Market Rumours

2010/09/29 20:18*DJ ECB's Weber: Fine Adjustments Still Needed To Basel Package

2010/09/29 20:14DJ Fed Call:No Liquidity Operation Due; Fed Funds At 0.2250%
NEW YORK -The Federal Reserve has no liquidity operations scheduled for Wednesday. Fed funds were last quoted at 0.2250%, compared to the federal-fund target range of 0 to 0.25%, according to Tullett Prebon data.
2010/09/29 20:07DJ Japan Economy Minister Vows 'Decisive' FX Steps If Needed
TOKYO -Japan's economy minister said Wednesday that the government remains ready to take 'decisive' action in the currency market, threatening further intervention to push the yen lower in response to its continued recent strength. 'There is no change in the government's fundamental stance that it will take decisive steps if judged necessary' in the foreign exchange market, Economic and Fiscal Policy Minister Banri Kaieda said in an interview with . But Kaieda said the government sees intervention as a temporary measure, and has no intention to 'skew the market' by intervening on a continuing basis. Japan's currency market is free in principle, he said, drawing a distinction with China's currency system, under which the yuan is tightly controlled by the authorities.
2010/09/29 19:52DJ Goldman Sachs Seeks Up To US$2.05 Bln In ICBC Share Sale - Source
HONG KONG -Goldman Sachs Group Inc. is raising as much as US$2.05 billion from the sale of part of its stake in Industrial & Commercial Bank of China Ltd. (1398.HK) in a placement, a person familiar with the deal said Wednesday. Goldman is selling 2.75 billion shares at HK$5.70-HK$5.79 each, which will leave it with a stake of 3.1%, or 10.431 billion ICBC shares. The price range represents a discount of 3%-4.5% to ICBC's Hong Kong closing price Wednesday of HK$5.97. Goldman's involvement with ICBC was one of the more prominent foreign tie-ups with a Chinese bank. The investment, which includes a mix of Goldman's capital and private-equity funds under its control, was among Goldman's largest investments ever with its own money, and has been enormously profitable on paper. Goldman paid just US$2.6 billion for a 4.9% stake in ICBC in April 2006, ahead of the Chinese bank's US$22 billion initial public offering. Last year, it sold around 20% of its stake for US$1.91 billion at HK$4.88 each.
2010/09/29 19:01*DJ US MBA Purchase Index +2.4% At 181.8; Last Week 177.6

2010/09/29 19:01*DJ US MBA Refinance Index -1.6% At 4,288.3; Last Week 4,357.4

2010/09/29 19:00*DJ US MBA Market Index -0.8% At 784.0; Last Week 790.6

2010/09/29 18:55*DJ 3-Month USD Libor Rises To 0.29% Vs 0.28938% Tuesday

2010/09/29 18:55*DJ 3-Month Sterling Libor Unchanged At 0.73188% Vs Tuesday

2010/09/29 18:53*DJ 3-Month Euro Libor Rises To 0.83438% Vs 0.82875% Tuesday

2010/09/29 18:36*DJ Goldman To Have 10.43B ICBC Shares, Or 3.1% Stake, After Placement -Source

2010/09/29 18:33*DJ Goldman Sachs Selling Part Of ICBC Stake It Bought During IPO - Source

2010/09/29 18:33DJ France Ends Stimulus, Freezes Spending To Trim 2011 Deficit
PARIS -France Wednesday presented a 2011 budget relying on the end of stimulus measures and a freeze in the value of state spending to trim its bloated public deficit to the maximum 3%-of-gross domestic product allowed under euro-zone treaties by 2013. French finance minister Christine Lagarde and budget minister Francois Baroin said the effort, which will cut the public deficit from a record 7.7% of GDP this year to 6% of GDP next year based on a 2% GDP growth projection for 2011, is unprecedented. 'Never has such a deficit-reduction effort been undertaken,' Baroin told reporters. This implies trimming the deficit by EUR60 billion to EUR92 billion next year, with the bulk of the effort coming from the end of stimulus measures adopted in 2009 to stave off the global recession. Exceptional spending, which includes stimulus measures, is expected to drop to EUR2.9 billion in 2011 from EUR70.5 billion this year. This will help cut the public deficit by EUR8.2 billion, while the return of growth will reduce it by EUR5.3 billion, the French finance ministry said. The government expects gross domestic product to increase 1.5% in 2010 and 2% next year. France is also looking to generate EUR10 billion of savings through the reduction or closure of targeted tax loopholes.
2010/09/29 18:13DJ Italy Cuts GDP Forecast For 2011 To 1.3% From 1.5%-Source
ROME (Mf-Dow Jones)--Italy's cabinet Wednesday approved new economic forecasts cutting its expected 2011 gross domestic product to 1.3% from the estimated 1.5% it had forecast in May, a person familiar with the situation said. It increased its GDP forecast for 2010 to 1.2% from a previous 1%, the person said. For 2012 and 2013, the economy is seen growing at about 2% each year, the person said. The figures will form the basis for Italy's 2011 budget. Debt is seen growing slightly to 118.5% from 118.4%.
2010/09/29 18:01*DJ EU Proposes Fines For Euro Countries Breaching Budget Pact

