Market Rumours

2010/09/30 17:00*DJ Italy's Sep Preliminary CPI -0.2% On Mo; +1.6% On Yr

2010/09/30 16:52*DJ MOF Sakurai: Strong Yen Can Help Secure Rare Earth Metals

2010/09/30 16:51*DJ MOF Sakurai: Want BOJ To Make Policy While Mulling Overall Situation

2010/09/30 16:47*DJ Japan MOF Sakurai: Expect BOJ To Make Proper Judgment On Yen

2010/09/30 16:46*DJ Japan MOF Sakurai: MOF Will Take Decisive Forex Steps If Needed

2010/09/30 16:34=DJ DATA SNAP: German Sep Jobless Data Beat Forecasts, Down 40,000
NUREMBERG--German unemployment decreased sharply in September, by twice as much as expected, owing to firms' strong hiring plans, data from Germany's Federal Labor Office showed Thursday. The number of people unemployed decreased by 40,000 when adjusted for seasonal swings, after a decrease of 20,000 in August. The August figure was revised from a drop of 17,000 previously reported. This pushed the the adjusted jobless rate down to 7.5% from 7.6% in August. The results were much better than expected. Economists in a poll had expected a decline of 20,000 and an adjusted jobless rate of 7.6% for September.
2010/09/30 16:20*DJ Prudential Financial To Buy Cos From American International Group For $4.8B >PRU

2010/09/30 16:19*DJ Bank Of Spain Sees Weaker GDP In 3Q

2010/09/30 16:11*DJ Old Mutual: HSBC Plans To Buy Controlling Interest I NedBank

2010/09/30 16:07*DJ Irish 5-Yr Sovereign CDS 10 Bps Tighter At 430/450 Bps

2010/09/30 16:06*DJ Ireland's Sovereign CDS Tighten On Anglo Irish Announcment

2010/09/30 16:05*DJ Hang Seng Index Ends Up 9.0% For Month Of September

2010/09/30 16:05DJ Tokyo Shares End Down On Yen Fear, Weak Banks; Nintendo Falls -2-

2010/09/30 15:58DJ PRECIOUS METALS: Gold Edges Down In Quiet Asia Session
SINGAPORE -Gold edged a little further away from overnight record prices in what was a subdued, indecisive session in Asia Thursday.The dollar still looked in trouble against the yen and Asian crosses but managed to gain some ground against the euro, giving precious metals traders no obvious cues.However, prices look well-supported, with both gold and silver ETFs snapping up metal in recent days.The biggest silver ETF, the iShares Silver Trust , recorded additions of 4.6 million ounces or 143 metric tons Tuesday, taking its total holdings to 9,756 tons, up over 5% since the end of August.The biggest gold ETF, the SPDR , added over 5 tons or 166,000 ounces Tuesday."I still think the support is there for gold. It's hard to see anything substantial in terms of a sell-off right now," said Investec's Darren Heathcote, who put support at $1,275.He said it would take improved U.S. data and subsequently higher interest rate expectations or a sharp sell-off in U.S. stock markets to put gold under some pressure.At 0645 GMT, spot gold was at $1,309 a troy ounce, down 90 cents since Wednesday's New York close, with Tocom August 2011 gold at Y3,518 a gram, down Y12.Spot silver was at $21.91/oz, up 1 cent after breaching $22 for the first time in 30 years Wednesday.However, platinum and palladium were seeing some profit taking ahead of holidays in China, in line with industrial metals.Spot platinum was at $1,641/oz, down $5, while palladium was at $555/oz, down $12.
2010/09/30 15:58=DJ WORLD FOREX: Dollar Hits Fresh Post-Intervention Low, No Relief In Sight-3-

2010/09/30 15:57*DJ German Unadj Jobless Total Was At 3.188M In Aug

2010/09/30 15:57*DJ German Unadj Jobless Rate Was 7.6% In Aug

2010/09/30 15:57*DJ German Sep Unadj Jobless Total At 3.031M

2010/09/30 15:57*DJ German Sep Unadj Jobless Rate 7.2%

2010/09/30 15:57*DJ Economists Saw German Sep Adj Jobless Rate At 7.6%

2010/09/30 15:56*DJ German Adj Jobless Rate Was 7.6% In Aug

2010/09/30 15:56*DJ German Seas Adj Jobless Was -20,000 In Aug

2010/09/30 15:56*DJ German Sep Adj Jobless Rate 7.5%

2010/09/30 15:56*DJ Economists Saw German Sep Seas Adj Jobless At -20,000

2010/09/30 15:55*DJ German Sep Seas Adj Jobless -40,000

2010/09/30 15:54*DJ Ireland Can Overcome Banking Problems Without EU Help-Juncker

2010/09/30 15:44*DJ Irish Fin Min: Will Sell Bonds Again In Jan 2011

2010/09/30 15:41*DJ Irish Fin Min: Won't Seek External Financial Help

2010/09/30 15:37DJ Tokyo Shares End Down On Yen Fear, Weak Banks; Nintendo Falls

2010/09/30 15:31=DJ DATA SNAP: French Aug PPI +0.1% On Month, After +0.2% In July

2010/09/30 15:27DJ 10-Year Cash JGBs Down; Fall Limited Before Quarter-End, BOJ Meeting
TOKYO -Benchmark 10-year cash Japanese government bonds ended slightly lower Thursday on weakness in U.S. Treasurys overnight, but investors held off active trading ahead of the quarter-end, and due to caution about recent yield declines. "In the next couple of weeks, JGBs are expected to be under selling pressure as the new quarter begins," said Maki Shimizu, a senior strategist at Citigroup Global Markets Japan. However in the longer term, there is likely limited room for yield upside because of deep-rooted deflation and the gloomy business sentiment outlook as shown in the Bank of Japan's tankan survey, Shimizu said. The headline diffusion index in the quarterly central bank survey of corporate sentiment, released Wednesday, showed conditions among large manufacturers improved to 8 in September, the highest reading since March 2008 and better than economists' forecast for 6. But the data also showed that the main index is expected to fall to minus 1 in the next survey in December. Shimizu tips the ceiling for the benchmark 10-year cash JGB yield at 1.05% in the next few weeks. The 10-year yield was up 1.5 basis point at 0.935% as of 0600 GMT. But some analysts believe expectations for additional monetary easing in Japan and the U.S. will keep supporting bond markets. The market now widely expects the BOJ to take more easing steps, such expanding existing liquidity programs, at its two-day policy board meeting starting Monday. "Bond markets are likely to keep solid momentum in both Japan and the U.S. until the release of September nonfarm payroll data due Oct. 8," said Naoki Tsuchiyama, a market economist at Mizuho Securities. This will offer a clue to whether the Federal Reserve will expand U.S. government bond purchases at its next meeting Nov. 2-3, Tsuchiyama said.
2010/09/30 15:22*DJ RBA: Weights On Euro, US Dollar In TWI Fall Around 0.5 Pct Pt On Year

