2010/10/12 17:51DJ ECB Noyer: Direct Market Interventions Exceptional
PARIS -European Central Bank governing council member Christian Noyer Tuesday said massive market interventions can be appropriate, but warned markets they shouldn't always expect them. 'Each situation calls for an appropriate response and we now know that this includes massive and direct interventions in markets, to some extent similar to foreign exchange interventions,' Noyer told delegates at the annual meeting of the World Federation of Exchanges in Paris. Recent purchases under the ECB's Securities Market Program show the central bank is still monitoring very closely the evolution of markets, he said. Still, such interventions shouldn't always be expected, Noyer warned. 'Similar to its lender of last resort function, the role of buyer of last resort that central banks can take on must not extend to insolvent issuers and must not, at risk of causing a very dangerous moral hazard, be systematic each time a problem arises,' said Noyer, who is also governor of the Bank of France. During his address, Noyer also said upside risks to inflation in the euro area are 'very limited.'
2010/10/12 17:43*DJ Belgian 12-Month Treasury Certificate Average Yield Set At 0.910%
2010/10/12 17:43*DJ Belgium Sells EUR2.008B 12-Month Treasury Certificates
2010/10/12 17:41*DJ Belgian 3-Month Treasury Certificate Average Yield Set At 0.593%
2010/10/12 17:40*DJ Belgium Sells EUR804M 3-Month Treasury Certificates
2010/10/12 17:33*DJ Hungarian 3-Month Treasury Bill Average Yield Set At 5.24%
2010/10/12 17:33*DJ Hungary Sells HUF40B 3-Month Treasury Bills
2010/10/12 17:32*DJ German Deputy Fin Min: Growth Of Over 3% Possible In 2011
2010/10/12 17:26DJ Three Banks Mull Exiting Hungary Due To Special Tax-Newspaper
BUDAPEST -Three unnamed large foreign banks in Hungary are mulling an exit from the country due to the special tax the government is levying this year and the next two years on the financial sector, national daily Nepszava said Tuesday. The paper didn't name the banks, nor did it identify its sources. It only said that the banks 'are not far behind' Hungary's largest bank OTP Bank Nyrt. (OTP.BU), based on their balance sheet total. The largest banks with a foreign parent, based on total assets, include the local units of Erste Group Bank AG (EBS.VI) and RZB Group AG (RIBH.VI) of Austria, Intesa SanPaolo SpA (ISP.MI) of Italy, KBC Group NV (KBC.BT) of Belgium, UniCredit Group SpA (UCG.MI) of Italy, and German state-controlled bank BayernLB. Newspaper website: www.nepszava.hu
2010/10/12 17:15=DJ DATA SNAP: UK Aug Goods Trade Deficit Narrowed To GBP8.2 Bln
2010/10/12 17:15*DJ Greek 26-Week Treasury Bill Bid-To-Cover Ratio 4.22
2010/10/12 17:14*DJ Greek 26-Week Treasury Bill Uniform Yield Set At 4.54%
2010/10/12 17:13*DJ 3-Month Euribor Rises To 0.982% Vs 0.977% Monday
2010/10/12 17:13*DJ Greece Sells EUR1.17B 26-Week Treasury Bills
2010/10/12 17:06=DJ DATA SNAP: UK Inflation Rate Steady In September As Expected
2010/10/12 17:04*DJ Moody's: Russia's Banking System Outlook Changed To Stable From Negative
2010/10/12 16:36*DJ EU: Oil Supplies Seen "Very Tight" Before 2020 -Draft
2010/10/12 16:34*DJ 10Y UK/German Yield Spread Up At 62.5Bps After UK CPI
2010/10/12 16:33*DJ UK Aug Global Goods Trade Bal Forecast At Deficit GBP8.0B
2010/10/12 16:33*DJ UK Aug Adj Global Goods Trade Deficit GBP8.2B
2010/10/12 16:33*DJ UK Jul Non-EU Trade Deficit GBP4.7B Rev Vs Deficit GBP4.8B
2010/10/12 16:33*DJ UK Aug Non-EU Trade Balance Forecast At Deficit GBP4.3B
2010/10/12 16:33DJ ECB Sees Large Positive Liquidity Imbalance, Will Drain In Tender
FRANKFURT -The European Central Bank said it intends to hold a quick liquidity-absorbing tender, to be announced at 1300 GMT, to offset a 'large positive liquidity imbalance' Tuesday, the last day in the current reserve maintenance period, It will be a variable rate tender, with a maximum bid rate of 1.00% and with no pre-set amount, the ECB said. ECB website: www.ecb.int
2010/10/12 16:33*DJ UK Sep CPI Was Forecast Unch On Month; +3.1% On Year
2010/10/12 16:33*DJ UK Aug Adj Global Goods Trade Deficit GBP8.2B
2010/10/12 16:32*DJ UK Sep RPI +0.4% On Month; +4.6% On Year
2010/10/12 16:32*DJ UK Sep RPI Was Forecast +0.1% On Month; +4.4% On Year
2010/10/12 16:32*DJ UK Sep Core CPI Was Unch On Month; +2.7% On Year
2010/10/12 16:31*DJ UK Sep CPI Unch On Month; +3.1% On Year
2010/10/12 16:26*DJ Hungary Central Banker: No Knowledge Of Any Bank Mulling Exit
2010/10/12 16:06DJ PRECIOUS METALS: Gold, Silver Down; Euro Loses More Ground