2010/09/29 17:44=DJ DATA SNAP: Euro-Zone Business Confidence Strengthens In September
LONDON -Businesses in the 16 nations that use the euro continued to become more confident about their prospects in September, while consumers became less upbeat about the economic outlook. In a monthly survey of confidence around the currency area, the European Commission Wednesday said its Economic Sentiment Index rose to 103.2 from 102.3 in August, a figure that was revised up from 101.8. The ESI's further rise above its long-term average of 100.0 was a surprise, with economists surveyed last week estimating the ESI fell to 101.5. It suggests that the euro zone's economic recovery will continue in the months ahead. The improvement in sentiment was driven by a surprise rise in the measure of industrial confidence to -2 from -3 in August. Economists had expected a decline to -5. Manufacturers reported an improvement in order books, in part due to a continued pickup in export orders. Other types of business also gained confidence. The headline measure for the services sector rose to 8 from 7, that for the retail sector rose to -1 from -3, and that for the construction industry rose to -9 from -10. Consumers became less fearful of losing their jobs, but less optimistic about the economic outlook, and the headline measure of confidence was unchanged at -11, as expected. After a sharp weakening in May as the euro zone's fiscal crisis reached its peak, consumer confidence was recovered significantly. There continued to be wide divergences within the euro zone. German's ESI rose to 113.2 from 111.2, while Greece's ESI fell to 66.6 from 67.9 as Greeks became more pessimistic about their nation's economic prospects and more fearful of losing their jobs than at any time since the survey began in 1990. According to the commission, U.K. consumer confidence fell sharply in September, with the headline measure dropping to -17 from -13 as Britons became much more downbeat about the economic outlook and more fearful of losing their jobs. Largely as a result, the U.K.'s ESI fell to 100.2 from 102.3.
2010/09/29 17:38=DJ Forex Focus: Roughed Up By The Fed

2010/09/29 17:30*DJ Portugal CDS Moves 19 Bps Wider To 465 Bps - Markit

2010/09/29 17:30=DJ DATA SNAP: BOE: UK M4 Money Supply Remains Subdued In August

2010/09/29 17:28DJ ECB Bini Smaghi: Proposed Liquidity Rules To Cause 'Cliff Effect'
FRANKFURT -Proposed new liquidity regulation will lead to a 'cliff effect,' causing temporary challenges to the European Central Bank which sets interest rates in the euro zone, a key member of the ECB's Executive Board said Wednesday. 'It can be expected that the categorization of assets into certain classes of liquidity will lead to a 'cliff effect,' by which the regulatory categorization of assets as either liquid or illiquid plays a crucial role for the future of their market,' Lorenzo Bini Smaghi said. The cliff effect could imply 'sudden changes in the market conditions' for certain assets, which could suffer from a sudden drying-up of market activity or liquidity, he said at an event in Milan.
2010/09/29 17:06*DJ Italy Ups GDP Forecast For 2010 To 1.2% From 1%

2010/09/29 17:05*DJ Euro-Zone Sep Industrial Confidence Consensus -5

2010/09/29 17:05*DJ Italy Cuts GDP Forecast For 2011 To 1.3% From 1.5%

2010/09/29 17:04*DJ French Fin Min: Public Debt To Start Dropping By 2013

2010/09/29 17:03*DJ France Sees 2012 GDP Growth At 2.5% In 2012

2010/09/29 17:03*DJ France: 2011 Budget Aims To Cut Deficit From 7.7% To 6%

2010/09/29 17:02*DJ Euro-Zone Sep Business Climate +0.77; Aug +0.72

2010/09/29 17:02*DJ Euro-Zone Sep Economic Sentiment Consensus 101.5

2010/09/29 17:02*DJ Euro-Zone Sep Services Confidence +8; Aug +7

2010/09/29 17:02*DJ Euro-Zone Sep Economic Sentiment 103.2; Aug 102.3

2010/09/29 17:01*DJ Euro-Zone Sep Consumer Confidence Consensus -11

2010/09/29 17:01*DJ Euro-Zone Sep Industrial Confidence -2; Aug -3

2010/09/29 17:00*DJ Euro-Zone Sep Consumer Confidence Unchanged At -11

2010/09/29 17:00*DJ France: 2011 Budget Sees 2% GDP Growth

2010/09/29 16:47*DJ ECB Bini Smaghi: Rates Are Appropriate

2010/09/29 16:46*DJ PBOC: Locally Registered Banks Include Local Units Of Foreign Banks

2010/09/29 16:32*DJ UK Aug Consumer Credit Was Forecast At +GBP0.7B

2010/09/29 16:32*DJ UK Aug Consumer Credit -GBP0.1B Vs Jul +GBP0.2B

2010/09/29 16:31*DJ UK Aug Net Mortgage Lending +GBP1.7B Vs Jul +GBP0.02B

2010/09/29 16:31*DJ UK Aug Mortgage Approvals 47,372 Vs Jul 48,346

2010/09/29 16:31*DJ UK Aug Net Consumer Lending +GBP1.5B Vs Jul +GBP0.2B

2010/09/29 16:09DJ Tokyo Shares End Up As Good Tankan Lifts Mood; Tepco Falls

2010/09/29 16:05*DJ Kaieda: Hope BOJ Will Act To Help End Deflation

2010/09/29 16:04*DJ Kaieda: If Yen At Current Levels, Japan Cos' Outlook Could Worsen

2010/09/29 16:00*DJ Italy Aug Producer Prices Forecast +0.1% MM; +3.5% YY

2010/09/29 16:00*DJ Italy Aug Producer Prices +0.2% On Mo; +3.5% On Yr

2010/09/29 15:56*DJ Japan Kaieda: Forex Intervention Is Temporary Measure

2010/09/29 15:52*DJ Kaieda: Govt Won't Skew Markets Via Continued Intervention

2010/09/29 15:51*DJ Japan Econ Min Kaieda: Govt To Take Decisive FX Steps If Needed