2010/09/30 15:14*DJ PBOC: Agencies Must Convert Bond Proceeds Into Foreign Currencies Before Sending Offshore

2010/09/30 15:12*DJ PBOC: International Agencies Can Send Bond Proceeds Offshore

2010/09/30 15:10=DJ WORLD FOREX: Dollar Hits Fresh Post-Intervention Low, No Relief In Sight

2010/09/30 15:06=DJ DATA SNAP: UK Nationwide Sept House Prices +0.1%MM, +3.1%YY
DON -U.K. house prices were little changed on the month in September while the annual pace of increase slowed for a fifth consecutive period as fewer buyers entered the housing market amid fears over future jobs and earnings in the wake of the government's strict austerity budget and still tight lending criteria, the Nationwide Building Society said Thursday.According to the mortgage lender, house prices rose a seasonally adjusted 0.1% from August and were 3.1% higher compared with September 2009. The latter figure was also the lowest annual increase since November 2009.In August, Nationwide said house prices fell a revised 0.8% on the month and grew 3.9% on the year. Nationwide had earlier reported that house prices fell 0.9% on the month in August.The data for September were stronger than expected. Economists surveyed by last week had estimated that prices fell 0.3% on the month and grew 2.5% on the year earlier.'September proved to be an uneventful month for house prices,' said Martin Gahbauer, Nationwide's Chief Economist.'Where house prices go next will depend on whether the strong flow of new property onto the market continues into the autumn, and on the extent to which existing sellers are willing to compromise on their asking price in order to make a quicker sale,' he said.Any labor market changes could have quite an impact on prices and the housing market, Gahbauer added. And with further details of the government's austerity budget and proposed spending cuts due in the Oct. 20 comprehensive spending review, this could mean a steeper slowdown in both prices and activity next year.The data are broadly in line with other recent house price surveys reporting a slower pace of annual price growth, with economists continuing to expect little change in prices over the course of 2010.The Bank of England Wednesday reported an unexpectedly sharp increase in net mortgage lending but a lower number of mortgage approvals in August from July, suggesting the pickup in demand will not last.The level of approvals--47,372--was also the lowest total since February, and implies further house-price declines in the coming months.Other labor market issues that could weigh on house prices are the increase in part-time workers and also the low level of average earnings increases. In the three months to July, the Office for National Statistics reported earnings rose 1.8%. And while this is up from the 1.6% rise reported in the three months to June, it remains well below the pace of inflation.'Given the combination of a still elevated unemployment rate and the upcoming public sector wage freezes, it seems unlikely that earnings growth will accelerate much in the near future,' Gahbauer said. 'While this will continue to help companies limit job losses, it will also continue to constrain confidence in future incomes among potential homebuyers.'Nationwide website: www.nationwide.co.uk
2010/09/30 15:03*DJ Stoxx 600 Index Dn 0.2% After The Open

2010/09/30 15:02*DJ FTSE 100 Dn 0.2% After The Open
ptember 28, 2010 03:00 ET (07:00 GMT)*DJ FTSE 100 Up 0.2% After The Open ptember 29, 2010 03:00 ET (07:00 GMT)*DJ FTSE 100 Dn 0.2% After The Open -
2010/09/30 15:00DJ Forex Options: Dollar/Yen Options Unchanged As Spot Direction Unclear
TOKYO -Dollar/yen options were flat Thursday in thin trading as investors buying and selling hedging contracts cancelled each other out.An options dealer at a major Japanese bank said that some players purchased both upside and downside short-term contracts as they expect movement in the underlying exchange rate to come after the end of the Japanese fiscal first half Thursday.But he added that other players sold contracts due to the current lack of movement in the underlying rate.'It's an intricate market with various expectations,' he said.Benchmark volatilities implied by one-month at-the-money options were at 10.65%/11.35% in Tokyo Thursday, unchanged from New York Wednesday.The dealer said the market is now focused on the release of the third estimate of U.S. second quarter GDP at 1230 GMT.If the data turn out to be worse than expected and U.S. Treasury yields decline, that could cause the dollar to weaken and drive up volatilities, he said.The dealer said that some players bought two-week dollar-put/yen-call contracts with an unknown face value at a strike price of Y81.00 with implied volatilities of 12.30%. Such a contract benefits the holder if the greenback stays below the strike price at the contract's expiry.
2010/09/30 14:45*DJ French Aug PPI Forecast +0.2% On Month; +3.5% On Year

2010/09/30 14:45*DJ French Aug PPI +0.1% On Month; +3.5% On Year

2010/09/30 14:33DJ BOK: To Conduct Future Policy To Help Maintain Price Stability
SEOUL -The Bank of Korea Thursday reiterated it will conduct monetary policy to help the economy maintain price stability, while sustaining sound growth "under the accommodative policy stance."While pledging to take into account overall financial and economic conditions in future rate reviews, the central bank said in its biannual monetary policy report that it will also step up efforts to enhance communication with the markets to ensure predictability and transparency of its monetary policy.The language the BOK used in the report wasn't very different from its previous monthly policy statements, indicating the central bank isn't likely to make any significant changes in its monetary policy stance.The bank said the world economy is expected to sustain its mild recovery, although there's a high degree of uncertainty in the outlook.The upward trend of the Korean economy is also forecast to be sustained, led by improving consumption and facilities investment, which in turn will push up prices, it said.Consumer price inflation is predicted to rise past the midpoint of the central bank's medium-term inflation target of 2%-4% from the fourth quarter of this year onwards, the BOK said.Early this month, the central bank kept interest rates steady at 2.25% for a second straight month, after raising it by 25 basis points from a record low of 2.0% in July, and signaled that a shaky global outlook means any monetary tightening in the coming months will be modest.
2010/09/30 14:33DJ Irish Central Bank: Anglo Irish Bank To Need Total Capital Of EUR29.3 Bln
DUBLIN -State-owned Anglo Irish Bank Corp., Ireland's most troubled financial institution, will need total capital of EUR29.3 billion or an additional EUR5 billion in a 'stress scenario,' the Central Bank of Ireland said Thursday.The fate of the troubled bank--nationalized in January 2009--has weighed heavily on international bond markets. The spread between the yields on 10-year government bonds issued by the German and Irish governments widened to a fresh high this week, as investor confidence in Ireland wavers.Putting a so-called 'final' price tag on the cost of bailing out Ireland's diseased banking system is hoped to clear a major black cloud hanging over the Irish economy. Anglo previously indicated it would cost around EUR25 billion to restructure the bank.Anglo has already received EUR23 billion to prop it up thus far out of a total EUR33 billion pumped into the nation's banks, roughly 20% of GDP. The nation's banks lent billions to property developers during the Celtic Tiger boom, much of which is likely to go unpaid.The Central Bank said Allied Irish Banks PLC will need an additional EUR3 billion by year-end. It was originally charged with raising EUR7.4 billion in capital by the end of 2010. Some analysts say AIB may likely fall under state control. The government will later Thursday announce plans to recapitalize AIB to meet its capital targets.The central bank said Anglo's loan evaluation process has been accelerated for the National Asset Management Agency and a 67% discount has been provided by NAMA. 'It's based on a review of information provided by Anglo carried out by NAMA,' the bank said.
2010/09/30 14:23*DJ Moody's: Spain Downgrade On Worsening Debt Affordability, Significant Borrowing Requirements

