2010/10/01 17:41DJ Hedge Funds Threaten Legal Action Over Anglo Irish Bailout-Report
LONDON -Hedge funds are trying to force the Irish government to pay them more than current market prices for junior debt they hold in the nationalized Anglo Irish Bank Corp. PLC and say they could trigger a default crisis if their demands aren't met, U.K. newspaper the Daily Telegraph reports Friday. The U.K. and U.S.-based funds say the government has no legal right to force them to accept a lower value on the assets. They are understood to be prepared to take the Irish government to court, the newspaper said, without citing its sources. Thursday, Ireland's central bank said the final bill for bailing out Anglo Irish Bank could climb as high as EUR34 billion. Full story: www.telegraph.co.uk/finance/newsbysector/banksandfinance/8035645/Hedge-funds-hold-Ireland-to-ransom-over-Anglo-Irish-Bank-bail-out.html
2010/10/01 17:33*DJ S&P Analyst: Dollar May Fall Below Y80.0
2010/10/01 17:33*DJ S&P Analyst: 10-Yr JGB Yield May Rise To 1.5%-1.8% Range In Year
2010/10/01 17:31*DJ S&P Analyst: Japan Govt, BOJ Efforts Vs Deflation "Not Enough"
2010/10/01 17:24=DJ DATA SNAP: Euro-Zone Unemployment Rate 10.1% In August
LONDON -The euro zone's unemployment rate was unchanged at 10.1% in August, although the number of people without work fell by 20,000 to 15.9 million. The European Union's statistics agency Friday raised its estimate of the unemployment rate in July from 10.0%. The currency area's unemployment rate rose sharply during the recession that followed the global financial crisis, but has steadied at around 10% since March. However, there are few signs that the resumption of economic growth is leading to significant job creation, even though surveys have indicated that business confidence has improved markedly in recent months. Germany appears to leading the return to work, with its unemployment rate falling to 6.8% from 6.9% in July. According to a survey of purchasing managers in the manufacturing sector released earlier, German and Austrian factories were alone in hiring new workers in September. The jobs outlook continues to be grim in those euro-zone economies that have embarked on austerity programs designed to bring down their large budget deficits. In Spain, the unemployment rate rose to 20.5% from 20.3%, while for those aged 25 years and under it rose to 41.6% from 42.4%. In Ireland, the unemployment rate rose to 13.9% from 13.8%, although in Portugal it fell to 10.7% from 10.8%. In the European Union as a whole, the unemployment rate was steady at 9.6%, while the number of people without a job fell by 68,000 to 23.1 million.
2010/10/01 17:23*DJ BMW Recalls 198,000 Cars In U.S. Due To Brake Problems
2010/10/01 17:15*DJ 3-Month Euribor Rises To 0.942% Vs 0.892% Thursday
2010/10/01 17:01=DJ DATA SNAP: UK Sep Manufacturing PMI Slips To 10-Month Low
2010/10/01 17:00*DJ Euro-Zone Aug Jobless Rate 10.1% Vs 10.1% In Jul
2010/10/01 17:00*DJ Euro-Zone Aug Jobless Rate Was Seen At 10.0%
2010/10/01 16:58DJ Long-Term JGBs Fall On Stock Rallies; BOJ Policy Decision Awaited
TOKYO -Long-term Japanese government bonds were lower on Friday as Tokyo shares rallied with upward pressure on the yen easing, chipping away at demand for safe-haven assets. Looking ahead, market participants are watching for whether the Bank of Japan eases monetary policy further at its policy board meeting next week. If it does so, long-term JGB yields--which are already at multi-year lows--could fall even more. The prevailing market view is that the BOJ will continue to take measures to help cushion the impact of the strong yen, so investors are likely to snap up bonds now to sell again when the yields show signs of dropping, said Tetsuya Miura, chief market analyst at Mizuho Securities. Yields move inversely to prices. Some traders also say long-term JGB yields may extend declines if the central bank, albeit unlikely, decides to implement such drastic steps as increasing the amount of long-dated JGB purchases from the market. 'Should the BOJ take such a radical measure, investors would become very eager to buy longer-term JGBs, pushing the yields sharply lower,' a dealer at a Tokyo securities house said. BOJ officials have long opposed the idea of increasing the size of the bank's JGB buying operations because it could fan market concern that the BOJ is handing the government a blank check for public spending projects, possibly undermining the credibility of Japanese sovereign debt in the long term. The BOJ now purchases Y1.8 trillion worth of JGBs each month and Y21.6 trillion annually via outright operations. According to a survey by , nine out of 10 economists expect the central bank at its Oct. 4-5 policy meeting to expand liquidity-provision measures--including increases in the supply of six-month loans or purchases of more short-term government bills. The BOJ is also expected to keep its overnight call loan rate at 0.1%, unchanged since December 2008. As of 0600 GMT, the benchmark 10-year yield was up three basis points at 0.960%. Lead December JGB futures ended at 143.32, down 0.10. The 20-year yield also climbed three basis points to 1.700%, making the yield curve steeper. But the two-year and five-year yields dropped on speculation for BOJ monetary easing next week. Elsewhere, government data showed Friday that Japan's consumer prices fell in August for the 18th consecutive month, suggesting no end in sight for a deflationary trend that has been undermining the broader economy. Analysts warn that deflation may accelerate as the yen stays strong with the outlook for the U.S. and European economies uncertain, dragging on Japan's export-reliant economy and reducing the prices of oil, food, metals and other commodities the country buys from overseas. Demand for long-term JGBs won't likely peter out, as long as deflation continues, traders say.