2010/09/29 15:49DJ JGBs Rise As Investors Bet BOJ Will Ease Policy Next Week
TOKYO -Japanese government bonds rose Wednesday as worsening sentiment about the economy shown in key Bank of Japan data fueled the view that the central bank will ease policy further next week. The BOJ's quarterly tankan survey of business sentiment released earlier in the day showed big manufacturers' diffusion index may fall to minus 1 in December from 8 in September, the first deterioration since December 2008, just after the collapse of Lehman Brothers. The pessimistic findings stoked speculation that the central bank will loosen policy further at its regular two-day policy-board meeting starting Oct. 4. "The tankan suggests the BOJ will likely move next week," said RuiXue Xu, a rates strategist at RBS Securities. Investors are focusing on what easing steps the BOJ may take. If it increases buying of JGBs, the sovereign bond's benchmark yield should fall sharply, analysts said. "If we find the BOJ's balance sheet will expand, it would be no wonder for the 10-year yield to hit a level below 0.900%," said Naoki Tsuchiyama, a market economist at Mizuho Securities. The benchmark yield was at 0.930% as of 0600 GMT, down three basis points. Though such levels suggest bonds are "too expensive," investors will keep buying them if the yen remains strong, he said. For this reason, investors will also pay attention to whether the Ministry of Finance intervenes in the currency market again to push the yen down, he said. The greenback was at Y83.70 at 0600 GMT, close to its lowest level since Sept. 15, when the Japanese government stepped into the market. Analysts added that JGBs will likely remain strong for the time being, as Japan's economic momentum is likely to lose steam due to the end of government stimulus measures and weakening overseas demand. "There are just so many bad factors for the economy going into the second half of fiscal 2010," said Naomi Hasegawa, a senior strategist at Mitsubishi UFJ Morgan Stanley Securities. Elsewhere on the curve, the two-year yield was unchanged at 0.135% and the five-year yield was down 0.5 basis point at 0.265%. The 20-year yield was down four basis points at 1.650% and the 30-year yield was down 4.5 basis points at 1.780%. Lead December futures were up 0.35 at 143.40.
2010/09/29 15:44*DJ Bini Smaghi: New Rules To Affect Transmission Of Monetary Policy

2010/09/29 15:41DJ Spain Finance Minister: Will Make Further Budget Cuts If Needed
LONDON -Spain's government is willing to make further cuts in spending if that is necessary, although that isn't currently the case, Finance Minister Elena Salgado said in an interview broadcast Wednesday. Spain's labor unions are holding a national strike Wednesday to challenge Prime Minister Jose Luiz Rodriguez Zapatero's austerity push and labor-market overhaul. Speaking to the BBC, Salgado said the government won't be deterred. 'For the government, cutting the deficit is the first priority,' she said. 'If something more is needed we will do it, but for the moment, more is not necessary.' Spain has long suffered from very high rates of unemployment, particularly for those below the age of 25. In July, it had an overall unemployment rate of 20.3%, more than twice the rate for the euro zone as a whole. But Salgado said cutting the deficit was necessary if jobs were to be created. 'We know that cuts in our deficit are the first condition for growth, this is first thing we want to do,' she said. 'This is a precondition
2010/09/29 15:40*DJ Bini Smaghi: New Rules May Boost Bank Demand For Govt Bonds

2010/09/29 15:40*DJ Bini Smaghi: New Liquidity Rules Pose Temporary Challenge To ECB

2010/09/29 15:39*DJ Bini Smaghi: Proposed Liquidity Rules Imply Steeper Yield Curve

2010/09/29 15:38*DJ U.S. Dollar Touches S$1.3152, Currently At S$1.3165

2010/09/29 15:37*DJ ECB Bini Smaghi: Proposed Liquidity Rules To Cause "Cliff Effect"

2010/09/29 15:33*DJ Sterling Falls To 4 Month Low Vs. Euro At GBP0.8604 - EBS

2010/09/29 15:31*DJ Italy Sep Business Confidence 98.4 Vs Aug 99.3

2010/09/29 15:20*DJ Malaysia Central Bank Buys Dollars at MYR3.0830 - Dealers

2010/09/29 15:19=DJ DATA SNAP: French Sep Consumer Confidence Improves

2010/09/29 15:06*DJ Stoxx 600 Index Up 0.3% After The Open

2010/09/29 15:06DJ Tokyo Shares End Up As Good Tankan Lifts Mood; Tepco Falls

2010/09/29 15:03*DJ Spot Gold Hits Fresh Record High At US$1,313.45/Ounce

2010/09/29 15:02=DJ Asian Central Banks Keep Up Intervention As Dollar Weakens

2010/09/29 15:01=DJ MONEY TALKS: Welcome To The Age Of The Bernanke Put

2010/09/29 15:01DJ Forex Options: Dollar/Yen Options Rise As Both Upside, Downside Sought
TOKYO -Dollar/yen options rose Wednesday as market participants bought both upside and downside protection, unsure which way the underlying spot rate will go, or whether the Japanese authorities might intervene in the market again. Benchmark volatilities implied by one-month at-the-money options rose to 10.50%/11.20% from 10.35%/11.05% in New York Tuesday. An options dealer at a major Japanese bank said hedging demand will likely persist in the near term, pushing volatilities up further. The growing interest in both upside and downside protection may suggest increasing uncertainty about if and when the Japanese authorities might intervene in the currency market again. Further falls in the dollar against the yen will increase demand for downside protection, but the possibility of intervention--which would cause the dollar to surge--is contributing to demand for upside protection. Hedging interest grew after the dollar fell to Y83.68 in New York Tuesday, the lowest level since Japan intervened Sept. 15. The greenback spent most of the Asian morning below Y84.00, a level some traders said increases the chance of intervention. An options dealer said one player bought one-week dollar-call/yen-put contracts at a strike price of Y86.00 with implied volatilities of 11.00%. Another person bought overnight dollar-call/yen-put contracts at a strike price of Y85.00 with implied volatilities of 20.50%, while another bought three-week dollar-call/yen-put contracts at the strike of Y89.00 with volatilities of 12.05%. The amounts of the deals were unknown.
2010/09/29 14:56=DJ UPDATE: HSBC Has No Plan To Move Headquarters To Hong Kong-FT
SHANGHAI -HSBC Holdings PLC's departing Chairman Stephen Green said Wednesday the banking giant has no plan to move its headquarters to Hong Kong from London, quelling recent market speculation about such a move.Green, who will soon become the U.K.'s trade minister, also said China remains strategically important to HSBC. He made the remarks on the sidelines of a closely watched board meeting in Shanghai that is expected to endorse the recent shake-up of the bank's top management.'Our policy will remain committed to building up our business in China. There is no country strategically more important to us. That's why we brought our board meeting here in Shanghai,' Green said.HSBC was established in Hong Kong as the Hong Kong & Shanghai Banking Corp. in 1865 to finance trade between Europe, China and India. Although its headquarters is now in London, the bank has maintained a strong presence in the region throughout the return of Hong Kong to China in 1997 and the turmoil of the Asian financial crisis that followed.In February, it moved the principal office of its group chief executive to Hong Kong from London, a symbolic gesture that highlights the growing importance of the U.K. bank's business in Asia for its growth, particularly in China.HSBC confirmed Friday that Stuart Gulliver, its head of investment banking, will replace Michael Geoghegan as chief executive, and Chief Financial Officer Douglas Flint will succeed Green as group chairman.Gulliver said he has no intention of changing the income contributions of the various parts of the group, and he expects global banking markets to contribute '30%-40% of the group's profits.'Flint said major challenges and opportunities lie ahead: 'One is the huge amount of reform in the regulatory framework, and we hope to have a leading role in shaping that framework, and lots of opportunities for us to build our emerging market presence to develop what we've already got.'
2010/09/29 14:53*DJ Dollar Falls Below CHF0.9738 On EBS; Lowest Since March 2008

