2010/10/08 17:10=DJ DATA SNAP:UK Producer Prices Stronger Than Expected In September
2010/10/08 16:35*DJ UK Sep Core Output PPI +0.4% On Month; +4.6% On Year
2010/10/08 16:33*DJ Moody's Reviews Cnooc Ltd For Possible Upgrade
2010/10/08 16:31*DJ UK Sep Output PPI Was Forecast +0.1% MM, +4.3% YY
2010/10/08 16:31*DJ UK Sep Input PPI Was Forecast +0.4% MM, +8.9% YY
2010/10/08 16:31*DJ UK Sep Output PPI +0.3% On Month; +4.4% On Year
2010/10/08 16:31*DJ UK Sep Input PPI +0.7% On Month; +9.5% On Year
2010/10/08 16:15*DJ Hang Seng Index Rises In 22 Out Of 26 Sessions For 11.7% Gain
2010/10/08 16:14*DJ Hang Seng Index Ends Up 0.3% At 22,944; More Than 2-Year High
2010/10/08 16:10DJ Tokyo Shares End Down On Strong Yen Ahead Of Jobs Data, G-7 -2-
2010/10/08 16:04DJ JP Morgan Sells $1.1B Commercial Mortgage Issue
NEW YORK -- J.P. Morgan Chase & Co. sold $1.1 billion of commercial mortgage securities Thursday in the largest transaction of its type since the financial crisis. The triple-A rated tranche with 10-year term priced at 150 basis points over benchmark swaps rate, five basis points firmer than initial pricing, to yield 3.959%. The previous such commercial bond--an $800 million Goldman Sachs and Citi deal sold in August--priced its nearly 10-year term triple-A tranche at 135 basis points over the same benchmark, to yield of 4.2430%. Fixed-income investors have warmed to commercial mortgage securities backed by loans to develop and purchase retail, hotel and office buildings. While delinquencies on these loans have inched close to 9%, they remain attractive because they offer greater credit protection than residential loans and a better chance of loan resolution instead of liquidation for investors. They also offer higher yields than similarly rated corporate bonds. So far this year, while there have been more than half a dozen commercial mortgage deals, this is the first offering to cross the $1 billion threshold since the crisis. Market participants expect an additional $5 billion to $6 billion worth of such large-sized deals to price in this quarter ahead of year's end. J.P. Morgan's latest offering is backed by 30 loans for 47 properties, according to investors who had looked at the offer document of this 144A deal. Nearly half the loans underlying this issue come from old securitizations, said Julia Tcherkassova, CMBS strategist at Barclays Capital. 'This is a healthy trend,' she said indicating that maturing old loans are being refinanced and securitized. 'The structure of the [J.P. Morgan deal] also signals that the strategy of sourcing new collateral by negotiating with borrowers with loans nearing their maturity dates might continue to prove successful in the increasingly competitive lending environment,' Tcherkassova said.
2010/10/08 16:03DJ JGB Yields Up On Profit-Taking; May Fall Back After US Jobs Data
TOKYO -Japanese government bond yields rose on Friday as domestic investors sold cash bonds ahead of a holiday weekend in Japan, looking to lock-in profits after a recent sharp climb in prices on the back of the Bank of Japan's aggressive monetary easing. But long-term yields likely won't continue rising as U.S. September Jobs data due out later in the day may highlight slowing momentum in the world's biggest economy, which could strengthen the view that the Federal Reserve will loosen monetary policy next month. 'If expectations grow that the Fed will act soon, that could put upward pressure on the yen against the dollar and raise the possibility of the BOJ taking additional monetary easing again,' said a trader at a Tokyo securities house. 'Investors could become more eager to buy JGBs.' A poll of economists forecasts that the September U.S. non-farm payrolls report, due at 1230 GMT, will show a 10,000 drop in the number of jobs, after a slide of 54,000 jobs in August. As of 0600 GMT, the benchmark 10-year JGB yield was up 0.5 basis point to 0.870%. The 20-year yield sharply increased five basis points to 1.710%. Lead December JGB futures, however, ended up 0.10 at 143.95, due to speculation over the BOJ's further monetary easing. Looking ahead, players are also paying attention to what Group of Seven financial officials will discuss at their meeting set to be held in Washington this weekend. If the G-7 countries call on China to revalue the yuan, Asian currencies including the yen may rise and Tokyo shares could fall with concerns over Japan's export-driven economy growing, which will likely boost demand for JGBs, said Tetsuya Miura, chief market analyst at Mizuho Securities. Elsewhere, China sold off in August most of the Japanese financial assets it bought in the previous seven months of the year, data from Japan's Ministry of Finance showed earlier in the day. China sold a net Y2.018 trillion worth of Japanese assets. The figure compares with the net Y583.0 billion China purchased in July, and the Y2.3 trillion it acquired between January and that month. Of the total in August, China sold a net Y2.029 trillion in money market instruments, while buying a net Y10.3 billion in bonds and notes, the ministry said. Traders say the data results could damp speculation that China will keep buying JGBs to diversify its foreign exchange reserves, making some investors reluctant to dabble in Japanese government securities.
