2010/10/14 17:51*DJ UK Government:To Merge 118 Additional Agencies Into 57 Bodies
2010/10/14 17:50*DJ UK Government: To Axe 192 Independent Government Agencies
2010/10/14 17:47=DJ Three-Month Euribor At 15-Month High
LONDON -The cost of borrowing three-month euros in the interbank market continued to climb to a 15-month high Thursday. The three-month Euro Interbank Offered Rate, or Euribor, the rate at which interbank term deposits in the monetary union are offered, fixed Thursday at 0.987%, up from 0.985% on Wednesday. Thursday's fixing was the highest since July 13, 2009 when the rate fixed at 0.996%. Euribor is tracked more widely than its London Interbank Offered Rate euro counterpart, and is used to benchmark a wider range of assets.
2010/10/14 17:45*DJ Hungary Fiscal Plans Aimed At Fiscal Stability - Matolcsy
2010/10/14 17:43*DJ Hungary Fiscal Plans Aimed At Growth, Jobs-Economy Minister
2010/10/14 17:32*DJ Hungarian 12-Month Treasury Bill Average Yield Set At 5.72%
2010/10/14 17:31*DJ Hungary Sells HUF50B 12-Month Treasury Bills
2010/10/14 17:19*DJ Dollar Falls Below Y81.00 On EBS; Lowest Since April 1995
2010/10/14 17:11*DJ 3-Month Euribor Rises To 0.987% Vs 0.985% Wednesday
2010/10/14 17:11*DJ Greek July Unemploymnet 12.0% Vs 11.6% In June
2010/10/14 17:08*DJ Russia's Klepach: 2010 Deficit To Be 4.8% To 5% Of GDP-Report
2010/10/14 17:05*DJ Institutes See Brent Oil At $78/Bbl In 2010, $80 In 2011
2010/10/14 17:05*DJ Institutes See Euro At $1.35 In 2010, 2011
2010/10/14 17:05*DJ Institutes: German 3Q GDP Seen +0.9% QQ, 4Q Seen +0.5% QQ
2010/10/14 17:04*DJ Institutes: ECB To Raise Key Lending Rate By 25 BPs End Of 2011
2010/10/14 17:03*DJ Institutes See German 2011 Jobless Rate At 7.0%
2010/10/14 17:03*DJ Institutes Raise German 2010 GDP Forecasts To +3.5% Vs +1.5%
2010/10/14 17:02*DJ Institutes Raise German 2011 GDP Forecast To +2.0% Vs +1.4%
2010/10/14 17:01=DJ Forex Focus: Waiting For The Big Bad Japanese Wolf
2010/10/14 16:52DJ BOJ Shirakawa: May Take 1.5-2 Years For Easing Policy To Have Effect
TOKYO -Bank of Japan Gov. Masaaki Shirakawa on Thursday said he expects recently implemented monetary policy easing measures, such as expanding central bank purchases of private financial assets, to have their intended effect over the long term. 'The effects of monetary policies usually materialize over the long term--about a-year-and-a-half to two years--and we expect likewise from the recently implemented policies,' Shirakawa said at a parliamentary budget committee meeting. The central bank's easing has already resulted in declines in long-term interest rates and corporate bond yields, he said.
2010/10/14 16:42DJ ECB: Increasing Signs Of Business Investment Normalizing
FRANKFURT -There is increasing evidence that businesses in the euro zone are either willing to invest or needing to invest, the European Central Bank said in its monthly bulletin for October, published Thursday. The ECB said the level of capacity utilization in the region, which had slumped in the aftermath of the financial crisis, is still below its long-term average overall, but said this masked big fluctuations between sectors and individual countries. 'Mounting evidence of limits to production due to equipment shortages can be expected to lead to an increase in investment if the companies concerned believe this situation will continue,' the ECB said. 'Such a rise is also to be expected, given the low base level of investment and the improved liquidity situation of non-financial corporations, which has also been reflected in their net lending position for three consecutive quarters,' the central bank said. Elsewhere in the bulletin, the ECB repeated that it intends to phase out its non-standard monetary policy measures 'gradually... in line with improvements in financial markets and economic activity.' Website: http://www.ecb.int
2010/10/14 16:41DJ EU Govts Fail To Reach Deal On Hedge Fund Legislation-Sources
BRUSSELS -European Union governments Wednesday night failed to reach agreement on legislation that will tighten oversight of hedge funds and private equity firms, officials close to the talks said Thursday. A negotiating session with the European Parliament, scheduled for Thursday, to reach a final agreement on the legislation has been canceled, as EU governments at the European Council must first resolve their differences before continuing talks with the parliament, the officials say. Negotiators last night discussed a new compromise text proposed by Belgium, which holds the rotating EU presidency, to address concerns by France about a 'passport' that hedge funds could obtain under the new rules allowing them to operate in all 27 EU countries. Belgium proposed giving new powers to the European Securities and Markets Authority, the EU's new securities regulator, to oversee the industry. But France is still unsatisfied with the proposal, officials say, while Germany and a number of other EU countries say it goes too far in giving powers to the ESMA to regulate hedge funds. The U.K., Sweden, the Netherlands and the Czech Republic now say the text would make it too difficult for hedge funds to operate across the EU.
