2010/10/18 17:43DJ Glorious Property Seeks To Raise US$300M In 5-Year Bond Issue - Source
SINGAPORE -Hong Kong-listed developer Glorious Property Holdings Ltd. (0845.HK) is looking to raise US$300 million in a five-year high-yield bond issue, a person familiar with the transaction said Monday. Initial pricing guidance for the bond is a yield of 13%, the person said. Final pricing is expected later today. Standard Chartered Bank is the sole lead.
2010/10/18 17:41DJ PBOC Adviser: Dollar-Led Monetary System Key Factor For Financial Instability
SHANGHAI -The U.S. dollar-centered global monetary system is a key factor for financial instability, Xia Bin, an adviser to the People's Bank of China, said Monday. The world 'needs to expedite reforming a global monetary policy system that is led by the U.S. dollar,' Xia told reporters on the sidelines of a global central bank meeting organized by the International Monetary Fund. In addition, he said 'large countries' should maintain discipline in printing currencies. Xia didn't specify which large countries he was referring to but the comment was apparently aimed at the U.S., which is contemplating a new round of quantitative easing via purchases of long-term Treasurys to lower long-term interest rates and boost economic growth. 'We don't expect large countries would easily give up the role of holding leading currencies in the world,' Xia added, without elaborating. While China has been under huge pressure from the U.S. and other countries over its currency policy, Beijing has hit back by accusing Washington of potentially hurting the interests of countries whose massive foreign-exchange reserves could shrink in value as the dollar weakens further.
2010/10/18 17:32=DJ Three-Month Euribor At 1%, Highest Since July 2009
LONDON -The cost of borrowing three-month euros in the interbank market on Monday climbed to 1% for the first time since July last year as surplus cash in the banking system declined. The three-month Euro Interbank Offered Rate, or Euribor, the rate at which interbank term deposits in the monetary union are offered, fixed Monday at 1%, up from 0.993% on Friday. Monday's fixing was the highest since July 10, 2009 when the rate fixed at 1.007%. Euribor is tracked more widely than its London Interbank Offered Rate euro counterpart, and is used to benchmark a wider range of assets.
2010/10/18 17:16*DJ 3-Month Euribor At 1%, First Time Since July 10, 2009
2010/10/18 17:14*DJ 3-Month Euribor Rises To 1% Vs 0.993% Friday
2010/10/18 17:13*DJ Xi Jinping Appointed Vice-Chairman Of Central Military Commission - Xinhua
2010/10/18 17:10*DJ Glorious Property Seeks To Price US Dollar Bond At 13% Yield - Source
2010/10/18 17:07*DJ Glorious Property Seeks To Raise US$300M In 5-Year Bond Issue - Source
2010/10/18 16:58DJ Hidili Industry International Development Plans Dollar Bond - Source
SINGAPORE -Hidili Industry International Development (1393.HK) plans to raise around $400 million through a global offering of five-year bonds, a person close to the situation said Monday. Hidili, which is based in Sichuan Province and is the largest coking coal producer in southwest China by output, intends to use the funds for debt repayment and capital expenditure. Bank of America Merrill Lynch, Citigroup, J.P. Morgan and UBS are bookrunners for the offering. The company aims to sell the bond after meeting with investors in Asia and the U.S., the person said. The planned five-year bond will be callable after three years, the person said. The proposed bond is rated B1 with a stable outlook by Moody's Investors Service and BB- with a negative outlook by Standard & Poor's Ratings Services.
