet, and the BOJ's recent move to unilaterally intervene to reverse the yen's strength as the key drivers for gold this year. 'Nobody wants a strong currency, and nobody, outside of a few small countries, wants higher interest rates,' he said. Spot silver was at $20.63/oz, down 10 cents. Silver looks unlikely to get physical buying support in Asia in the near term, with Chinese buyers moving to the sidelines ahead of a three-day national holiday and Indian buyers put off by high prices. Spot platinum was at $1,618/oz, down $5, while spot palladium was at $535/oz, down $2.
2010/09/21 15:37DJ Hurricane Watch Issued For Newfoundland Coast As Igor Nears -NHC
Canadian officials have issued a hurricane watch for parts of Newfoundland's coast Tuesday as Hurricane Igor approaches, the U.S. National Hurricane Center reported in an advisory on its website. Igor is making 'a quick motion toward the northeast' and was about 375 miles (about 605 kilometers) south-southwest of Cape Race, Newfoundland, as of 2 a.m. (0600 GMT), the NHC report said. It said a hurricane watch is in effect for coastal Newfoundland from Stone's Cove northward and eastward to Fogo Island, while a tropical storm warning is in effect on the coast from Burgeo northward and eastward toward Triton. The warning is also in place for the French islands of Saint-Pierre and Miquelon, which are located near Newfoundland, the report said. Igor has maximum sustained winds of 75 miles per hour (120 kilometers per hour) with higher gusts, and some strengthening is forecast, the NHC said. NHC Advisory: http://www.nhc.noaa.gov/text/refresh/MIATCPAT1+shtml/210551.shtml
2010/09/21 15:37=DJ WORLD FOREX: Dollar Down Slightly Vs Yen; Focus On FOMC -3-
2010/09/21 15:32DJ Tokyo Shares End Lower;Slight Yen Rise Spurs Pre-FOMC Selling -2-
2010/09/21 15:25=DJ WORLD FOREX: Dollar Down Slightly Vs Yen; Focus On FOMC -2-
2010/09/21 15:15=DJ WORLD FOREX: Dollar Down Slightly Vs Yen; Focus On FOMC
2010/09/21 15:06DJ Tokyo Shares End Lower;Slight Yen Rise Spurs Pre-FOMC Selling
2010/09/21 15:04DJ Forex Options: Dollar/Yen Options Edge Up Ahead of FOMC
TOKYO -Dollar/yen options rose slightly in Tokyo Tuesday, as market participants hedged their positions against both upside and downside short-term risks ahead of the U.S. Federal Open Market Committee later in the global day.An options dealer at a major brokerage in Tokyo said volatilities may decline 20 basis points after the Fed meeting unless the outcome delivers a major surprise to markets.The dealer added that Japanese players are unwilling to hold options contracts this week as markets are closed Thursday for another national holiday. Markets were also closed Monday in Japan.The dealer said one player sold six-day dollar-put/yen-call option contracts at a strike price of Y85.00 with implied volatilities of 11.0% for about $30 million.Since such contracts benefit the holder if the underlying exchange rate stays below the set price, the deal suggests the person doesn't expect the exchange rate to break Y85.00, with markets cautious that the Japanese authorities could act to weaken the yen.Benchmark one-month at-the-money dollar/yen volatilities rose to 10.55%/11.25% in Tokyo Tuesday from 10.45%/11.15% in New York Monday.
2010/09/21 15:02*DJ Fitch: New Basel Rules Unlikely to Affect Japan Banks' Ratings
2010/09/21 15:02*DJ Stoxx 600 Index Dn 0.1% After The Open
2010/09/21 15:01*DJ FTSE 100 Dn 0.1% After The Open
2010/09/21 15:00*DJ Hang Seng Index Falls 0.1% To 21,958.66; Reverses Gains
2010/09/21 14:52DJ JGBs Up As Treasurys Rise On Fed Easing View; Eyes On FOMC Statement
TOKYO -Japanese government bonds ended higher Tuesday, following gains in U.S. Treasurys overnight due to renewed hopes for additional monetary easing measures by the Federal Reserve. Bond market participants are now focused on a statement to be released after the Federal Open Market Committee meeting later in the global day for any hints of upcoming easing steps by the U.S central bank. Meanwhile, the Bank of Japan's decision last week to leave the Ministry of Finance's yen-selling intervention unsterilized--meaning it left the intervention funds sloshing around in the banking system--has fueled speculation that the BOJ may follow the Fed toward a looser monetary policy stance, analysts said. 'If the Fed decides to take more easing steps in November or December, market expectations for the expansion of the BOJ's outright JGB buying operations could heighten,' said Akito Fukunaga, chief rates strategist at RBS Securities. Fukunaga expects JGBs to maintain a solid bias at least during this short week. Japanese markets were closed on Monday and will be off again on Thursday for national holidays. However, some analysts think any JGBs' topside will likely be capped by lingering concerns over the government's worsening fiscal health. 'The long-term JGB yield may lack clear direction, as it is expected to nervously move up and down due to mixed cues, such as oversupply worries over the government's supplementary budget for this fiscal year and speculation over additional easing by the BOJ,' said Jun Ishii, chief strategist at Mitsubishi UFJ Morgan Stanley Securities.