2010/10/14 16:29*DJ SAFE: Fund Repatriation From Big Firms' Overseas Listings Boosted FX Reserves
2010/10/14 16:27DJ JGB Futures Up Slightly; Solid 30-Year Sale Cheers Superlong Demand
TOKYO -Japanese government bond futures ended slightly higher Thursday, but gains were limited as better-than-expected 30-year tender results and rising Tokyo share prices gave investors mixed cues. Lead December JGB futures finished the day 0.01 higher at 143.92 after a stronger-than-expected 30-year JGB auction sent the contract to an intraday high of 144.02. The firm auction suggests life insurers, the main buyers of the superlong zone, may have lowered their target yields amid ultra-easy financial conditions and that banks, which are usually active in the medium-term sector, may have become more interested in longer-maturity bonds due to unattractive yields in the shorter end, said Katsutoshi Inadome, a strategist at Mitsubishi UFJ Morgan Stanley Securities. But despite the tender results, JGBs are expected to be capped in the near term as 'players will likely remain cautious about a 20-year JGB auction coming up next Thursday,' said Maki Shimizu, a senior strategist at Citigroup Global Markets Japan. JGB players are still not confident enough to actively chase upside in superlong bonds, so they will closely watch next week's 20-year sale to see if superlong-term bonds continue to receive strong demand, analysts say. The benchmark 10-year cash JGB yield is likely to trade in a 0.86%.90% range over the next week, Citigroup's Shimizu said. It was flat at 0.875% as of 0600 GMT. At the 30-year tender Thursday, the Ministry of Finance sold Y552.8 billion worth of the bonds at a lowest price of 100.35, higher than market expectations of 100.20, yielding 1.981%. The new bonds, which reopen the previous issue sold in September, carry a coupon of 2.0%. The auction received Y2.9853 trillion in total bids, for a bid-to-cover ratio of 5.40--the highest level since 30-year JGBs started to be auctioned in a price-competitive style in April 2007. That was a sharp improvement from 4.15 at a previous auction in September. A higher bid-to-cover ratio is an indication of stronger demand. Reflecting healthy tender demand, the 30-year cash JGB yield reached as low as 1.935% in the afternoon. It stood up 2.5 basis points at 1.960%, as of 0600 GMT.
2010/10/14 16:05*DJ ECB: Increasing Signs Of Business Investment Normalizing
2010/10/14 16:03*DJ ECB: Global Trade To Keep Growing In 2H, Albeit At Slower Rate
2010/10/14 16:02*DJ ECB: To Phase Out Non-Standard Steps As Markets, Economy Improve
2010/10/14 16:02*DJ ECB: Global Trade Won't Regain Pre-Crisis Level "For Some Time"
2010/10/14 15:55*DJ Dollar Index Falls Below 76.319; Lowest Since Dec 14
2010/10/14 15:55DJ Tokyo Shares End Up As Resource Stocks Rise Despite Firm Yen-2-
2010/10/14 15:53DJ All 12 Analysts Say BOK To Stand Pat On Rates In November -DJ Survey
SEOUL -The Bank of Korea is likely to stand pat on its policy rate for a fourth straight month in November as its concerns over rapid gains in the local currency are unlikely to ease anytime soon, analysts said Thursday.A survey conducted after BOK Gov. Kim Choong-soo's post-meeting press conference shows that all 12 economists and fixed-income analysts forecast the central bank to leave rates unchanged at 2.25% next month.Four of them said the BOK may raise rates at its December meeting, the last for this year and after the nation hosts a summit for the Group of 20 leading nations on Nov. 11-12.Others, however, say the Bank of Korea will likely make its next tightening move next year.Five of them tipped the first quarter for tightening, while two others said the second rate hike since the onset of the global financial crisis is unlikely to come before the second half of next year. The last analyst expects a rate increase in May."Given that the local economy is highly reliant to external factors, BOK's tightening decision may depend more on whether the offshore risks persist than domestic inflation conditions," Woori Investment & Securities analyst Park Jong-youn said.