SINGAPORE -Gold and silver suffered from profit taking in Asia Tuesday as the euro turned lower against the dollar. Hedge funds and commodity trading advisers were dumping the euro after it failed to breach resistance at $1.40 Monday, encouraging some long liquidation in the precious metals space. At 0635 GMT, the euro was at $1.3826, down from $1.3879 in late New York trade. Silver was off 1% and was threatening the $23 support level, while gold was off 0.6%. Bulls are hardly likely to throw in the towel just yet though, with dip buying likely to emerge if the euro stems its fall, based on the evidence of recent sessions. 'All dips in both gold and silver are met by a wall of buying, and both precious metals keep roaring back time and time again,' said Bill Murphy, gold commentator on the lemetropolecafe website. The next cue is likely to come from U.S. Federal Open Market Committee meeting minutes to be released at 1800 GMT, which could give some indications on whether the Fed will take stimulatory action at its next meeting in November. However, some traders have expressed doubt over whether the prospect of further quantitative easing can keep working its magic for gold, viewing it as largely priced in for now. At 0648 GMT, spot gold was at $1,346.50 a troy ounce, down $7.40 since Monday's New York close, with Tocom August 2011 gold at Y3,549 a gram, up Y11. Spot silver was at $23.04/oz, down 24 cents. Spot platinum was at $1,681/oz, down $1, while spot palladium was at $582/oz, down $4.
2010/10/12 16:03*DJ BOE Miles: Leverage Limits Are Important Way To Keep Financial Stability
2010/10/12 16:02*DJ BOE Miles: Interest Rates Not Best Tool To Prevent Asset Price Booms
2010/10/12 15:52=DJ DATA SNAP: French August Current Account Gap -EUR4 Billion
2010/10/12 15:50DJ Tokyo Shares End Down On Strong Yen; Fast Retailing Tumbles-2-
2010/10/12 15:38DJ JGBs Up On Concerns About Yen's Rise; Machinery Orders Eyed
TOKYO -Japanese government bonds were higher Tuesday as the yen's appreciation further blurred the outlook for the country's export-reliant economy, prodding investors to continue buying safe-haven assets. JGB prices could extend gains as concerns grow that Japan's corporate sector will lose momentum and their performance will weaken, thus pressuring the Bank of Japan to take additional monetary easing steps to shore up the broader economy. Long-term JGB yields 'could still show some downside amid lingering expectations for further easing, including trends in exchange rates,' said Barclays Capital chief strategist Chotaro Morita. The U.S. dollar plunged to a 15-year low of Y81.37 Monday. Since the release of disappointing U.S. September jobs data Friday, speculation been growing that the Japanese currency could keep rising against its U.S. counterpart, with the Federal Reserve likely to loosen monetary policy next month. Tetsuya Miura, chief market analyst at Mizuho Securities, said investors are paying close attention to Japan's machinery orders data, due out Wednesday, for clues as to whether companies have become reluctant to boost capital spending. Machinery orders are seen as a reliable gauge of future business investment. If the results turn out weaker than expected, that could damp hopes that capital spending will recover toward next spring. This would add to the view that deflation could deepen, with the yen's rise prompting firms to cut back investments in equipment, Miura said. Under such circumstances, demand for cash bonds won't likely wane soon, traders say. Core machinery orders--which exclude often-volatile orders for ships and orders from electronic power companies--are expected to have fallen 4.5% on month in August following a 8.8% rise in July, according to economists surveyed by and the Nikkei. As of 0600 GMT, the benchmark 10-year yield was down 1.5 basis point to 0.850%. Lead December JGB futures ended at 144.06, up 0.11. The 20-year yield dropped 1.5 basis point to 1.685%. The dollar was at Y81.86 against the yen, while the Nikkei Stock Average ended down 2.1% at 9,388.64.
2010/10/12 15:11DJ Tokyo Shares End Down On Strong Yen; Fast Retailing Tumbles
2010/10/12 15:06*DJ FTSE 100 Dn 0.6% After The Open
2010/10/12 15:06*DJ Stoxx Europe 600 Index Dn 0.5% After The Open
2010/10/12 15:03=DJ MONEY TALKS: Commodity Boom Is Its Own Worst Enemy
2010/10/12 15:03DJ Forex Options: Dollar/Yen Options Edge Down As Spot Stable
TOKYO -Dollar/yen options edged down in Asia Tuesday as demand for hedges against fluctuations in the underlying exchange rate waned due to the dollar trading in a narrow range against the Japanese currency.The U.S. unit stuck to a Y82.03-Y82.38 range in Tokyo morning trade.Benchmark volatilities implied by one-month at-the-money options declined to 12.05%/12.75% in Tokyo from 12.15%/12.85% Monday in New York.Although the greenback has extended its falls against the yen in recent days, an options dealer at a major Japanese bank said that as long as the falls remain gradual, benchmark volatilities are unlikely to rise much.On the other hand, the dealer said that if caution over Japan's yen-selling intervention rises and if the U.S. unit bounces above Y82.50, some players may exit downside hedges. That would cause the middle price of benchmark options to fall below 12.00%, compared to 12.40% as of 0200 GMT.