2010/09/30 14:23*DJ Ex-MOF Sakakibara: Japan Shouldn't Intervene In FX Market Again

2010/09/30 14:21*DJ Moody's: Spain Downgrade On Deterioration Of Financial Strength

2010/09/30 14:20*DJ Moody's: Spain Downgrade On Weak Economic Growth Prospects

2010/09/30 14:09*DJ Moody's Downgrades Spain's Rating To Aa1, Outlook Stable

2010/09/30 14:09*DJ Irish Fin MIn: Govt Debt To Rise To 98.6% Of GDP In 2010

2010/09/30 14:06*DJ New Zealand Dollar Falls Below Y61.25; Lowest Since Sept 15

2010/09/30 14:06*DJ Euro Falls Below Y113.00 Vs Yen

2010/09/30 14:03*DJ Nikkei Stock Average Closes Down 2.0% At 9369.35

2010/09/30 14:00*DJ UK House Prices Were Forecast -0.3% MM: +2.5% YY

2010/09/30 14:00*DJ UK Nationwide Sep House Prices +0.1% MM; +3.1% YY

2010/09/30 13:57*DJ Irish Fin Min: Fully Committed To Cut Deficit To 3% By 2014

2010/09/30 13:53*DJ Irish Fin Min: Budget Deficit In 2010 Will be 32% Of GDP

2010/09/30 13:52*DJ Irish Fin Min:State Support For Banking System Is "Manageable"

2010/09/30 13:46DJ Goldman Gives Up Tiffany Building Ownership: Sources - FT
Goldman Sachs Group Inc. has given up ownership of the Tiffany Building in Tokyo, the Financial Times reported Wednesday on its website, citing several unnamed people close to the situation. Goldman's real estate fund acquired the building from Tiffany's in early 2007 for Y38 billion ($454 million), and the company exited the investment when the loans came due earlier this year, the people said, according to the report. Goldman declined to comment, the report said. Full story: http://www.ft.com/cms/s/0/18177888-cbe6-11df-bd280144feab49a.html
2010/09/30 13:38*DJ Euro Falls Sharply Versus Yen; Now At Y113.28

2010/09/30 13:32*DJ Irish Central Bank: Anglo Irish Bank To Need Total Capital Of EUR29.3 Bln

2010/09/30 13:00*DJ Japan Aug Housing Starts +20.5% On Yr; Mkt Expected -11.0%

2010/09/30 13:00*DJ Japan Aug Construction Orders -0.02% On Year

2010/09/30 12:49DJ HSBC Chief Economist Bloxham Sees RBA On Hold In October
SYDNEY -HSBC's new Australia Chief Economist Paul Bloxham--who just left the Reserve Bank of Australia's economic analysis department--on Thursday said the central bank would keep rates on hold in October, with a November rate hike likely. Bloxham most recently headed up the overseas economies and financial conditions sections within the RBA, and his outlook for policy is closely watched by analysts given his experience in forecasting the domestic economy. He started with HSBC earlier this month after 12 years at the RBA, where he published papers on housing and household finances. Bloxham said a rate hike by year end looks 'in the bag', with a further 100 basis points of tightening forecast through next year. Given interest rates are currently at 4.5%, that would take the cash rate to 5.75% by the end of 2011. 'This is despite growing concerns over the developed economies and the possibility of further quantitative easing. While the recent appreciation of the Australian dollar will help to somewhat mitigate inflationary pressures, we still think that interest rates will need to rise,' said Bloxham.
2010/09/30 12:35DJ ICBC: Goldman Sachs Sold Around 23% Of Its ICBC Stake Wednesday
HONG KONG -Industrial & Commercial Bank of China Ltd. (1398.HK) said Thursday U.S. investment bank Goldman Sachs Group Inc. cut its stake in the blue-chip company, but added the strategic partnership between the two lenders will continue. The Beijing-based bank said Goldman Sachs sold around 23% of its stake in ICBC via the block-trade system on Wednesday. That would translate to around 3.04 billion shares. A person familiar with the situation said Thursday that Goldman sold 3.04 billion ICBC shares at HK$5.74 each, raising a total of US$2.25 billion. The share sale was priced in the middle of a HK$5.70-HK$5.79 indicative range, the person said, adding that the size of the share sale was raised from 2.75 billion shares. The sale price represented a 3.9% discount to ICBC's closing price Wednesday of HK$5.97. At 0403 GMT, ICBC's shares were down 3.0% at HK$5.79, and were the day's most heavily traded stock with market volume of HK$2.93 billion. The Hang Seng Index was down 0.2% at 22,337.
2010/09/30 12:31=DJ ECB WATCH: Borrowing Costs At 1-Mo High; 6-Day Ops Add Clarity
LONDON -The cost of borrowing three-month euros in the interbank market Wednesday rose to its highest level in a month as banks prepared to repay EUR225 billion of loans to the European Central Bank.The ECB Wednesday allocated EUR104 billion in three-month funds to banks ahead of the repayment, but a full picture about banks' liquidity situation will only be available after Thursday's six-day operation.Combined allotment in the three-month and six-day tenders below the expiring EUR225 billion would mean banks are reducing dependence on ECB funding, although excess demand would probably be perceived as a sign of stress, analysts said.The shortened maturity profile of the ECB's total financing will, however, add uncertainty to the speed of further likely increases in the Euro Overnight Index Average Rate, or Eonia, an important money-market rate that is used to price a slew of assets.The three-month Euro Interbank Offered Rate, or Euribor, the rate at which term deposits between banks in the monetary union are offered, fixed Wednesday at 0.886%, up from 0.880% on Tuesday. Wednesday's fixing was the highest since Aug. 30, when the rate was set at 0.888%.Banks are set to repay EUR225 billion to the ECB Thursday, with a clutch of tenders expiring on the day. While banks in general have weaned themselves off ECB support, countries in some peripheral euro-zone countries are still dependent on the central bank's support because market costs remain prohibitive.Banks are widely expected to roll over around EUR180 billion to EUR190 billion, although demand at the ECB's three-month longer-term refinancing operation on Wednesday fell short of estimates of most market watchers, dragging Euribor futures and German bund prices lower.Demand at the three-month longer-term refinancing operations was EUR104 billion, below most expectations for around EUR150 billion. The ECB will also conduct a special six-day operation Thursday to coincide with the maturing operations, and this tender was seen picking up the slack.'The demand was lower than the EUR150 billion we had expected although it will be important to see the take-up at Thursday's six-day refinancing operation for a better view of the size of the total roll,' said Giuseppe Maraffino, an interest-rate strategist at Barclays Capital in London.'After today's results risks are skewed towards a higher-than-expected result tomorrow,' he said.According to Maraffino, the future direction of Euribor and Eonia won't depend only on the amount of excess liquidity but also on the ECB's timing in ending its stimulus efforts.Regardless of how much is rolled this week, 'we expect that the shortened maturity profile of the ECB's total financing will impose uncertainties on Eonia fixings going forwards, which should keep the Eonia curve quite steep,' said Morgan Stanley economists Laurence Mutkin and Elaine Lin.Expectations of tighter liquidity conditions rose Wednesday after Juergen Stark, an executive board member of the ECB, said the central bank is in the process of phasing out non-standard stimulus measures put in place during the financial crisis, confirming that some measures soon to mature won't be extended.While Wednesday's results fell short of most estimates, they were still more than expected by economists at the Royal Bank of Scotland, who said this reflects uncertainties regarding the time length for the ECB to continue meeting all bids at its refinancing tenders.'While we had thought take-up would be lower in the three-month tender, EUR25 billion, and higher in tomorrow's six-day tender, EUR155 billion, it would seem banks wanted to retain the flexibility to roll this three-month in late December,' RBS economist Nick Matthews said. This 'may reflect concern/uncertainty' as to whether three-month refinancing operations in the first quarter will be for full allotment, he said.Euribor is tracked more widely than its London Interbank Offered Rate euro counterpart, and is used as a benchmark for pricing a wider range of assets.Allied Irish Banks PLC and Erste Bank in Vienna each contributed a rate of 0.93%. Deutsche Bank contributed the lowest rate of 0.81%.
2010/09/30 12:26*DJ Dollar Falls Below Y83.50 On EBS; Lowest Since Sept 15 Intervention

