2010/09/28 18:02*DJ EU To Propose Tough Sanctions For Euro Budget Breakers
2010/09/28 18:01*DJ UK CBI: Consensus Sep Retail Sales Volume Was +23
2010/09/28 18:01*DJ UK CBI: Sep Retail Sales Volume +49 Vs +35 In Aug
2010/09/28 18:01*DJ UK CBI: Next Month Expected Oct Retail Sales Volume Is +47
2010/09/28 17:53*DJ ECB Stark: In Process Of Phasing Out Non-Standard Measures
2010/09/28 17:43*DJ Sterling Prints Fresh One Month High Above $1.5866 - EBS
2010/09/28 17:38DJ BOK Panel Unanimous On Holding Rate Steady In August - Minutes
ptember 28, 2010 03:03 ET (07:03 GMT)DJ BOK Panel Unanimous On Holding Rate Steady In August - Minutes SEOUL -The Bank of Korea's policy-setting board unanimously agreed to hold the country's benchmark interest rate steady at last month's review, but some members demanded that a signal of continued tightening be sent to the markets. 'Uncertainties surrounding the local and global markets increased compared with the previous month, so it's desirable to pause this month and watch market conditions more carefully,' the minutes of the meeting released Tuesday showed one unidentified member as saying. Another member said interest rate hikes for a second consecutive month in August would send the 'wrong' signal about the speed of monetary tightening, dealing an unwanted blow to the markets. But some other members said the bank, at the same time, should give a strong signal to the markets that its monetary tightening would continue in the coming months as inflationary pressures are building with the steady recovery of the domestic economy. Last month, the BOK paused in its tightening cycle, after taking the first step toward normalizing monetary conditions in July by raising the key rate to 2.25% from an all-time low of 2.00%.
2010/09/28 17:20*DJ ECB Stark: Have Seen Turning Point To Positive Credit Growth
2010/09/28 17:10=DJ DATA SNAP: UK 2Q GDP Confirmed At +1.2%QQ, Fastest In Nine Years
2010/09/28 17:04DJ PRECIOUS METALS: Gold Edges Down In Asia; Momentum Lost
SINGAPORE -Gold and silver both edged lower in Asia Tuesday after resistance at $1,300 and $21.50, respectively, proved too hard to break on a closing basis Monday. Despite the profit taking, nothing has changed in terms of the major drivers of the recent bull run, as the dollar looks vulnerable to further weakness. 'Both metals have been--and should continue to be--beneficiaries of the U.S. policy decision to chase an export-driven recovery through currency devaluation,' Mitsui Global Precious Metals said in a note. Not everyone is bullish though. Gold's prospects could dim as soon as U.S. unemployment starts to fall, allowing the Federal Reserve to raise interest rates, said Guy Verberne, investment strategist at ABN AMRO. 'I think that the rise of gold is based on an irrational fear of inflation and an excessive pessimism over the global economic recovery,' he said. At 0650 GMT, spot gold was at $1,291.20 a troy ounce, down $3.40 since Monday's New York close. On Tocom August 2011 gold was at Y3,506 a metric ton, down Y21. Spot silver was down 20 cents at $21.26/oz, while platinum and palladium were also in retreat. Spot platinum was off $12 at $1,615/oz, and spot palladium was $6 lower at $544/oz.
2010/09/28 16:51DJ PBOC: To Encourage County-Level Financial Institutions To Make Local Loans
BEIJING -China's central bank and banking regulator on Tuesday announced a new trial program that will encourage county-level financial institutions to allocate more of their deposits to local loans. Under the program, financial institutions that meet the criteria for local loans may receive benefits such as a one-percentage-point reserve requirement ratio reduction, the People's Bank of China and the China Banking Regulatory Commission said in a joint statement Tuesday. Financial institutions that meet the loan criteria will also be able to apply for refinancing loans from the central bank against a proportion of their new loans, and receive favorable interest rates on those refinancing loans. A financial intuition would meet the criteria if their new local loans account for 70% of new loanable funds in cases where they are both increasing, or if local loans rise while new loanable funds fall, the statement said. The program applies to financial institutions in more than 1,500 counties, including rural credit cooperatives, rural commercial banks, and village banks, it said.