2010/10/01 16:44=DJ DATA SNAP: Euro-Zone Manufacturing Slowed In September
2010/10/01 16:35*DJ Bank Negara Suspected Of Buying Dollars At MYR3.0850 - Dealers
2010/10/01 16:29*DJ UK Aug Mfg PMI Was 53.7
2010/10/01 16:28*DJ UK Sep Mfg PMI Forecast At 53.8
2010/10/01 16:28*DJ UK Sep Mfg PMI 53.4 - Sources
2010/10/01 16:22*DJ Euro Rises To Fresh 6 Month High Above $1.3692 - EBS
2010/10/01 16:12DJ EU's Rehn: In Favor Of Exploring Financial Transaction Tax
BRUSSELS -The European Commission is backing a proposal to impose a tax on cross-border currency trades and other financial transactions, the European Union's Commissioner for Economic and Monetary Affairs Olli Rehn said Friday. 'We are in favor of exploring a financial transaction tax,' Rehn said as he arrived for a meeting of EU finance ministers.
2010/10/01 16:10DJ PRECIOUS METALS: Gold Steady In Asia; Silver, PGMs Gain
SINGAPORE -Gold was steady in Asia but silver and platinum advanced, helped by gains in equities and industrial metals. Gold's curious position as an asset that sometimes benefits from poor U.S. data readings but can also trade in tandem with equities and other commodities was amply demonstrated with no real direction Friday. Positively received U.S. data overnight had prompted some profit taking, pushing the yellow metal off its record high of $1,316.25 a troy ounce, but this wasn't enough to prompt a real correction, given risk assets were advancing. At 0625 GMT, spot gold was at $1,308.80/oz, down 70 cents. On Tocom, August 2011 gold was at Y3,521 a gram, up Y2. Spot silver was at $21.80/oz, up 6 cents but well off Thursday's 30-year high of $22.10. Spot platinum was at $1,663/oz up $12, while spot palladium was at $568/oz, up $5. A busy day of data could help give further direction to precious metals, with Germany's September Manufacturing Purchasing Managers Index due at 0755 GMT, followed by the euro-zone September Manufacturing PMI at 0800 GMT, the University of Michigan U.S. consumer sentiment index at 1355 GMT, and the Institute for Supply Management manufacturing PMI at 1400 GMT. 'Should economic data print better than expected today, this could prompt profit taking by weak longs and gold prices may edge down,' said Phillip Futures. Gold's 4.3% gain back in August looks even more impressive, given overnight news that the International Monetary Fund sold 18.5 metric tons of gold in August on the open market during the month. August's sales were the strongest in four months and bring the IMF's total on-market sales to 106.8 metric tons. Off-market, the IMF has sold 222 tons of gold to central banks in India, Sri Lanka, Bangladesh and Mauritius. That leaves it 74.5 tons short of its 403.3 tons sales plan which began last year.
2010/10/01 15:59*DJ Euro-Zone Sep Mfg PMI Forecast At 53.6
2010/10/01 15:59*DJ Euro-Zone Aug Mfg PMI Was 55.1
2010/10/01 15:58*DJ Euro-Zone Sep Mfg PMI 53.7 - Sources
2010/10/01 15:54*DJ German Aug Mfg PMI Was 58.2
2010/10/01 15:53*DJ German Sep Mfg PMI 55.1 - Sources
2010/10/01 15:53*DJ German Sep Mfg PMI Forcast At 55.3
2010/10/01 15:49*DJ French Aug Mfg PMI Was 55.1
2010/10/01 15:48*DJ French Sep Mfg PMI 56.0 - Sources
2010/10/01 15:48*DJ French Sep Mfg PMI Forecast At 55.4
2010/10/01 15:44*DJ Italian Sep Mfg PMI Forecast At 52.0
2010/10/01 15:44*DJ Italian Aug Mfg PMI was 52.8
2010/10/01 15:44*DJ Italian Sep Mfg PMI 52.6 - Sources
2010/10/01 15:35=DJ FX ASIA: Region's Currencies To Pull Back 4Q On Intervention
2010/10/01 15:05DJ Forex Options: Dollar/Yen Options Decline On Slight Spot Moves
TOKYO - Dollar/yen options edged down Friday, as the underlying exchange rate stayed in a narrow range, but further falls appear unlikely as bargain-hunting may emerge below current low levels.Benchmark volatilities implied by one-month at-the-money options declined to 10.55%/11.25% in Tokyo from 10.60%/11.30% New York Thursday.An options dealer at a major brokerage in Tokyo said volatilities won't likely fall much more later in global day even if the exchange rate breaks out of the Y83.44-Y83.58 range it traded in during the Asia morning session because current low prices are attractive to some players.The dealer said the market is focused on U.S. ISM data for September set to be released at 1400 GMT. A median forecast of economists polled by is for U.S. manufacturing PMI to decline 54 from 56.3 for August.Foreign exchange traders say if the U.S. data turns out to be worse than expected, that will fuel the speculation that U.S. Fed may ease monetary policy soon, prompting investors to sell the greenback.Volatilities are likely to rise if the dollar falls against the yen because Japanese players will likely buy downside hedges in that case, increasing demand for options contracts.