2010/09/29 14:52*DJ Euro Rises Above $1.3600 On EBS; Highest Since April 15

2010/09/29 14:45*DJ French Sep Consumer Confidence -35 Vs Aug -37

2010/09/29 14:45*DJ French Sep Consumer Confidence Was Seen At -40

2010/09/29 14:42=DJ WORLD FOREX: Dollar Hits Fresh 2-Week Low Vs Yen, Weakens Broadly -3-

2010/09/29 14:41=DJ WORLD FOREX: Dollar Hits Fresh 2-Week Low Vs Yen, Weakens Broadly

2010/09/29 14:32=DJ WORLD FOREX: Dollar Hits Fresh 2-Week Low Vs Yen, Weakens Broadly

2010/09/29 14:19*DJ Spain Fin Min: Will Make Further Budget Cuts If Needed

2010/09/29 14:12=DJ PRECIOUS METALS: Gold, Silver Hit New Highs In Asia

2010/09/29 14:02*DJ Nikkei Stock Average Closes Up 0.7% At 9559.38

2010/09/29 13:29*DJ Dollar Falls Below Y83.68 On EBS; Lowest Since Sept 15

2010/09/29 13:17DJ EU To Propose Tough Sanctions For Euro Budget Breakers
BRUSSELS -The European Commission Wednesday will propose tough sanctions for euro area countries to prevent the buildup of public debt, deficits and macroeconomic imbalances that sparked the region's sovereign debt crisis earlier this year, a senior commission official said Tuesday. The system could result in fines of up to 0.2% of gross domestic product for euro-zone countries that repeatedly fail to act to bring their deficits and total debt below the European Union's minimum levels. Countries that don't act to address macroeconomic imbalances--such as rapidly rising wages that make the economy less competitive--face fines of up to 0.1% of GDP. The sanctions are targeted at euro-area countries because they lack the tool of currency devaluation to remedy a fall in economic competitiveness. Spain and Ireland, where wages rose quickly during the previous decade of economic expansion, are prime examples of countries that have seen their budget deficits surge during the crisis due to losses in competitiveness, the official said. Controlling these imbalances is somewhat more difficult than controlling public finances, because a number of factors --private-sector wages, for example--are outside of the government's control, the official said. But the example of Greece, where a large cut in public-sector wages helped prompt private-sector wage cuts, shows that government can control imbalances, the official said. 'The government often has indirect influence' over wage moderation, the official said.
2010/09/29 12:45*DJ Dollar Now At KRW1140.2, Recovers From KRW1139.8 Low

2010/09/29 12:42*DJ Dollar's Fall Below KRW1140 First Since Hitting KRW1127.2 May 14

2010/09/29 12:31=DJ FED WATCH: Economists Edge Toward Forex Market Understanding

2010/09/29 12:28*DJ Spot Silver Hits New 30-Year High At $21.90/Oz

2010/09/29 12:27*DJ Spot Gold Hits New Record High At $1,311.90/Oz

2010/09/29 12:18*DJ Euro Rises Above $1.3596 On EBS; Highest Since April 15

2010/09/29 12:00*DJ RBA's Broadbent: US Economy Will Continue To Struggle

2010/09/29 11:54*DJ Dollar Index Falls Below 78.861; Lowest Since Feb 3

2010/09/29 11:04DJ HSBC's Green: No Plan To Move Headquarters To Hong Kong
SHANGHAI -HSBC Holdings PLC's departing Chairman Stephen Green said Wednesday the banking giant has no plan to move its headquarters to Hong Kong from London, quelling recent market speculation about such a potential move. Green, who will soon become U.K.'s trade minister, also said China remains strategically important to HSBC. He made the remarks on the sidelines of a closely watched board meeting in Shanghai that is expected to endorse the recent major shakeup of the bank's top management. HSBC confirmed Friday that Stuart Gulliver, its head of investment banking, will replace Michael Geoghegan as chief executive, and Chief Financial Officer Douglas Flint will succeed Green as group chairman. 'Our policy will remain committed to building up our business in China. There is no country strategically more important to us. That's why we brought our board meeting here in Shanghai,' Green told reporters. HSBC's greater focus on Asia meant the bank was less hurt by the crisis than some other U.K. banks, although a lending business it bought in the U.S. in 2003 was responsible for dragging down earnings at the bank for several quarters.
2010/09/29 10:58=DJ DATA SNAP: BOJ Tankan Main DI Improves For 6th Straight Quarter

2010/09/29 10:21*DJ Sengoku: No Plans So Far For Kan To Hold Talks With Wen - Kyodo