2010/10/18 16:53=DJ HEARD ON THE STREET: Fed's Danger of Leaks With QE
2010/10/18 16:26*DJ PBOC Adviser: Large Countries Should Maintain Discipline In Printing Currencies
2010/10/18 16:24*DJ PBOC Adviser: Dollar-Led Monetary System Key Factor Of Financial Instability
2010/10/18 16:15DJ Global Leaders Mull Joint Governance Ahead Of G-20 Summit
MARRAKECH, Morocco --World leaders examined at the weekend frameworks for global governance ahead of a Group of 20 summit in Seoul, with United Nations chief Ban Ki-Moon stressing no single power could tackle key issues alone. Chinese Vice Foreign Minister Fu Ying told the World Policy Conference, or WPC, in Marrakech: 'We see eye to eye on the challenges,' and added that 'we need to find a better way to cooperate, to find a partnership.' The forum was also addressed by Ban, European Central Bank president Jean-Claude Trichet, European Union commissioner Joaquin Almunia, government ministers and business and social leaders. With the G-20 meeting on Nov. 11-12 set to be dominated by currency disputes and the threat of protectionist measures, the WPC theme of global governance in finance, the economy and politics was a timely issue. 'No country or group--no matter how powerful--can take on the major issues of the day alone,' Ban said in his address. Ban underscored three poles of focus, help for the poor and vulnerable, the fight against climate catastrophes, and 'new-generation' issues like migration, health research and the fight against organized crime and terrorism. Leaders needed to strive in particular 'for a world economy that works for all people not just a fortunate minority,' the U.N. chief said. Almunia said the 27-member E.U. had to strengthen its cohesion to contribute to global leadership but also allow emerging countries a greater voice in institutions like the International Monetary Fund. Referring to past talks with leaders from China, emerging countries and the U.S., Almunia acknowledged that if Europe had one position 'then it does not need eight Europeans around the table.' A sub forum that focused on the meeting in Korea noted that 'the issue of over-representation of the E.U. within the G-20 needs to be addressed' as well. The G-20 has emerged at the leading format for global discussions since it represents 66% of the world's population and 85% of its total output, but is nonetheless 'a self-appointed group without any legal basis,' Korean researcher Wonhyuk Lim and French associate Francoise Nicolas noted. France will assume the G-20 presidency from South Korea next month. The group must now 'turn a transitory crisis management mechanism into a permanent instrument of global governance,' the academics added in a statement. Trichet said such governance needed to be strengthened in the financial field in particular, and warned that a backlash to globalization meant 'more protectionist pressures might be in the pipeline.' A growing spat over appropriate levels for currencies like the dollar, euro, yen, yuan, Brazilian real, Korean won and Thai baht has seen countries take actions that some observers have begun to call a 'currency war.' Good governance extends beyond governments, said Mohamed Ibrahim, the U.K.-Sudanese founder of the Ibrahim Foundation that has established an African governance index that covers 88 aspects of the issue. Ibrahim took European leaders to task on corruption, telling businessmen: 'We can not have good governance in Africa if you are messing about or doing all this hanky panky sometimes you love to do.' He pointed to a law that requires energy, mining and oil companies listed in the U.S. to publish their contracts and asked political leaders: 'Where is the moral backbone of Europe? 'When is Europe going to match the United States and enact a similar law?' Fu of China, described by one impressed WPC forum mediator as 'an eye-opener,' concluded on an upbeat note. 'In the 21st century, the consensus is growing for the world not to be torn apart again by ideological, racial and any other differences,' she said in one speech. 'Changes to existing structure is not easy,' she added in another, but it is 'probably the first time in the world that we are changing in a peaceful manner.'