2010/10/01 15:03*DJ Stoxx 600 Index Up 0.1% After The Open
2010/10/01 15:02*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 ptember 30, 2010 03:00 ET (07:00 GMT)*DJ FTSE 100 Up 0.2% After The Open -
2010/10/01 14:46=DJ WORLD FOREX: Yen's Dollar Strength, Euro Weakness Creates Japan Policy Quandry
2010/10/01 14:41*DJ HSBC Raised To Conviction Buy From Buy By Goldman Sachs
2010/10/01 14:36=DJ WORLD FOREX: Yen's Dollar Strength, Euro Weakness Creates Japan Policy Quandry
2010/10/01 14:30=DJ WORLD FOREX: Yen's Dollar Strength, Euro Weakness Creates Japan Policy Quandry
2010/10/01 14:30=DJ BIG PICTURE: Growth Will Accelerate, But Not Enough For Jobs
2010/10/01 14:21*DJ BOK May Have Bought About $1.5B-$2B In Total Friday -Traders
2010/10/01 14:19*DJ BOK Likely Bought Dollars Around KRW1,130-KRW1,131 In Afternoon -Traders
2010/10/01 14:18=DJ DATA SNAP: German Retail Sales Decline Unexpectedly By 0.2% In August
2010/10/01 14:17*DJ BOK Likely Intervened Again In Afternoon Trade To Curb Won's Gains -Traders
2010/10/01 14:04*DJ Nikkei Stock Average Closes Up 0.4% At 9404.23
2010/10/01 14:00*DJ German Aug Retail Sales Forecast At +0.5% On Month
2010/10/01 14:00DJ Japan PM Kan: Expect BOJ To Take Further Necessary Steps To Beat Deflation
TOKYO -Japanese Prime Minister Naoto Kan Friday renewed his hopes for the central bank to take more policy steps to beat deflation and reminded the currency market that he won't tolerate sharp moves in the yen.'I expect the Bank of Japan to closely cooperate with the government and take further necessary policy actions to end deflation,' Kan said during his general policy speech at the opening session of the Diet.As for the recently-surging yen, Kan said 'we have , and will take decisive action when necessary.'Kan's remarks came just before the BOJ's two-day policy setting meeting, which takes place Monday and Tuesday, at which analysts expect additional easing measures will be adopted.The yen has meanwhile kept rising, prompting speculation among currency investors over whether Japan is still willing to step into the market to tame its gains. The government sold Y2.125 trillion through intervention in September, the finance ministry said.The premier has been saying that persistent price declines and the rising yen are major burdens on business sentiment and the export-reliant economy, weighing on labor market conditions and consumer spending. He said Friday that for these reasons it is important to overcome the challenges to revitalizing the economy.The government reported earlier in the day that the core consumer price index dropped for the 18th straight month in August, while the dollar stood at Y83.40 as of 0100 GMT, well below firms' assumed rate of Y89.66 shown in the BOJ's tankan survey of firms released Wednesday.Deflation is continuing because of lackluster consumer demand stemming from concerns over job security, Kan said, adding that the government is focused on creating more employment opportunities.'Any cost-cutting efforts by firms will only result in a worsening of deflation amid the absence of demand,' he said. 'Jobs are what we need now.'A major fiscal challenge to the government is the nation's mounting debt, which is the largest among industrialized nations.Kan said his administration aims to achieve primary-balance surplus by fiscal 2020 and will initiate a debate about tax reforms, including an increase in the consumption tax, with ruling and opposition parties.On the diplomacy front, he said Japan's relationship with China is 'very important' for Asia and the rest of the world, though he added he is worried about China's recent moves.'I am concerned about China's strengthening of its defence lacking transparency and also recent marine activities in the Indian Ocean and the East China Sea,' he said.Kan added, referring to disputed islands in the East China Sea, that 'history and international law tell us that the Senkaku islands are our domain.'The premier added that Japan's alliance with the U.S. is the foundation of Japan's foreign policy and national security.