2010/09/30 12:03DJ Senate Confirms Yellen, Bloom Raskin As Fed Board Members

2010/09/30 12:01PRESS RELEASE: S&P Report Looks At G-20 Ratings And Credit Trends
The following is a press release from Standard & Poor's: NEW YORK (Standard & Poor's) Sept. 29, 2010--In a report published today titled 'Credit Fundamentals Remain Intact For G-20 Sovereigns,' Standard & Poor's Ratings Services updates its projections for G-20 (the Group of 20) member governments and looks at the factors that could affect their creditworthiness in the near term. 'For some, growth in 2010 is turning out better than we had expected,'according to John Chambers, chairman of Standard & Poor's sovereign ratingcommittee. 'Argentina is benefiting from favorable terms of trade, Brazil fromhigher investment and consumption, and both Germany and Japan have hadsurprisingly strong exports,' he added. On the other hand, we have trimmed ourgrowth forecasts in 2011 and 2012 for the U.S. and Canada because we are ofthe view that the withdrawal of fiscal stimulus in the U.S. will be moredetrimental to its growth and that of its northern neighbor than we hadpreviously envisioned. 'Overall, we would characterize the growth prospects of all of thehigh-income G-20 nations as lackluster due to the dislocations in theirfinancial sectors and the ensuing deleveraging, particularly by households,which we believe will persist for some time to come,' said Mr. Chambers. Standard & Poor's fiscal forecasts continue to show high deficits formost high-income G-20 members. 'We have somewhat improved our deficitforecasts for the U.K., following government actions to redress publicfinances, and for Australia, whose revenue has held up better than we expectedit would,' Mr. Chambers added. Since our last G-20 report card published April 20, 2010, we have raisedone G-20 government rating--that of Argentina, to 'B'. Most of our outlooks onG-20 member governments are stable, although those on Turkey and Indonesia arepositive and those on the U.K., Japan, and South Africa remain negative. The report is available to RatingsDirect subscribers on the Global CreditPortal at www.globalcreditportal.com and RatingsDirect subscribers atwww.ratingsdirect.com. If you are not a RatingsDirect subscriber, you maypurchase a copy of the report by calling (1) 212-438-7280 or sending an e-mailto research_request@standardandpoors.com. Ratings information can also befound on Standard & Poor's public Web site by using the Ratings search boxlocated in the left column at www.standardandpoors.com. Members of the mediamay request a copy of this report by contacting the media representativeprovided.
2010/09/30 11:59=DJ FED WATCH: Central Bankers Suggest Asset-Buying Decision Nears

2010/09/30 11:50*DJ Goldman Sachs Ups ICBC Share Sale Size To 3.04B Shares Vs 2.75B Shares - Source

2010/09/30 11:50*DJ Goldman Sachs Raises US$2.25 Bln In ICBC Share Sale - Source

2010/09/30 11:49=DJ Dollar's Status As World's Reserve Currency Stable - CFR Report

2010/09/30 11:45*DJ ICBC: Goldman Says Will Continue Strategic Partnership With ICBC

2010/09/30 11:45*DJ ICBC: Goldman Sachs' ICBC Stake Was Sold Via Block-Trade System

2010/09/30 11:42*DJ ICBC: Goldman Sachs Sold Around 23% Of Its ICBC Stake Wednesday

2010/09/30 11:25*DJ Japanese Foreign Minister: To Seek Early Release Of 4th Japanese

2010/09/30 11:24*DJ S&P Report Says Asia-Pac Sovereigns' Credit Quality Is Stable

2010/09/30 11:21*DJ HSBC's Bloxham: RBA Rate Hike By Year-End Looks To Be In The Bag

2010/09/30 11:21*DJ HSBC's Chief Economist Bloxham Expects Hike Likely In November

2010/09/30 11:19*DJ HSBC's Chief Economist Bloxham Expects RBA On Hold In October

2010/09/30 11:16DJ Dodd: Obama Will Likely Nominate CFPB Director 'Soon' After Election
WASHINGTON -A key architect of the recently-enacted financial overhaul law predicted that the Obama administration would nominate a permanent director for the Consumer Financial Protection Agency shortly after the election. 'I believe the administration is going to name a director fairly soon, probably after the election,' Senate Banking Chairman Christopher Dodd (D., Conn.) said during a dinner event with the Economic Club of Washington, D.C. He said he didn't know whether President Barack Obama was considering nominating Harvard Law Professor Elizabeth Warren. Obama recently tapped Warren to act as a special advisor to help set up the new agency amid controversy over her possible nomination as its director. Many Democrats and progressive activists have lobbied hard for her nomination, but she would likely face a tough confirmation fight, since many Republicans oppose her. Dodd also said he plans to meet with Warren Thursday.
2010/09/30 10:53DJ Sinochem Struggling To Find Partners For Potash Bid - FT
China's Sinochem International Corp. (600500.SH) is struggling to find partners for a counterbid for Potash Corp. of Saskatchewan Inc. following the collapse of talks with a potential Russian partner, the Financial Times reported Wednesday on its website, without directly citing a source. Sinochem's talks with Russian fertilizer group Uralkali (URKA.RS) last week were unsuccessful, the report said, citing three unnamed people close to the talks. UralKali also held talks with Glencore about a potash marketing deal linked to Potash Corp., the report said, adding that Potash Corp., Sinochem and Glencore declined to comment. Full story: http://www.ft.com/cms/s/0/1e6bf9b2-cbf4-11df-bd280144feab49a.html
2010/09/30 10:27*DJ Senate Confirms Yellen As Federal Reserve Board Vice Chair