2010/09/29 10:16DJ CBO: Economic Recovery Anemic Compared To Previous Recoveries

2010/09/29 09:51DJ IMF's Strauss-Kahn: Nothing To Gain By Forex Intervention -Kyodo
TOKYO -The head of the International Monetary Fund said that there is nothing to gain by intervening in the currency market, Kyodo News reported.Japan and other countries "have nothing to gain" by intervention, IMF Managing Director Dominique Strauss-Kahn said at a press briefing in Washington Tuesday.
2010/09/29 09:43DJ BP Prices $3.5Bln 2-Part Issue At Tsys +195,+210BPs -Source
YORK -BP Capital Markets PLC, the funding arm of U.K. energy giant BP PLC (BP, BP.LN), has sold $3.5 billion of bonds in a deal that was increased from a planned $3 billion on investor demand, according to people familiar with the sale.A $2 billion tranche of 3.125% five-year notes sold at a discount for a yield of 3.187% or a spread of 1.95 percentage points over Treasurys, and a $1.5 billion tranche of 4.50%, 10-year bonds sold at a discount for a yield of 4.569%, a spread of 2.10 percentage points.Official price guidance had been 2.00 and 2.15 percentage points, respectively, over Treasurys. The deal was $13 billion oversubscribed, one of the people said.Greg Tornga, head of investment-grade strategy at Los Angeles-based manager Payden & Rygel, which has more than $55 billion under management, said although there was wide participation in the deal, he didn't buy the bonds, 'because of the uncertainty still around the long-term cost of the clean-up' from the company's April oil spill.Investors were trading the bonds privately 10 to 15 basis points lower than where the deal priced before pricing became official, he added, because of the anticipated demand for the debt in the secondary market and because it was priced attractively to make sure it got done.Barclays Capital, BNP Paribas, Citigroup, Mizuho Securities USA Inc. and Royal Bank of Scotland led the sale.In secondary trading, the price of BP's existing 3.125% bonds due 2015 rose to 103.22 from 103 last Thursday, according to MarketAxess data, while the yield for investors fell to 3.093% from 3.147%. The price of the company's 4.75% bonds due 2019 rose to 104.495 from 103.5, and its yield fell to 4.114% from 4.252% on Thursday.The bonds will be guaranteed by the parent company and were rated A2 by Moody's Investors Service and A by Standard & Poor's. The company will use the proceeds for general corporate purposes such as repaying existing borrowings, according to a company prospectus filed with the Securities and Exchange Commission.A spokesman for BP told : 'In recent years we have had four issues of this scale, and this continues to be an effective means of raising cash which has repeatedly been attractive to the markets. This particular bond issue is part of routine management of the group's finances and is not specifically related to the costs of the Gulf of Mexico oil spill.'BP Capital Market's last U.S. bond was in August 2009, when it sold $2 billion in notes with coupons of 1.55% for two-year debt and 3.875% for 5.6-year debt, according to Dealogic data. Deutsche Bank, Morgan Stanley, BNP and RBS ran that sale.One debt syndicate official in New York not connected to the deal said today was an ideal time for BP to return to market because there is limited competing supply and the overall tone of the market was softening. 'Nobody wants to be the last one to the dance,' he said.
2010/09/29 09:39=DJ Fed's Warsh: Wants US Dollar To Remain 'Reliable,' Stable

2010/09/29 09:27DJ Japan Non-Life Insurers May Face More Overseas Oversight: Sources - Bloomberg
Japan's financial regulator could step up monitoring of the country's non-life insurers as they expand overseas, Bloomberg News reported Wednesday, citing unnamed sources.Companies like Tokio Marine Holdings Ltd. (8766.TO), MS&AD Insurance Group Holdings Inc. (8725.TO), and NKSJ Holdings Inc. (8630.TO) may be asked to provide estimates of maximum losses they could possibly incur from their overseas acquisitions or via their regional offices, the report on Bloomberg's website said.They could also be forced to close them if losses are too high, the report said. The team of regulators overseeing insurers is also likely to be increased.Leading Japanese insurers and a spokesman for the Financial Services Agency declined comment, Bloomberg said.Full story: http://www.bloomberg.com/news/20109-28/tokio-marine-ms-ad-nksj-said-to-face-more-oversight-of-overseas-business.html
2010/09/29 09:27*DJ Baht Rises To Fresh 13-Year High; Dollar At THB30.50 -Dealers

2010/09/29 09:27*DJ BOT Suspected To Have Bought Dollar At THB30.50 - Dealers

2010/09/29 09:22*DJ Dollar Now Quoted At IDR8,945-IDR8,955 Vs IDR8,950 Late Tuesday

2010/09/29 09:21=DJ Fed's Lockhart: Economy Should See Gradual Improvement

2010/09/29 09:08DJ BOK: September Current Account Surplus Likely To Rise Significantly
SEOUL -South Korea is expected to run a significantly higher current account surplus this month, letting the country reach its full-year surplus target of $21 billion ahead of time, a Bank of Korea official said Wednesday."Despite shorter working days in September due to the Chusok holiday, exports of ships and semiconductors were robust, which will result in a considerable rise in the current account surplus," Lee Young-bog, a senior manager with the balance of payments statistics team at the central bank, told a media briefing.For the entire year, the country is expected to easily chalk up a current account surplus greater than the BOK's projection in July of $21 billion, he said.Earlier in the day, the central bank said Korea ran a current account surplus of $2.07 billion in August, less than half of the $5.82 billion surplus recorded in July.For the first eight months of the year, the current account posted a surplus of $19.56 billion.
2010/09/29 09:00DJ Former PBOC Adviser: US Dollar 'One Step Nearer' To Crisis -Bloomberg
SINGAPORE -The U.S. dollar is "one step nearer" to a crisis as debt levels in the world's largest economy increase, said Yu Yongding, a former adviser to China's central bank, Bloomberg reported on its website.Any appreciation of the dollar is "really temporary" and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore on Tuesday, according to the report. "Such a huge amount of debt is terrible," Yu said. "The situation will be worsening day by day. I think we are one step nearer to a U.S.-dollar crisis."Yu also said China is worried about the safety of its foreign-exchange reserves, including those invested in U.S. Treasurys as the U.S. currency weakens, reiterating his earlier views on the dollar assets, the report said.China can't avoid an adjustment in its exchange rate, either real or nominal, and shouldn't be afraid of such changes, Yu said, according to the report.Web site: http://bloomberg.com
2010/09/29 08:49=DJ DATA SNAP: BOJ Tankan Main DI Improves For 6th Straight Quarter