2010/10/01 14:00*DJ German Aug Retail Sales Real Adj -0.2% On Month
2010/10/01 14:00*DJ German Aug Retail Sales Real +2.2% On Year
2010/10/01 13:51DJ Japan's Domestic Auto Sales Down 4.1% On Year In September
TOKYO -Japan's domestic sales of new cars, trucks and buses declined 4.1% in September from the same month a year earlier, falling for the first time in 14 months following the expiration of government buying incentives earlier in the month, the Japan Automobile Dealers Association said Friday.The decline came after a 46.7% surge in August when customers rushed to dealerships as the termination of the incentives approached.The government on Sept. 8 axed the subsidies program aimed at encouraging consumers to buy fuel-efficient cars as the budget for the program ran out.Still, the government continues to offer other types of aid to spur domestic auto sales, with tax breaks for fuel-economy cars that are effective until April 2012.Sales totaled 308,663 vehicles in September, the association said.Sales of Toyota vehicles fell 6.9%, while those of its Lexus luxury brand rose 18.5%. At Nissan, sales increased by 4.7% and at Honda they declined by 11.7%.Auto sales, as measured by registrations of vehicles with the government, are monitored by economists since they are the first consumer spending figures released each month.The figures don't include sales of mini vehicles. Website: http://www.jada.or.jp
2010/10/01 13:18*DJ OIL FUTURES: November Nymex Crude Hits 7-Week High At $80.45/Bbl
2010/10/01 13:10*DJ Kan: To Achieve Primary Balance Surplus By Fiscal 2020
2010/10/01 13:06*DJ Kan: Will Take Decisive Forex Action When Necessary
2010/10/01 13:05*DJ Japan's September Auto Sales Fall For First Time In 14 Months
2010/10/01 13:05*DJ Japan PM Kan: Expect BOJ To Take Further Necessary Steps To Beat Deflation
2010/10/01 13:01*DJ Japan's Domestic Auto Sales -4.1% On Year In Sep
2010/10/01 13:00*DJ Japan's Domestic Auto Sales -4.1% On Year In Sep
2010/10/01 12:34DJ FAO Food Price Index Hits 25 Month High On Cereals, Sugar
SINGAPORE -The United Nations Food and Agriculture Organization Friday revised up its monthly food price index to a 25-month high, mainly due to higher global cereal and sugar prices. The index now stands at 188, up 6.2% from August, and is the highest since August 2008. The FAO index is a measure of the monthly change in international prices of a basket of commodities, and is closely tracked by analysts and investors as a global benchmark for food price trends. FAO raised its Cereals Price Index to 208, 12.4% higher on month, and its Sugar Price Index by 20% to 315.5.
2010/10/01 12:05*DJ FAO Cereals Price Index Hits 2-Year High In September
2010/10/01 12:04*DJ FAO September Sugar Price Index Up 20% On Month At 315.5
2010/10/01 12:03*DJ FAO September Cereals Price Index Up 12.4% On Month At 208
2010/10/01 12:02*DJ FAO September Food Price Index Up 6.2% On Month At 188
2010/10/01 12:02*DJ FAO Food Price Index Hits-25 Month High On Cereals, Sugar
2010/10/01 11:58*DJ Nikkei Stock Average Turns Briefly Negative
2010/10/01 11:34*DJ BOK May Have Bought Around $1B To Curb Won's Rise In Morning - Trader
2010/10/01 11:33*DJ BOK Likely Intervened Aggressively Near KRW1,138-KRW1,139 - Traders
2010/10/01 11:14*DJ LME 3-Month Copper Hits New 2-Year High At $8,085/Ton
2010/10/01 10:41=DJ INTERVIEW: Ex-MOF Sakakibara: Japan Mustn't Take FX Step Again
2010/10/01 10:05DJ UK's Cameron Sets Up Business Council For Policy Advice
LONDON -U.K. Prime Minister David Cameron announced Friday he will convene a Business Advisory Council to offer advice and present the concerns of key sectors of the business community.Cameron will serve as chairman of the council, which will meet quarterly and includes leading U.K. and foreign business leaders, including Google Inc. Chief Executive Eric Schmidt, GlaxoSmithKline CEO Andrew Witty, Tata Group Chairman Ratan Tata, Dyson Appliances Ltd. founder Sir James Dyson and BAE Systems PLC (BAESY, BA.LN) Chairman Dick Olver.In addition to Cameron, Chancellor of the Exchequer George Osborne, Business Secretary Vince Cable and Deputy Prime Minister Nick Clegg will attend meetings.'It is vital we get these policies right as we take forward our plans to drive down the deficit and transform our economy,' Cameron said. 'Our prize will be balanced growth, getting Britain working and ensuring our whole country shares in rising prosperity.'When he took office, Cameron made one of the priorities of his coalition government to declare the U.K. open for business again.However, the government has already clashed with business over some key issues, including a temporary immigration cap that has made it hard for some multinational companies to recruit skilled foreign workers.And in a speech last week, Cable, who is from the smaller Liberal Democrats junior coalition party, caused a stir in the business community by promising to shine a 'harsh light into the murky world of corporate behavior.'Of the businessmen listed by Cameron's office as joing the council, only one is from the U.K.'s once politically powerful banking industry--HSBC Holdings PLC (HBC, HSBA.LN, 0005.HK) Chairman Stephen Green. Green is stepping down from his role to become Cameron's trade minister in January.The previous Labour government also had various forums to bring together leading entrepreneurs with senior politicians.