2010/10/12 14:40=DJ DATA SNAP: German September CPI Confirmed At -0.1% MM, +1.3% YY
2010/10/12 14:25=DJ WORLD FOREX: Yen Rises Vs Dollar Despite Japan Government Warnings-3-
2010/10/12 14:19*DJ Sterling Falls Below Y129.88; Lowest Since Sep 15
2010/10/12 14:04*DJ Nikkei Stock Average Closes Down 2.1%; Worst Percentage Loss Since Sep 8
2010/10/12 14:02*DJ Nikkei Stock Average Closes Down 2.1% At 9388.64
2010/10/12 14:01*DJ German Final Sep CPI -0.1% On Month; +1.3% On Year
2010/10/12 14:01*DJ German Final Sep CPI Forecast -0.1% On Mo; +1.3% On Yr
2010/10/12 12:54*DJ Nikkei Stock Average Down More Than 2.0%
2010/10/12 11:52DJ Paula Set To Reach Hurricane Strength Tuesday - Forecasters
MIAMI --Tropical Storm Paula, lashing Honduras with heavy winds and rains, threatened greater damage Tuesday as forecasters predicted it would attain hurricane strength. The Miami-based U.S. National Hurricane Center said Paula was centered about 105 miles (170 kilometers) southeast of Isla Guanaja, Honduras, with maximum sustained winds of 65 miles per hour at 0000 GMT Tuesday. On Monday the storm was moving northwest toward Mexico's Yucatan peninsula, U.S. forecasters said, adding that a hurricane warning was in effect from Punta Gruesa to Cancun, Mexico. A tropical storm warning, meanwhile, was issued by Honduras from Limon to the Nicaraguan border, and Belize issued a similar alert for its coast. Paula raised the troubling prospect of renewed flooding in already saturated Central America and Mexico, after weeks of devastation from heavy rains. The storm was expected to dump three to six inches (7.5 to 15 centimeters) of rain on parts of Nicaragua and Honduras, and Mexico's Yucatan Peninsula. 'Isolated maximum amounts of 10 inches are possible in areas of mountainous terrain in Nicaragua and Honduras, where these rains could cause life-threatening flash floods and mudslides,' the hurricane center said in a bulletin. Flooding and landslides have killed more than 300 people in Central America, left tens of thousands homeless and caused billions of dollars in damage in recent months. Mexico has also been hit hard by a series of storms in an active hurricane season.
2010/10/12 11:49*DJ Euro Falls Below Y113.67 On EBS; Lowest Since Sept 30
2010/10/12 11:33*DJ Dollar Falls Below Y82.00 On EBS
2010/10/12 10:57*DJ Tropical Storm Paula Expected To Become Hurricane On Tuesday -NHC
2010/10/12 10:53*DJ SAFE: To Allow More Types Of Institutions To Enter QDII Program
2010/10/12 10:52*DJ SAFE: Previous 1H Current Account Surplus Estimate $124.2 Bln
2010/10/12 10:50*DJ SAFE: Believe Europe Can Maintain Stable Development Of Financial Markets
2010/10/12 10:49*DJ SAFE: Believe Europe Can Overcome Difficulties
2010/10/12 10:47*DJ SAFE: To Prevent Large Inflows, Outflows Of Hot Money
2010/10/12 10:46*DJ SAFE: 2nd-Half Inflation In Emerging Markets Higher Than Developed Nations
2010/10/12 10:45*DJ SAFE: Global Inflation Pressures Generally Low
2010/10/12 10:41*DJ SAFE: Property Prices In Some Medium, Big Cities Remain Too High
2010/10/12 10:40*DJ SAFE: Pressures On Managing Domestic Inflation Expectations High
2010/10/12 10:40*DJ SAFE: To Push Ahead Capital Account Reform In Orderly Way
2010/10/12 10:39*DJ SAFE: To Strengthen Forex Reserves Management
2010/10/12 10:30*DJ Hang Seng Index Rises 0.2% To 23,254.14; Reverses Losses
2010/10/12 09:45DJ MBK Partners In Talks With Lone Star For Part KEB Stake - Source
SEOUL -Private equity fund MBK Partners is in discussions with Lone Star Funds to buy a part of the stake owned by the U.S.-based company in Korea Exchange Bank (004940.SE), a person familiar with the situation said Tuesday. The person said MBK Partners' offer to buy around a 25% to 26% stake in KEB is close to the market value of around KRW2.19 trillion to KRW2.28 trillion ($1.95 billion-$2.03 billion), based on a price of KRW13,600 per share at 0022 GMT. Whether a deal between Lone Star and MBK Partners materializes may be contingent on what Australia & New Zealand Banking Group Ltd. (ANZ.AU) decides to do. The firm has been conducting due diligence for a 57.27% stake in KEB, which includes Lone Star's 51.02% stake in the Korean bank as well as The Export-Import Bank of Korea's 6.25% stake. MBK has been trying to acquire a stake in KEB since Lone Star put its shares up for sale in March. But the person said MBK has been unable to raise enough funds to buy Lone Star's entire KEB stake.