2010/09/29 08:46*DJ BOK Suspected Of Buying Small Amount To Support Dollar Above KRW1140 -Traders

2010/09/29 08:45*DJ BOK Suspected Of Buying Dollars To Smooth Won's Rise -Traders

2010/09/29 08:34DJ NY Fed Investigating What Constitutes A Prop Trade -Fox Business's Gasparino
The New York Federal Reserve is apparently looking into when a customer trade becomes a proprietary trade, Fox Business Network's Charles Gasparino reported Tuesday, without citing sources.Gasparino said the New York Fed is said to have started an inquiry about a week ago into how banks classify the trading, seeking input from banks and Wall Street firms.A portion of the recently enacted Dodd-Frank bill regulating the financial services industry prohibits firms from trading with their own capital, under the so-called Volcker Rule. But, the rule becomes muddied when firms trade for clients or underwrite bonds for clients and then hold those securities on their books. Full story at http://www.foxbusiness.com/markets/2010/09/28/ny-fed-said-looking-constitutes-prop-trade/
2010/09/29 08:29*DJ Dollar At MYR3.0850 Compared With MYR3.0915 Late Tuesday

2010/09/29 08:28*DJ Euro Rises To Y114.15 From Y113.93

2010/09/29 08:28*DJ Dollar Falls To Fresh 13-Year Low Vs Malaysian Ringgit

2010/09/29 08:27*DJ Dollar Rises To Y84.09 From Y83.95

2010/09/29 08:26*DJ BOK Official: Current Account Surplus To Top Full-Year Target In September

2010/09/29 08:24*DJ Yen Falls Against Dollar, Euro

2010/09/29 08:22*DJ BOK Official: 2010 Current Account Surplus To Beat Forecast Of $21B

2010/09/29 08:15*DJ BOK Official: September Current Account Surplus Likely To Rise Vs August

2010/09/29 08:10*DJ Japan Fin Min Noda Didn't Comment On Forex

2010/09/29 08:06*DJ Lead Dec JGB Futures Open Up 143.24 Vs 143.05 Tue

2010/09/29 08:03*DJ Nikkei Stock Average Opens Up 0.4% At 9530.05

2010/09/29 08:03*DJ Japan MOF Offical: No Comment On Forex Rates, Intervention

2010/09/29 07:55*DJ BOJ Tankan: Big Manufacturers Expect Dec Index -1

2010/09/29 07:52*DJ Tankan: Small Non-Mfrs Index -21; Dec Seen -29

2010/09/29 07:51*DJ Tankan: Big Non-Mfrs Sep Index 2; Dec Expected -2

2010/09/29 07:51*DJ Tankan: Big Manufacturers See Dollar At Y89.66 This FY

2010/09/29 07:51*DJ Tankan: Small Mfrs Sep Index -14; Dec Expected -22

2010/09/29 07:51*DJ Tankan: Big Mfrs See This FY Pretax Profit +54.3%

2010/09/29 07:50*DJ BOJ Tankan: Big Mfrs Diffusion Index 8; Mkt Expected 6

2010/09/29 07:50*DJ Tankan: Big Companies See This FY Capex +2.4%

2010/09/29 07:31*DJ Fed's Lockhart: Economy Should Improve Gradually

2010/09/29 07:27DJ Fed's Lockhart: Time Nearing For Decision On Fresh Support For Economy
NEW YORK -The Federal Reserve will soon need to decide whether it must offer fresh support to the economy, in what would most likely come in the form of renewed asset buying, a U.S. central bank official said Tuesday. 'In the coming weeks monetary policymakers must come to grips with the question of whether there is anything they can do to improve the situation in the economy and, if so, what that action should be,' Federal Reserve Bank of Atlanta President Dennis Lockhart said. 'A consensus on these pivotal questions remains to come together, and I will not take a position' on the matter right now, he said. But if the Fed were to decide to act, 'a clear option is to grow the size of the balance sheet, since the policy interest rate, for all practical purposes, cannot go any lower,' Lockhart said, referring to the central bank's de facto 0% overnight target rate. This growth could be 'accomplished by a second round of asset purchases' most likely in the form of Treasury securities, which would be 'paid for by newly created money,' Lockhart said. 'The Fed has scope for further action to influence the course of recovery,' Lockhart said. Moreover, Fed policy makers 'have the will to act--or not--as demanded by economic conditions in the near term.' Lockhart's comments came from the text of a speech he was to deliver in Sewanee, Tenn., before a gathering held at the University of the South. He does not currently hold a voting slot on the interest rate setting Federal Open Market Committee, although he will again in 2012. The central banker spoke as expectations about the monetary policy outlook are in flux. The Fed said at its FOMC meeting last week it is increasingly worried about inflation falling too far, and it said that if economic conditions call for it, the institution is prepared to offer additional support to the economy. That aid, should it come, is likely to be delivered in the form of a restart of the central bank's asset buying program, as Lockhart noted. As in its first iteration, when the Fed bought huge amounts of Treasury, mortgage and agency debt, the program would be aimed at making long term borrowing cheaper for both households and companies. As the Fed weighs this path, there are real questions about how effective such a program would be given that banks are already sitting on $1 trillion in liquidity they appear reluctant to lend, and for which demand seems tepid. Many economists believe the Fed will have to make a decision fairly soon, and that it could act by the next FOMC meeting to be held in November. Lockhart appeared to confirm that sense of urgency. Lockhart did note, however, that he does not think falling back into recession is likely. 'I believe this slowdown will prove to be temporary,' Lockhart said. 'Much of the strength we saw last fall and winter was a consequence of policies that brought forward spending that would have occurred later.' But even so, the sort of growth the economy has been able to achieve has been too low to generate the needed level of job growth, Lockhart said. He said its not entirely clear why the economy is proving weak, and that it could be due to structural issues or uncertainty among the nation's households and business leaders. What is clear is that price pressures are moving too low, he said. 'I do not expect outright deflation to develop, but the slowing of the economy in the middle of this year, combined with a very low measured rate of inflation, suggests to me the risk of deflation cannot be dismissed,' Lockhart said.
2010/09/29 07:11DJ Analyst Whitney: State Debt Is Next Big Crisis -Report
Analyst Meredith Whitney says the next big crisis to hit the U.S. economy will be the result of excessive state debt, Fortune said Tuesday, citing a 600-page report Whitney released this week."The states represent the new systemic risk to financial markets," Whitney said. "I see a lack of transparency and an abundance of complacency on the part of investors and politicians, just as we saw before the banks imploded."Whitney's analysis focused on the 15 largest states in the U.S.Texas and Virginia are the only states in the report that received a positive rating, which is based on a state's fiscal health, its economy, housing and taxes. California rated the worst, with New Jersey, Illinois and Ohio tied for second. New York was fifth worst.Full story at http://finance.fortune.cnn.com/2010/09/28/meredith-whitneys-new-target-the-states/
2010/09/29 07:09*DJ US Dollar Touches S$1.3162 Overnight, Currently At S$1.3180