2010/10/01 09:58*DJ OIL FUTURES: November Nymex Breaches 7-Week High; Last $80.34/Bbl
2010/10/01 09:54DJ Hon Hai: To Issue US$1 Bln US Dollar Convertible Bonds
TAIPEI -Hon Hai Precision Industry Co. (2317.TW) said Friday that it plans to sell US$1 billion worth of U.S. dollar convertible bonds on Oct. 12 to fund raw material procurement and reduce interest expenses.The bond sale comes amid Hon Hai's expansion of its production plants in China to meet strong demand for consumer electronics products.The world's largest contract maker of electronics products, which assembles products for Apple Inc. and Dell Inc., said the three-year convertible bonds will have a conversion price of NT$152.75 a share.
2010/10/01 09:49DJ Japan Finance Minister: Will Take Decisive Forex Steps If Needed
TOKYO -Japan's finance minister said Friday the government will take 'decisive' measures to counter rises in the yen if deemed necessary, signaling his displeasure with the currency's renewed strength.'We will take decisive steps when necessary going forward,' Yoshihiko Noda said at a news conference after a regular Cabinet meeting.
2010/10/01 09:43*DJ Dollar Now Quoted At IDR8,920-IDR8,925 Vs IDR8,920 Late Thursday
2010/10/01 09:17*DJ Japan Fin Min Noda: Will Take Decisive Forex Steps If Needed
2010/10/01 09:17DJ Geithner: Administration Has Better Plan For Economy Than GOP
WASHINGTON -U.S. Treasury Secretary Timothy Geithner said Thursday the Obama administration's proposal to extend tax cuts for just the middle class while spurring business and infrastructure investment is a better recipe for the economy than Republican calls for making all tax cuts permanent.Geithner, during a discussion hosted by The Atlantic and The Aspen Institute, said he is focused on good policy rather than politics going into the mid-term congressional elections.But he said that economically, 'I think we've got the better argument, and ultimately I think that's what wins politics too.'Extending Bush-era tax cuts for the middle class is 'necessary but not sufficient,' he said. He urged lawmakers after the election to pass legislation to give businesses more incentive to invest and create a multi-year program to facilitate infrastructure investment.'Both of those two things--business incentives and a responsibly designed, but substantial public investment program--we think is the best way to make sure we're addressing near-term growth challenges and the longer-term growth challenges,' he said. 'We're still at a time where the economy needs some reinforcement.'He said he believes there is broad bipartisan support for those measures.
2010/10/01 09:12*DJ Japan Fin Min Noda: Japan Economy Faced With Downside Risks
2010/10/01 09:12*DJ Japan Fin Min Noda: Jobs Market Still In Severe Condition
2010/10/01 09:10=DJ Portuguese PM: Confident 2011 Budget Will Be Approved
2010/10/01 09:01DJ Fed's Pianalto Points To Signs Economy Is Starting To Mend
NEW YORK -While there are signs the U.S. is starting to recover from the deepest downturn since the Great Depression, the Federal Reserve has options if the economy ends up needing more help to heal, Cleveland Federal Reserve President Sandra Pianalto said Thursday.Pianalto pointed to hopeful signs for consumers and businesses. Consumers are saving more, helping to improve their financial situations, and businesses' aggregate profits have returned to levels that are more in line with what is typically seen following recessions, she said. The private sector is also adding jobs and the U.S. has positive GDP growth. The economy is growing and she expects it will continue to do so in 2011.'There are some signs that the economy is beginning to mend,' she said.However, the current pace of growth is not fast enough to make much progress in lowering the stubbornly high unemployment rate, Pianalto said. Inflation is also too low, Pianalto said, and she expects it to remain near its current low level through next year, lower than the roughly 2% rate that she sees as consistent over the long run with the Fed's objectives.Pianalto was delivering prepared remarks as part of a discussion hosted by the Women's Economic Roundtable in New York. She is a voting member of the interest rate setting Federal Open Market Committee this year.Her comments come amid continued talk in financial markets about if and when the Fed could kick off another so-called quantitative easing program to help the economy by buying Treasury securities. The Fed began buying Treasurys again last month on a small scale, using proceeds from its maturing mortgage bonds. Given recent soft data though, most market participants are convinced the Fed will have to relaunch a formal, larger-scale bond buying effort before the end of the year.In her prepared remarks, the central banker said that monetary policy is highly accommodative and that if further accommodation is needed, the Fed has options available to it, but policymakers must tread carefully.'We are in unchartered waters,' Pianalto said. 'History does not provide a complete guide for the unconventional policy tools we are using, which is why it is important that we continue to examine the costs and benefits of these tools.'If additional accommodation is needed, Pianalto said, she wants to ensure that the framework the Fed employs is an effective one.