2010/09/28 16:33*DJ Sterling Rises After 2Q UK GDP Confirmed At +1.2%
2010/09/28 16:32*DJ UK 1Q Curr Acct Revised To Deficit GBP11.3B Vs Deficit GBP9.6B
2010/09/28 16:32*DJ UK 2Q Current Account Was Forecast At Deficit GBP9.7B
2010/09/28 16:31*DJ UK 2Q Investment Revised From -1.6% QQ; +1.9% YY
2010/09/28 16:31*DJ UK 2Q Current Account Deficit GBP7.4B
2010/09/28 16:31*DJ UK 2Q GDP +1.7% YY, Unchanged From Last Estimate
2010/09/28 16:31*DJ UK 2Q GDP Forecast At +1.2% QQ; +1.7% YY
2010/09/28 16:31*DJ UK 2Q Business Investment 2nd Est +0.7% QQ; +1.9% YY
2010/09/28 16:30*DJ UK 2Q GDP +1.2% QQ, Unchanged From Last Estimate
2010/09/28 16:15*DJ Ireland 5-Year Sovereign CDS Rise 38 Bps To 510 Bps - Markit
2010/09/28 16:13*DJ Ireland 5-Year Sovereign CDS Above 500 Bps
2010/09/28 16:10=DJ UPDATE: Unicom Convertible Bond Sale To Support 3G Investment
(Adds analyst's comment on company's cash flow, background on China Unicom's first-half results and investment in its 3G network.) By Yvonne Lee and Owen Fletcher Of BEIJING -China Unicom Ltd. said Tuesday it sold US$1.839 billion worth of convertible bonds to replenish its working capital and support the construction of its broadband and third-generation mobile networks, as the company's heavy investments in its 3G business have eroded its cash supply and net profit. The sale comes as China Unicom faces growing competition from rival operators China Mobile Ltd. and China Telecom Corp. in adding subscribers to its 3G services, which are more expensive but offer faster data speeds than widely used 2G services. China Unicom, which provides mobile, fixed-line, and broadband services in China, said in a statement it sold five-year covertible bonds with an initial conversion price of HK$15.85 a share. At the mid-day break, the company's Hong Kong-listed shares were down 3.6% at HK$11.28. Analysts said the move highlights the cash-flow pressure China Unicom, the country's second-largest mobile operator by subscribers after China Mobile, faces. CLSA analyst Elinor Leung said the company has had weaker cash flow than its rivals and the pressure could continue next year if it further increases its spending on marketing its 3G services. 'The cash-flow problem will be one of the biggest challenges for the company,' she said. In late August, the company reported a net decrease in cash and cash equivalents of CNY999 million ($149.2 million) for the first half, following a net decrease in cash and cash equivalents of CNY2.417 billion for 2009. China Unicom said at the time it expects its profitability to gradually improve with the growth of its 3G business, but 3G handset subsidies and depreciation expenses related to its 3G network helped drag the company's first-half net profit down 62% from a year earlier to CNY2.53 billion. The company also reiterated at the time that it expects its capital expenditure this year to amount to CNY73.5 billion, down from CNY112.5 billion in 2009. Nomura Holdings Inc., Goldman Sachs Group Inc. and China International Capital Corp. are bookrunners on the convertible bond sale, the company said in its statement Tuesday.
2010/09/28 16:06DJ Russian Central Bank Leaves Key Rates Unchanged
MOSCOW -Russia's central bank left rates unchanged at its monthly meeting Tuesday, saying the economy remained in need of further monetary stimulus despite a drought that has pushed prices higher in recent months.The refinancing rate was left at a record low of 7.75% for a fourth month, after being lowered 14 consecutive times to help Russia's economy recover from its worst recession in a decade and a half. "A higher level of uncertainty in the macroeconomic situation creates additional risks for sustainable growth, making it necessary to leave monetary stimulus in place," the central bank said in a statement accompanying the decision.Central Bank Chairman Sergei Ignatyev said last week that the summer's drought--which destroyed nearly a third of the grain harvest and sent costs for grain-related food items soaring--will push 2010 inflation to a higher-than-expected 8.0% and keep its hold over prices until autumn 2011."Inflation risks caused by monetary conditions remain at an acceptable level, and continues to monitor the effects of different factors of the inflationary process," the central bank said in its statement.Many analysts say rate hikes wouldn't be effective in battling the recent surge of inflation, which they have attributed to price shocks from the drought rather than to an overheating economy.