2010/09/21 14:37*DJ UBS Started At Hold By Royal Bank of Scotland
2010/09/21 14:37*DJ Credit Suisse Group Started At Sell By Royal Bank of Scotland
2010/09/21 13:35DJ Japan Government: PM Kan To Visit New York From Wed Through Sat -Kyodo
TOKYO -Japanese Prime Minister Naoto Kan will visit New York for four days from Wednesday to attend the U.N. General Assembly session and meet with U.S. President Barack Obama, Chief Cabinet Secretary Yoshito Sengoku said Tuesday, Kyodo News reported.Arrangements are underway for the Japanese leader to also meet with other countries' heads, government officials said.Kan is scheduled to attend a summit Wednesday on the U.N. Millennium Development Goals and make a speech Friday before the General Assembly.
2010/09/21 12:37=DJ MONEY TALKS: RBA May Hike Ahead Of Consumer Demand Recovery
2010/09/21 12:00*DJ SAFE Official: Exchange Rate Reform Must Be Accompanied By Other Policy Changes
2010/09/21 11:59*DJ SAFE Official: Shouldn't Exaggerate Exchange Rate's Role In Solving Econ Imbalances
2010/09/21 11:55*DJ SAFE Official: Government Shouldn't Overly Stress Exchange Rate Stability
2010/09/21 11:47=DJ FOREX VIEW: Japan Intervention Raises Fear Of Competitive Measures
2010/09/21 11:40*DJ Nikkei Stock Average Briefly Dips Into Negative Territory
2010/09/21 11:27DJ AIG: Evaluating Options Regarding Ownership Of Nan Shan Life
TAIPEI -American International Group Inc. is evaluating its options regarding the ownership of Nan Shan Life Insurance Co., after the U.S. insurer aborted an attempt to sell its Taiwan life insurance unit to a Hong Kong-based consortium, AIG spokeswoman Lauren Day said Tuesday.Day didn't provide further details.China Strategic Holdings Ltd. (0235.HK) said Monday it and its consortium partner Primus Financial Holdings Ltd. (PRIM.YY) have agreed with AIG to abort the consortium's attempts to purchase Nan Shan Life effective immediately.The decision to end the share purchase agreement follows China Strategic's receipt of official notice from Taiwan's Ministry of Economic Affairs regarding the regulator's decision to reject the proposed deal, according to the Hong Kong-listed company.
2010/09/21 11:10DJ Japan Finance Minister: Expect PM To Explain Intervention To Obama If Necessary
TOKYO -Japanese Prime Minister Naoto Kan will explain the reasons behind his government's recent currency-market intervention to U.S. President Barack Obama if foreign exchange becomes a topic of conversation during their talks later this week, Japan's finance minister said Tuesday. Kan is scheduled to meet Obama on the sidelines of the United Nations General Assembly in New York later this week. 'It's not clear how the talks will take shape, but I've briefed the prime minister on the background to the foreign exchange intervention, so I'm expecting him to clearly explain it if they discuss such issues,' Finance Minister Yoshihiko Noda said at a press conference. Japan intervened last Wednesday for the first time in more than six years, selling yen in the markets in the hope of curbing the currency's strength.