2010/09/29 07:03DJ Ireland To Inject EUR5 Billion In Anglo Irish This Week -FT
The Irish Central Bank on Thursday is expected to inject an additional EUR5 billion ($6.79 billion) into the troubled Anglo Irish Bank Corp. , the Financial Times reports Tuesday night. This will bring the total cost of the bailout to approximately EUR30 billion.Irish bonds set records Tuesday, as yields on 10-year notes rose 25 basis points to 6.72%, according to the FT.Full story at http://www.ft.com/cms/s/0/652d26c4-cb35-11df-95c00144feab49a.html
2010/09/29 06:49DJ CREDIT MARKETS:Corporate Issuance Slows But Tops $130B In Month

2010/09/29 06:42=DJ WORLD FOREX: Dollar Slammed Broadly; Possible Fed Action Weighs

2010/09/29 05:54DJ IMF's Strauss-Kahn: Risk Of Global Currency War Low
WASHINGTON -International Monetary Fund Managing Director Dominique Strauss-Kahn said Tuesday he doesn't rule out a global currency war, but thinks it unlikely.As a potential liability, Strauss-Kahn said it's a concern. But, "I don't feel today that there's a big risk of a currency war," he said at a press briefing here.Following Tokyo's recent yen intervention, Brazil's finance minister said he believes the world is involved in a trade and exchange-rate war, with countries seeking advantages by manipulating their currencies.The IMF managing director said officials at both the Fund and the Group of 20 nations were actively working to prevent such a global battle of competitive depreciations and the issue would be a topic at upcoming summits.Given the potential repercussions--especially in the midst of an anemic recovery and the IMF urging international cooperation to rebalance the global economy--Strauss-Kahn said the the probability for a campaign of depreciations "is rather low.""There is no good to expect from intervention," he said. "History has shown that the effect of this kind of intervention doesn't last for very long."Either a low-key intervention is ineffective or strong action invites destructive retaliation.
2010/09/29 05:45*DJ NZ 12-Mo To Aug Trade Surplus NZ$0.866B; Mkt Surplus NZ$0.865B

2010/09/29 05:45*DJ NZ Aug Imports NZ$3.59B; Exports NZ$3.15B

2010/09/29 05:45*DJ NZ Aug Goods Trade Deficit NZ$437M; Consensus Deficit NZ$425M

2010/09/29 05:42DJ OIL FUTURES: Crude Falls As Demand Worries Weigh
NEW YORK -Crude futures settled lower Tuesday, as worries about demand for oil and fuel products trumped a sharp fall in the dollar.Light, sweet crude for November delivery settled 34 cents lower at $76.18 a barrel on the New York Mercantile Exchange after falling as low as low as $75.53 in earlier trading. Brent crude on the ICE futures exchange traded 17 cents higher at $78.74 a barrel.Oil prices aimed higher for much of Tuesday's session, gaining a boost from the weaker dollar, which makes oil cheaper for buyers in other currencies. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 79.19 from 79.502 after dropping as low as 78.946 earlier in the session, the lowest since February.But weak U.S. consumer confidence data and a drop in U.S. demand for gasoline combined to pull crude into the red, as traders worried about weak demand in the face of still-high U.S. inventory levels. Technical resistance levels also kept futures in a tight trading range that helped moderate the early rally.'High oil inventories have made it hard to sustain the rise,' said Antoine Halff, an analyst at Newedge Group.The Conference Board, a private research group, said earlier Tuesday its index of consumer confidence fell to 48.5 this month from a revised 53.2 in August. The September reading was also far worse than the 52.0 expected by economists surveyed by and marked the lowest reading since February.U.S. weekly gasoline dipped 0.3% to 8.978 million barrels a day in the week ended Sept. 24, hitting a four-year low, according to a SpendingPulse report by MasterCard Advisors LLC, a division of MasterCard Inc. .Investors remained fixated on the broader economy and its ability to sustain oil demand. But a recent rally in equities markets has failed to give the same boost to crude, as high supply levels have kept crude confined between roughly $70 to $80 a barrel for several months.On Tuesday, technical indicators made the tight trading range even more pronounced. Oil prices remained firmly between the 100-day and 200-day moving averages, which stood at $75.36 and $77.45, respectively.'Every time we try to push too far away from $75 towards the downside, the expectations for economic growth seem to hold the market, and once we push towards $78, the high supplies ... seem to cap the rally,' said Gene McGillian, a broker and analyst with Tradition Energy. 'You've found kind of a fair value here around $75.'U.S. commercial stockpiles of oil and fuel products remain near 27-year highs, and weekly data from the Department of Energy due 10:30 a.m. EDT Wednesday are expected to show only a modest change.Crude inventories are expected to fall by 300,000 barrels, according to a survey of analysts. Gasoline stocks are seen rising by 600,000 barrels. Stocks of distillates, which include heating oil and diesel, are seen rising by 200,000 barrels.Similar data from the American Petroleum Institute, an industry trade group, is due at 4:30 p.m. EDT Tuesday.Front-month October reformulated gasoline blendstock, or RBOB, settled 0.09 cent lower at $1.9479 a gallon. October heating oil settled 0.17 cent higher at $2.1245 a gallon.More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines: Nymex Light Crude Oil Close Nymex Harbor RBOB Gasoline Close Nymex Heating Oil Close ICE Brent Crude Oil Close ICE Gas Oil Close
2010/09/29 05:38*DJ Lockhart: Deflation Unlikely, But Risks Have Risen