2010/10/18 16:12DJ JGBs End Slightly Higher On Weaker Stocks, Yen Rise
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.720 +0.010 TSE Dec 10-Yr JGB Futures Price: 143.88 +0.04 10-Yr 0.8% JGB No. 311 Yield: 0.870% .005 TOKYO -Japanese government bond futures ended slightly higher Monday, reversing early declines thanks to the yen's rise against the euro together with a retreat on the stock market. Lead December JGB futures finished the day 0.04 higher at 143.88, off a high of 143.97 hit mid-afternoon. Bond prices gained ground in line with the yen's climb against the euro to its highest since late September. The market was also helped by selling in the stock market, where the Nikkei Stock Average gave up a 0.5% gain in the morning to finish the day with a small loss. Still, few market participants traded aggressively ahead of a 5-year note auction Tuesday and 20-year JGB tender Thursday, analysts said. There aren't many fresh leads to trade on before the auctions, but 'the market benefited from the Nikkei's failure to maintain its firm tone as well as from the yen's gradual gains,' said Mitsubishi UFJ Morgan Stanley senior strategist Naomi Hasegawa. While some analysts expect confidence to build up in superlong JGBs after a strong 30-year auction last week, a cautious mood remains as recent yield rises in 20- and 30-year bonds could suggest that demand at Thursday's auction may not be that strong, they said. As for the 5-year note auction Tuesday, demand will likely be reasonably strong from investors looking for a safe haven instrument, analysts said. As of 0600 GMT, the benchmark 10-year JGB yield was up 0.5 basis points at 0.870%. Superlong-term yields showed mixed movement, with the 20-year JGB yield slipping 0.5 basis point to 1.740% and the 30-year yield climbing 1.0 basis point to 1.960%. The Nikkei Stock Average ended off 0.02% at 9498.49. Other Cash Bond Yields At 0600 GMT Change 5-Year 0.4% JGB No. 91 Yield: 0.250% .005 20-Year 1.9% JGB No. 121 Yield: 1.740% .005 30-Year 2.0% JGB No. 33 Yield: 1.960% +0.010 ***********
2010/10/18 16:03*DJ Fitch Revises UK Life Insurance Rating Outlook to Stable
2010/10/18 16:02*DJ Fitch Revises German Life Insurance Rating Outlook to Stable
2010/10/18 15:54=DJ RBC Boosts Efforts To Tap Wealthy With GBP963M BlueBay Buy
2010/10/18 15:51*DJ Hidili Industry Bond To Be 5-Year, Non-Call 3-Year - Source
2010/10/18 15:48*DJ Hidili Industry Aims To Raise Around $400M Via Bond - Source
2010/10/18 15:47*DJ Hidili Industry International Development Plans Dollar Bond- Source
2010/10/18 15:44DJ PRECIOUS METALS: Gold Hit By Profit Taking As Dollar Revives
SINGAPORE -Gold and silver were hit by profit taking in Asia Monday as the dollar made gains against the euro and regional currencies.'It looks like some good profit taking after the dollar strengthened. Stops were hit in the futures, and as long as the dollar stabilizes or even makes more gains, the selling is likely to continue,' said Peter Tse, director of precious metals at ScotiaMocatta in Hong Kong.The euro fell from above $1.40 late Friday to $1.3879 at 0635 GMT after dovish comments from ECB President Jean-Claude Trichet over the weekend.Spot gold was at $1,360.20 a troy ounce, down $8.70 since Friday's New York close, with Tocom August 2011 gold at Y3,559 a gram, down Y51.Spot silver was hit even harder, trading as low as at $23.72/oz before recovering to $23.96/oz, down 36 cents.Technically, any correction could be a short-term phenomenon, said Barclays Capital.'We look for a move back to trendline support at $1,335. However, absent a break of $1,300, two-and-a-half-month trendline support for the larger bull trend remains on firm footing,' it said.Platinum group metals were also caught by the downdraft, with spot platinum at $1,681/oz, down $9, and spot palladium at $573/oz, down $15, after failing to breach nine-year highs last week.
2010/10/18 15:25DJ Tokyo Shares:Nikkei Falls As Exporters Dip But Utilities Rise-2-
2010/10/18 15:21=DJ ECB WATCH: Fragile Periphery Continues To Thwart Hawks
2010/10/18 15:11=DJ WORLD FOREX: Euro Down Vs Dollar, Yen After Dovish Trichet Remarks-3-
2010/10/18 15:09DJ Forex Options: Dollar/Yen Options Edge Up As Spot Creeps Down
TOKYO -Dollar/yen options rose slightly in Asia Monday due to increased hedging demand against U.S. dollar decline versus the yen, as the underlying exchange rate continues to creep down.The dollar was at Y81.31 at 0400 GMT after dropping to Y80.95 earlier in Asian morning trade. This compared with Y81.41 late Friday in New York.Benchmark volatilities implied by one-month at-the-money options edged up to 11.70%/12.40% in Tokyo from 11.60%/12.30% Friday in New York.The rise in volatilities also came as market participants expressed interest in purchasing short-term hedges against a sharp rise in the dollar versus the yen, suggesting some expect Tokyo to intervene in the currency market soon to curb the yen's strength, said a senior dealer at a major brokerage in Tokyo.The dealer said, however, that volatilities are unlikely to shift much over the coming sessions as market participants are likely to wait for the outcome of the meeting of Group of Twenty finance ministers and central bank governors later this week, before making any further moves.