2010/10/08 15:56DJ Tokyo Shares End Down On Strong Yen Ahead Of Jobs Data, G-7
2010/10/08 15:26DJ Bank Of France Still Sees 3Q GDP +0.3% On Quarter
PARIS -The Bank of France Friday said it still expects the country's gross domestic product to grow 0.3% in the third quarter from the second, in its monthly survey on industry and services for September.In September, industrial activity in France picked up again after a lull in August and all sectors contributed to the increase in output, the central bank said.Capacity utilisation rose significantly but remained below its long-term average while order books recovered markedly and returned to a level comparable to that observed before summer 2008, it said.Final goods inventories declined slightly but remained close to the desired level, it added.Forecasts point to an ongoing improvement in output growth in the short term, albeit at a slower pace, the Bank of France said.Also, activity in the services sector increased strongly, buoyed in particular by growth in temporary work and transport. Prices contracted slightly while staff levels continued on an unbroken upward trend, underway since the second quarter. The outlook for services activity indicates ongoing strong growth over the coming months, the central bank said.Central Bank Web site: www.banque-france.fr
2010/10/08 15:22DJ PRECIOUS METALS: Gold Edges Back Up In Asia; Strong Euro Helps
SINGAPORE -Precious metals stabilized in Asia Friday after overnight profit taking brought the recent rally to an abrupt halt.The correction came after better-than-expected weekly jobless claims data gave the dollar a brief boost, knocking the euro below $1.39, while other news were also bearish.Anglogold , which has been a significant buyer in recent weeks according to traders, announced it had eliminated its entire hedge book, while the Bank of England stepped back from further monetary easing, leaving policy unchanged.This left traders in Asia cautious ahead of U.S. September non-farm payrolls at 1230 GMT; gold lost more ground early in the session.A vey expects drop of 10,000 in September payrolls compared to a drop of 54,000 in August."Should there be any upside surprises in the data, this may cause a surge in the dollar, exerting further downward pressure on gold," Phillip Futures said in a report.However, the euro bounced off its overnight lows to trade at $1.3939 at 0540 GMT, giving gold and other precious metals a boost.Spot gold was at $1,333.80 a troy ounce, up 20 cents from the New York close, while spot silver was at $22.57/oz, up 7 cents but 4% down from Thursday's 30-year high of $23.51.On Tocom, August 2011 gold was at Y3,541 a gram, down Y78.Spot platinum was at $1,697/oz, up $2 while palladium was flat at $583/oz, and well off yesterday's $601.50/oz, a 9-year high.Palladium is likely to outperform other precious metals in 2011, BMO Capital Markets said in a report.The bank raised its 2011 average price forecast to $700/oz and said that on the demand side palladium was benefiting, like gold, silver and platinum, from its quasi monetary properties, adding that it was also the most direct commodity beneficiary of the boom in Chinese auto production."Palladium is the main beneficiary of strong vehicle output, since China is mostly a gasoline auto market, which mainly uses palladium in catalytic converters," it said in the report.On the supply side, lower shipments of Russian palladium to Switzerland are also supportive."If Russian official stocks are nearing exhaustion like some observers believe, and BMO Research is starting to expect, palladium can go much higher than ($700/oz)."
2010/10/08 15:13DJ Forex Options: Dollar/Yen Options Up; Some Expect Intervention
TOKYO -Dollar/yen options continued to rise Friday in Tokyo as market participants hedged against both the underlying exchange rate's upside and downside, indicating mixed views on the possibility of currency intervention and on how effective such action would be in curbing yen strength. The U.S. dollar slid to another 15-year low of Y82.11 Thursday in New York, prompting some investors to purchase one- to two-month contracts to protect against further dollar decline, an options dealer at a major Japanese bank said. Meanwhile other buyers chose one- to two-week contracts that will pay off if the U.S. unit perks up, indicating these buyers may be expecting Japan to intervene in the currency market again soon to drive up the greenback against the yen. In one such deal, a market participant bought a one-week dollar-call/yen-put options contract with a strike price of Y85.00 and implied volatilities of 16.50% for about $150 million. The contract will benefit the holder if the dollar is above Y85.00 in a week's time. Benchmark volatilities implied by one-month at-the-money options rose to 12.10%/12.80% in Tokyo from 11.85%/12.55% Thursday in New York. The dealer said volatilities may rise to 13.00% in the near term if the dollar continues to slide to Y81.00.
2010/10/08 15:06=DJ DATA SNAP:French Jan-Aug Budget Gap EUR122.1B Vs EUR127.4B
2010/10/08 15:06*DJ Stoxx 600 Index Dn 0.3% After The Open
2010/10/08 15:05*DJ FTSE 100 Dn 0.1% After The Open
2010/10/08 15:01*DJ Swiss Sep Jobless Rate At 3.5% Vs 3.6% In Aug
2010/10/08 14:54DJ Japan PM: To Continue Decisive Steps Against Excess FX Moves
TOKYO -Japanese Prime Minister Naoto Kan said Friday that the government's yen-selling intervention last month had 'a certain effect,' but that his government will continue to take such decisive steps when needed. Echoing recent comments, Kan's remarks will likely reinforce the perception in foreign currency markets that the government could again act soon to curb the soaring yen, which marked a fresh 15-year high against the dollar Thursday. 'We will continue to closely monitor foreign exchange moves, and will continue to take decisive steps when necessary,' Kan said before the Diet, Japan's parliament. Tokyo sold around Y2 trillion on Sept. 15 in its first foreign currency market intervention in more than six years. While the yen weakened initially in response, it has made up all its losses, and is now stronger than where it was before the intervention. At 0622 GMT, the dollar was Y82.35, after falling Thursday to Y82.11, its lowest since May 1995. 'The negative impact on economic and financial stability from excessive foreign exchange market moves is a problem we can't ignore,' Kan said. He was speaking in response to questions from opposition Liberal Democratic Party lawmaker Satsuki Katayama, who grilled him on the government's inability to stem the strong yen, which she said weighs heavily on the country's small and medium-sized businesses. Japan's Finance Minister Yoshihiko Noda echoed Kan's remarks in the same parliamentary session, while declining to comment on specific foreign exchange rate levels. Noda is due to leave later in the day for Washington to join finance ministers from the Group of Seven leading industrial nations gathering in Washington this weekend, where foreign exchange issues are likely to be a topic of discussion.