2010/10/14 15:51=DJ UBS Admits Crisis Mistakes; Won't Proceed Against Management
2010/10/14 15:49*DJ Malaysia Central Bank Suspected Of Buying Dollars At MYR3.0820-Dealers
2010/10/14 15:34*DJ Japan Fin Min: Want To Deepen Intl Discussions On FX At G-7, G-20
2010/10/14 15:29*DJ BOJ Shirakawa: Expect Recent Easing To Have Effect In Long-Term
2010/10/14 15:23DJ Tokyo Shares End Up As Resource Stocks Rise Despite Firm Yen
2010/10/14 15:20*DJ EU Govts Fail To Reach Deal On Hedge Fund Legislation-Sources
2010/10/14 15:12DJ Forex Options: Dollar/Yen Options Edge Down; Further Falls Unlikely
TOKYO -Dollar/yen options edged down in Asia Thursday as players sold hedges against the greenback's downside earlier in the global day amid relative stability in the underlying exchange rate. Benchmark volatilities implied by one-month at-the-money options declined to 11.60%/12.30% in Tokyo from 11.65%/12.35% Wednesday in New York. An options dealer at a major Japanese bank said, however, that further falls in benchmark volatilities are unlikely as the U.S. currency's fall in late morning trade in Tokyo to a fresh 15-year low against the yen is rekindling demand for bets against the dollar. The dealer said such demand may be sustained ahead as the view has emerged that comments from Japanese Prime Minister Naoto Kan Wednesday might have made it difficult for Tokyo to intervene in the currency market again. Speaking at a meeting of the budget committee of Japan's parliament, Kan said that the Group of Twenty countries, including South Korea and China, need to 'act responsibly' in the foreign exchange market. 'If a country keeps its own exchange rate artificially low, this is not in keeping with the G-20 agreement,' he added. The dealer said that earlier in the day, before the greenback fell below Y81.50, multiple names bought overnight dollar-put/yen-call option contracts with a strike price of Y81.50 and implied volatilities of 13.75%.
2010/10/14 15:06*DJ Euro Trades Above $1.41, First Time Since Late January - EBS
2010/10/14 15:05*DJ Sterling Rises To Fresh 8 Month High Above $1.6019 - EBS
2010/10/14 15:01*DJ Stoxx Europe 600 Index Up 0.2% After The Open
2010/10/14 15:01*DJ FTSE 100 Up 0.2% After The Open
2010/10/14 15:00DJ ECB Noyer: Need For Structural Correction In Monetary System
DJ ECB Noyer: Need For Structural Correction In Monetary SystemPARIS -European Central Bank governing council member Christian Noyer Thursday said the solution to the current tensions in the monetary market is cooperation as well as a fundamental structural correction in the system.Speaking during a radio interview, Noyer said Chinese consumers need to consume more and save less, while at the same time the U.S. consumers should increase their savings.International Monetary Fund head Dominique Strauss-Kahn recently warned that countries are trying to use their currencies 'as a weapon.'
2010/10/14 14:59*DJ Sterling Rises Above $1.6020; Highest Since Feb 3
2010/10/14 14:56*DJ OIL FUTURES: Nymex November Crude Rises $1 To $84.01/Bbl
2010/10/14 14:54*DJ All 12 Analysts Say BOK To Stand Pat On Rates In November -DJ Survey
2010/10/14 14:43DJ PRECIOUS METALS: Gold, Silver Hit New Highs As Euro Breaks Out
SINGAPORE -Gold and silver extended their gains to hit new highs in Asia Thursday after the euro broke key resistance and traded at its highest level since January. 'It's momentum buying at the moment. There's no real resistance so $1,400 looks likely,' a Singapore-based trader said after gold punched through to a new record high of $1,380.40 a troy ounce. The buying was mainly on the CME Globex electronic trading platform, with the over-the-counter market quiet apart from some sporadic scrap selling, he said. The euro's decisive break of $1.40 early in the session was the primary catalyst, and at 0650 GMT it was trading at $1.4077. Spot gold was at $1,379.80/oz, up $7.90 from the New York close, while on Tocom August 2011 gold was up Y30 at Y3,608 a gram. Spot silver was even more explosive, trading up 31 cents at $24.36/oz, just off the 30-year high it hit Thursday at $24.37/oz. 'Silver is being driven by new money coming into the market. There is investment money but there's also speculative cash chasing this,' said Mark van der Sluys, managing director at Bullionmark, a physical precious metals dealer in Sydney. The primary motivation of his clients was diversification away from fiat currency exposure due to dovish policies at major central banks, and a general mistrust of other financial assets since the 2008 crash, he said. Silver's recent outperformance--the white metal has gained 37% since breaking out on Aug. 24, compared to gold's 14%--meant it could be worth buying the gold/silver ratio at the current 56.5 as any correction or consolidation phase in precious metals would almost certainly see gold outperform, he added. However, he said that he could not rule out more gains for both gold and silver, with the shallowness of recent dips testament to the amount of new money seeking exposure to precious metals. 'Even experienced traders are no longer waiting for a correction, they are seeing any sign of stability as a chance to accumulate a larger position,' he said. Palladium was also making gains, up $6 at $600/oz, just off the nine-year high of $601.75 it hit in early trade. Spot platinum was at $1,711/oz, also up $6, supported by rallying base metals and the general climate of dollar weakness.