2010/10/18 15:08=DJ BIG PICTURE: 4Q Looks Stronger--Even Before More Fed Easing
2010/10/18 15:06DJ Tokyo Shares:Nikkei Falls As Exporters Dip But Utilities Rise
2010/10/18 15:02*DJ Stoxx Europe 600 Index Dn 0.2% After The Open
2010/10/18 15:01*DJ FTSE 100 Dn 0.3% After The Open
2010/10/18 14:51=DJ WORLD FOREX: Euro Down Vs Dollar, Yen After Dovish Trichet Remarks-2-
2010/10/18 14:34=DJ WORLD FOREX: Euro Down Vs Dollar, Yen After Dovish Trichet Remarks
2010/10/18 14:25PRESS RELEASE: S&P Assigns 'BB-' To Hidili Industry, Its Proposed Notes
The following is a press release from Standard & Poor's: -- Hidili has a weak business risk profile and an aggressive financialrisk profile. -- We assigned our 'BB-' long-term corporate credit rating to Hidili andour 'BB-' issue rating to the company's proposed senior unsecured notes. -- The negative outlook reflects the likelihood of continued aggressivefinancial leverage.HONG KONG (Standard & Poor's) Oct. 18, 2010--Standard & Poor's RatingsServices today assigned its 'BB-' long-term corporate credit rating to HidiliIndustry International Development Ltd. The outlook is negative. At the sametime, Standard & Poor's assigned its 'BB-' issue rating to the company'sproposed issue of benchmark-sized senior unsecured offshore notes. The ratingis subject to Standard & Poor's review of the bond documentation, includingthe usage, tenor and total amount of the issuance.'The rating on Hidili reflects the company's high exposure to the cyclicalityof the steel industry, high customer concentration, and moderate executionrisk,' said Standard & Poor's credit analyst Judy Kwok-Cheung. 'Theseweaknesses are partly mitigated by the company's competitive advantages ofaccess to a good resource base and proximity to customers in the south ofChina,' she added.The issue rating on Hidili's proposed notes is the same as the corporatecredit rating to reflect Standard & Poor's opinion that offshore noteholderswould not be materially disadvantaged, compared with onshore creditors, in theevent of default. However, the issue rating of 'BB-' takes into account thatHidili aims to use a substantial amount of the proceeds to refinance itsonshore debt, such that the ratio of onshore debt to total assets would bewell under 15% post bond issuance.The negative outlook on the rating reflects our expectation that Hidili couldcontinue to operate at an aggressive financial leverage level. In our view,the company's leverage is volatile because it is highly sensitive to cokingand washed coal prices. In addition, execution risks from continuous expansioncould pressure the company's credit metrics.RELATED CRITERIA AND RESEARCH -- Methodology And Assumptions: Standard & Poor's Standardizes LiquidityDescriptors For Global Corporate Issuers, published on July 2, 2010 -- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded,published on May 27, 2009 -- 2008 Corporate Criteria: Analytical Methodology, published on April15, 2008 Complete ratings information is available to RatingsDirect subscribers onthe Global Credit Portal at www.globalcreditportal.com and RatingsDirectsubscribers at www.ratingsdirect.com. All ratings affected by this ratingaction can be found on Standard & Poor's public Web site atwww.standardandpoors.com. Use the Ratings search box located in the leftcolumn.Primary Credit Analyst: Judy Kwok-Cheung, Hong Kong (852) 2533-3503; judy_kwok-cheung@standardandpoors.comSecondary Contact: Lawrence Lu, CFA, Hong Kong 852-2533-3517; law_lu@standardandpoors.com***********No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. 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2010/10/18 14:06*DJ New Zealand Dollar Falls Below Y60.97; Lowest Since Sep 15
2010/10/18 14:04*DJ Nikkei Stock Average Closes Down 0.02% At 9498.49
2010/10/18 14:01=DJ Fed's Rosengren: Deflation Threat Must Be Countered Aggressively
2010/10/18 13:21*DJ Nikkei Stock Average Dips Into Negative Territory
2010/10/18 12:44*DJ S&P Assigns 'BB-' To Hidili Industry, Its Proposed Notes
2010/10/18 12:16DJ US Quantitative Easing Would Be Selfish,Threaten FX Reserves-Xinhua