2010/10/12 09:26DJ Goldman Sachs Raises 12-Month Gold Price Target To $1,650/oz
CANBERRA -Goldman Sachs Tuesday announced upward revisions for its gold price forecasts to $1,400 an ounce, $1,525/oz and $1,650/oz on three-, six- and 12-month horizons, respectively.Spot gold at 0020 GMT was bid at $1,352.30.oz, down $1.60 from late New York.Gold prices have rallied strongly since late July, pushing through Goldman Sachs' previous six-month target of $1,300 to be just shy of its 12-month target of $1,365."With U.S. real interest rates pushing lower off the slowdown in the pace of the U.S. economic recovery and the growing prospect of another round of quantitative easing, we expect gold prices to continue to climb," Goldman Sachs said in a note.A return to quantitative easing would likely be a strong catalyst to drive gold prices higher, and gold will rally until U.S. monetary policy begins to tighten, it said.The U.S. Federal Reserve is expected to announce a return to quantitative easing measures as early as the November meeting of its open markets committee, it reported.
2010/10/12 09:02DJ Japan Finance Minister: To Take Decisive Action On FX If Needed
TOKYO -Japan's finance minister reiterated Tuesday that the government would take 'decisive' action, including currency market intervention, if necessary to stem the yen's rise. 'I explained to the G-7 that Japan's previous intervention was aimed at curbing excessive appreciation in the yen that could hurt the Japanese economy,' Yoshihiko Noda said at his first press conference since returning from a meeting of finance ministers and central bank officials of the Group of Seven industrialized nations. The remarks came after the dollar fell to a 15-year low of Y81.37 against the yen Monday. At 0000 GMT Tuesday, the dollar was at Y82.29. 'G-7 members reconfirmed that volatile foreign exchange market moves have a negative impact on the economy and financial markets,' Noda said. He added that the Japanese government will watch foreign-exchange market moves 'with great interest.'
2010/10/12 09:01DJ Japan Economy Minister: G-7 Showed 'Understanding' On Action Vs Yen
TOKYO -Japan's economy minister said Tuesday that his colleague, the finance minister, reported that officials from the Group of Seven industrialized nations showed understanding about Japan's intervention in the currency market in September.The finance minister explained Japan's measures against the yen's surge to the G-7, 'and they showed some understanding,' said Banri Kaieda, minister of state for economic and fiscal policy, after a regular Cabinet meeting.The measures Kaieda was referring to included currency market intervention, as well as recent government economic stimulus packages.Kaieda also said that sharp yen gains aren't good for the economy, and that the government will take decisive action in the currency market when necessary.
2010/10/12 08:39DJ Canada Fin Min To Release Economic Update 1 PM ET Tuesday -Source
OTTAWA -Canadian Finance Minister Jim Flaherty will release the government's annual fall economic update Tuesday afternoon, a government official said Monday.Flaherty will release the report at 1 p.m. ET in Mississauga, Ontario, where he will be the guest speaker at a lunch hosted by the Mississauga Chinese Business Association.The fall update typically includes the latest fiscal and economic budgetary revisions.The government is on track to balance its budget over the 'medium term,' the government source said. Flaherty has repeatedly made similar remarks in the past.The global economic recovery remains fragile, the source said, adding the economic recovery is still the Canadian government's top priority.