2010/09/30 10:26*DJ Senate Approves Bloom Raskin As Member Of Federal Reserve Board

2010/09/30 10:22DJ Anglo Irish Failure Would 'Bring Down' Ireland: Minister
LONDON --Ireland's finance minister has warned the failure of Anglo Irish Bank would 'bring down' the country, as regulators prepared to reveal Thursday the cost of bailing out the stricken lender. Brian Lenihan also pledged to stand behind the bank which will reportedly cost the state some EUR30 billion to rescue, in comments to the Financial Times newspaper. 'Any Anglo failure would bring down the sovereign,' the finance minister was quoted as saying in the FT. 'It is systemically important not because of any intrinsic merit in the bank. But because of its size relative to the national balance sheet. 'No country could contemplate the failure of such an institution.' Ireland will disclose Thursday the total cost of the state bailout of Anglo Irish. The Irish Times, without citing its source, has reported the cost could rise above 30 billion euros under a worst case scenario. That would equal around one fifth of Ireland's total annual economic output, at a time when the eurozone member nation is struggling to cut a huge public deficit sparked by the global financial crisis. Lenihan stressed that Ireland's financial health was better than other peripheral eurozone economies, saying it had borrowing already lined up to service debts and cover public services until the middle of 2011. Ireland had a EUR24 billion sovereign wealth fund and 'a cash pile' of more than EUR20 billion, the minister said. 'We are not obliged to go to the markets. We are not under a clear and present constraint,' Lenihan was quoted as saying in the FT. The Irish government has previously rejected speculation that it could have difficulty raising funds and might have to seek help from a huge EU rescue fund set up after the Greek debt crisis earlier this year.
2010/09/30 10:01*DJ NZ NBNZ Sep Firms' Own Activity Outlook +26.7%; Aug +25.7%

2010/09/30 10:00*DJ NZ NBNZ Sep Business Confidence +13.5%; Aug +16.4%

2010/09/30 09:36*DJ RBA: Conditions In Global Financial System Have Improved

2010/09/30 09:36*DJ RBA: Significant Uncertainties Remain In Global Financial System

2010/09/30 09:35=DJ ECB Trichet:Rules On Systemic Banks Should Account For Basel III
BRUSSELS -New banking rules agreed by global regulators this month to prevent future banking crises strike the right balance between tightening capital requirements and maintaining lending to the real economy, European Central Bank President Jean-Claude Trichet said Wednesday.But more work is needed to reduce the risks posed by systemically important financial institutions, Trichet said, speaking at a conference on financial regulation here.'It is essential that tools are developed which increase the shock-absorbing capacity of systemically important financial institutions and lower their contribution to systemic risk,' he said.The rules, known as Basel III, will require banks to hold more capital and for the first time introduce requirements on the liquidity of their asset portfolios.'I consider that our agreement strikes the right balance between the objective of strengthening the resilience of the financial sector and the need to avoid unduly severe implications for national banking systems,' he said.Policy makers considering additional limits on systemic banks, such as capital surcharges, should consider the impact of Basel III on these institutions before moving ahead, Trichet said.
2010/09/30 09:35*DJ RBA: Non-Performing Assets On Bank Balance Sheets Remain Low

2010/09/30 09:29*DJ Dollar Now Quoted At IDR8,915-IDR8,925 Vs IDR8,935 Late Wednesday

2010/09/30 09:24=DJ IMF Completes Iceland Review, Enables $163M To Be Disbursed

2010/09/30 09:14*DJ Dollar Was At IDR8,935 Late Wednesday

2010/09/30 09:13*DJ Dollar Now At IDR8,925, Lowest Since June 20, 2007

2010/09/30 09:10=DJ UPDATE: Goldman Sachs Seeks Up To US$2.05 Bln In ICBC Share Sale - Source
(Adds lockup expiry; Goldman's relationship with ICBC; ICBC share performance year-to-date; and ICBC's rights issue plan.) By Nisha Gopalan and Joanne Chiu Of 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 in an indicative range of HK$5.70-HK$5.79 per share, which will leave it with a stake of 3.1%, or 10.431 billion shares. The price range represents a discount of 3%-4.5% to ICBC's closing share price in Hong Kong 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 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. In March last year, it pledged not to sell 80% of its stake before April 28, 2010. A few months later, it sold around 20% of its stake, or 3.03 billion shares, for US$1.91 billion at HK$4.88 a share. The Goldman-ICBC relationship has included cooperation in areas such as deal advice. Goldman bankers advised ICBC on its purchase in 2007 of a 20% stake in Africa's largest lender, Standard Bank Group Ltd., for more than $5 billion, for instance. Goldman has also sent staff to ICBC, China's largest commercial lender by assets, to assist its efforts in improving risk management, and helped it manage its foreign-currency assets. The circumstances of the latest stake sale are different to those in 2009 when Goldman last sold ICBC shares. At that time, Western financial institutions globally were offloading stakes bought during Chinese bank IPOs to shore up their balance sheets in the wake of the global financial crisis. Bank of America Corp., Royal Bank of Scotland Group PLC and the Li Ka Shing Foundation, sold billions of dollars worth of Chinese bank shares last year. In April 2009, Allianz SE and American Express Co. sold half the shares they owned in ICBC, raising a total of $1.91 billion. Still, ICBC shares have underperformed the broader market this year. They have fallen 7.3% since the start of the year, compared with a 2.3% rise in Hong Kong's benchmark Hang Seng Index over the same period. But ICBC is also planning to sell new shares amounting to up to 20% of its existing Hong Kong- and Shanghai-listed stocks in a rights issue to shore up its balance after a government-directed lending push last year.
2010/09/30 09:07DJ Senate Passes $1.25T Bill To Fund Federal Government Through Dec. 3
WASHINGTON -The U.S. Senate on Wednesday voted to ensure there is funding in place to keep the federal government running until after the mid-term elections, allowing lawmakers to leave town to hit the campaign trail.The roughly $1.25 trillion measure will fund the various departments and agencies of the federal government until Dec. 3, by which time lawmakers will have had to reach a longer term funding solution.Senators voted 69-30 in favor of the legislation. The House of Representatives must still take up the bill--they are expected to do so later Wednesday evening.The measure was necessary because Congress failed to approve any of the 12 bills required to be passed each year to fund the federal government's operations.This year's situation isn't unusual. Lawmakers have rarely completed the entire spending process before the end of a fiscal year, especially in an election year. The Federal Government's fiscal year ends Sept. 30.Earlier, the Senate voted down an attempt by Republican Sen. John Thune (R., S.D.) to reduce spending across the board by 5%. Thune's measure would not have affected military spending. The Congressional Budget Office said the move would have shaved $22 billion off the cost of the legislation.Lawmakers also defeated an attempt to extend the spending measure through February.If the bill isn't approved by midnight Thursday, the federal government would be forced to shut down.The legislation would defer what is certain to be a more prolonged, politically bloodier fight about federal government funding levels.Since Democrats have taken control of the White House and Congress, they have pushed through increased levels of funding for many government programs.Republicans have pledged to try to freeze spending at current levels if they retake either the House or Senate in November's elections.
2010/09/30 08:53DJ Fed's Rosengren: More Easing Dependent On Economic Data - Reuters
A Federal Reserve decision on further monetary easing will depend in large part on future economic data, the Reuters news agency said in a report on their website Wednesday, citing Boston Fed President Eric Rosengren.Rosengren said policymakers will also have to consider the development of fiscal policy before deciding to engage in quantitative easing, the report said.Separately, Reuters reported Rosengren as saying the Fed should act "vigorously" to support a slowing economy."I'd want to see some progress on both our inflation and unemployment objectives," to be convinced no more monetary easing is needed, the report said, quoting Rosengren in an interview after his speech.Full Story:http://www.reuters.com/article/idUSN2927480920100929 http://www.reuters.com/article/idUSN2911219220100929
2010/09/30 08:45DJ Japan August Overall Retail Sales Up 4.3% On Year
TOKYO -Japanese retail sales rose for the eighth straight month in August, as eco-conscious consumers braved the sweltering heat to buy fuel-efficient cars before government subsidies ran out, while smokers hoarded cigarettes ahead of a tax hike.Ministry of Economy, Trade and Industry data showed Thursday that overall August retail sales grew 4.3% from the year-earlier month. Sales rose an adjusted 3.9% on year in July.With the thermometer nearly melting at 37 degrees at one point in Tokyo, August was one of Japan's hottest months on record. But the data showed that consumers still ventured outside thanks to strong demand for autos before the September end of government incentives for purchasing fuel-efficient cars, pushing up overall retail figures.The data showed that sales at convenience stores grew 3.2%, partly as shoppers stocked up on cigarettes before a planned hike in the tax per pack on Oct. 1. Earlier this month the Tobacco Institute of Japan said that August tobacco sales came to 20.3 billion cigarettes, rising for the first time in more than two years.Sales at large-scale retailers fell 1.3% on year, after adjustment for the change in the number of stores, the METI data showed. Website: http://www.meti.go.jp/english/statistics/index.html
2010/09/30 08:28*DJ Senate Passes $1.25T Bill To Fund Federal Government Through Dec. 3