2010/10/14 14:01*DJ Nikkei Stock Average Closes Down 1.9% At 9583.51
2010/10/14 13:56*DJ ECB Noyer: Need For Structural Correction In Monetary System
2010/10/14 13:43=DJ BIG PICTURE: The 'New Normal' May Mean Jobless Rate of 7%-8%
2010/10/14 13:28PRESS RELEASE: Fitch Affirms Ratings of Chong Hing Bank
Hong Kong/Singapore-14 October 2010: Fitch Ratings has today affirmed Chong Hing Bank Limited's Long-term Issuer Default Rating at 'BBB+' with a Stable Outlook, Individual Rating at 'C', and all its other outstanding ratings. A full list of rating actions is provided further below. The affirmation of CHB's ratings reflects its consistently strong capitalisation and liquidity, which remained intact throughout the global financial crisis and are expected to continue in the foreseeable future. However, the ratings remain constrained by CHB's small size relative to most Hong Kong banks. Greater scale can benefit banks in times of rising interest rates and growth and often leads to lower cost-to-income ratios. CHB generates modest profits; this, plus a degree of concentration in its loan portfolio, also weighs upon its ratings. Fitch expects CHB's financial and operating profile to remain largely unchanged over the medium term, and this perspective underpins the Stable Outlook on the bank's Long-term IDR. CHB's Tier 1 ratio stood at 12.1% by end-H110 (end-2009: 12.7%), while total capital adequacy ratio was 15.2% in the same period. Fitch believes that CHB will maintain equally strong levels of capital going forward and expects it to resist taking on materially more credit risk in the pursuit of higher returns, because the bank is by nature rather conservative. Like most local peers, CHB boasts strong liquidity, as reflected by its loan-to-deposits ratio of 59% at end-H110 and average liquidity ratio of 45% in H110. CHB's challenge is to boost profitability in spite of the low interest rates and its abundant liquidity, the latter of which can influence the magnitude of investment in financial instruments (currently some 25% of total assets) and lending to other financial institutions (24% of assets). CHB is also subject to influence from interest rates and potential volatility in investment values arising from market and credit risk. Together with settlements relating to the repurchasing of Lehman Brothers minibonds (HKD287.7m in 2009), these factors have conspired to suppress profitability in recent years, but the agency notes that the good risk profile of its portfolio prevented CHB from recording any net losses and will continue to limit the prospects of such losses in future. While the immediate outlook for profit remains equally challenging, Fitch expects prospects for margin expansion to be boosted by the eventual raising of interest rates, albeit competition for deposits may, for banks the size of CHB, exert pressure on funding costs. In the meantime, opportunities for loan growth have improved given more optimistic prospects for the local economy and the mainland. CHB has already reported loan growth of 8.4% (un-annualised) in H110, but Fitch does not anticipate much higher growth in H210 or in 2011. With regards to the loan book, notwithstanding moderate concentrations among the corporate/small medium enterprise sectors, including in property , CHB continues to enjoy low non-performing loans (end-H110: 0.1%). Fitch considers this a function of the bank's own conservative approach to lending, which is not expected to change any time soon. However, the agency continues to remain cautious about excessive property price growth given the potential risk that a sharp correction in future could lead to an increase in impairments despite the generally prudent loan-to-valuation ratios enforced by most banks. More meaningful scale or less vulnerability to competition and low interest rates would potentially lead to more robust profitability. Evidence of sustainability of such may be positive for CHB's ratings, although this scenario is considered unlikely in the near-term. Any upgrade of the IDR is likely to be driven by the Individual Rating, since the IDR reflects its individual strength. Evidence of excessive growth in potentially problematic sectors , more vulnerability to market cycles, or a more aggressive approach to capitalisation could lead to negative ratings action. Given CHB's size, with system-wide deposit market share of around 1%, Fitch expects only a moderate likelihood of support for the bank from Hong Kong's authorities. Meanwhile, the rating of the Subordinated notes is consistent with Fitch's approach of rating such securities which are performing and do not exhibit any loss absorption features. CHB is one of Hong Kong's smaller banks with its head office and 51 branches in Hong Kong and three branches outside of Hong Kong (Shantou, Macau and San Francisco) in addition to the two representative offices in Guangzhou and Shanghai. The rating actions of Chong Hing Bank are as follows: - Long-term Foreign Currency IDR: affirmed at 'BBB+' with Stable Outlook;- Short-term Foreign Currency IDR: affirmed at 'F2';- Individual Rating: affirmed at 'C';- Support Rating: affirmed at '3';- Support Rating Floor: affirmed at 'BB'; and- USD125m Subordinated notes: affirmed at 'BBB'.