2010/10/08 14:49*DJ Euro Rises Above CHF1.3492 On EBS; Highest Since Aug 13
2010/10/08 14:46*DJ French Jan-Aug Budget Gap EUR122.1B Vs EUR127.4B Yr Earlier
2010/10/08 14:41=DJ Government Debt To Surge If Age-Related Costs Aren't Cut: S&P
2010/10/08 14:34PRESS RELEASE: Moody's Upgrades Ratings On Bank Of Communications
The following is a press release from Moody's Investors Service:Beijing, October 08, 2010 -- Moody's Investors Service has today upgraded its ratings on the Bank of Communications -- specifically, the bank's long-term foreign currency and local currency deposit ratings, to A3 from Baa1, and its short-term foreign currency and local currency deposit ratings, to Prime-1 from Prime-2. Moody's also upgraded Bocom's bank financial strength rating to D+/Ba1 from D/Ba2. The outlook for all ratings is stable.The ratings are listed below: Bank Financial Strength D+ LT Bank Deposits A3 (upgraded from Baa1) ST Bank Deposits Prime-1 (upgraded from Prime-2) LT Bank Deposits A3 (upgraded from Baa1) ST Bank Deposits Prime-1 (upgraded from Prime-2)RATINGS RATIONALE This rating action concludes the review of BoCom's ratings for possible upgrade Moody's initiated on June 10, 2010, which was triggered by the bank's announcement of a rights issue. The upgrade of BoCom's long-term deposit ratings was driven by:1) improvements to corporate governance and risk management practices, and 2) a level of earnings and capital that will place the bank in a position to manage potential rises in non-performing loans in both expected and stress-case scenarios. Underpinning these factors is Moody's expectation that the ongoing strength of the Chinese economy will help the bank's profitability.'The upgrade to BoCom's ratings comes in recognition of the bank's strong profitability and sufficient liquidity, as well as its stronger capital position, following completion of rights issues in June and July 2010,' says Yvonne Zhang, a Moody's Vice President and lead analyst for the bank.In light of the A-share rights issue and strong earnings during 1H10, the bank's Tier 1 capital reached 8.9%, and its total capital adequacy, 12.2%, at end-June 2010. Moody's estimates that the H-share rights issue added an additional 0.8% to each of these ratios. The key issue for BoCom is going to be how its asset quality evolves during the next two to three years. Moody's views the rapid loan growth in 2009 as a red flag for potential credit quality problems. In particular, loans to local government financing vehicles and the real estate sector are likely to become non-performing as they season. Moody's expects the low level of non-performing loans currently reported by the bank to be a cyclical low, and that asset quality indicators will likely deteriorate. Nonetheless, in upgrading the bank's BFSRs, Moody's believes that BoCom is positioned to manage a likely increase in NPLs without compromising its financial strength, because the bank has strong pre-provision profits, as well as solid capital and loan-loss reserves, that would provide cushions against even a sharp rise in credit costs. The outlook on the ratings is stable, reflecting the solid positioning of the bank for the challenges likely ahead. Further positive rating pressure for either the BFSR or deposit rating will depend on how the bank manages the conflicting demands of maintaining asset quality and growing its businesses in a sustainable manner, while also fulfilling a policy function, given the controlling government ownership. The last rating action on BoCom was taken on May 4, 2007 when Moody's raised the bank's long-term foreign currency deposit rating to Baa1 from Baa2 and its short-term foreign currency deposit rating to P-2 from P-3. The principal methodologies used in rating the Bank of Communications were Moody's Bank Financial Strength Ratings: Global Methodology, published in February 2007, and the Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology, published in March 2007. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. BoCom, headquartered in Shanghai, reported total assets of RMB3,309 billion (around USD485 billion) as of the end of 2009. REGULATORY DISCLOSURES Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service's information. Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history. The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information. Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.
2010/10/08 14:27=DJ DATA SNAP: German August Adj Exports -0.4% On Month, Imports +0.9%
2010/10/08 14:13DJ RBA Deputy Governor Battellino: Likely Higher Interest Rates Will Be Required
BRISBANE -Australia remains entrenched in a tightening cycle with interest rates despite a pause from the central bank earlier this week, the deputy governor of the Reserve Bank of Australia said Friday.On Tuesday, the RBA surprised market experts and economists by keeping interest rates steady at 4.50% for the fifth straight meeting. Given an ongoing mining boom and robust economic data, markets had expected a 25 basis point hike from the RBA.The accompanying statement, however, made note that rates would have to be increased -- a sentiment reiterated on Friday by RBA Deputy Governor Ric Battellino.'As noted in the statement issued after the Board meeting earlier this week, if economic conditions evolve as currently expected, it will be likely that higher interest rates will be required at some point to ensure that inflation remains consistent with the medium-term target,' Battellino said at a speech in Brisbane.Battellino added that while there has been some worry that Asian central bank tightening might result in excessive slowing in these economies, the central bank's reading is more that growth is returning to 'around a trend rate'.He also noted the bank's central scenario is for growth to continue at its current pace over the next year 'or so'.Such growth would likely result in commodity prices remaining at relatively high levels compared with earlier decades, said Battellino.On a bottom line basis, Battellino said the RBA expects economic growth in Australia to pick up from its current rate of 3.25% to around 4%, driven by domestic spending. Should that occur, Battellino said, 'it is likely that in due course underlying inflation will pick up from its current level of 2.75%,' with the bank forecasting inflation will rise to about 3% by the first half of 2012.Among the areas Battellino highlighted as concerning was credit growth, noting Australia hasn't been immune from a tightened availability of credit around the globe. He said while the mining sector has made use of internal funds, the property and infrastructure sectors have relied much more on debt.'In short, it is difficult not to conclude that the financing of the property sector became over-extended during the boom years, and that a period of adjustment was largely unavoidable,' said Battellino.Since a peak in early 2009, the RBA estimates commercial property lending has decreased by about 10%, with foreign banks having reduced their exposure by a cumulative 35%. Loan limits have also fallen, so that usage of lending facilities has increased to about 90%, according to the RBA.In addition, funding through non-bank sources has also tightened. The commercial mortgage-backed securities market, which at the peak in 2007 accounted for around 5% of total commercial property funding, has contracted by about two-thirds.'Cycles like the one we are going through seem to be endemic to the property sector and raise the question of whether, over the longer term, the financing model of the sector should shift towards more equity and less debt,' said Battellino.On the other hand, he said substantial progress has been made thanks to equity raisings and a possible end to the run-up in arrears on property loans. More generally, he said an expected improvement in the economy will certainly be reflected in the commercial property market, which should boost lenders' willingness to make loans.Moreover, household credit was in good shape, with borrowing for housing broadly growing in line with income, house prices being stable and little appetite for other forms of debt.'From the Reserve Bank's perspective, this seems to be a satisfactory state of affairs,' he added.