2010/09/28 15:49DJ Poland Working On Euro Adoption, No Target Set - Report
WARSAW The Polish government is working on adopting the euro, despite dropping an earlier adoption target of 2012, Polish daily Dziennik Gazeta Prawna reported Tuesday, citing a draft document.The government will adopt 'The National Strategic Framework For The Euro' draft proposal within a week, but won't formally set a target for switching from the zloty to the euro, the daily says.Cabinet ministers unofficially consider 2015 as the date for Poland's possible entry to the euro-zone, the daily adds.The Polish government had in 2008 set 2012 as the official target for euro adoption, but the country failed to meet entry criteria amid the global financial crisis. Poland also must change its constitution before adopting the euro and has no qualified majority for such a change in the current parliamentary term set to end in late 2011.
2010/09/28 15:47DJ Tokyo Shares Fall On Ex-Dividend Selling Before Tankan Survey
2010/09/28 15:38=DJ WORLD FOREX: Euro Rises Vs Dollar On Fed Easing Discussion
2010/09/28 15:35*DJ Italy Sep Consumer Confidence Seen 104.0
2010/09/28 15:30*DJ Italy Sep Consumer Confidence 107.2 Vs Aug 104.1
2010/09/28 15:25DJ Tokyo Shares Fall On Ex-Dividend Selling Before Tankan Survey
2010/09/28 15:24=DJ WORLD FOREX: Euro Rises Vs Dollar On Fed Easing Discussion
2010/09/28 15:14DJ JGBs Rise On BOJ Easing Speculation; 2-Year Sale Strong
TOKYO -Japanese government bonds ended higher across the curve Tuesday, supported by increasing expectations for additional easing by the Bank of Japan and sharp gains in U.S. Treasurys overnight. But trading was sluggish due to caution before the release of a key BOJ tankan business sentiment survey Wednesday, with lead futures bounded in a narrow 143.02-143.14 range. The possibility is higher that the tankan will show that business managers grew more cautious about the economic outlook and the pace of improvement will moderate down the road, said Akito Fukunaga, chief rates strategist at RBS Securities. In that case, Fukunaga expects the 10-year cash JGB yield to sink to around 0.90%.95%. The benchmark 10-year yield was down 3.5 basis points at 0.960% as of 0600 GMT. The BOJ's quarterly tankan survey's headline diffusion index, which measures mood among big manufacturers, is expected to rise to six in September from one the previous quarter, according to the median forecast of 11 Tokyo-based economists surveyed by . The index is calculated by subtracting the percentage of firms saying business conditions are good from those saying they are bad. Speculation is growing that Japan's central bank may take further action as early as next month to ease negative impact of the surging yen on the overall economy and business sentiment. The BOJ's policy board is scheduled to hold a policy-setting meeting Oct. 4-5, and will meet again Oct. 28 to discuss semiannual forecasts for the economy and prices. The easing talk already boosted demand for policy-sensitive two-year JGBs at an auction earlier in the day. Japan's Ministry of Finance sold Y2.4311 trillion of the two-year JGBs at a lowest price of 99.92, slightly higher than market expectations for 99.91, yielding 0.14%. The new bonds carry a coupon of 0.1%, unchanged from the previous issue and the same as the BOJ's policy target interest rate. With Y13.9809 trillion in total bids, the bid-to-cover ratio, one measure of demand, improved to 5.75 from 4.75 at the last two-year sale in August. A higher bid-to-cover ratio is an indication of stronger demand. However, some analysts are skeptical if the BOJ's accommodative policy stance alone will help push long-term yields further down. 'While yields could still fall if U.S. rates or other external factors encourage such a decline, it is difficult to see much downside at this stage due to the BOJ's policy alone,' said Chotaro Morita, chief strategist at Barclays Capital. 'Clearly, the policy effect of intermittent quantitative expansions has already reached its limit, at least in terms of pushing down yields,' Morita said.