2010/10/14 13:13=DJ MONEY TALKS: Global Currency Spat Has No Winners
2010/10/14 13:00*DJ Spot Gold Hits Record High $1,380/Oz On Weak Dollar
2010/10/14 12:52DJ Rio Tinto 3Q Iron Ore Output 47.6M Tons, Up 1% On Year
SYDNEY -Rio Tinto Ltd. said Thursday iron ore output increased 1% on the year in the third quarter of 2010 to 47.6 million metric tons from 47.0 million tons in 2009. But U.S. coal production by the world's number-three listed miner fell 49% to 11.8 million tons in the three months to the end of September from 23.3 million tons in the same period last year. The hard coking coal used in steel mills rose 17% to 2.4 million tons from 2.1 million tons but other Australian coal sank 14% to 5.2 million tons from 6.1 million tons. Mined copper production also fell in spite of booming prices for the commodity, with production down 19% to 159,700 tons from 197,200 tons. Declining ore grades at the Escondida mine, the world's largest, in which Rio Tinto has a 30% stake, meant production at the site in Chile fell 6% on the year. The company said in a statement it expects its full-year share of iron ore production to total 179 million tons, while mined copper would hit 660,000 tons over the year. It added that Alumina production would come to 9.4 million tons while aluminum would reach 3.8 million tons. Australian hard coking coal production is expected to be 9.5 million tons, semi-soft coking coal 3.3 million tons and thermal coal 19.1 million tons.
2010/10/14 12:41*DJ Foreigners Net Buyers Y709.0B Japan Bonds In Sep
2010/10/14 12:41*DJ Foreigners Net Sellers Y256.8B Japan Stocks In Sep
2010/10/14 12:41*DJ Japanese Net Buyers Y2.853T Foreign Bonds In Sep
2010/10/14 12:41*DJ Japanese Net Sellers Y142.2B Foreign Stocks In Sep
2010/10/14 12:13*DJ Fitch Affirms Ratings of Chong Hing Bank
2010/10/14 12:05*DJ Rio Tinto: 3Q Iron Ore Output 47.6M Tons, Up 1% On Year
2010/10/14 11:49*DJ Dollar Falls To C$1.000; Lowest Since April 27
2010/10/14 11:17DJ BOK: Aim To Sustain Sound Growth Under Accommodative Stance
SEOUL -The Bank of Korea said Thursday it will conduct monetary policy to help the economy maintain price stability, while sustaining sound growth 'under an accommodative policy stance.'In its policy statement, which was little changed from last month, the central bank said it will 'take into account overall financial and economic conditions at home and abroad' in carrying out policy.The bank said the domestic economy appears set to register 'solid' growth in coming months, helped by robust exports, increasing consumption and facilities investment, but risks remain.'The possibility of a slowdown in the pace of economic recovery of major countries, change in the setting of global exchange rates and the fiscal problems of European countries will act as downside risk factors,' the central bank said in the statement after it kept its benchmark interest rate unchanged at 2.25% for a third straight month at a rate-review meeting.The reference to exchange rates was a new addition to the policy statement.Consumer price inflation is likely to maintain an upward trend of above 3% on a year-on-year basis as demand-side pressures rise, the BOK added.The bank said the country's current account is expected to continue posting surpluses.
2010/10/14 11:12DJ BOK Governor: FX Volatility Was One Factor In Decision To Stand Pat
SEOUL -Bank of Korea Governor Kim Choong-soo said that growing volatility in the foreign exchange market was one of the factors the central bank took into account Thursday in deciding to hold its key policy rate steady. He said foreign exchange won't be the sole factor the central bank would look at in future rate decisions, but increased global foreign exchange volatility poses a risk to the Asia's fourth largest economy. Kim said the latest decision on the policy rate wasn't unanimous. He didn't elaborate.