2010/09/21 11:03DJ RBA Minutes: Interest Rates Have More Work To Do To Contain Inflation
2010/09/21 11:01=DJ FED WATCH: San Francisco Fed Warns Job-Quashing Productivity To Remain Hot
2010/09/21 10:57DJ RBA Minutes: Interest Rates Have More Work To Do To Contain Inflation
SYDNEY -The Reserve Bank of Australia is on track to raise interest rates soon, saying Tuesday if its current central scenario for the economy eventuates, the monetary policy brakes will need to be tapped again.In minutes of its Sept. 7 policy meeting, the RBA also sounded a hint of urgency saying previous such buoyant conditions in the economy had put pressure on inflation and posed "significant challenges for economic policy."While alert to risks such as a slowdown in Asia, the U.S. or renewed financial market instability, the RBA's central scenario for the A$1.3 trillion commodity-rich economy was for above trend growth over the next few years."While policy had to be alert to these risk, members considered that if the central scenario came to pass it was likely that higher interest rates would be required at some point," the central bank said.The RBA board also noted increasing signs of "solid momentum" in the economy and that business investment is expected to grow sharply.Prospects in the mining sector were especially good, and this would have "significant flow-on" effects to the broader economy.Australia confronts its biggest resources boom since the 19th century with Asian demand for coking coal, iron ore and liquefied natural gas at the heart of it.Interest rates were left on hold for a fourth month in a row in September at 4.50%, but financial markets are now expecting a near-term hike after RBA Governor Glenn Stevens said Monday the economy is accelerating and inflation has reached a low point.An 80% probability of a rate hike is now priced into market pricing, well up from a month ago when some began to speculate that rates may next be cut.Stevens told an audience in regional Victoria the economy is likely to grow at an above trend pace in 2011 as a mining boom spurs activity.He added that managing the upswing in the economy would be the main task of policy makers over coming years adding that monetary policy would need to play its part.The Australian dollar has risen to a fresh 2-year high of US$0.9494 since the remarks.Some economists argue the RBA will want to see third quarter inflation data first, which would delay the next hike until November.The RBA has been on the sidelines since May, having hiked rates by 150 basis points in the preceding months. Those early hikes, which led the world into a tightening cycle, restored lending rates across the economy to average levels.The minutes continued the RBA's hawkish themes which emerged more forcefully last week when Assistant Governor Phil Lowe said the economy was growing at close to full capacity.
2010/09/21 10:56=DJ US To Issue First New Drilling Rules Since BP Oil Spill
2010/09/21 10:42=DJ FOREX VIEW: Japan On Guard For Dollar Slide After Fed Meeting
2010/09/21 10:20DJ First Pacific Raises US$400M Via 10-Year Bond, Prices At 6.375% Yield - Source
SINGAPORE -Hong Kong investment group First Pacific Co. Ltd. (0142.HK) has raised US$400 million from a 10-year bond offering, a person familiar with the transaction said Tuesday. The issue pricing was tightened to yield 6.375%, compared with the guidance of 7%, the person said, adding that the offer amount was increased from US$300 million. Credit Agricole and Standard Chartered Bank were the bond's arrangers.
2010/09/21 10:15*DJ AIG: Evaluating Options Regarding Ownership Of Nan Shan Life
2010/09/21 09:52=DJ FOREX VIEW:Bets Versus Dollar Up On Quantitative-Easing Worry
2010/09/21 09:42*DJ RBA: Monetary Policy Remained Appropriate For Time Being In September
2010/09/21 09:41*DJ RBA Minutes: Likely Higher Interest Rates Would Be Required At Some Point
2010/09/21 09:39*DJ RBA: Credit Availability In Commercial Property Remained Constrained
2010/09/21 09:39*DJ RBA: Noted The Increase In Concerns About Debt In Some Of Europe
2010/09/21 09:38*DJ RBA: Noted The Increase In Concerns About US Economic Outlook
2010/09/21 09:12*DJ Japan Noda: Expect PM Kan To Explain Intervention To Obama If Necessary
2010/09/21 09:10*DJ Japan Fin Min Noda: Want To Curb JGB Issuance
2010/09/21 09:09*DJ First Pacific Raises US$400M Via 10-Year Bond, Prices At 6.375% Yield - Source
2010/09/21 09:00*DJ Japan Govt Sengoku: PM Kan To Visit New York From Wed Through Sat -Kyodo
2010/09/21 08:06*DJ Lead Dec JGB Futures Open Up At 142.22 Vs 142.12 Fri
2010/09/21 08:05*DJ Nikkei Stock Average Opens Up 0.8% At 9700.88
2010/09/21 07:37*DJ Rio Tinto: 20.6M Shares Bought Back At A$75.13 Per Share
2010/09/21 07:32*DJ Rio Tinto: Completes 2nd Tranche Of Internal Capital Management Plan
2010/09/21 06:48DJ Brazil Sovereign Wealth Fund Can Start To Buy Foreign Currency
SAO PAULO -The Brazilian government's sovereign wealth fund has been authorized to buy unlimited amounts of foreign exchange directly in the market, the finance ministry said Monday, amid strong signals that the government wants to do more to rein in the appreciation of the Brazilian real against the dollar.The team of government ministers and the head of the central bank, which provide the guidelines for the fund's operations, met Friday to approve the rules for buying foreign exchange, the finance ministry said in a statement.Brazil's real has gained sharply against the dollar in recent sessions, and Finance Ministry Guido Mantega has talked about deploying new measures to try to rein in the gains, including wheeling out the sovereign wealth fund.