2010/09/28 15:07*DJ BOK Panel Unanimous On Holding Rate Steady In August - Minutes
2010/09/28 15:04DJ Forex Options: Yen Options Down As Spot Remains Quiet
TOKYO -Dollar/yen currency options fell Tuesday as the spot stayed quiet due to lingering speculation that any sharp moves might cause the Japanese government to again intervene in the currency markets, decreasing hedging demand as a result.'Investors see no need to buy option contracts at least for the short-term,' said a dealer at a major bank in Tokyo.Benchmark volatilities implied by one-month at-the-money options were at 10.30%/11.00% as of 0200 GMT, down from 10.50%/11.20% overnight in New York. In Asian trading Tuesday, the U.S. dollar was trading in a narrow range between Y84.18 and Y84.35.Currency moves have been somewhat quiet recently because investors are reluctant to keep buying the yen as they think it's possible that Japan may again step into the market to curb the currency's rise.Meanwhile, investors are also not bullish on the U.S. currency because they hold pessimistic views about the outlook for the world's largest economy.Dealers in Tokyo said that, as long as such market conditions persist, it's very likely that the greenback will remain around Y84. If so, benchmark volatilities may keep falling, possibly below 10% in the next week, they noted.
2010/09/28 15:03*DJ Stoxx Europe 600 Index Dn 0.1% After The Open
2010/09/28 15:01*DJ FTSE 100 Dn 0.2% After The Open
2010/09/28 15:01*DJ Russian Central Bank: Inflation Risks At "Acceptable Level"
2010/09/28 14:57*DJ Russian Central Bank Leaves Interest Rates Unchanged
2010/09/28 14:46*DJ French Aug Consumer Spending Forecast +0.4% MM; +1.4% YY
2010/09/28 14:46*DJ French Jul Consumer Spending +2.7% On Mo; +2.4% On Yr
2010/09/28 14:46*DJ French Jun Consumer Spending Revised To -1.5% MM Vs -1.4%
2010/09/28 14:45*DJ French Aug Consumer Spending -1.6% On Mo; +1.2% On Yr
2010/09/28 14:41*DJ PBOC: To Give Favorable Refinancing Rates For Institutions That Meet Criteria
2010/09/28 14:38*DJ PBOC: To Cut Reserve Ratio For Institutions That Meet Local Loan Targets
2010/09/28 14:33*DJ PBOC: To Encourage Institutions To Use Part Of New Deposits For Local Loans
2010/09/28 14:31*DJ PBOC: To Encourage County-Level Financial Institutions To Make Local Loans
2010/09/28 14:27DJ ADB's Kuroda: Global Exchange Rate Realignment Underway
KUALA LUMPUR -Asian Development Bank President Haruhiko Kuroda said Tuesday recent gains in the currencies of emerging economies show that a global exchange rate realignment is underway. Speaking at a conference, Kuroda said the rate realignment 'is necessary to reduce unsustainable global imbalances.' 'This is good for Asian emerging economies and commodity exporters,' Kuroda said.