2010/09/30 08:20DJ Japan August Industrial Output -0.3% On Month; Market Expected +1.1%
TOKYO -Japanese industrial production unexpectedly fell 0.3% in August from the previous month, the government said Thursday, marking the third straight month of decline and highlighting the impact of slowing exports.The result compared with a median forecast of a 1.1% on-month rise in a survey of economists by . Output fell 0.2% on month in July.Companies surveyed by the trade ministry on average expect industrial output to fall 0.1% in September, and drop 2.9% in October.The ministry revised its assessment on industrial output, saying it shows a flattening trend and a weakening outlook.The ministry had previously said that industrial output continued to show upward movement. Web site: http://www.meti.go.jp/english/statistics/index.html
2010/09/30 08:08*DJ Nikkei Stock Average In Positive Territory

2010/09/30 08:05*DJ Nikkei Stock Average Opens Down 0.1% At 9554.83

2010/09/30 08:02*DJ Lead December JGB Futures Open Down At 143.34 Vs 143.40 Wednesday

2010/09/30 07:52*DJ Japan Cos Forecast Oct Indus Output -2.9% On Mo

2010/09/30 07:51*DJ Japan Aug Shipments -0.5% On Mo

2010/09/30 07:51*DJ Japan Aug Inventories +0.7% On Mo

2010/09/30 07:51*DJ Japan Cos Forecast Sep Indus Output -0.1% On Mo

2010/09/30 07:51*DJ Japan Aug Large-Scale Retailers' Sales -1.3% On Year

2010/09/30 07:51*DJ Japan Aug Inventory-Shipments Ratio -0.9% On Month

2010/09/30 07:50*DJ Japan Aug Overall Retail Sales +4.3% On Yr

2010/09/30 07:50*DJ Japan Aug Indus Output -0.3% On Mo; Mkt Expected +1.1%

2010/09/30 07:38=DJ DATA SNAP: UK Consumer Confidence Decline Resumed In Sept

2010/09/30 07:18*DJ Peru's Central Bank Increases Reserve Requirements For Banks

2010/09/30 07:11*DJ US Dollar Touches S$1.3131 Overnight, Currently At S$1.3173

2010/09/30 07:05*DJ UK GfK Sep Consumer Confidence Was Forecast At -19

2010/09/30 07:01*DJ UK GfK Sep Consumer Confidence -20 Vs -18 Aug

2010/09/30 06:33DJ CREDIT MARKETS: Issuance Continues Apace; Treasurys Fall

2010/09/30 06:14=DJ WORLD FOREX: Fed Worries Generate Dollar's Continued Slide

2010/09/30 05:37DJ Portugal PM Announces Tough New Austerity Measures

2010/09/30 05:36DJ US Stocks Close Slightly Lower As Materials, Financials Slip-2-