2010/10/01 08:54*DJ Hon Hai: To Issue Convertible Bonds On Oct 12
2010/10/01 08:53*DJ Hon Hai: Bond Proceeds To Fund Raw Material Procurement
2010/10/01 08:49*DJ Hon Hai: US Dollar Convertible Bonds Have Maturity Of 3 Years
2010/10/01 08:49*DJ Hon Hai: To Issue US$1 Bln US Dollar Convertible Bonds
2010/10/01 08:42DJ UPDATE: Prudential Buys Star, Edison Units From AIG For $4.8 Bln
(Updates with financing of deal, comments on future appetite for M&A) By Erik Holm Of NEW YORK -Prudential Financial Group Inc. has agreed to buy two life insurance units from American International Group Inc. for $4.8 billion to expand its presence in Japan. Prudential will pay $4.2 billion in cash and take on $600 million in debt, which the company expects to repay with resources from the two units it's acquiring, Prudential said Thursday on a conference call. Prudential will pay for the acquisition of the units, called AIG Star Life Insurance Co. and AIG Edison Life Insurance Co., in part with a $1.3 billion stock sale and $1.2 billion in senior notes. For AIG, the sale is the latest in a long string of deals as it works to repay a U.S. bailout it got amid the depths of the financial crisis. Separately Thursday, AIG announced it had reached an agreement in principle with its overseers in the U.S. government that paves the way for the U.S. to exit from its majority ownership of the company. Prudential said the Star and Edison transaction is expected to close during the first quarter of 2011, subject to regulatory approval. The deal is expected to add 40 cents per share to Prudential's earnings -- a calculation that includes the planned share sale, among other factors. The deal adds to Prudential's already significant operations in Japan. Star and Edison's combined assets of $47.6 billion, when added to Prudential's existing businesses in that country, would give the insurer a Japanese operation with $128.4 billion of assets. As a result of the deal, AIG expects to take a non-cash pretax goodwill impairment charge of approximately $1.2 billion in the third quarter. Prudential shares were off 3.3% to $54.67 in premarket trading. AIG was up 12% to $41.80 on the news of the deal with the U.S. The deal was a long time in coming. Prudential Chairman and Chief Executive John Strangfeld had often said his company was looking to expand in Japan. AIG and Prudential ended talks on the same two units last year. While Prudential's Japanese executives will be focused on completing the deal, the company still has the financial capacity and managerial resources to do more deals, Strangfeld said. 'The Star-Edison transaction is entirely concentrated in a single country - a country we know well,' he said. 'We clearly, in our mind, have the management capacity to pursue additional M&A elsewhere should we find something compelling.' Newark, N.J.-based Prudential isn't related to the U.K.'s Prudential PLC, whose shareholders objected to that company's plan to acquire another Asian insurance operation from AIG earlier this year. Goldman, Sachs & Co. and J.P. Morgan Securities LLC were the financial advisers on the deal.
2010/10/01 08:36DJ Congress Extends Insured-Mortgage Limits At Current Level -AP
.S. lawmakers have extended until the end of next year a policy that lets homeowners in higher-end real estate markets secure government-backed mortgages of nearly $730,000, the Associated Press reports Thursday.Congress voted to keep the maximum size of loans insured by government-backed financiers Fannie Mae and Freddie Mac and the Federal Housing Administration at their current level through 2011. The limits, which apply in expensive areas such as New York City and San Francisco, would have fallen to about $625,000 without the change.The measure was included in a temporary spending bill that Congress sent to President Barack Obama early Thursday.Full story at http://hosted.ap.org/dynamic/stories/U/US_CONGRESS_MORTGAGE_LIMITS?SITE=PASCR&SECTION=HOME&TEMPLATE=DEFAULT
2010/10/01 08:30DJ Japan August Core CPI -1.0% On Year; Market Expected -1.0%
TOKYO -Japan's core consumer price index fell 1.0% from a year earlier in August, government data showed Friday, another sign that the country's economy remains mired in deflation.The fall marked the 18th straight month of decline and was in line with the median forecast in a poll of economists by and the Nikkei. The core CPI, which excludes volatile fresh food prices, slid 1.1% in July and 1.0% in June.The latest data show that the pace of falls in core CPI slowed slightly last month, suggesting that a recovery in the broader economy has propped up domestic demand and prevented prices from decreasing further.But analysts say deflation may persist as the yen stays strong with the outlook for the U.S. and European economies uncertain, dragging on Japan's export-reliant economy and reducing the prices of oil, food, metals and other commodities the country buys from overseas. That could force the Bank of Japan to take additional monetary easing measures soon to support the economy and neutralize deflation.Core CPI for the Tokyo metropolitan area--a leading indicator of national trends--declined 1.0% in September, the Ministry of Internal Affairs and Communications said, matching economists' expectations.