2010/10/12 08:30*DJ Nikkei Stock Average In Negative Territory
2010/10/12 08:25*DJ Belize Issues Tropical Storm Watch For Paula - NHC
2010/10/12 08:23*DJ Tropical Storm Paula Strengthens East Of Honduras - NHC
2010/10/12 08:22DJ New Zealand's Economic Recovery Remains Slow, Fragile - RBNZ
WELLINGTON -The Reserve Bank of New Zealand reiterated Tuesday the country's economic recovery remains slow and fragile, as could be expected given the economic recession coincided with a financial crisis.'This recovery is certainly proving brittle, uncertain and full of surprises,' Reserve Bank of New Zealand Governor Alan Bollard said in a statement accompanying the release of the bank's annual report.The New Zealand economy pulled out of recession in the second quarter of last year, following five quarters of contraction, the longest downturn since the oil shock in the mid-1970s. Since then it has experienced fairly tepid but steady growth.Bollard added, however, that most crisis policies have been withdrawn or are time-limited, including most of the special liquidity facilities for banks and other institutions, the government's retail deposit guarantee scheme, the wholesale deposit guarantee and the central bank's increased foreign reserves position. The central bank is now able to 'manage a return to normality' through the Official Cash Rate, he said.'We have already moved to increase the OCR somewhat but it still remains at an historically low level. Over time, the OCR will move back to more neutral levels but this process will likely be slow and the OCR is unlikely to need to rise as far as in previous recoveries,' said Bollard.In September, the Reserve Bank held the OCR at 3.00% and highlighted ongoing economic uncertainty, particularly after the 7.0 magnitude earthquake in the country's second-largest city of Christchurch earlier in the month. Most economists are now expecting the central bank to hold the OCR at the current level until the first quarter of 2011.Bollard said the central bank is also focused on the development of new macro-financial and prudential policy options.'Experiences of the last few years point to the illiquidity of bank funding under certain conditions and for that reason we have introduced a liquidity policy with funding matching criteria and a core funding ratio,' he said, adding that the central bank is now examining the potential for using the core funding ratio as a device to stabilize the financial cycle in New Zealand.Bollard said while the annual report shows the bank has maintained stable underlying income from interest earnings and stable operating costs, it recorded a loss of NZ$111 million for the year ended June 30, largely 'as a result of unrealized losses arising from adverse revaluations on our assets and liabilities'.Bollard said most of the losses occurred on the Reserve Bank's unhedged foreign exchange position, as exchange rate and interest rate movements partially reversed the large unrealized gains of the previous year.
2010/10/12 08:17*DJ Goldman Sachs Raises 12-Month Gold Price Target To $1,650/oz
2010/10/12 08:02*DJ Nikkei Stock Average Opens Up 0.6% At 9648.59
2010/10/12 08:01*DJ Lead December JGB Futures Open Up At 144.02 Vs 143.95 Friday
2010/10/12 07:57DJ UK 3Q Econ Growth Eased, Govt, MPC Must Support Private Sector-BCC
LONDON -The British Chambers of Commerce called for action from the government and the Bank of England to ward off a double-dip recession after its latest survey showed economic activity eased in the third quarter. The survey Tuesday highlighted a still buoyant manufacturing sector but a disappointing services performance between July and September. Gross domestic product will likely continue to expand, but a second recession remains a risk, it said. 'The results for the third quarter show a marked slowdown in the pace of the recovery,' said David Kern, the BCC's chief economist. 'It is vital to take forceful steps to sustain the recovery and support the private sector.' He said the bank should keep interest rates very low and seriously consider relaunching the GBP200 billion bond-buying program introduced at the height of the financial crisis in March 2009. The U.K. economy had been expected to slow after the strong second quarter, when GDP expanded 1.2% compared with the first three months of the year. But the survey details other worrying developments. The services sector, which accounts for more than a third of the U.K. economy, grew at a sharply slower pace in the third quarter, with domestic orders falling to a balance of -4 from +5 in the second quarter. The balance measures the number of firms reporting growth in orders less the number reporting a fall. Sales growth also slowed, with domestic sales dropping to a balance of +4 from +12. The export market fared slightly better, with both export orders and sales growing by just two points less than in the second quarter. The manufacturing sector remained in positive territory across the board, but growth was slower compared with the second quarter. Domestic orders slipped to +17 from +30, while orders fell to +13 from +19. The export orders balance stood at +24 from +31 in the second quarter while orders slipped eight points to a balance of +18 in the third quarter. 'Overall, these results are disappointing, particularly for the services sector,' said David Frost, BCC's director general. 'These results highlight the fact that wealth-creating businesses must be supported by Britain to achieve a sustainable recovery.' Business confidence again highlighted the divide between the two sectors. Manufacturing firms expect turnover to improve in the fourth quarter from the third, but profitability expectations were less positive, with the balance here slipping three points to +23. Service providers, however, were much less sanguine, with expectations over turnover falling to +14 for the fourth quarter performance from +29 previously, while profitability expectations for the fourth quarter slumped to the lowest balance since the second quarter of 2009. Other details of the survey showed that service-sector employment expectations weakened, while more manufacturing companies were trying to recruit staff in the third quarter from the second. Manufacturing sector investment intentions rose while service-sector companies had less appetite to invest, the survey showed. Website: www.britishchambers.org.uk
2010/10/12 07:49DJ ECB's Nowotny Doesn't See Signs Of Inflation For US, Euro Zone
NEW HAVEN, Conn. -There are no signs of inflation in the U.S. or euro zone for the short and medium term, European Central Bank Governing Council member Ewald Nowotny said Monday. 'I do not see any perspective of inflation--for the short and medium term in the U.S. and the euro zone,' said Nowotny, who is also governor of Austria's central bank. Nowotny was speaking at Yale Law School. The bulk of his remarks were academic and focused on the differences in the euro-zone and U.S. economies in the wake of the financial crisis and policy makers' varied responses to the credit crunch. Nowotny said it was key for countries with high deficits to start reducing them. 'Even if it has short-term costs, we should start reducing the deficit,' he said. High deficits are 'clearly not sustainable.' Pointing to much higher growth in Asia, Nowotny said that was a positive development. 'I would in no way see this as a threat, a negative. I see this as a natural catching-up process. In general, I think its a good thing.'