2010/09/21 06:40DJ CREDIT MARKETS: Corporate Debt Issuance Driving Market Gains
2010/09/21 06:26=DJ US Small-Cap Stocks Climb; Russell At Highest Close Since May-2-
2010/09/21 06:02=DJ WORLD FOREX: Dollar Falls Against Most Rivals Ahead Of Fed
2010/09/21 05:37=DJ US Stocks Rally To Highest Close In Four Months-2-
2010/09/21 05:32DJ Treasurys Rise, Extending Fri's Gains, Ahead Of Fed Meeting
2010/09/21 05:25=DJ US Small-Cap Stocks Climb; Russell At Highest Close Since May
2010/09/21 05:22=DJ US Stocks Rally To Highest Close In Four Months
2010/09/21 04:26DJ PRECIOUS METALS: Gold Hits Record Above $1,280 Ahead Of FOMC
2010/09/21 04:11*DJ Nasdaq Closes Up 40 (1.7%) At 2356; Financials Lead Broad Rally
2010/09/21 04:05*DJ DJIA Closes Up 146 (1.4%) At 10754; AmEx, JP Morgan, BofA Climb
2010/09/21 03:49DJ OIL FUTURES: Crude Settles Higher, Helped By Equities Rally
NEW YORK -Crude oil futures settled higher Monday, bouncing back from four-straight sessions of losses as rising U.S. equities boosted optimism about the economic outlook.Light, sweet crude for October delivery settled $1.20 higher at $74.86 a barrel on the New York Mercantile Exchange after trading as high as $75.45 earlier in the session. Brent crude on the ICE futures exchange traded $1.07 higher at $79.28 a barrel.The October crude contract is due to expire at the end of trading Tuesday.Oil prices posted gains after falling nearly 5% last week, a drop due to the quick restart of the Enbridge 6A pipeline that carries up to 670,000 barrels a day of Canadian crude into the U.S.With fears of an extended pipeline shutdown and its potential effect on high U.S. inventories now passed, traders returned their focus to other markets, particularly a rally in equities.The dustrial Average was recently up 131 points at 10738."We've flushed out the Enbridge news finally, and we're back on track to seek guidance from the financials," said Jim Ritterbusch, head of Ritterbusch and Associates, which tracks the market. Oil investors have looked to equities as an indicator of future economic growth, and with that, potential oil demand. But analysts say the focus will likely shift to economic data and comments from the Federal Reserve later this week as traders gauge the strength of the U.S. economy in the face of still-high oil supplies. "Investors are looking to the Fed meeting," said Tony Rosado, a broker with GA Global Markets, adding "I can't possibly see how on a fundamental basis, this market grew back up." On Tuesday, the Federal Reserve's rate-setting committee will announce its latest decision, and could provide some insight on its view of the economic recovery. Economists don't expect any policy change, but they will be on the lookout for hints about possible future quantitative-easing measures. Meanwhile, the National Association of Home Builders said Monday its housing market index stayed at 13 for the second-straight month in September--the worst reading in a year and a half. The data mark the first of several housing reports due this week. High inventories and the potential for slowing demand in the U.S. have increased the premium paid for Brent crude over Nymex crude to more than $4 in Monday trading. The European crude contract remains higher amid relatively tight crude supplies and healthy refining margins in that region. Demand is stronger than many expected in other areas as well, Barclays said in a note to clients. In addition to "the usual suspects of India, China or the Middle East, indications from countries like South Korea and Indonesia, too, point to persistent strength in oil demand," the bank said. Analysts predict a slight decline in U.S. oil inventories in data due 10:30 a.m. EDT Wednesday from the Department of Energy. Crude oil stockpiles are expected to fall by 1.5 million barrels, according to a survey by . Gasoline inventories are seen flat with last week's report. Stocks of distillate, which includes heating oil and diesel, are expected to rise by 100,000 barrels. Front-month October reformulated gasoline blendstock, or RBOB, settled 3.04 cents, or 1.6%, higher at $1.9496 a gallon. October heating oil settled 4.02 cents, or 1.9%, higher at $2.1394 a gallon.