2010/10/01 08:08*DJ BOK Suspected Of Intervening In FX Market To Curb Won's Gains -Traders
2010/10/01 08:05*DJ Lead Dec JGB Futures Open Down At 143.28 Vs 143.42 Thurs
2010/10/01 08:05*DJ Nikkei Stock Average Opens Up 0.8% At 9440.52
2010/10/01 07:35*DJ Japan Aug Overall CPI -0.9% On Yr
2010/10/01 07:35*DJ Japan Aug All Household Spending +1.7% On Yr; Expected +1.4%
2010/10/01 07:35*DJ Japan Aug Propensity To Consume 83.3%
2010/10/01 07:35*DJ Japan Aug Propensity To Consume +1.6 Pts On Yr
2010/10/01 07:34*DJ Pianalto: Same Standards Should Not Apply To Whole Banking System
2010/10/01 07:33*DJ Japan Aug Wage-Earner Household Spending +2.7% On Yr
2010/10/01 07:33*DJ Pianalto: Fed Working To Help Small Business Lending
2010/10/01 07:32*DJ Tokyo Sep Overall CPI +0.3% On Mo
2010/10/01 07:32*DJ Tokyo Sep Overall CPI -0.6% On Yr
2010/10/01 07:32*DJ Japan Aug Overall CPI +0.3% On Mo
2010/10/01 07:31*DJ Pianalto: Key To Plan For Longer-Term Budget Deficit
2010/10/01 07:30*DJ Tokyo Sep Core CPI -1.0% On Year; Mkt Expected -1.0%
2010/10/01 07:30*DJ Japan Aug Core CPI -1.0% On Year; Mkt Expected -1.0%
2010/10/01 07:30*DJ Japan's Aug Jobless Rate 5.1%; Market Expected 5.1%
2010/10/01 07:29*DJ Pianalto: Important Not To Remove Stimulus Too Quickly
2010/10/01 07:02*DJ US Dollar Touches S$1.3124 Overnight, Currently At S$1.3153
2010/10/01 06:48=DJ Treasury To Sell Citigroup Trust Securities For $2.25B
2010/10/01 06:42=DJ WORLD FOREX: Dollar Gains Momentum From Better U.S. Data
2010/10/01 06:19*DJ Pianalto Says Fed Policy Is Highly Accommodative
2010/10/01 06:17*DJ Pianalto Expects Economy To Continue To Grow In 2011
2010/10/01 06:17*DJ Pianalto Notes Weak Growth, Stubbornly High Unemployment
2010/10/01 06:16*DJ Pianalto Says Inflation Is Too Low
2010/10/01 06:07=DJ US Stocks Slip As Investors Retreat After Sept. Surge-2-
2010/10/01 05:54=DJ BOC's Carney Says There Are Limits To Policy Divergence With US
OTTAWA -Bank of Canada Governor Mark Carney said Thursday that there is a limit on how much monetary policy can diverge from the U.S., that further rate hikes need to be 'carefully considered,' and that the 'unusual uncertainty' surrounding the outlook warrants caution.The Bank has increased interest rates three consecutive times, including at the most recent policy decision Sept. 8. In June, it became the first G-7 central bank to hike rates. By contrast, the U.S. Federal Reserve isn't expected to increase interest rates until well into 2011.'While Canada's circumstances and the discipline of the inflation target dictate a different policy stance than in the U.S., there are limits to this divergence,' Carney said in a speech to the Windsor-Essex Regional Chamber of Commerce entitled 'Employment in a Modest Recovery.'Given risks of a renewed U.S. slowdown, constraints that are beginning to affect growth in emerging economies, and the expected slowing of consumption and housing in Canada, 'any further reduction monetary policy stimulus would need to be carefully considered,' he said. 'The unusual uncertainty surrounding the outlook warrants caution.Speaking just hours after Statistics Canada said gross domestic product shrank 0.1% in July, the first decline since August 2009, Carney said the speed of Canada's recovery 'has diminished.''A modest pace of growth can be expected in coming months as our economy faces considerable headwinds from both the external sector and the limits of household balance sheets,' he said.Carney said inflation has been 'slightly lower' than the Bank expected but that 'its dynamics are essentially unchanged' and inflation expectations are well-anchored at the 2% target.Website: http://www.bankofcanada.ca
2010/10/01 05:49*DJ Citi Share Sale Cuts Treasury Stake To 12.4%
2010/10/01 05:48*DJ Treasury To Sell Citigroup Trust Preferred Securities For $2.25B
2010/10/01 05:47*DJ Treasury Sells Another 1.5B Citi Common Shares
2010/10/01 05:38DJ US Fed Total Discount Window Borrowings Wed $49.77 Bln
WASHINGTON -The U.S. Federal Reserve's balance sheet contracted slightly in the latest week as the central bank boosted its holdings of U.S. Treasury securities.The Fed's asset holdings in the week ended Sept. 29 was $2.302 trillion, compared with $2.310 trillion a week earlier, the Fed said in a weekly report released Thursday.In the latest week, the Fed's holdings of U.S. Treasury securities rose to $811.67 billion on Wednesday from $805.11 billion a week earlier. Holdings of mortgage-backed securities decreased to $1.079 trillion Wednesday from $1.092 trillion in the previous week.Meanwhile, total borrowing from the Fed's discount lending window slid to $49.77 billion Wednesday from $51.26 billion a week earlier. Borrowing by commercial banks jumped to $99 million Wednesday from $78 million a week earlier.U.S. government securities held in custody on behalf of foreign official accounts increased to $3.238 trillion, from $3.229 trillion in the previous week.U.S. Treasurys held in custody on behalf of foreign official accounts rose to $2.485 trillion from $2.480 trillion in the previous week.Holdings of agency securities increased to $752.54 billion from the prior week's $748.99 billion.Further data on the Fed's balance sheet, including a breakdown of district-by-district discount window borrowing, can be found at http://federalreserve.gov/releases/h41/current/h41.pdf.