2010/10/12 07:47*DJ Lead Nikkei Futures Open Up 40 Points At 9620 On SGX
2010/10/12 07:45*DJ Japan Econ Min: Will Take Decisive Action Vs FX When Necessary
2010/10/12 07:45*DJ Japan Econ Min: Sharp Yen Gains Not Good For Economy
2010/10/12 07:43*DJ Japan Noda: Volatile Forex Moves Undesirable For Economy
2010/10/12 07:40*DJ Japan Noda: To Take Decisive Action On FX Including Intervention If Needed
2010/10/12 07:40*DJ Japan Fin Min Noda: Explained Japan's Intervention To G-7
2010/10/12 07:34=DJ Barclays Revises Short-Term Euro Outlook Vs. Dollar Upward
2010/10/12 07:34DJ Greek Finance Min: In Talks To Extend Bailout-Repayment Time Period
ATHENS -Greek Finance Minister George Papaconstantinou said Monday that discussions are under way to extend the time period of repayment of a EUR110 billion bailout from the country's international lenders. 'We are currently discussing about an extension of the repayment terms of the EUR110 billion package but there is no decision yet, and this not anything even closely similar like a debt restructuring,' Papaconstantinou said on privately owned television station Skai. In May, the debt-laden Mediterranean country agreed to unprecedented austerity measures, reforms and widespread privatization in exchange for the bailout from the International Monetary Fund and the European Union to stave off certain bankruptcy. The finance minister's remarks follows comments Sunday by Lorenzo Bini Smaghi, a member of the European Central Bank's executive board. 'It's a standard procedure that the IMF transforms a short-term loan program into a long-term program when the first program is on track,' Bini Smaghi said. Papaconstantinou has previously acknowledged to that Greece will face a major 'refinancing hump' once repayments to the IMF and the EU kick in around 2014 or 2015, when annual debt-servicing obligations will nearly double from about EUR40 billion to EUR70 billion. A potential successful resolution of this issue significantly affected markets Monday, as it would lessen restructuring risk on Greek securities. This led to a sharp decline in Greek bond spreads as well as a steep fall in credit default swaps prices, which are insurance for a potential default.
2010/10/12 07:25=DJ DATA SNAP: UK Retail Sales Growth Slowed In Sept
2010/10/12 07:08*DJ UK MPC Should "Seriously Consider" Extending Bond-Buying Program-BCC
2010/10/12 07:06*DJ UK Manufacturing Sector 3Q Performance Held Up Well - BCC
2010/10/12 07:06*DJ UK Service Sector 3Q Growth Disappointing - BCC
2010/10/12 07:05*DJ UK Double-Dip Recession Can Be Avoided, But Risks Remain - BCC
2010/10/12 07:04*DJ UK Economic Growth Eased In Q3 From Strong 2Q - BCC
2010/10/12 07:02*DJ UK RICS House Price Balance Was Forecast At -35 In Sep
2010/10/12 07:01*DJ UK BRC Sep Same-Store Retail Sales +0.5% On Year
2010/10/12 07:01*DJ UK BRC Sep Total Retail Sales +2.2% On Year
2010/10/12 07:01*DJ UK RICS House Price Balance -36 In Sep Vs -32 In Aug
2010/10/12 06:54DJ Soros: 'The Euro Is Here To Stay' -CNBC
Billionaire investor George Soros said in an interview broadcast Monday that he believes the euro is going to survive in the wake of sovereign debt crises in Europe.'The euro is here to stay because, effectively, they set up a rescue mechanism, which was the missing ingredient in the euro,' Soros told CNBC, referring to the response to problems in Greece and other nations.'But,' he warned, 'it's imposing on Europe policies, which are creating unemployment or stagnation.' Since the policies are being imposed from 'the outside,' he said, it could have 'very bad political repercussions' for the European Union.Soros's remarks were recorded over the weekend but were broadcast Monday afternoon.Website: www.cnbc.com
2010/10/12 06:53DJ Ireland Fin Min: More Pension, Public Pay, Welfare Cuts On Table
NEW YORK -Further cuts in pensions, public servants' pay and welfare are under consideration for Ireland to advance beyond the 3 billion euros ($4.2 billion) in annual fiscal savings already earmarked, the country's finance minister said Monday.However, in an interview with and The Wall Street Journal, Brian Lenihan said any increase in the country's comparatively low 12.5% corporate tax rate isn't in the works, calling it a 'centerpiece' of Ireland's industrial policy, which depends heavily on multinational direct investment.'Were we not to have that policy, there's no guarantee that corporate tax receipts would actually increase,' he said, arguing that tax inflows could even decline if corporations left the country.So the government is focused on spending cuts instead. Lenihan said that negotiated wage freezes for public servants and the same for pensioners had given the government room to seek various other ways to extract savings out of those areas.'We have already published legislation for reduced pensions for new entrants, but we may have to accelerate pension reform more broadly,' he said. This, along with changes in wage, transfer payments and further welfare overhauls beyond those already implemented are 'on the table,' Lenihan added.He wouldn't put a precise estimate on how much Ireland would need to exceed the current the EUR3 billion, however. 