BEIJING -New asset purchases by the Federal Reserve would be 'self-centered' and have an impact abroad including potentially shrinking the value of foreign exchange reserves held by U.S. creditor nations, China's state-run Xinhua News Agency said in a commentary Sunday, showing concern about the possible move.'U.S. creditor countries may face the danger of shrinking foreign exchange reserves after Fed's further loosening policy, which harms global market at large,' Xinhua said.The Fed is considering whether to launch a program of quantitative easing, purchasing long-term Treasury bonds to push down long-term interest rates and boost growth.Especially for developing countries, 'excessive inflow of speculative hot money when global exchange rates change too fast will put governments on pins and needles looking for counter-measures,' Xinhua said, without naming possible responses.In a separate commentary Saturday, Xinhua also said it would be 'wrong' for the U.S. to label China a currency manipulator, after the U.S. Treasury on Friday put off a decision on whether to do so.Xinhua also said China-U.S. ties cannot develop normally as long as 'imminent and ever-present peril remains' from the dispute over China's alleged undervaluation of the yuan.Xinhua called it 'groundless' to claim that an undervalued Chinese yuan has added to U.S. trade deficit and unemployment, and said flawed U.S. fiscal policies have caused unbalanced trade with China.
2010/10/18 11:42DJ German Fin Ministry Denies Deal With Swiss On EUR30B From Tax Cheats
FRANKFURT -Claims that the German fiscal authorities are to receive around EUR30 billion in back-taxes from German taxpayers with undeclared bank accounts in Switzerland are 'without basis,' the German Finance Ministry said Saturday. The ministry was responding to an article in the weekly magazine Focus, which claimed Germany and Switzerland are close to agreeing a solution on their long-standing dispute over German residents' use of Swiss bank accounts to hide undeclared income. The article cited secret documents, although the finance ministry denied such documents exist. Germany and Switzerland are currently working toward a double taxation agreement on income and asset taxes, which the countries hope to sign in 2010, possibly in October, a ministry spokesman said in an email.
2010/10/18 11:39DJ Western Media Reports Of Currency War An Exaggeration - PBOC-Backed Paper
BEIJING -Although tensions have been rising over exchange rates, the situation is far from being a true currency war and Western media are sensationalizing the issue, according to a front-page editorial in the People's Bank of China-backed Financial News on Monday.The editorial said the U.S. Federal Reserve's policy of keeping interest rates extraordinarily low and 'printing money' is the main cause of international currency tensions.'By repeatedly invoking a 'currency war,' the Western media are in fact exaggerating international differences in monetary and exchange rate policies, and increasing international tensions,' the paper said.A true currency war would be premeditated, intentional and carried out will malevolent intent, the paper said.Critics who have accused China of manipulating its exchange rate are contributing to the tense atmosphere, it added.'In the eyes of some U.S. politicians, it is totally appropriate for the Federal Reserve to push down interest rates and print money, but it is illegal for other countries to protect their economies and their financial stability by pushing down their exchange rates. This is a clear double standard,' the paper said. Newspaper website: http://www.financialnews.com.cn
2010/10/18 11:38DJ BOK:Foreign Reserves Enough To Cover Emergency Foreign Payment
SEOUL -South Korea's foreign-exchange reserves are enough to cope with a potential foreign-currency crisis, its central bank said Monday.'Given the steadily growing current-account surplus and the size of the country's short-term foreign debt, the current foreign exchange reserves aren't short of meeting sudden overseas debt repayment requests,' the Bank of Korea said in a report submitted to a parliamentary audit.But the bank declined to say whether the current reserves stand at an 'optimum level.'Some lawmakers have asked the BOK to increase the country's foreign exchange reserves in order not to suffer from abrupt fund outflows experienced at times like the 1997-1998 Asian foreign-currency crisis.As of the end of September, Korea had $289.78 billion in reserves, the highest on record.The BOK said in the audit report that it entrusted 14.1% of its reserves to some 20 global asset managers as of end-2009, while operating the remaining 85.9% on its own.The central bank held 14.4 tons of gold at the end of July this year, accounting for about 0.2% of its foreign exchange reserves, it said, adding that the gold is deposited at the Bank of England.The BOK said it would be 'very prudent' in adding to its gold reserves as the commodity offers no cash returns and can't easily cash out.