2010/10/08 14:05*DJ German Aug Unadj Current Acct Surplus EUR4.6B Vs EUR9.1B In July
2010/10/08 14:04=DJ BOE WATCH: MPC On Hold, Growing Likelihood Of More Stimulus
2010/10/08 14:04*DJ Nikkei Stock Average Closes Down 1.0% At 9588.88
2010/10/08 14:04*DJ German Aug Adj Exports -0.4% On Mo At EUR81.8B
2010/10/08 14:04*DJ German Aug Adj Imports +0.9% On Mo At EUR70.1B
2010/10/08 14:02*DJ German Aug Unadj Trade Surplus EUR9.0B Vs EUR13.5B In July
2010/10/08 13:46*DJ Japan Fin Min Noda: Excessive FX Moves Have Negative Impact On Economy
2010/10/08 13:36*DJ Japan PM: Will Continue To Take Decisive Steps Including Intervention If Needed
2010/10/08 13:35*DJ Japan PM: Can't Ignore That Excessive FX Moves Have Negative Impact On Econ, Fncl Stability
2010/10/08 13:18*DJ Moody's Upgrades Ratings On Bank Of Communications
2010/10/08 13:08=DJ UPDATE: BOJ Chief Plays Down Concern Over Currency War
The governor of the Bank of Japan said Thursday that the world's central banks aren't competing to loosen their monetary policy, playing down fears of an international currency war.The comment from Masaaki Shirakawa comes as concern grows that some countries--including Japan, which is working to blunt the yen's rise through market intervention and monetary easing--may each be trying to lower the value of their currencies to help boost exports.'I don't think that countries are competing to deepen the extent of monetary easing,' Shirakawa told reporters as he responded to questions whether a 'currency battle' is under way or, if not, could begin. Central banks 'look at conditions of the global economy and their own nations' economic situation and then pursue appropriate policy,' Shirakawa said.Coming ahead of a high-profile Group of Seven meeting of finance chiefs Friday, Shirakawa's remarks may reflect the Japanese view that the country isn't causing or seeking a currency war. Japanese officials say they are just fighting the kind of excessive exchange rate movement long denounced by the G-7 itself, and that Japan is different from countries like China and other developing Asian nations that rely heavily on foreign exchange intervention to bolster exports.'We don't want to be seen as one of those countries intervening on a daily-basis,' a finance ministry official told recently.While Shirakawa downplayed concern over a currency war, he indicated his worry over the yen, which recently hit a 15-year high of Y82.11 to the U.S. dollar. Gains in the yen make Japanese exports less competitive overseas, reduce the value of profits sent home, and cause job losses by driving manufacturers offshore to fend off foreign exchange risk.'There is no change in my view that rapid rises in the yen could have an impact on the Japanese economy by affecting corporate earnings and sentiment,' Shirakawa said.The Japanese government and central bank have been stepping up their policy coordination against the yen.Around the middle of last month, the Ministry of Finance intervened in the currency market for the first time in more than six years, dumping around Y2 trillion to knock the yen lower. The BOJ, for its part, announced an ambitious monetary easing earlier this week that cut its interest rate to virtually zero and established a Y5 trillion fund to buy private- and public-sector assets to stimulate growth. The government is also finalizing a new economic stimulus package totaling around Y5 trillion in part to cushion the impact of yen rises.Although the policy combination has so far failed to turn months of the strong yen tide, Shirakawa touted the central bank's approach. Its latest easing steps have helped drive lower short- and long-term borrowing costs in Japan for the benefit of its economy, while pushing higher stock and real-estate prices, he said.Investors are closely watching whether the U.S. and European countries signal their support to Japan's recent intervention. Official yen-selling helps Japan's exporters but comes at the expense of decelerating U.S. and European economies. Some players including European policymakers and U.S. lawmakers have already shown displeasure at the intervention. Any fresh sign that U.S. and European officials aren't happy about the Japanese step could be troubling for Tokyo, as yen-buying speculators may become less worried about potential intervention.Even if other G-7 officials don't openly back Japan's intervention, observers say it would constitute a diplomatic victory for Japan if they keep silent on it.
2010/10/08 12:45DJ AU Optronics Prices US$800 Mln 5-Year Convertible Bond At NT$40.74
TAIPEI-Taiwan flat-panel maker AU Optronics Corp. said Friday it priced the sale of its five year convertible bonds at a conversion price of NT$40.74, raising US$800 million to fund overseas equipment purchases. Shares in AU Optronics closed Thursday at NT$31.95. The bond deal has a yield-to-maturity of 2.875% calculated semi-annually, the company said in a statement. The company said the recent drop in panel prices hurt its third-quarter results and it expects its operating results for the last quarter to be weaker than in second quarter. Provisions for inventories also hurt its profitability in the last quarter, it said. AU Optronics and other global liquid-crystal-display makers have been boosting capital spending since last year in anticipation of stronger demand for the LCDs that are widely used in televisions and computers. Capital spending by LCD makers likely surged 43% to $16.9 billion from $11.8 billion in 2009, according to market researcher iSuppli Corp.
2010/10/08 12:31DJ Japan Government: Fresh Stimulus To Push Up Real GDP Growth By 0.6 Percentage Point -Kyodo
TOKYO -Japan's government said Friday that a Y5.05 trillion economic stimulus package approved by the Cabinet the same day will push up real GDP growth by an estimated 0.6 percentage point, Kyodo news reported. The emergency package, approved by the administration of Prime Minister Naoto Kan, is aimed at tackling deflation and cushioning the impact of a strong yen.
2010/10/08 12:30=DJ FOREX VIEW: Japan May Be Using Stealth To Slow Yen's Gains
2010/10/08 12:23=DJ US, IMF Push For Organization To Referee The Currency Issue
2010/10/08 12:07DJ Vietnam Allows Companies, Banks To Import More Than 1 Ton Gold -Source
HANOI -Vietnam's central bank has allowed local banks and companies to import more than one metric ton of gold, to stabilize the domestic gold market after prices reached record highs this week, a State Bank of Vietnam official said Friday.Fewer than 10 banks and companies have received permission to import gold, the person, who declined to be named, told .The gold must be imported by Oct. 12, the person said.Among the companies and banks, Sacombank Jewelry is allowed to import 300 kilograms, Phu Nhuan Jewelry JSC (PNJ.VH) 300 kilograms, Saigon Jewelry 200 kilograms and Agribank Jewelry 100 kilograms, the person said."These firms are allowed to import gold, but not forced to," the person said, adding that it isn't clear whether they will all import the metal as prices are currently high.
2010/10/08 11:53*DJ RBA Battellino: Strong A$ Will Affect Economy, Interest Rates
2010/10/08 11:51DJ Shanghai Limits Home Purchases, Raises Land Appreciation Tax
SHANGHAI -The Shanghai municipal government said Thursday it has limited households to one new home purchase each and raised the land appreciation tax on property developers, part of a series of measures to curb home prices and crack down on speculation and land hoarding. Under the new policies, which are effective immediately, developers will have to pay a tax of 2% to 5% on the sales price of a property, up from 1% now. The city government said it also plans to make 1 million subsidized homes available in the next five years. Beijing took a series of measures in late September to check soaring property prices, including halting mortgages for third and subsequent home purchases and raising the minimum down-payment for all first-time home buyers. The Beijing municipal government limited households to one new home purchase April 30. Last week, Shenzhen limited households to buying two new homes.