2010/09/28 14:27DJ German GfK Oct Consumer Sentiment 4.9 Vs Sept 4.3
BERLIN -German consumer sentiment is set to rise in October as economic expectations rose to a three-year high in September as a result of falling unemployment and moderate consumer prices, according to market research group GfK, Reuters news agency reported Tuesday.GfK said its consumer confidence index rose to a better-than expected 4.9 points for October, after an upwardly revised 4.3 points for September.Economists in a survey forecast a reading of 4.2 points for October from the previously reported 4.1 points for September. The economic expectations index rose to 53.5 points in September after 46.6 in August.While GfK's overall consumer climate index refers to the next month, its subindexes--economic expectations, income expectations and buying propensity--refer to the current month.Website: www.gfk.de
2010/09/28 14:27*DJ OIL FUTURES: Nymex Nov Crude Falls Below $76/Bbl; Now $75.99
2010/09/28 14:16=DJ WORLD FOREX: Euro Rises Vs Dollar On Fed Easing Discussion
2010/09/28 14:13*DJ S&PBulletin: Lumena's Proposed Acqusitions Have No Rtg Impact
2010/09/28 14:03*DJ Nikkei Stock Average Closes Down 1.1% At 9495.76
2010/09/28 14:01*DJ German GfK Oct Consumer Confidence Was Forecast At 4.2
2010/09/28 14:00*DJ German GfK Oct Consumer Sentiment At 4.9 Vs 4.3 Sep
2010/09/28 13:42*DJ ADB's Kuroda: Global Exchange Rate Reallignment Underway
2010/09/28 13:25=DJ FED WATCH: SF Fed Paper Warns Weak Growth May Boost Unemployment
2010/09/28 13:24*DJ Polish Govt Mulls 2015 As Possible Euro Adoption Target - Report
2010/09/28 13:23*DJ Polish Govt To Adopt New Plan For Euro Within A Week - Report
2010/09/28 12:12=DJ FOREX VIEW: Going Long Euro In Vogue, Dollar So Yesterday
2010/09/28 11:28DJ Sengoku: Kan To Leave Japan On Sunday To Attend ASEM -Kyodo
TOKYO -Japanese Prime Minister Naoto Kan will attend a meeting of Asian and European leaders next week in Belgium, Kyodo News reported Tuesday, citing Chief Cabinet Secretary Yoshito Sengoku. Kan is scheduled to make a three-day trip from Sunday to take part in the summit of the Asia-Europe Meeting on Oct. 4 and 5 in Brussels, Sengoku, the top government spokesman, said at a news conference. Kan's trip is seen as an attempt to seize the opportunity of a meeting with Chinese Premier Wen Jiabao on the sidelines of the summit to mend Tokyo's recent soured ties with Beijing.
2010/09/28 11:25DJ Pimco's Hodge: Global Deflation Now Bigger Risk Than Inflation
SINGAPORE -The global economy is currently facing a higher risk of a deflationary cycle than an inflationary one, a top official at the world's largest bond investment firm said Tuesday. Douglas Hodge, chief operating officer of Pimco, the giant bond fund manager owned by Germany's Allianz, made the remarks during an interview with the CNBC business news network. Hodge said deflationary forces, combined with ultra-low policy rates across the developed world, are making emerging-market sovereign debt, including East Asian paper, more compelling for Pimco. 'We are in the business of lending money. And the question is whether we should lend to highly indebted governments with low growth, or high growing countries with low debt. I think the question answers itself,' he added. Hodge said Pimco is looking to have greater exposure to Asian bonds, but is still wary of investing heavily in Thailand due to the uncertain political situation there. He also said paltry returns on fixed income investments are pushing Pimco to invest more on equities and commodities. Regarding the U.S. economy, Hodge said the stimulus package launched last year 'has spent its course,' but private consumption remains weak.
2010/09/28 11:22=DJ FOCUS: When It Comes To RBA, One Rate Hike May Act Like Two
2010/09/28 11:21DJ Japan Finance Minister: Not Desirable To Issue New Debt For Extra Budget
TOKYO -Japan's finance minister said Tuesday that the government should not rely on debt issuance to finance a planned extra budget."Basically it is not desirable to issue new government bonds," Yoshihiko Noda said at a news conference following a regular cabinet meeting.On Monday, Prime Minister Naoto Kan instructed his cabinet to begin drafting a supplementary budget designed to keep the nation's faltering economy from falling into recession. No figures were disclosed but a government official said the budget could total Y4.6 trillion in additional spending.