2010/10/18 11:37DJ BOK Governor: Expect Inflation This Year At 2.9% Vs 2.8% Earlier Estimate
SEOUL -Bank of Korea Governor Kim Choong-soo said Monday he expects this year's consumer price inflation at 2.9%, slightly higher than the bank's estimate in July of 2.8%.During a parliamentary audit of the BOK, Kim said the central bank will try to keep inflation within its target range of 2%-4%, although the upward trend of prices remains intact.He reiterated that inflation is likely to accelerate to 3.4% next year, which is the same estimate made in July.
2010/10/18 11:36=DJ BHP Billiton, Rio Tinto End Iron Ore JV Plans
2010/10/18 11:29PRESS RELEASE: Moody's Assigns First-Time B1 Rating To Hidili
The following is a press release from Moody's Investors Service: Hong Kong, October 18, 2010 -- Moody's Investors Service has today assigned a provisional B1 corporate family rating to Hidili Industry International Development Ltd ('Hidili'). Moody's has also assigned a B1 senior unsecured rating to proposed bonds to be issued by Hidili. The outlook for both ratings is stable. This is the first-time Moody's has assigned ratings to Hidili. The provisional status of the ratings will be removed upon completion of the bond issue. If the transaction fails to go ahead, or if the final bond issue size materially differs from Moody's expectation, the ratings will be under pressure in view of the company's weak liquidity and the resulting refinancing risk. RATINGS RATIONALE "The provisional B1 rating reflects Hidili's ownership of well located coking coal assets, and integrated operations with a low cost base, which supports its good profitability," says Renee Lam, a Moody's Vice President and Senior Analyst. "At the same time, the rating also captures Hidili's small scale and high customer concentration, and its short operating history at its current scale," says Lam. "The company's profitability is highly sensitive to the cyclical coal prices and demand from the downstream steel industry, though Moody's notes the solid demand for coking coal expected over the near term from the Chinese steel manufacturers," says Lam. "Moody's also expects the recent consolidation of the Chinese steel industry -- by closing down the small-size, inefficient steel mills -- will have limited impact on Hidili as its major customers are large state-owned steel manufacturers," says Lam. "In the next 2 years, Hidili aims to more than double its production from the 2.8 million tons in 2009. Such an aggressive growth plan is subject to uncertainty and entails execution risk." "Its leverage is high, as measured by adjusted debt/EBITDA of 5.7x in 2009, though declined to 4.4x in 1H10, and the B1 rating factors in the expectation that the company will lower its leverage to about 4x in the next 12-18 months, through production growth from its newly acquired mines," adds Lam. The stable outlook incorporates Moody's expectation that Hidili will achieve its production growth and de-leveraging targets within its budget and planned time frame. A near-term rating upgrade is unlikely given the company's current high financial leverage, and the company is still ramping up its production to de-leverage. Over time, the rating may be upgraded if the company succeeds in implementing its expansion plans and in ramping up its production for de-leveraging. Consistent positive free cash flow will also benefit the credit profile. Financial indicators that Moody's would consider for an upgrade include adjusted debt/EBITDA consistently below 3-3.5x. Moody's would be concerned if the company failed to de-leverage as planned, due to 1) Hidili's failure to achieve its production targets at the projected costs and within the projected time frame; 2) cyclical movements in coal prices and costs; 3) a downturn in China's steel industry that dampened upstream coking coal demand; or 4) aggressive, debt-funded acquisitions. Any major safety or environmental issue, or regulatory changes, materially affecting the company's cash flow would also be negative for the rating. Such downward pressure could be evidenced by adjusted debt/EBITDA consistently above 4-4.5x. The principal methodology used in rating Hidili was Global Mining Industry rating methodology published in May 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Hidili is a vertically integrated coal mining enterprise in southwest China that supplies coking coal products to the domestic steel industry. Hidili was listed on the Hong Kong Stock Exchange in September 2007. Its major shareholder is Mr. Xian Yang, who has a 50.7% stake (as of June 30, 2010). 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 assigning 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. Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
2010/10/18 11:27DJ BOK Governor: Hard To Rule Out A Rate Hike For Rest Of 2010 - Yonhap
SEOUL -Bank of Korea Governor Kim Choong-soo Monday said at the National Assembly it's hard to rule out a rate hike by the end of this year, according to Yonhap Infomax.The central bank has kept the key policy rate on hold at 2.25% for a third straight month at its October monetary policy meeting, boosting market expectations that rates will likely be kept on hold for the rest of this year amid lingering global financial market uncertainty.The Bank of Korea hiked its key policy rate by 25 basis points in July.