2010/10/01 05:31DJ CREDIT MARKETS: Corporate Bond Sales Continue Amid Cheering Data
2010/10/01 05:24DJ Long-Dated Treasurys Lower But Recoup Most Losses; Short End Up
2010/10/01 05:07*DJ Geithner: Believe Chinese Understand Benefits Of Currency Reform
2010/10/01 04:52DJ US M1 Rose $900M In Sept 20 Week; M2 Rose $7.9B
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $900 million to $1.759 trillion, while M2 rose $7.9 billion to $8.712 trillion.The figures are preliminary estimates for the week extending through Sept. 20 and are subject to revisions.More details on the report, along with weekly information on the Fed's custody holdings, repurchase agreements, Treasury portfolio and free reserves, can be found on the Internet at http://www.federalreserve.gov/releases/.
2010/10/01 04:51=DJ US Stocks Slip As Investors Retreat After Sept. Surge
2010/10/01 04:46DJ OIL FUTURES: Crude Rises On Economic Data Boost, Inventory Draws
2010/10/01 04:34*DJ Geithner: Congress Should Help Business Investment, Infrastructure
2010/10/01 04:32*DJ Geithner: Economy Healing, Still Needs Some Reinforcement
2010/10/01 04:31*DJ Foreign Central Banks Treasury Holdings At $2.485T
2010/10/01 04:30*DJ US Fed Total Discount Window Borrowings Wed $49.77B
2010/10/01 04:30*DJ Foreign Central Banks Agency Debt Holdings At $752.54B
2010/10/01 04:30*DJ Foreign Central Bk Custody Holdings At $3.238T As of Wed - Fed
2010/10/01 04:29DJ Iraq To Announce Big Increase In Oil Reserves Monday -Reuters
aq on Monday will announce a "big increase" in its oil reserves, which currently total 115 billion barrels, Reuters quotes a spokesman for the Oil Ministry as saying Thursday.Iraqi crude reserves are the world's third-biggest, but production lags. The government has signed a series of deals with major oil producers to ramp up output capacity to about 12 million barrels per day from about 2.5 million bpd currently.Spokesman Asim Jihad said Oil Minister Hussein al-Shahristani will conduct a news conference Monday in Baghdad to announce the new figure.The government has said in the past that it believes actual reserves could be as much as three times the current figure.Full story at http://www.reuters.com/article/idAFLDE68T0WY20100930
2010/10/01 04:25DJ PRECIOUS METALS: Gold Futures Sink As Traders Square Books
2010/10/01 04:06*DJ Nasdaq Closes Off 8 (0.3%) At 2369; Tech Falls But Energy Gains
2010/10/01 04:05*DJ DJIA Closes Down 48 (0.4%) At 10788; AmEx, Caterpillar Slip
2010/10/01 04:01=DJ Ecuador's Correa:Protests Attempt To Destabilize Govt
2010/10/01 03:58DJ EU Ministers Agree To Conduct Regular Bank Stress Tests
BRUSSELS -European Union regulators should conduct regular stress tests of EU banks and publish the results to improve confidence in the region's financial system, economic leaders said Thursday.'We have agreed to have regular stress tests of the banks and to publish their results,' said Belgian Finance Minister Didier Reynders at a press conference after a meeting of EU finance ministers.The EU conducted stress tests of most of the region's banks this summer. Most passed the tests, though the results were later criticized for being too lenient on the banks.The EU will discuss later how often the tests should be conducted, said European Economic and Monetary Affairs Commissioner Olli Rehn.
2010/10/01 02:38*DJ OIL FUTURES: Nymex Crude Settles Up $2.11 At $79.97/Bbl
2010/10/01 02:37*DJ OIL FUTURES: Crude Touches $80/Bbl, Highest Since Aug 11
2010/10/01 02:36*DJ OIL FUTURES: Nymex Crude Closes Up $2.12 At $79.98/Bbl
2010/10/01 00:43DJ IMF: Fiscal Tightening Likely To Cut Growth, Raise Unemployment
2010/10/01 00:39*DJ BOC's Carney: Speed Of Recovery Has Diminished,Modest Pace Of Growth In Coming Months
2010/10/01 00:36*DJ BOC's Carney:Further Rate Hikes Need To Be "Carefully Considered"