2010/09/28 11:16*DJ Japan METI Min: Malaysia Confirmed Resumed Rare Earth Exports To Japan Firm
2010/09/28 11:11*DJ ADB: Expect Capital Inflows To Asia Will Continue Next Year
2010/09/28 10:52*DJ ADB: Asian Countries Can Also Impose Temporary Capital Controls
2010/09/28 10:51*DJ ADB: Asian Countries Can Increase Exchange Rate Flexibility To Cope With Inflows
2010/09/28 10:44DJ EU States Agree On 'More Automatic' Overspending Fines
BRUSSELS --European finance ministers agreed on Monday on the need to impose 'more automatic' sanctions in the future against states that break debt and deficit limits, EU President Herman Van Rompuy said. Van Rompuy said a 'very large degree of convergence' emerged from a meeting of finance ministers in Brussels on budgetary surveillance, including on the need for 'a credible enforcement mechanism at the EU level.' 'Further progress has been made on the key parameters of the sanction system,' he said in a statement after the meeting of a 'task force' he is leading to tighten the 27-nation bloc's economic governance. 'Sanctions would be introduced at an earlier stage, be more progressive and rely on a wider spectrum of enforcement measures,' he said. 'Whenever possible, decision-making rules on sanctions should be more automatic,' Van Rompuy said, adding that the penalties could only be stopped by a majority vote. But France and Germany were split about the sanctions before the task force meeting. Berlin is pushing for automatic penalties while Paris insists that governments retain a strong voice in imposing any fines.
2010/09/28 10:27*DJ ADB: Rebound In Capital Flows Puts Asian Currencies Under Appreciation Pressure
2010/09/28 10:23*DJ Hang Seng Index Up 0.1% At 22,355.54; Reverses Early Losses
2010/09/28 10:22*DJ ADB: Inflation In Asia Remains Stable
2010/09/28 10:15*DJ Japan Fin Min Noda: Downside Risks To Japan Economy Growing
2010/09/28 10:14*DJ Japan Noda: Will Carry Out More Public Works Projects If Needed
2010/09/28 10:13*DJ ADB: Risk Of Insolvency, Default In Euro Zone Also A Concern
2010/09/28 10:12*DJ ADB: Risks To Global Outlook Include Continued US Housing Market Weakness
2010/09/28 10:09*DJ ADB: Global Recovery Remains Fragile But Region's Outlook Vibrant
2010/09/28 10:08*DJ Japan Fin Min: Not Desirable To Issue New Debt For Extra Budget
2010/09/28 10:05*DJ ADB: Raises India 2010 Growth Forecast To 8.5% From 8.2%
2010/09/28 10:05*DJ ADB: Asian Economies Need To Promote Productivity
2010/09/28 10:04*DJ ADB: Leaves 2011 Forecast For Asia Ex-Japan at 7.3% Growth
2010/09/28 10:04*DJ ADB: Ups Asia Ex-Japan 2010 Economic Growth Forecast To 8.2%, From 7.9%
2010/09/28 10:01*DJ 10-Year JGB Yield Marks 1-Month Low At 0.960%
2010/09/28 09:59*DJ Japan Govt Sengoku: Kan To Leave Japan On Sun To Attend ASEM - Kyodo
2010/09/28 09:50*DJ Japan Econ Min: Any Ban On Rare Earth Imports Would Have Big Effect On Japan Econ
2010/09/28 09:33DJ IMF Makes Mandatory Financial Assessments For 25 Key Countries
WASHINGTON -The International Monetary Fund Monday said its board made a mandatory regular surveillance of the financial systems of 25 key countries.The Financial Stability Assessments Program is voluntary and with only rare reporting, often only once in a decade. The IMF said greater oversight of a core component of global economic health is vital."The recent crisis has made clear the need for mandatory and regular assessments of financial stability for countries with large and interconnected financial systems," said John Lipsky, IMF's deputy managing director.Many analysts and economists say a dearth of oversight leading up to the U.S. financial crisis, which sparked a global credit crunch, helped to precipitate the ordeal.Twenty-five countries representing 90% of the global financial system will fall under the surveillance program at least every five years, with reviews of some systemically-important countries as often as every three years on a voluntary basis."Regular stability assessments of systemically important financial sectors should contribute to a deeper public understanding of the risks to economic stability arising from the financial sector," Lipsky said.Countries include the U.S., China, Germany, the U.K., South Korea, Switzerland, Russia and Spain.