'I am not fixing a number at this point because what's important is the credibility of the four-year number,' he said, referring to a four-year fiscal adjustment plan that will be unveiled in November.The added spending cuts are required because of the higher interest expense that the government will incur as a result of bonds placed with banks that were nationalized amid Ireland's crisis in 2008, including Anglo Irish Bank. The government recently announced that the total end cost of those bailouts in terms of asset write-downs could run to EUR34.7 billion.Lenihan said that although the government acknowledges that some estimates put the figure as high as EUR50 billion, it is confident in its latest projections. That's because it has used the time since it nationalized various banks in September 2008 to conduct an analysis through a 'very detailed process.'He added that the national pension fund with EUR24 billion in liquid, mostly foreign assets stands behind the capitalization costs of those bailouts and is thus 'a very valuable weapon.''Yes, it is expensive. Yes, it is unacceptable that corporate misconduct in these institutions has led to this conclusion,' he said, referring to the EUR34.7 billion price tag. 'But it is a manageable cost.'Lenihan said that some suggestions that Ireland impose a so-called haircut on holders of senior bank debt to share the cost with investors weren't viable. 'It is not an option,' he said, noting that much of the country's financing is done internationally. 'So that's important for your credibility.'He described the high yields at which Irish bonds are currently trading as 'not attractive for us,' but 'clearly attractive for investors,' noting that recent auctions had gone to market three-times oversubscribed. And despite a gloomy economic picture in which Irish unemployment is now at 13.2%, he stressed that his government's commitment to austerity would achieve the 'crucial' goal of bringing Ireland's deficit below 3% of gross domestic product by 2014. The bond market should eventually reflect that, he said, noting the government's plan to return to market with bond auctions in January.'We have our plans, they are well conceived, and we will be able to execute them,' Lenihan said. 'If the markets remain crazy, then the markets are crazy.'Lenihan acknowledged that relatively tight monetary policy by the European Central Bank, compared with the U.S. Federal Reserve, made his job as a finance minister more difficult, but in all he argued that the ECB has been supportive of Ireland's problems. The ECB 'has stood behind the [European] banking system and Ireland has been a beneficiary of that,' he said.However, Ireland's dependence on the euro creates bigger challenges for some of its export-driven industries when other governments are weakening their currencies. 'Using competitive devaluations to enhance competitiveness...is a form of trade war,' he said.
2010/10/12 06:45=DJ WORLD FOREX:Dollar Up Slightly, But Focus Remains On US Easing-2-
2010/10/12 06:33DJ BoE King, ECB Trichet Call For 'Alertness' As Uncertainty Remains
WASHINGTON -Central banks need to remain in a state of alertness in the face of lingering uncertainty in the world economy, two European central bankers said Monday."It would certainly be a mistake to assume the worst is over," said Mervyn King, governor of the Bank of England, at a conference on central banking in Washington Monday."We have to remain alert and cautious...permanent and credible alertness is necessary," European Central Bank President Jean-Claude Trichet said at the same event.The unwinding of the public sector's debt burden in mature economies, resulting from massive stimulus programs put in place by governments to stave off the global recession and rescue the banking sector from the brink of collapse, is the main cause for uncertainty."We've have shifted the unsustainable position of the financial sector partly onto the public sector...We hope that we can adjust in an orderly way. But it will be a long adjustment process and in that process unpredictable events can happen," King said.To avoid future crises, central banks have to work towards making the financial system more resilient, while nations need to coordinate their macroeconomic policies better on an international level, which will help foster a more global balanced growth, both Trichet and King said.Although central banks should stand ready to prevent the failure of a systemic financial institution from having disastrous consequences on the economy, Trichet stressed better financial supervision is necessary as central banks and governments are no longer prepared to provide the extraordinary support they provided during the crisis twice."It was impossible for us not to act to avoid depression," Trichet said, adding the cost of bailing out the banking sector had represented roughly 25% of gross domestic product both in Europe and in the U.S. "We won't do that twice," he warned.