2010/10/08 11:45=DJ FOREX VIEW: Skittish Investors Buy Dollars Ahead Of US Jobs Data
2010/10/08 11:43*DJ Magnitude 6.4 Quake Strikes Off Adak, Alaska - USGS
2010/10/08 11:10*DJ RBA: Higher Rates Required To Ensure Inflation Consistent With Medium-Term Target
2010/10/08 11:07*DJ RBA: Sees Underlying Inflation At 3% By Mid-2012
2010/10/08 11:06*DJ RBA Deputy Governor Battellino: Likely Higher Interest Rates Will Be Required
2010/10/08 11:04DJ Buffett Says He Avoids Buyout-Firm Purchases - Bloomberg
Berkshire Hathaway Inc. billionaire chairman Warren Buffett said he avoids purchasing companies from buyout firms because they focus on 'exit strategy,' Bloomberg News reported Thursday. 'We have an entrance strategy,' he was quoted as saying in pre-recorded remarks at a San Francisco conference for the London-based nonprofit International Corporate Governance Network, whose members include institutional investors. Buyout firms 'don't know the business,' he was quoted as saying. 'I look in their eyes and see if they love the money or love the business. Everyone likes money,' he said in the report. 'We count on people loving the business.' Full story: http://www.bloomberg.com/news/2010-107/buffett-avoids-buyout-firm-purchases-says-they-don-t-know-the-business-.html
2010/10/08 10:43*DJ Vietnam Allows Companies, Banks To Import More Than 1 Ton Gold
2010/10/08 10:32DJ Japan Cabinet Approves Y5.05 Tln Stimulus As Strong Yen Weighs
2010/10/08 10:26DJ Japan Cabinet Approves Y5.05 Tln Stimulus As Strong Yen Weighs
TOKYO -The Cabinet of Japanese Prime Minister Naoto Kan approved an emergency Y5.05 trillion economic stimulus package Friday that it says is aimed at dealing with a strong yen and deflation.The amount of planned new spending exceeds the Y4.8 trillion proposed by Kan's ruling Democratic Party of Japan earlier this week. The higher figure comes as a concession to the party's junior coalition partner, the People's New Party, which had pushed for more spending.The package includes support for employment, measures to strengthen child rearing, medical and nursing services, and measures for regional revitalization. It also includes steps to help Japan develop alternatives to rare earth metals, which are imported mainly from China.While the DPJ's proposed package had included calls for Japan to mull creating a sovereign wealth fund to make use of its $1.07 trillion in foreign reserves, the version agreed upon by the Cabinet Friday contained no mention of such a fund.
2010/10/08 10:25DJ Japan Finance Minister: To Take Decisive Action On Forex If Necessary
TOKYO -Japan's finance minister reiterated Friday that the government will take 'decisive action' to prevent the yen from surging, including currency intervention, sending out a warning to markets after the Japanese currency hit a new 15-year high against the dollar. 'We are watching the foreign exchange market with great interest and we are going to take decisive action, including intervention, if necessary,' Yoshihiko Noda said at a press conference. 'Japan's stance on foreign exchange issues will not change either before or after the meeting,' Noda added. Finance ministers from the Group of Seven leading industrial nations are set to meet this weekend in Washington. The dollar dropped to a new 15-year low of Y82.11 against the yen Thursday. As of 0109 GMT Friday, the greenback stood at Y82.37.
2010/10/08 09:58*DJ AU Optronics: EU To Report Anti-Trust Probe Results By End-Nov
2010/10/08 09:49*DJ Japan Govt: Fresh Stimulus To Push Up Real GDP By 0.6 Percentage Point -Kyodo
2010/10/08 09:48*DJ AU Optronics: Drop In Panel Prices Hurt 3Q Results
2010/10/08 09:43DJ Japan Finance Minister: BOJ Has 'Very Important Role To Play' Vs Deflation
WASHINGTON -Japan's finance minister kept pressure on the Bank of Japan Thursday, saying the central bank has "a very important role to play" in tackling a deflationary trend that's driving the yen higher and weighing on the nation's growth.Highlighting his worries over deflation in a prepared speech for the International Monetary Fund's annual meeting, Yoshihiko Noda said continued declines in prices boost real debt burdens, discourage business investment and hurt consumer spending."Deflation is also one of the factors behind the strong yen," Noda said. "Under these circumstances, central banks have a very important role to play." Noda's remarks could raise speculation that despite the new monetary easing steps recently introduced by the central bank, the Japanese government will continue its campaign to get the BOJ to do more to fight deflation. The speech by Noda also underscores the government's worry that deflation and the strong yen feed each other, helping fuel a damaging downward cycle. "The rapid appreciation of the yen, which has reached its highest level in 15 years, quells expectations for economic recovery and casts a shadow over the sentiments of both firms and households," he said. Noda, likely repeating the BOJ's stance on its behalf, also said in the speech: "The Bank of Japan will maintain an extremely accommodative financial environment, and, if judged necessary, will take policy actions in a timely and appropriate manner.
2010/10/08 09:24*DJ AU Optronics Prices US$800 Mln 5-Year Convertible Bond At 2.875%
2010/10/08 09:11DJ EU Set To Impose Strict Rules On Bankers' Pay: Sources - FT
pean regulators are planning tough restrictions on bankers' pay despite objections, the Financial Times reported Thursday on its website, citing unnamed people familiar with the talks.The Committee of European Banking Supervisors, with representatives of the 27 EU countries, has been meeting in London to implement strict pay rules agreed by the EU in recent months.The people said the restrictions would come despite concerns raised by French, U.K. and Spanish officials that the rules could hurt the EU's competitiveness, the report said.Full story: http://www.ft.com/cms/s/0/0adec5ca-d205-11df-965c0144feabdc0.html
2010/10/08 09:06*DJ Japan Econ Min Kaieda: New Econ Package Won't Include SWF -Kyodo
2010/10/08 09:01*DJ Japan Cabinet Stimulus Does Not Mention Sovereign Wealth Fund, JGB Issuance
2010/10/08 08:56*DJ Japan Noda: Japan's Intervention Not Aimed At Certain FX Level
2010/10/08 08:55*DJ Japan Noda: To Take Necessary Steps If Forex Markets Move Abruptly
2010/10/08 08:54*DJ Japan Noda: Japan's Intervention Aimed To Curb Excessive FX Moves
2010/10/08 08:54*DJ Japan Noda: No Comment On Current FX Moves
2010/10/08 08:53*DJ Japan Fin Min Noda: To Explain Japan's Position On FX To G7
2010/10/08 08:53*DJ Japan Noda: Japan's Stance On FX Won't Change Even Before G7
2010/10/08 08:52*DJ Japan Fin Min Noda: Decisive Action Includes FX Intervention
2010/10/08 08:51*DJ Japan Fin Min Noda: To Take Decisive Action On FX If Necessary
2010/10/08 08:50*DJ Japan Cabinet: To Continue To Take Decisive Steps Including Intervention When Needed
2010/10/08 08:48*DJ Japan Cabinet: Can't Ignore That Persistent Yen Strength Hurts Economic, Financial Stability
2010/10/08 08:48*DJ Japan Cabinet: Stimulus Includes Measures To Develop Alternatives To Rare Earth Metals
2010/10/08 08:47*DJ Japan Cabinet Approves Stimulus Worth Y5.05T
2010/10/08 08:41*DJ Japan Noda: IMF Needs Mechanism To Prevent Crisis Contagion
2010/10/08 08:41*DJ Japan Noda: Japan Econ Recovering But Faces Tough Challenge
2010/10/08 08:40*DJ Japan Noda: BOJ To Maintain Extremely Accommodative Environment
2010/10/08 08:39*DJ Japan Fin Min Noda: Rapid Yen Rises Could Hurt Business Mood
2010/10/08 08:39*DJ Japan Noda: BOJ To Act In Timely, Appropriate Manner If Needed
2010/10/08 08:35DJ BOJ Minutes: One: Effect Of Fixed Rate Operation Expansion May Be Limited
2010/10/08 08:33=DJ Greek Finance Minister: Expect To Return To Primary Surpluses From 2012
2010/10/08 08:32DJ BOJ Minutes: One: Effect Of Fixed Rate Operation Expansion May Be Limited
TOKYO -One Bank of Japan policy board member said at a hastily convened meeting in late August that an expansion of a fixed rate fund supplying operation will have 'only limited additional easing effects' because interest rates in the money market have already been fairly low. Still, some members said that, 'although the level of interest rates had fallen significantly due to the powerful monetary easing so far, there was still room for further decline,' minutes for the Aug. 30 emergency meeting showed. At that meeting, Japan's central bank decided to offer financial institutions Y10 trillion worth of six-month loans at a rock-bottom 0.1% rate, in addition to the Y20 trillion in three-month loans it has been offering in the past months. At the latest policy board meeting on Tuesday, the bank announced 'comprehensive monetary easing.' It cut its policy target rate to a range of 0.0%.1% from 0.1% previously, and said rates would remain virtually at zero until prices begin to overcome deflationary pressure. It also launched a Y5 trillion fund to buy various financial assets, including government bonds and commercial paper.