2010/09/28 09:33*DJ Japan Econ Min: To Discuss New Econ Stimulus Measures With Opposition Parties First
2010/09/28 09:22DJ Cheung Kong Infrastructure Sells US$1 Bln Of Perpetual Bonds
HONG KONG -Cheung Kong Infrastructure Holdings Ltd. (1038.HK) said Monday it issued US$1 billion of perpetual U.S. dollar bonds.The bonds, callable in five years, were priced to yield 6.625%, the company said in a statement.J.P. Morgan was sole bookrunner for the deal. The issuer is PHBS Ltd., with Cheung Kong Infrastructure as the guarantor, the statement said.Cheung Kong is rated A- by Standard & Poor's.
2010/09/28 09:12*DJ Dollar Now At IDR8,950 Vs IDR8,952 Late Monday
2010/09/28 08:03*DJ Nikkei Stock Average Opens Down 0.6% At 9547.03
2010/09/28 08:03*DJ Lead December JGB Futures Open Up At 143.05 Vs 142.83 Monday
2010/09/28 08:02*DJ Cheung Kong Infrastructure Sells US$1 Bln Of Perpetual Bonds
2010/09/28 07:33DJ CREDIT MARKETS: NBC Universal Leads Corporate Borrowing Boom
2010/09/28 07:20*DJ US Dollar Touches S$1.3192 Overnight, Currently At S$1.3210
2010/09/28 07:15=DJ WORLD FOREX: Dollar Rallies Late Modestly On Renewed Fed Talk
2010/09/28 06:17=DJ US Stocks Close Lower As Financials Lag-2-
2010/09/28 06:04=DJ US Stocks Close Lower As Financials Lag
2010/09/28 04:56DJ Treasurys Rally; 2-Year Notes Sold At Record Low Yield
2010/09/28 04:39DJ OIL FUTURES: Crude Near Flat; Traders Await Upcoming Data
2010/09/28 04:07*DJ Nasdaq Closes Off 11 (0.5%) At 2370; Financials Lead Drop
2010/09/28 04:06*DJ DJIA Closes Down 48 (0.4%) At 10812 As BofA, Travelers Slide
2010/09/28 03:55DJ PRECIOUS METALS: Haven, Currency Buys Send Gold To New Record
2010/09/28 03:48DJ S&P: We Have To Consider Greek Debt Restructuring
LONDON -Restructuring is one of the options that has to be taken into consideration for Greece which is why the country has been given a speculative credit rating, said David Beers, Global Head of Sovereign Ratings at Standard & Poor's Corp. at the rating agency's Future of Finance Forum Monday. Demographic pressures on public finances in the eurozone will keep up the pressure on sovereign ratings, Beers said. The euro zone is a "broad church", and there may be political resistance to fiscal tightening, so outcomes can be different for different euro-zone countries, he said.
2010/09/28 03:40PRESS RELEASE: Moody's: Greek Banks' Recent Trends Justify Continued Negative Outlook
The following is a press release from Moody's Investors Service: Limassol, September 27, 2010 -- The continued weak and deteriorating asset quality and funding conditions among Greek banks continue to justify a negative outlook on the Greek banking sector as well as on the banks' standalone ratings, says Moody's Investors Service in a new Special Comment updating the market on Greek banks. "The recent release of macroeconomic statistics for Greece, as well as Greek banks' Q2 results indicate a trajectory that is broadly in line with Moody's expectations and therefore also with the ratings and outlooks that are currently held by Greek banks," says Constantinos Kypreos, Vice President -- Senior Analyst in Moody's Financial Institutions Group. However, Moody's cautions that Greek banks' non-performing loans remain at the upper end of its expectations and that continued deposit outflows could potentially increase the likelihood of negative rating actions. Moody's new report highlights that macroeconomic conditions in Greece (rated Ba1) remain extremely challenging, with GDP down 3.7% in Q2 2010 and increased unemployment (to 12% in May) adversely affecting the banking sector. NPLs have risen to 9.0% of total loans in H1 2010, and the banking sector has become loss-making overall, although Greece's Big Four banks continue to outperform smaller Greek banks. Additionally, deposit outflows -- amounting to EUR31 billion since the start of the year, or 11% of total deposits -- and Greek banks' continued exclusion from the bond and money markets are exerting funding pressures on the sector. Although these pressures are currently addressed by the banks' access to ECB funding, Moody's notes that the temporary nature of ECB support means that the system still needs to "fix" its funding structure and drastically reduce ECB funding over the medium term, as and when market confidence towards Greek risk is restored. Moody's views positively the strong start that Greece has made with its Economic Adjustment Programme , which underpins the EC/ECB/IMF EUR110 billion support package. Moreover, the rated Greek banks have enough capital to absorb some additional loan losses in addition to those they have incurred to date, as the July 2010 CEBS stress-testing results have demonstrated. As an extra buffer, additional capital is available to under-capitalised banks following the establishment of the EUR10 billion Hellenic Financial Stability Fund, a component of the EC/ECB/IMF support package. However, Moody's points out that investors remain concerned about a potential restructuring of Greek government debt -- a risk that Moody's considers low as indicated by its rating but not immaterial -- and the impact of a Greek government bond write-down on the banking sector, which could render some of the banks technically insolvent. Moody's new report, entitled "Greek Banks: Negative Outlook Maintained", is now available on www.moodys.com.