2010/10/14 10:52*DJ HSI End-2011 Target Raised To 26,500 Vs 23,050 By Citigroup
2010/10/14 10:46*DJ BOK Governor: No Change In BOK Stance Toward Rate Normalization
2010/10/14 10:35*DJ BOK Governor: But FX Not Sole Factor In Future Rate Decisions
2010/10/14 10:33*DJ BOK Governor: FX Volatility Was One Factor In Decision To Stand Pat
2010/10/14 10:32*DJ BOK Governor: Thursday's Rate Hold Decision Wasn't Unanimous
2010/10/14 10:17*DJ Dollar Falls Below Y81.37 On EBS; Lowest Since Apr 1995
2010/10/14 10:05*DJ Hang Seng Index Rises 1.1% To 23,717; Highest Since June 2008
2010/10/14 09:54*DJ BOK: Aim To Sustain Sound Growth While Keeping Accommodative Stance
2010/10/14 09:33*DJ Nikkei Stock Average Up More Than 2.0%
2010/10/14 09:27*DJ Dollar Down At KRW1,113 Vs KRW1,120.7 Wed On Broad Dollar Weakness
2010/10/14 09:23*DJ Spot Silver Hits New 30-Year High Of $24.25/Oz
2010/10/14 09:20DJ Wal-Mart Eyes New International Acquisitions
NEW YORK --Wal-Mart Stores Inc. , the world's largest retailer, said on Wednesday it is looking for new international acquisitions in an effort to boost growth as the U.S. market remains sluggish. 'The international division is a growth engine for the company and will continue to be one,' Wal-Mart international chief Doug McMillon said in a phone briefing with analysts. 'We want thoughtful acquisitions that deliver value over time.' South Africa, China, Argentina, Chile and Mexico are the most attractive markets the retailer is examining, McMillon said. Wal-Mart in September said it would buy South African retailer Massmart for about $4.25 billion. McMillon said the two companies share a 'real good cultural fit.' Wal-Mart's international sales reached $100 billion last year in more than 4,000 stores worldwide.
2010/10/14 09:18*DJ Dollar Now At IDR8,920, Unchanged From Late Wednesday
2010/10/14 09:16DJ SEC Votes 5-0 To Propose Voting Caps For Derivatives Clearing
WASHINGTON -Federal securities regulators floated a plan Wednesday that would limit the voting power that companies wield in derivatives and clearing venues and also force those facilities to place independent directors on their boards.The proposal, approved in a 5 vote by the Securities and Exchange Commission, will now be published and open to public comment. A second vote is needed to implement it.The plan is very similar to a proposal floated by the Commodity Futures Trading Commission earlier this month, although there are some nuanced differences between them mostly concerning board composition requirements.SEC Chairman Mary L. Schapiro said the proposal was 'intended to make these entities less susceptible to promoting the interests of a few participants to the detriment of others.' Both the SEC and CFTC won broad new powers to police the over-the-counter derivatives market under the Dodd-Frank law enacted in July.That law aims to reduce risks in the broader market and shine more light on swaps, financial products that derive their value from an underlying asset like a commodity or bond. Swaps are used by companies across the U.S. as a way to hedge against such risks as interest-rate or currency fluctuations, but can also be used by speculators seeking to profit from price movements. Under the law, the CFTC will get to regulate the bulk of the swaps market, including swaps tied to commodities, interest rates and currencies. The SEC will get control over security-based swap products like equity swaps and some types of credit derivatives.The SEC's governance proposal would give securities-based swap clearinghouses a choice between two plans.The first one would prevent clearing members from individually owning or voting more than 20% of the voting interest in any security-based swap clearing venue and prohibit participants from collectively controlling 40% of the voting shares in the aggregate. The plan would also require 35% of the clearing board to consist of independent directors and require a majority of the nominating board to be independent as well.These numerical voting limits are the same as those proposed by the CFTC, although the CFTC's 40% aggregate limit applies specifically to certain financial companies like big banks.The second option offered by the SEC, meanwhile, would let clearinghouses impose a 5% voting restriction across the board for each participant. In that case, the board of directors would need to have a majority of independent directors and its nominating committee would be solely comprised of independent directors.As for exchanges and other swap trading venues, the proposed rule would prevent participants or members from controlling 20% of the voting shares. Those venues would also need to have independent representation on their boards as well as nominating committees consisting solely of independent directors.As was the case at the CFTC earlier this month, both Republican SEC commissioners expressed strong reservations about the proposal.Commissioner Kathleen Casey argued at the meeting that the ownership limits could discourage investors from setting up new clearinghouses.Commissioner Troy Paredes expressed similar fears, and also worried the rule was too 'prescriptive' and could lead to 'suboptimal risk management.'Still, the two Republicans on the commission agreed to float the plan for consideration so they could hear from the public. CFTC Republican Commissioner Jill Sommers voted against proposing the CFTC's governance rules earlier this month, citing similar concerns that were expressed by Casey and Paredes on Wednesday.