2010/10/08 08:23DJ Japan August Current Account Surplus Y1.114 Tln; Expected Surplus Y990 Bln
TOKYO -Japan's current account surplus fell 5.8% from a year earlier in August, the Ministry of Finance said Friday, as the trade balance fell for the first time in 15 months.The surplus in the current account, the broadest measure of Japan's trade with the rest of the world, stood at Y1.114 trillion in August before seasonal adjustment, finance ministry data showed.The result compares with a median forecast for a 16.3% fall in the surplus to Y990 billion in a survey of economists by and the Nikkei. In July, the surplus was up 26.1% to Y1.676 trillion.While Japan's exports rose by 16.5% from a year earlier in August to Y4.932 trillion, that was a slower rise that in July, when overseas shipments rose 24.7% to Y5.663 trillionIn August, imports gained by 20.5% to Y4.736 trillion, the data showed.The current account measures trade in goods, services, tourism and investment. It is calculated by determining the difference between Japan's income from foreign sources against payments on foreign obligations and excludes net capital investment. Website: http://www.mof.go.jp/bpoffice/e1c004.htm
2010/10/08 08:08*DJ BOJ Minutes: One: Yen Rise May Delay Japan Self-Sustaining Econ Recovery
2010/10/08 08:05*DJ Lead 10-Yr JGB Futures Open Dn At 143.80 Vs 143.85 Thu
2010/10/08 08:02*DJ Nikkei Stock Average Opens Down 0.1% At 9675.59
2010/10/08 08:00*DJ BOJ Minutes: Some: Japan Econ Likely To Slow Down Temporarily
2010/10/08 07:55*DJ Japan Aug Unadj Goods & Svc Surplus Y101.0B; -47.5% Y/Y
2010/10/08 07:52*DJ Japan Aug Trade Surplus Y195.9B
2010/10/08 07:52*DJ Japan Aug Trade Surplus Y195.9B; -35.2% On Yr
2010/10/08 07:51*DJ Japan Aug Unadj Goods & Svc Surplus Y101.0B
2010/10/08 07:51*DJ Japan Aug Unadjusted Curr Acct Surplus Y1.114T; -5.8% Y/Y
2010/10/08 07:50*DJ Japan Aug Curr Acct Surplus Y1.114T; Expected Surplus Y990B
2010/10/08 07:48=DJ Fed's Fisher: More Asset Purchases 'Not A Foregone Conclusion'
2010/10/08 07:48*DJ Lead Nikkei Futures Open Down 45 Points At 9645 On SGX
2010/10/08 07:35=DJ Sempra RBS To Sell Remaining JV Assets To JP Morgan For $220M
pra Energy and Royal Bank of Scotland Group PLC (RBS, RBS.LN) are nearing an exiting from their commodities joint venture with an agreement to sell the business' remaining assets to J.P. Morgan Chase & Co. for $220 million.The purchase is J.P. Morgan's second recent acquisition of assets from the partnership, following July's $1.6 billion purchase of a big chunk of the venture.And last month, the partners said they will sell the venture's North American electricity retail business to Asian commodities trading firm Noble Group Ltd. (N21.SG) for $317 million.Sempra expects to record a $50 million to $150 million write-down in its third-quarter results related to the venture's dissolution.The assets in the latest deal are the venture's North American gas-and-power trading book. The transaction is subject to regulatory approval and expected to close in the fourth quarter.RBS, 83%-government owned, is selling its 51% stake in the joint venture under orders from European regulators, after the bank received billions in government aid.Sempra shares were down 10 cents at $53.99 in recent trading as RBS' American depositary shares fell 3.1% to $15.16. J.P. Morgan rose 1.1% at $39.46.
2010/10/08 07:12DJ BOJ Gov Shirakawa: Rapid Yen Rises Could Affect Japan's Economy
WASHINGTON -The Bank of Japan's governor said Thursday that rapid yen rises could harm the country's export-led economy, after the currency hit a 15-year high of Y82.11 to the U.S. dollar. 'There is no change in my view that rapid rises in the yen could have an impact on the Japanese economy by affecting corporate earnings and sentiment,' Bank of Japan Gov. Masaaki Shirakawa told reporters. Yet 'I would like to refrain from commenting on movements in the foreign-exchange market,' said Shirakawa, who is in Washington to attend a planned Group of Seven meeting of finance chiefs Friday. Shirakawa also said he doesn't think countries are competing to ease monetary policy, when he was asked about whether a global currency war is under way or whether there is risk of such competitive devaluation happening. The BOJ chief said he will explain the bank's recent monetary easing to his G-7 counterparts during the meeting and through individual contacts. Shirakawa said Finance Minister Yoshihiko Noda also will explain Japan's recent currency market intervention at the G-7 meeting if necessary.