2010/09/28 03:26DJ Greece To Submit Tax Debt Settlement Law Tuesday - Source
2010/09/28 02:43*DJ OIL FUTURES: Nymex Crude Settles Up 3c At $76.52/Bbl
2010/09/28 02:36*DJ OIL FUTURES: Crude Flat As Traders Await Upcoming Data
2010/09/28 02:35*DJ OIL FUTURES: Nymex Crude Closes Down 1c At $76.48/Bbl
2010/09/28 01:58*DJ Comex December Gold Posts Record Settlement Of $1,298.60/Oz
2010/09/28 01:43DJ Portugal May Need More Deficit Cuts If Mkt Tensions Rise -OECD
MADRID -Portugal needs to stick with its austerity plans, and may even have to cut the deficit further if 'acute' financial market stress flares up again, the Organisation for Economic Cooperation and Development said Monday. 'It's essential that the announced consolidation measures continue to be implemented as planned, even if cyclical developments turn out more adverse than now expected,' the OECD said in its latest economic survey of Portugal. 'It is also important to maintain a strong political consensus for fiscal consolidation: if acute market stress were to resurface, further fiscal tightening measures may need to be contemplated,' it added. An ongoing spat between the government and the main opposition party over the Socialist government's austerity plan has heightened market tensions in Portugal. Last Friday, the country's main opposition party, the Social Democrats, denied support for the minority government's 2011 austerity budget, key to shoring up Portugal's public finances. The government promptly warned it wouldn't be able to govern if the budget isn't approved. The OECD said the austerity plan outlined by the government, which aims to lower the deficit from 9.3% of gross domestic product in 2009 to 3% in 2012 and 2% in 2013, is 'appropriate.' The plan calls for the deficit to be cut to 7.3% this year, and 4.6% in 2011. In its report, the Paris-based organization said Portugal's growth prospects remain weak, and it left its GDP growth estimates unchanged at 1% for this year and 0.8% in 2011. 'Growth resumed in 2010 but is set to remain sluggish in the medium term, as already weak potential growth is likely to have been hit by the global crisis,' it said. 'Portugal has not escaped recent financial market turbulence: debt has been downgraded and spreads have widened, putting at risk the recovery if the situation were to worsen,' the OECD added.
2010/09/28 01:34*DJ Comex December Gold At $1,298.30 After Close, Before Settle
2010/09/28 01:33*DJ Comex Gold Futures Poised to Settle At Fresh Record High
2010/09/28 01:25DJ Chicago Fed: Autos Drag Down Midwest Factory Activity In Aug
2010/09/28 01:07*DJ Treasurys Boosted After Auction; 2-Yrs Sold At Record Low Yield
2010/09/28 00:31*DJ Dollar Hits On EBS; Lowest Since Intervention Sept 15
2010/09/28 00:23*DJ S&P: We Have To Consider Greek Debt Restructuring