2010/09/29 05:37*DJ Lockhart: Economic Slowdown Likely To Prove Temporary

2010/09/29 05:36*DJ Lockhart: Fed Faces Decision 'In The Coming Weeks'

2010/09/29 05:36*DJ Fed's Lockhart: Time Nearing For Decision On Fresh Support For Economy

2010/09/29 05:35*DJ Lockhart: Renewed Buying Would Most Likely Target Treasury Securities

2010/09/29 05:34*DJ Lockhart: If Fed Acts, Asset Buying Would Be Primary Path

2010/09/29 05:19DJ Treasurys Rally On US Data; 5-Yr Notes Sold At Record Low Yield

2010/09/29 04:41*DJ Euro Rises To US$1.3595 Early In NZ, Highest Since April

2010/09/29 04:34*DJ IMF's Strauss-Kahn: Risk Of Global Currency War Low

2010/09/29 04:14=DJ INTERVIEW: Greece Pursuing Radical EUR3B Privatization Plan

2010/09/29 04:05*DJ Nasdaq Closes Up 10 (0.4%) At 2380; Health Care Leads Gains

2010/09/29 04:05*DJ DJIA Closes Up 46 (0.4%) At 10858; Pfizer, Intel Climb

2010/09/29 03:29*DJ State Media: Kim Jong Il's Third Son Elected VP Of Military Committee -Xinhua

2010/09/29 03:01DJ PRECIOUS METALS: Worrisome Data Boost Gold Futures To Record

2010/09/29 02:41*DJ OIL FUTURES: Nymex Crude Settles Down 34c At $76.18/Bbl

2010/09/29 02:40*DJ OIL FUTURES: Crude Falls As Demand Worries Weigh

2010/09/29 02:39*DJ OIL FUTURES: Nymex Crude Closes Down 36c At $76.16/Bbl

2010/09/29 01:54*DJ Eiffel Tower Evacuated After New Bomb Alert -Police

2010/09/29 01:49*DJ Comex December Gold Settles At Record $1,308.30 Per Ounce

2010/09/29 01:35*DJ Gains In Gold Come As Data Disappoint, Dollar Falls

2010/09/29 01:34*DJ Comex Gold Up 0.8% At $1,308.40 After Close, Ahead Of Settle

2010/09/29 01:33*DJ Comex Gold Futures Poised To Settle At Record Above $1,300/Oz

2010/09/29 00:41DJ IMF's Lipsky: Moderate Global Economic Recovery To Continue
WASHINGTON -The global economy will continue to recovery at a moderate pace, a top International Monetary Fund official said in a speech published Tuesday.But IMF Deputy Managing Director John Lipsky said a real risk remains that the European sovereign debt crisis could threaten another round of pressure on the financial industry.With weak financial sectors, bloated budgets and heavy refinancing needs, countries such as Ireland, Portugal and Spain are taking hits in the debt markets as markets fear their governments will need emergency funding.Lipsky gave the speech Monday at the Depository Trust and Clearance Corp. Executive Forum.He said according to new forecasts detailed in the annual World Economic Outlook to be published in the coming days, the global economy is expected to grow at a slower pace in the second half of this year than the 3.75% previously estimated. The IMF said growth in the first half was 4.75%, stronger than expected.Lipsky said financial system restructuring is critical to fostering a stronger recovery.'The process of finical sector repair is unfinished, but successful repair will be critical to opening a path toward the stronger and sustained growth needed to make a meaningful dent in the current high rates of unemployment in many advanced economies,' he said.The U.S. has already passed into law new banking standards that will fundamentally restructure regulation. And under the watch of the Group of 20 Nations, the Basel Committee on Banking standards has developed a set of guidelines that would strengthen the capital and liquidity standards that are core systemic risks.Lipsky said the phase-in period for so-called Basel III standards could transition in the new rules faster than proposed. Fearful of harming the nascent global recovery, the new standards will be phased in over time, first between 2013 to 2015, then progressively becoming tougher by 2019. Some U.S. lawmakers have questioned whether that transition period is too long, putting banks in the U.S. that have already re-capitalized at a disadvantage.'A shorter phase-in period for the new Basel capital standards could be considered, as well as an eventual elimination of the intangible capital provisions, without constricting the credit expansion necessary to support expansion,' Lipsky said.He also warned that governments should also start targeting the areas of the banking sector that aren't traditionally regulated, often referred to as the 'shadow banking system.''Care needs to be taken that all systemically important financial institutions fall within the perimeter of regulation, and that purpose-built legal entities can't be utilized to obscure risks from appropriate oversight,' he said.