2010/10/12 06:04=DJ NYSE Reports Closing Issue With 'Certain' NYSE, NYSE Amex Stocks
2010/10/12 05:38=DJ WORLD FOREX:Dollar Up Slightly, But Focus Remains On US Easing
2010/10/12 05:25=DJ US Stocks Close Slightly Higher Ahead Of Key Earnings Reports-2-
2010/10/12 05:02*DJ NYSE: Closing Issue Resolved; All NYSE, NYSE Amex Stocks Closed
2010/10/12 04:53=DJ US Stocks Close Slightly Higher Ahead Of Key Earnings Reports
2010/10/12 04:10DJ OIL FUTURES: Nymex Crude Settles Lower; Gasoline Gains
2010/10/12 03:47DJ NABE Survey: Forecasters Cut Growth Outlooks For 2010, 2011
NEW YORK -Top economic forecasters have lowered their expectations for U.S. economic growth over this year and next, and foresee continued high rates of unemployment.According to a study released by the National Association of Business Economics Monday, analysts now expect to see the U.S. gross domestic product rise by 2.6% this year, versus the 3.2% expectation held back in May. They expect growth to move forward at a modest 2.6% next year as well, cutting that estimate by the same amount. Consumer spending levels are expected to be modest as unemployment weighs, with the upcoming holiday spending season seen rising by an "especially weak" 2.5%."Confidence in the expansion's durability is intact, but recent economic weakness has prompted many panelists to scale back expectations for the year ahead," said incoming NABE president Richard Wobbekind, of the University of Colorado-Boulder. "This summer's slowdown has exposed the economy's sensitivity to wealth losses, the unwinding of debt, and the reductions in economic stimulus," he said.The report said company-related activity is the "bright spot" in the outlook. "The outlook for real spending on equipment and software calls for sustained double-digit growth over the forecast horizon," NABE said.The survey was released in conjunction with the NABE meeting held in Denver. The group is gathering at a pivotal time for the economy. Over recent weeks U.S. central bank officials have become more concerned that inflation levels are weakening toward outright deflation, and that modest activity gains aren't enough to bring down very high levels of unemployment.September jobs data Friday did nothing to brighten the story despite small gains in private sector hiring. The jobs data helped bolster the case for the Federal Reserve to soon restart its asset buying program, which officials hope will lower borrowing costs and spur better growth levels.The forecasters predict a slow recovery in hiring, with payroll gains to rise an average 150,000 or less into the latter half of 2011, before moving up into the 170,000 to 175,000 range. The jobless rate, which was at 9.6% in September, is seen hanging around 9.5% through the middle of the next year before moving down to a still-weak 9.2% by the close of the coming year.NABE described respondents as "sanguine" price deflation will be avoided, with the personal consumption expenditures index stripped of food and energy costs seen bottoming out at 1% this year before moving to a 1.4% gain next year. "NABE panelists continue to rank 'inflation' as a slightly greater worry than 'deflation,' but both concerns are overshadowed by other issues," the report said.The NABE forecasters found forecasters in "greater appreciation" of the importance of stimulus policies, even though the survey did not having anything to say about forecasters' view on Fed asset buying. The report found 17% of respondents describing the expansion thus far seen as "dominated by stimulus policies," up from 5% who held that view in May. The survey found forecasters expecting the Fed to hold its 0% interest rate forecast in place until "late" 2011, with a modest move to 0.50% by year's end.The NABE survey was more upbeat on housing, with respondents expecting a "a sizable advance" in housing starts next year. The decline in house prices is not expected to continue, but that does not mean all is well. The survey said "next year's projected home price gain of 1.2%, however, will not keep up with broad measures of inflation."The federal budget deficit is seen undergoing a modest $100 billion reduction in the new year, but it will still likely come in at an "extreme" $1.2 trillion. "NABE panelists continue to characterize excessive federal indebtedness as their single greatest concern going forward, even exceeding worries about high unemployment, and far greater than either inflation or deflation," the report said.The survey was conducted between Sept. 2 and Sept. 21, and the findings are based on the responses of 46 NABE members.
2010/10/12 03:13*DJ OPEC: Saudi Oil Minister: Oil Price Range Of $70-$80 `Ideal`
2010/10/12 03:13*DJ OPEC: Saudi Oil Minister: Market Is Well Balanced
2010/10/12 03:10*DJ OPEC: Saudi Oil Minister: Supply Is Adequate
2010/10/12 03:06DJ PRECIOUS METALS: NY Gold Bounces, Viewed As A Bargain On Dips
2010/10/12 02:55*DJ ECB Trichet: Need Clear Distinction Between Monetary, Fiscal Policy
2010/10/12 02:38*DJ OIL FUTURES: Crude Settles Down 45c At $82.21/Bbl
2010/10/12 02:38*DJ OIL FUTURES: Crude Drops Slightly As Dollar Strengthens
2010/10/12 02:33*DJ OIL FUTURES: Nymex Crude Closes Down 38c At $82.28/Bbl
2010/10/12 02:15*DJ Ireland Fin Min: 3% Of GDP Deficit Target For 2014 Is 'Crucial'
2010/10/12 02:14*DJ Ireland Finance Minister: More Cuts Needed Beyond Existing $3B Plan
2010/10/12 00:51*DJ NABE: Core PCE To Bottom Out At 1%, Rise To 1.4% In 2011
2010/10/12 00:49*DJ NABE: Unemployment Rate Seen Falling To 9.2% By 2011 Year End
2010/10/12 00:48*DJ NABE: US Annual Average GDP Growth 2.6% For 2010, 2011
2010/10/12 00:48*DJ NABE Survey: Forecasters Cut Growth Outlooks For 2010, 2011