2010/10/14 09:05=DJ UBS Set To Report Failings On Losses, Offshore Unit To Holders
2010/10/14 08:37=DJ UK Banks Set GBP1.5B Fund To Aid Small Businesses
2010/10/14 08:20*DJ Euro Rises Above $1.4030 On EBS; Highest Since Jan 28
2010/10/14 08:17*DJ Dollar Falls Below CHF0.9544 On EBS; All-Time Low
2010/10/14 08:14*DJ NZ Dollar Gains To US$0.7612 From US$0.7991 At 2359 GMT
2010/10/14 08:13*DJ Gold Hits Record $1,375.20/oz; Last Bid $1,374.40, Up $2.50 From NY
2010/10/14 08:10*DJ Lead 10-Year JGB Futures Open Down At 143.85 Vs 143.91 Wed
2010/10/14 08:10*DJ Dollar Index Falls Below 76.906; Lowest Since Jan 15
2010/10/14 08:09*DJ Nikkei Stock Average Opens Up 1.2% At 9515.17
2010/10/14 08:09*DJ US Dollar Falls To S$1.2889 Vs S$1.3050 Late Wednesday
2010/10/14 08:01*DJ Fed's Lacker: Fundamental Economic Prospects Look Bright
2010/10/14 08:00*DJ Fed's Lacker: Inflation Now On Target, 'As Far As I'm Concerned'
2010/10/14 07:59*DJ Fed's Lacker: No Material Risk Of Deflation
2010/10/14 07:50*DJ Japan Sep Domestic CGPI -0.1% On Year
2010/10/14 07:50*DJ Japan Fin Min Noda: Closely Watching FX Markets
2010/10/14 07:47*DJ Lead Nikkei Futures Open Up 80 Points At 9500 On SGX
2010/10/14 07:39DJ Qatari Oil Minister: No OPEC Consensus Yet To Keep Output Unchanged
VIENNA -Qatar's oil minister said Wednesday the Organization of Petroleum Exporting Countries isn't yet in consensus to keep its output ceiling unchanged when it meets Thursday, but the group could agree a rollover. 'There is no consensus yet...in my opinion OPEC could agree a rollover,' Abdullah bin Hamad Al Attiyah told reporters on arrival in Vienna. OPEC is unlikely to discuss bringing Iraq under its quota system at this meeting and the cartel isn't worried about Iraq's plans to increase output, he said. 'Let them first reach the level they are talking about, then we will discuss it,' he said.
2010/10/14 07:36DJ BHP, Rio Tinto To Meet EC Regulators This Month On Iron Ore JV- Report
SYDNEY -Representatives of BHP Billiton Ltd. and Rio Tinto Ltd. will meet with European competition regulators this month to discuss their Australian iron ore joint venture as the European Commission prepares to announce the outcome of its preliminary investigation, Australian media reported Thursday. A spokeswoman for the European Commission said Wednesday the results of the preliminary report would be announced 'shortly', according to the Australian Financial Review and the Australian newspapers. The Australian Financial Review, without citing sources, reported that Rio Tinto and BHP are unlikely to formally terminate the iron ore joint venture in the Pilbara region of Western Australia state until the preliminary report is released. The companies have also been working on an alternative to the joint venture involving sharing infrastructure and blending iron ore products, the Australian reported. Newspaper website: http://www.theaustralian.news.com.au Newspaper website: http://www.afr.com
2010/10/14 06:46*DJ US Dollar Quoted At S$1.3009 Record Low Overnight, Now At S$1.3025
2010/10/14 06:27=DJ WORLD FOREX: Dollar Doldrums: Growth Currencies Fly Higher-2-
2010/10/14 05:45*DJ NZ Aug Adj Retail Sales Ex-Autos -0.6% On Month; Mkt +0.2%
2010/10/14 05:45*DJ NZ Aug Adj Retail Sales Unch On Month; Consensus +0.4%
2010/10/14 05:22=DJ WORLD FOREX: Dollar Doldrums: Growth Currencies Fly Higher
2010/10/14 05:07DJ US Stocks Close Stronger At 5-Mo High; Intel, J.P. Morgan Lead-2-
2010/10/14 04:57DJ Treasurys Rise As Fed Buying Plan Trumps Stock Rally, Auction
2010/10/14 04:35DJ US Stocks Close Stronger At 5-Mo High; Intel, J.P. Morgan Lead
2010/10/14 04:25DJ BOE Sentance: Gradual Rate Rises Wouldn't Hurt Recovery
LONDON -Bank of England Monetary Policy Committee member Andrew Sentance said Wednesday that the risk of losing public confidence in the inflation target is rising, and that a gradual policy tightening to address that threat likely wouldn't hurt the economic recovery.In a speech in London, Sentance said it didn't make sense to tighten policy dramatically, but that it was important to protect confidence in the central bank's will and ability to maintain low and stable inflation.Data Tuesday showed that annual consumer price inflation was 3.1% in September, marking the ninth straight month that inflation has been at least a percentage point over the 2.0% target. Inflation has now been above target for 41 months out of the past 50."It clearly does not make sense to tighten monetary policy dramatically in the current climate in a way which totally undermines the growth of the economy," Sentance said."However, if interest rates were moved up gradually from current levels, in a well-communicated strategy that was understood by the public, the business community and financial markets, the cost of borrowing would still be low in real terms and I do not believe that the recovery would be seriously damaged."He said such a move could actually boost confidence by signaling a return to more normal economic conditions.