2010/09/30 05:29DJ Treasurys Fall, But $29 Bln 7-Yr Notes Sold At Record Low Yield
YORK -Treasurys fell Wednesday for the first time this week as comments from Federal Reserve officials tempered bets that the central bank will step up government debt purchases.Fed Bank of Boston President Eric Rosengren, who votes on monetary policy this year, said that further monetary stimulus hinges on upcoming data. Charles Plosser, the president of the Philadelphia Federal Reserve Bank who isn't a voter this year, said he opposes a second round of Treasury purchases of any size, known as quantitative easing.The remarks pushed the bond market to give up a brief rally made on a strong $29 billion sale in seven-year notes. Some investors cashed out of the bond market following its rally in the previous two sessions that had sent the benchmark 10-year note's yield to near a 20-month low.Further quantitative-easing measures 'aren't a slam dunk as the bond market is thinking,' said Thomas Roth, executive director in the U.S. government bond trading group at Mitsubishi UFJ Securities Inc. in New York.As of 3:55 p.m. EDT, the benchmark 10-year note was down 8/32 to yield 2.497%, and the 30-year bond was down 12/32 to yield 3.681%. The seven-year note was down 5/32 to yield 1.870%. Bond prices move inversely to yields.The 10-year note's yield, a benchmark for consumer and corporate borrowings, touched 2.448% Tuesday, the weakest level since this year's trough of 2.418% on Aug. 25, which itself is the lowest level since January 2009.The seven-year notes were sold at a yield of 1.890%, the lowest since the maturity was reintroduced in February 2009 after a 17-year hiatus. The auction Wednesday also completed a record $2.3 trillion supply of Treasury notes and bonds, including inflation-linked securities, for the fiscal year ending Thursday.The U.S. government is the big winner as it continues to borrow at historically low interest rates to finance its budget shortfall. Monday's $36 billion two-year notes and Tuesday's $35 billion five-year notes were offered at record-low yields.'The Treasury certainly went three-for-three this week,' said Dan Greenhaus, chief economic and bond strategist at Miller, Tabak & Co. in New York. 'Despite record-low yields, those participating in the auctions remain focused on the stability of the Treasury market and, for whatever reason, remain of the belief that yields at current levels are attractive.'Demand for Treasury auctions has been robust as weak U.S. data and concern about the euro zone's sovereign debt problems bolstered demand for safe assets. The auctions this week got an extra boost as speculation had grown that the Fed needs to step up government debt purchases to tackle the weak economy.'It is a very successful week of auctions,' said Mary Ann Hurley, vice president of trading in Seattle at D.A. Davidson & Co. 'But we are sitting at the higher end of the trading range for bond prices, and investors need fresh trigger to add to' their holdings of Treasurys.Thursday, investors will zero in on two major data releases: the final estimate on gross domestic product for the second quarter and the weekly jobless claims. Both are due at 8:30 a.m. EDT. US Swap Spreads Mixed The two-year spread, which measures the differential between the two-year swap rate and two-year Treasury yield and a main gauge of credit risks, was 0.5 basis point tighter at 16 basis points. The 10-year swap spread was 1.25 basis points wider at 3.75 basis points.
2010/09/30 05:15DJ Fed's Plosser: Doesn't Currently Support Further Asset Buying

2010/09/30 05:00DJ US Stocks Close Slightly Lower As Materials, Financials Slip

2010/09/30 04:51DJ OIL FUTURES: Nymex Crude Rallies On Drop In Inventories

2010/09/30 04:11*DJ Nasdaq Closes Off 3 (0.1%) At 2377; Materials, Financials Fall

2010/09/30 04:10*DJ DJIA Closes Down 23 (0.2%) At 10835; DuPont, Amex Slip

2010/09/30 03:58DJ Fed's Rosengren: US Economy Not Growing Fast Enough
NEW YORK -A key Federal Reserve official said Wednesday central bankers must be ready to act to aid a weak economy, but stopped short of advocating action."While the economy is growing, it is currently growing too slowly to significantly reduce the unemployment rate or stem disinflationary pressures created by the high degree of slack in the economy," Federal Reserve Bank of Boston President Eric Rosengren said."My firm view is that it is important that policymakers be open to implementing policies consistent with achieving full employment, and an appropriate level of inflation, within a reasonable time frame," he said.Rosengren is a voting member of the interest rate-setting Federal Open Market Committee. His comments came from the text of a speech to be delivered to a group of economists in New York.The official spoke as rising concern about economic weakness and overly low levels of inflation have brought the Fed closer to providing new support to the economy. The most likely path available to central bankers is to restart their program that buys long term assets. The Fed ended an effort that bought mortgage, Treasury and agency debt last spring, helping to lower long-term borrowing costs for both households and companies.While the actual impact of the effort is hard to gauge, central bankers have edged closer to buying securities again, and many economists think such a program could return as soon as the November FOMC meeting. While Rosengren didn't state his preference for action, he nevertheless explored how asset buying works in his speech."Views on securities purchases differ within the ranks of policymakers and all manner of observers," Rosengren said. "It is important to keep firmly in mind the goal of such purchases: to stimulate the economy by reducing long-term interest rates to a level that is more consistent with where they would be, were we able to further reduce the federal funds rate."He continued to fret about the state of the economy."Current economic conditions - an unemployment rate near 10%, sluggish growth, and undesirably low inflation - together constitute a serious economic problem," Rosengren said.The central banker tilted against those who believe the economy is suffering from structural problems on the jobs front, pointing out "job mismatches are not the primary problem," saying instead, "I see here a widespread decline in demand across most industries" depressing demand for workers.Rosengren noted the economy in its current state is better than what came before. He explained "policymaking has been effective at stabilizing the economy, but the recovery remains far too weak to restore what we consider full employment with the speed I would like to see."But he did add that "we are in a far better place than we were two years ago, when financial markets and economic activity were in the process of 'seizing up,'" Rosengren said."The stock market is well off its lows, interest spreads have narrowed, and the economy has had four quarters of positive, if anemic, growth," he said.He noted that if the Fed were to buy assets again, "I can assure you that we have no desire or intention whatsoever" of monetizing government debt.
2010/09/30 03:23*DJ Portugal PM: Govt To Raise VAT To 23%

2010/09/30 03:21*DJ Portugal PM: Govt Will Carry Out Additional Austerity

2010/09/30 03:21*DJ Portugal PM: Govt To Cut Public Sector Salaries By 5%

2010/09/30 03:11DJ PRECIOUS METALS: NY Gold Sets Another Record As Dollar Dips

2010/09/30 02:35*DJ OIL FUTURES: Crude Nears $78/Bbl On Inventory Declines

2010/09/30 02:34*DJ OIL FUTURES: Nymex Crude Settles Up $1.68 At $77.86/Bbl

2010/09/30 02:14DJ Fed Kocherlakota: Open-Minded About Which Easing Tool To Use
LONDON -Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said Wednesday he is "open-minded" about the best tool to ease policy further, and that it would depend on the conditions at the time.Responding to questions from the audience following a speech in London, Kocherlakota noted that the Federal Open Market Committee had made clear that it stood ready to provide additional stimulus, if necessary, to support the recovery.In his speech, Kocherlakota said that fresh support for the economy, in the form of renewed Federal Reserve long-term asset purchases, may not help all that much.The Fed has bought significant amounts of Treasury, mortgage and agency debt, in a bid to lower borrowing costs and spur economic demand.Responding to questions, Kocherlakota said additional fiscal stimulus from the U.S. administration at this point, wouldn't pose a threat to fiscal stability."But in the longer run, we need a commitment on the fiscal side to get our house in order," he said.Kocherlakota doesn't currently have a vote on the interest-rate setting Federal Open Market Committee.Asked about a speech he made in April, when he said he approved of reducing the Fed's balance sheet as conditions improved, Kocherlakota said his comments had been appropriate at the time."Conditions have changed and my policy stance has adjusted according to conditions," he added.
2010/09/30 01:58*DJ Comex Dec Gold Settles At Record $1,310.30 As US Dollar Falls

2010/09/30 01:35*DJ NY Dec Gold Up $2 at $1,310.30 After Close, Ahead Of Settle

2010/09/30 01:32*DJ Comex Gold Poised For Fresh Record Settle Above $1,300/Oz

2010/09/30 01:24*DJ Long-dated Treasurys Rebound, Erasing Losses, After 7-Yr Sale