2010/10/08 07:00DJ G-24 Calls For Global Coordination On Macroeconomic Policies
tober 07, 2010 13:15 ET (17:15 GMT)*DJ South Africa Fin Min: Need Global Consensus On Forex, Monetary Policy tober 07, 2010 13:16 ET (17:16 GMT)*DJ South Africa Fin Min: Simultaneous Fiscal Cuts Pose Huge Risk tober 07, 2010 13:18 ET (17:18 GMT)DJ G-24 Calls For Global Coordination On Macroeconomic Policies By Tom Barkley Of ASHINGTON -Emerging and developing countries making up the Group of 24 called Thursday for global coordination of macroeconomic policies to ease growing tensions over currencies.The G-24, which includes major emerging economies such as India and Brazil, issued a statement blaming advanced economies for pursuing low-rate monetary policies that push up currencies elsewhere.'The current policies of the developed countries is leading to very significant capital flows into some of the emerging countries. This is putting upward pressure on exchange rates,' said South African Finance Minister Pravin Gordhan, who chairs the group.In addition, he said the simultaneous belt-tightening by advanced countries to trim debt levels 'poses a huge risk' to the global economy.Gordhan said the Group of 20 and International Monetary Fund both carry a responsibility to maintain the sense of cooperation witnessed in the early days of the financial crisis. He called for a process over the next month to achieve a consensus on macroeconomic policies to avoid the resurgence of global imbalances.'In arriving at a consensus, we'll have to find a way in which different players give and take, if you like, so that we can create a more stable global environment,' he said in a briefing during the IMF's annual meetings.The group also pressed the need for reforming the IMF to give low-income countries more say, expressing concern about pressure for the realignment of power at the institution to come at the expense of other emerging and developing countries.But he rejected a suggestion by U.S. Treasury Secretary Timothy Geithner and IMF Managing Director Dominique Strauss-Kahn that IMF reforms should be linked to the appreciation of China's currency, saying, 'there's no linkage between the two.'
2010/10/08 06:40=DJ CBO: Federal Govt FY10 Budget Deficit Just Less Than $1.3 Tln
2010/10/08 06:35DJ CREDIT MARKETS: Investors, Issuers Eye Payrolls Data
2010/10/08 06:09DJ WORLD FOREX: Dollar Recovers; Investors Cautious On US Jobs
2010/10/08 05:54DJ PBOC Deputy Governor Yi: There Are Signs Of Currency War
WASHINGTON -China is trying hard to avert a potential global currency war, People's Bank of China Deputy Gov. Yi Gang said Thursday.There are already signs of a currency war, but China 'is working hard against it,' Yi said on the sidelines of an event during the annual meetings of the International Monetary Fund and World Bank.His comments come as China is facing rising pressure from developed countries to further appreciate its yuan currency. They also follow recent interventions in the foreign exchange market by countries such as Japan and Singapore to weaken their currencies to maintain competitiveness of their export sectors.
2010/10/08 05:43=DJ US Stocks Close Lower Ahead Of 3Q Earnings, Monthly Jobs Data-2-
2010/10/08 05:42*DJ BOJ Gov: Uncertainty Over Global Economy Driving Yen Higher
2010/10/08 05:42*DJ BOJ Gov: Impact Of Recent Monetary Easing Is Spreading
2010/10/08 05:41=DJ Fed Balance Sheet Expands Slightly In Latest Week
2010/10/08 05:41*DJ BOJ Gov: Fin Min Noda To Explain Intervention At G-7 If Needed
2010/10/08 05:39*DJ BOJ Gov: No Comment On Yen's Current Movement
2010/10/08 05:38*DJ BOJ Gov: Rapid Yen Rises Could Affect Japan's Economy
2010/10/08 05:38*DJ BOJ Gov: Don't Think Nations Competing To Ease Monetary Policy
2010/10/08 04:58=DJ US Stocks Close Lower Ahead Of 3Q Earnings, Monthly Jobs Data
2010/10/08 04:58DJ US M1 Rose $25.5B In Sept 27 Week; M2 Rose $30.9B
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $25.5 billion to $1.783 trillion, while M2 rose $30.9 billion to $8.742 trillion.The figures are preliminary estimates for the week extending through Sept. 27 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/.
2010/10/08 04:56DJ Shorter-Dated Treasurys Rise; 30-Year Falls Ahead Of Jobs Data
2010/10/08 04:32*DJ PBOC's Yi Spoke On Sidelines Of Meeting In Washington
2010/10/08 04:31*DJ PBOC Deputy Governor Yi: There Are Signs Of Currency War
2010/10/08 04:30*DJ US Fed Total Discount Window Borrowings Wed $49.48B
2010/10/08 04:30*DJ Foreign Central Bk Custody Holdings At $3.253T As of Wed - Fed
2010/10/08 04:30*DJ Foreign Central Banks Treasury Holdings At $2.501T
2010/10/08 04:30*DJ Foreign Central Banks Agency Debt Holdings At $751.75B
2010/10/08 04:25DJ Sinochem Unlikely To Make Takeover Bid For Potash -Bloomberg
hina's state-owned fertilizer trader Sinochem International Corp. (600500.SH) isn't likely to make a takeover bid for Potash Corp. of Saskatchewan Inc. due to difficulty obtaining government financial backing, Bloomberg News reports Thursday, citing two people with knowledge of the matter.The Chinese government has indicated it would prefer Sinochem to finance any takeover without credit from state banks, which could put the transaction beyond the company's reach, the sources said. Sinochem might still consider seeking a minority stake, a deal that would be easier to fund, one person said.The Wall Street Journal, citing a person familiar with the situation, reported Tuesday that Sinochem is now considering trying to take a minority stake in Potash that blocks the $39 billion offer from Australia's BHP Billiton Ltd. . Previously, the Chinese company was said to be exploring the possibility of forming a coalition of buyers for a takeover bid to rival that of BHP.A call to a spokesman for Sinochem went unanswered, Bloomberg says, noting that Chinese companies are closed for the weeklong National Day holiday. A Potash Corp. spokesman didn't respond to a call outside of business hours.Full story at http://www.businessweek.com/news/2010-107/sinochem-said-to-struggle-for-support-for-potash-bid.html
2010/10/08 04:25DJ Sinochem Unlikely To Make Takeover Bid For Potash -Bloomberg
2010/10/08 04:16DJ OIL FUTURES: Crude Rally Stumbles On Dollar Rebound