2010/09/21 03:48DJ EU Signals Broad Overhaul Of Key Financial Markets Law
BRUSSELS -The European Commission will propose far-reaching changes to its main financial markets law, hoping to impose tighter regulation on the growing amount of securities trading that takes place with little government scrutiny, European Union commissioners said Monday.The law, known as the Markets in Financial Instruments Directive -- MiFID in the EU's jargon -- should be strengthened to better regulate commodities trading, financial advice and so-called "dark pools," the markets operated by large financial institutions for their clients with minimal government oversight."Nobody should be able to escape surveillance," said Michel Barnier, the commissioner in charge of financial regulation, said at a conference Monday. "Excessive risk-taking must be eliminated. This requires full transparency vis-a-vis regulators, but also vis-a-vis the public."MiFID was passed in 2001, in part to encourage other trading venues, such as multilateral trading facilities, to compete with the region's traditional securities exchanges.The law appears to have reduced the price of financial transactions but also made it more difficult for regulators to monitor risks in the multitude of different markets. This is particularly true of dark pools, which are not required to report extensive information to regulators on the trades they make.Institutional investors often use dark pools to conceal the size and type of trades they make from the broader markets -- information that would have to be reported to regulators if these transactions were conducted through an exchange.
2010/09/21 02:36*DJ OIL FUTURES: Nymex Crude Settles Up $1.20 At $74.86/Bbl
2010/09/21 02:35*DJ OIL FUTURES: Crude Settles Higher, Helped By Equities Rally
2010/09/21 02:35*DJ OIL FUTURES: Nymex Crude Closes Up $1.15 At $74.81/Bbl
2010/09/21 02:04DJ French Fin Min: G-20 Should Try To Limit Currency Volatility
PARIS -French Finance Minister Christine Lagarde Monday reiterated a pledge made by French President Nicolas Sarkozy that France will seek ways to limit currency volatility when it chairs the Group of 20 industrial and developing nations from the end of November."We have to look at ways to better coordinate regional currency reserves...and to avoid isolated initiatives that may be detrimental to the stability of currencies," Lagarde said at a conference in Paris.France will take the helm of the G-20 at the end of November and will chair both the G-20 and the Group of Eight leading nations next year.Last week, Japan intervened on the foreign-exchange market in order to halt the rise of the Japanese yen against other currencies in an uncoordinated fashion, which raised eyebrows among other Group of Seven leading industrial nations countries.Lagarde also repeated that France will try to get the G-20 to work on ways to better regulate commodity markets, which in the long run will contribute to steadier global growth.Mutual surveillance between members of the euro zone should focus on debt levels from an early stage as well as on countries' economic models, Lagarde also said."Ireland has run a budget surplus for a number of years...that doesn't mean the macroeconomic model was sound," she said, referring to Ireland's current credit woes.
2010/09/21 00:11DJ Sarkozy Calls For Financial Transactions Tax At UN Millennium Summit
UNITED NATIONS --French President Nicolas Sarkozy on Monday called for a tax on all financial transactions at the UN Millennium Goals summit to pay for global development."Why should we not ask finance to participate in stabilizing the world?" Sarkozy said in a speech, referring to the finance industry.Sarkozy, the first key leader to speak at the summit, also said that France would increase its payments to the UN fund on AIDS and malaria by 20%.
2010/09/21 00:11DJ WTO Raises 2010 Trade Growth Forecast To 13.5 Percent
GENEVA --The World Trade Organization on Monday raised its trade growth forecast for 2010 to 13.5 percent from 10 percent, describing the pace as the fastest-ever annual expansion."Following faster-than-expected recovery in global trade flows so far in 2010, WTO economists have revised their projection for world trade growth in 2010 upwards to 13.5 percent," said the trade body in a statement.The forecast growth marks a sharp recovery from a 12.2 percent plunge in world trade in 2009, when exports were hurt by the economic slowdown."This would be the fastest year-on-year expansion of trade ever recorded in a data series going back to 1950," noted the WTO.