2010/10/14 04:07*DJ Nasdaq Closes Up 23 (1%) At 2441; Materials, Industrials Climb
2010/10/14 04:07*DJ DJIA Closes Up 76 (0.7%) At 11096; Cisco, H-P, Microsoft Lead
2010/10/14 03:51DJ ECB's Nowotny: Keep Bond Program As Safety Belt - Reuters
FRANKFURT -The European Central Bank's bond buying program shouldn't be stopped as it may act as a safety belt, ECB Governing Council Member Ewald Nowotny told Reuters news agency in an interview Wednesday."It has de facto not been used in many weeks in the recent past....therefore it is not a very living program," Reuters quoted him as saying."On the other hand, my personal view is that it makes sense to use it as a safety belt... I would not throw it away too early," he added.His stance differs from fellow ECB governing council member, Axel Weber, who said the bond buying program should be phased out.Axel Weber, on Tuesday warned that the risks associated with "exiting too late" are greater than possible negative implications from "exiting too early."
2010/10/14 03:32DJ New York Fed Announces Latest Treasury Buying Schedule
NEW YORK -The Federal Reserve Bank of New York said Wednesday it would buy about $32 billion in Treasury securities in operations to take place through early November.Purchases will start Friday with buying of Treasurys maturing in the next four to six years.The announcement by the New York Fed Wednesday comes amid continued talk among market participants that the Fed will have to launch a large-scale bond buying program before the year is up to help the economy. Current buying is small, using proceeds from its maturing mortgage bonds to buy Treasurys and maintain the size of its balance sheet.
2010/10/14 03:13DJ NY Fed Conducts 1st Reverse Repo Test With Expanded Counterparties
NEW YORK -The Federal Reserve Bank of New York conducted its first small-scale test of its reserve draining reverse repurchase agreement with expanded repo counterparties Wednesday afternoon.In the operation, the Fed accepted $260 million in five-day reverse repos, out of $260 million that were submitted.Tuesday, the Fed announced that it was planning more reverse repo tests. It cautioned that the operations, which take bank reserves out of the system and will eventually be used to tighten financial conditions, "is a matter of prudent advance planning." The bank also said in its press release that "the operations have been designed to have no material impact on the availability of reserves or on market rates."The Fed's expanded reverse repo counterparty list was revealed in mid-August. Because of the size of the transactions the Fed will eventually have to carry out to pull the massive amounts of cash from the system, many believed primary dealer banks alone would not be able to trade in the size required to get the job done.The New York Fed also noted "these operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future."The testing comes even as talk in financial markets and among Fed officials has morphed from shrinking the Fed's balance sheet to possibly adding to it via more asset purchases. Many believe the Fed will have to launch another large scale bond buying program before the year is up to help support the economy.
2010/10/14 03:09DJ PRECIOUS METALS: Gold Breaches $1,370, Seen As Currency Hedge
2010/10/14 03:02*DJ Benchmark 10-Yr Treasury Erases Losses; 7-Yr Leads Buying
2010/10/14 03:01*DJ NZ Dollar Strong Early In NZ At US$0.7615 After Touching US$0.7633 Overnight
2010/10/14 02:56*DJ Shorter-dated Treasurys Rebound; Long End Recoups Most Losses
2010/10/14 02:55*DJ Treasurys Recover As Fed Announces $32 Bln Bond Buying Plan
2010/10/14 02:36*DJ OIL FUTURES: Nymex Crude Settles Up $1.34 At $83.01/Bbl
2010/10/14 02:01*DJ Qatari Oil Min: No OPEC Consensus Yet To Keep Output Unchanged
2010/10/14 02:00*DJ Comex December Gold Settles At Record $1,370.50 An Ounce
2010/10/14 01:43*DJ NY Fed: Reverse Repo Operations Are No Signal Of Policy Shift
2010/10/14 01:43*DJ NY Fed: Conducts 1st Reverse Repo Test With Expanded Counterparties
2010/10/14 01:42*DJ BOE's Sentance: Gradual Rate Rises Wouldn't Hurt Recovery
2010/10/14 01:34*DJ NY Dec Gold Up 1.8% At $1,370.40 After Close, Ahead Of Settle
2010/10/14 01:33*DJ Gold Futures Poised To Settle At Record Above $1,370/Ounce
2010/10/14 01:18*DJ UK Banks Set GBP1.5B Fund To Aid Small Businesses
2010/10/14 01:07*DJ Treasurys Fall As 10-Year Sale Trails Expectations; Stock Rally
2010/10/14 01:07*DJ 10-Yr Treasury Notes Sold At 2nd Lowest Auctioned Yield Of 2.475%
2010/10/14 01:06DJ SEC Unveils First Proposed Rules For Over-The-Counter Derivatives