NEW YORK -Crude futures retreated from a five-month high Thursday as a stronger dollar and still-high U.S. inventories stifled a move towards $85 a barrel.Light, sweet crude for November delivery settled $1.56, or 1.9%, lower at $81.67 a barrel on the New York Mercantile Exchange after trading as high as $84.43 earlier in the session. Brent crude on the ICE futures exchange traded $1.64 lower at $83.42 a barrel.Oil prices have found support from a weakening dollar in recent days, which was pulled down by expectations that the Federal Reserve will take additional actions to spur the economy. But a rebound in the greenback against the euro and a basket of other currencies combined with a drop in stock markets Thursday to send futures lower, as investors sold crude to lock in profits from the recent rally.The euro was recently trading down 0.3% against the dollar, falling back after rising above $1.40 for the first time since February. The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, has also bounced back after trading at a fresh low since January.The dustrial Average was recently down 20 points at 10947.Without strength in other financial markets, analysts say crude will have trouble supporting higher prices on the strength of its own market fundamentals. U.S. supplies of crude and fuel products are near 27-year highs according to U.S. inventory data released Wednesday. The report from the Department of Energy also showed a drop in demand to the lowest level this year.'The market got up to $84 again, and we saw some heavy profit-taking. The market really shouldn't be up in that area because of the stock situation,' said Tony Rosado, a broker with GA Global Markets. 'You could easily come right back to $78...provided that the dollar doesn't re-establish new lows.'Crude has traded in a tight range between roughly $70 and $80 a barrel for several months, and any rallies above the $80 level have been met with hasty retreats. Since crude surpassed its August highs earlier this week, traders have become nervous a correction could be ahead.'Demand is down, and supplies are at some of their highest levels,' said Mark Waggoner, President of Excel Futures, indicating that fundamentals aren't in focus for traders. 'The rally was because of the dollar and the stock market.'On Friday, the Labor Department will release its monthly jobs report for September. While economists are expecting to see fewer payroll cuts than reported in August, they still anticipate a decrease of 10,000 U.S. jobs and a slight rise in unemployment.Meanwhile, the strike blocking sea access to the Fos-Lavera, the world's third-biggest oil port, is likely to enter its 12th day Friday, spokespeople for the southern French port and its union said Thursday.If the strike continues to block ships from entering the port with crude oil or leaving with refined products, some refineries could face stoppages at the beginning of next week, according to a refinery spokesman.Front-month November reformulated gasoline blendstock, or RBOB, settled 3.79 cents lower at $2.1180 a gallon. November heating oil settled 5.60 cents lower at $2.2518 a gallon.More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines: Nymex Light Crude Oil Close Nymex Harbor RBOB Gasoline Close Nymex Heating Oil Close ICE Brent Crude Oil Close ICE Gas Oil Close
2010/10/08 04:10*DJ DJIA Closes Down 19 (0.2%) At 10949; Alcoa, AT&T Weigh
2010/10/08 04:10*DJ Nasdaq Closes Up 3 (0.1%) At 2384; Telecom Falls, Tech Climbs
2010/10/08 04:08=DJ Fed's Fisher: What Ails Economy Now Escapes Monetary Policy Fix
2010/10/08 04:02*DJ Greek Fin Min: Still Expecting GDP To Contract 4% In 2010; 2.6% To 2.7% In 2011
2010/10/08 03:46DJ PRECIOUS METALS:Comex Gold Down On Upbeat Jobless Claims Report
2010/10/08 03:20=DJ Fed's Hoenig Opposes Additional Support For Economy
2010/10/08 03:10DJ PBOC Deputy Governor: Committed To Flexible Exchange Rate Regime
2010/10/08 02:35DJ PBOC Deputy Governor: Committed To Flexible Exchange Rate Regime
WASHINGTON -China is committed to moving toward a flexible exchange rate regime but the pace of its currency reform has to be gradual, People's Bank of China Deputy Gov. Yi Gang said Thursday.Answering questions raised by audience members in a forum during the annual meetings of the International Monetary Fund and World Bank, Yi also said China is making progress in opening the country's capital account but there's "no timetable" for the yuan to reach full convertibility.Yi's comments come at a sensitive time when pressure from developed countries is mounting to push the yuan to appreciate more, arguing that by keeping the yuan relatively stable, China has had an unfair advantage in trade.Yi indicated that China has the intention to allow the yuan to rise, but the pace will likely be slow."We are committed to move toward a flexible exchange rate regime," he said. "But the approach and the speed has to be gradual. That is good for China and good for the world."Yi also said China is taking a "laissez faire" approach regarding the regional use of the yuan, adding that whether the yuan will become more widely used in the market place "should be a natural process chosen by the market."He said it's unlikely that the yuan will become a major cross-border trade settlement currency "for quite some time."
2010/10/08 02:35*DJ OIL FUTURES: Crude Rally Stumbles On Dollar Rebound
2010/10/08 02:34*DJ OIL FUTURES: Nymex Crude Settles Down $1.56 At $81.67/Bbl
2010/10/08 01:51*DJ Hoenig: Monetary Policy Is 'Highly Accommodative'
2010/10/08 01:50*DJ Hoenig: Continues To Support Raising Of Fed Funds Rate
2010/10/08 01:48*DJ Hoenig: Opposes Additional Fed Support For Economy
2010/10/08 01:38*DJ Fed's Hoenig: Unemployment Rate Is Too High
2010/10/08 01:36*DJ Fed's Hoenig: US Economy Continues To Grow 'Modestly'
2010/10/08 01:20*DJ G-24 Calls For Global Coordination On Macroeconomic Policies
2010/10/08 00:26*DJ RBS: JPMorgan To Pay $220M Cash For Assets
2010/10/08 00:22*DJ RBS: Assets Sold To JP Morgan Energy Ventures
2010/10/08 00:21*DJ RBS: RBS Sempra Commodities JV Sells NAPG Assets
2010/10/08 00:11DJ World Bank Zoellick: Currency Tensions Can Lead To Trouble If Not Managed
WASHINGTON -Current tensions on the foreign-exchange markets can lead to trouble and affect growth if not properly managed, World Bank head Robert Zoellick said Thursday.While Zoellick doesn't see a surge in protectionism as the most likely outcome of the present currency turmoil, he urged caution in the context of a weak recovery.'We have managed a lot of these trade protectionism issues well so far...But we shouldn't take it for granted as we are still in a fragile recovery. Unemployment is high and that puts pressure on people,' the head of the World Bank told reporters during a press conference at the annual meetings of the World Bank and the International Monetary Fund in Washington.Zoellick said multilateral bodies such as the IMF, the World Bank and the World Trade Organization have a role to play to help resolve currency tensions, but warned that ultimately it is down to individual countries to tackle the issue through the rebalancing of their economies.'If you believe in multilateralism, there is a role to play to intermediate...But we can't ignore the fact that decisions are made by countries,' Zoellick said. 'My point is not to push for specific solutions, but to resolve tensions and get back to the fundamentals of growth,' he added.He urged countries with current account surpluses like China to resist the temptation to intervene on their currencies in order to boost growth. But he added deficit countries like the U.S. also had a responsibility in shifting global growth patterns through a reduced reliance on imports and less internal consumption.