2010/09/30 01:22DJ Fed's Rosengren: US Economy Not Growing Fast Enough
NEW YORK -A key Federal Reserve official said Wednesday central bankers must be ready to act to aid a weak economy, but stopped short of advocating action."While the economy is growing, it is currently growing too slowly to significantly reduce the unemployment rate or stem disinflationary pressures created by the high degree of slack in the economy," Federal Reserve Bank of Boston President Eric Rosengren said."My firm view is that it is important that policymakers be open to implementing policies consistent with achieving full employment, and an appropriate level of inflation, within a reasonable time frame," he said.Rosengren is a voting member of the interest rate setting Federal Open Market. His comments came from the text of a speech to be delivered to a group of economists in New York.The official spoke as rising concern about economic weakness and overly low levels of inflation have brought the Fed closer to providing new support to the economy. The most likely path available to central bankers is to restart their program that buys long term assets. The Fed ended an effort that bought mortgage, Treasury and agency debt last spring, helping to lower long-term borrowing costs for both households and companies.While the actual impact of the effort is hard to gauge, central bankers have edged closer to buying securities again, and many economists think such a program could return as soon as the November FOMC meeting. While Rosengren didn't state his preference for action, he nevertheless explored how asset buying works in his speech."Views on securities purchases differ within the ranks of policymakers and all manner of observers," Rosengren said. "It is important to keep firmly in mind the goal of such purchases: to stimulate the economy by reducing long-term interest rates to a level that is more consistent with where they would be, were we able to further reduce the federal funds rate."He continued to fret about the state of the economy."Current economic conditions - an unemployment rate near 10%, sluggish growth, and undesirably low inflation - together constitute a serious economic problem," Rosengren said.The central banker tilted against those who believe the economy is suffering from structural problems on the jobs front, pointing out "job mismatches are not the primary problem," saying instead, "I see here a widespread decline in demand across most industries" depressing demand for workers.Rosengren noted the economy in its current state is better than what came before. He explained "policymaking has been effective at stabilizing the economy, but the recovery remains far too weak to restore what we consider full employment with the speed I would like to see."But he did add that "we are in a far better place than we were two years ago, when financial markets and economic activity were in the process of 'seizing up,'" Rosengren said."The stock market is well off its lows, interest spreads have narrowed, and the economy has had four quarters of positive, if anemic, growth," he said.He noted that if the Fed were to buy assets again, "I can assure you that we have no desire or intention whatsoever" of monetizing government debt.
2010/09/30 01:17*DJ Rosengren: Low Growth, Prices Pressures, Unemployment 'Serious Economic Problem'

2010/09/30 01:06*DJ Long-dated Treasurys Down But Pare Losses After 7-Yr Auction

2010/09/30 01:05*DJ Treasury Sells 7-Yr Notes At Historically Low Yield Of 1.890%

2010/09/30 00:45DJ EU Proposes Fines For Euro Countries That Breach Budget Pact
BRUSSELS -The European Commission Wednesday proposed a package of legislation to improve surveillance of public finances in the European Union and impose tougher sanctions on euro area countries that fail to limit public deficits, debt and macroeconomic imbalances.The proposals amount to a major shift of power to the commission, the EU's executive arm, over national economic policies, particularly for the 16 countries that use the euro. The commission would have the authority to impose sanctions on euro area states that could only be reversed by a supermajority of EU nations.The idea is to prevent EU nations from interfering with enforcement of the bloc's budget rules, which call for governments to keep their budget deficits below 3% of annual gross domestic product and their total debt below 60% of GDP. In 2003, the commission said France and Germany's deficits violated the budget rules, but finance ministers overturned the decision, an episode that observers say damaged the commission's ability to enforce EU budget rules.The legislation would allow the commission to impose fines of up to 0.2% of gross domestic product for a euro area country that repeatedly ignores its recommendations.The commission is also seeking the responsibility for monitoring macroeconomic imbalances in EU countries and the power to fine euro area states, up to 0.1% of GDP, that don't follow its recommendations for correcting these imbalances. The commission would monitor a host of economic indicators--labor costs, real estate prices--that would suggest a country is losing economic competitiveness relative to other countries in the euro area.These imbalances are in some ways closer to the heart of the euro area's problems than excess deficits and debt, EU officials say.'This is the favorite topic of Jean-Claude Trichet in almost every euro-group meeting,' a senior commission official said.Countries that lose competitiveness due, for example, to rapidly rising wages normally see their currencies devalue, boosting exports and preventing growth from stagnating.But euro area countries such as Spain and Ireland, which saw wages rise quickly during the previous decade of economic expansion, are now facing stagnation as their economies are no longer competitive.Advice for euro area countries in this situation could be to cut public-sector wages, in the hope that private-sector wages would fall as well.The European Parliament and the European Council must approve the legislation before it can become law.
2010/09/30 00:39*DJ Plosser: Sees Core Inflation At 1%-1.5% In 2010, Near 2% In 2011

2010/09/30 00:38*DJ Plosser: Sees US Growth At 3%-3.5% Over Next Two Years

2010/09/30 00:38*DJ Plosser: US In Midst Of 'Modest' Recovery; Outlook Positive

2010/09/30 00:36*DJ Plosser: Unemployment Rate One Of Economy's Biggest Challenges

2010/09/30 00:36*DJ Plosser: Labor Market Will Take Time To Heal, Will Pick Up This Year

2010/09/30 00:35*DJ Plosser: Says Monetary Policy Is Not A Magic Elixir

2010/09/30 00:32*DJ Fed's Plosser: Does Not Currently Support Further Asset Buying

2010/09/30 00:19DJ Irish NAMA: Loans On Northern Ireland Assets Seen At EUR4B
DUBLIN -Ireland's National Asset Management Agency said Wednesday that the nominal value of loans it will acquire which are secured on Northern Ireland assets will come to approximately EUR4 billion.The figure was released by Peter Stewart, director and chairman of the NAMA Board's Advisory Committee on Northern Ireland. Stewart was speaking at a conference on the Northern Ireland's economy in Belfast.Overall, NAMA will issue bonds to the value of EUR40 billion of the total EUR81 billion book value of the good and bad property and development loans it buys from Ireland's financial institutions.Ireland's banks were hard hit by the global financial crisis. They made big loans to property developers and many of those loans are unlikely to be repaid. The government has also used billions of euros to recapitalize the banks.
2010/09/30 00:11DJ ECB's Weber: G-20 Must Approve Basel III Package In Nov
BRUSSELS -The new Basel III package of measures to raise banks' risk buffers must be implemented globally as an essential first line of defense against financial crises, the president of Germany's Bundesbank Axel Weber said Wednesday.Speaking at a financial forum, Weber said the Group of 20 systemically important industrialized and developing nations must play their part and approve the package at their summit in November.But that is only part of the solution as the past crisis showed even sound banks can fail when the financial system founders, he said.'Strong political commitment' is still needed to find a credible solution to the remaining problem of huge banking institutions that are deemed 'too big too fail,' Weber said.Weber is also a European Central Bank Governing Council member.