2010/10/18 11:26DJ Portugal's Govt Sees Austerity Slowing GDP Growth In 2011
2010/10/18 11:25DJ IMF Meets With Central Bank Chiefs In Shanghai
SHANGHAI --The International Monetary Fund was set to meet with central bank governors in Shanghai Monday to discuss ways to strengthen the global economic recovery while averting a damaging all-out currency war.The People's Bank of China was set to host the conference in the country's financial hub Shanghai, bringing together central bank chiefs and other officials from Asia, Africa, Europe, and North and South America, the IMF said.The Shanghai conference follows IMF and World Bank annual meetings earlier this month, where finance officials discussed how to strengthen the recovery from the worst recession since World War II and the global financial system.It also comes ahead of this week's key Group of 20 meeting in South Korea, at which currency reform is expected to dominate talks, amid fears that nations could adopt trade barriers to counter the rising prices of Asian exports.'The conference is part of the ongoing international examination of the policy challenges posed by the global financial crisis,' the Washington-based IMF said in a statement.PBOC chief Zhou Xiaochuan and IMF managing director Dominique Strauss-Kahn will co-chair the meeting, the institution said.The U.S. Federal Reserve was expected to be represented by Kevin Warsh, a member of the central bank's policy-setting Federal Open Market Committee.Monday's meetings had been planned for several months and Il-Houng Lee, the IMF's resident representative in China, said all discussions would be carried out behind closed doors.A news conference has been scheduled for 6 p.m. (1000 GMT).In the run-up to the G-20 meeting, which begins Friday and is in preparation for a summit in Seoul next month, South Korea has warned that frictions over the currency upheaval are growing and could lead to trade protectionism.The U.S., facing mid-term elections next month, has ratcheted up the pressure on China to allow the yuan to rise more rapidly, but Beijing insists its currency must not be used as a 'scapegoat' for U.S. economic woes.With Beijing keeping a tight grip on the yuan, many other Asian economies are suffering as their currencies soar against the dollar. Despite Europe's debt woes, the euro has also surged.In its statement, the 187-nation IMF added the meeting followed an IMF-sponsored gathering in South Korea of Asian policymakers and leaders in July, at which it 'committed to forging a new relationship with the region.'A year ago, the Group of 20 developed and developing nations tasked the IMF with stepping up its focus on global systemic stability.Authorities agreed a broader approach was needed to spot weakness in the increasingly interconnected financial system, to complement the traditional micro-prudential regulations of bank-by-bank audit and supervision.Asia-Pacific leaders will meet for a summit in Japan following the G-20 gathering in Seoul next month.
2010/10/18 11:09DJ AIA To Offer 5.86 Billion Shares In IPO
2010/10/18 11:00DJ Chinese Auto Makers' Plans Raise Overcapacity Concerns-Analysts
BEIJING --Booming auto sales in China have spurred manufacturers to step up production so fast that concerns over 'blind investment' and overcapacity in the sector are emerging, analysts said. China's auto market overtook the U.S. in 2009 as the world's largest and will remain so this year with up to 17 million vehicles expected to be sold. The Chinese market potential remains huge in the world's most populous nation as the percentage of people owning cars is still relatively low, analysts have said. Sales in 2010 are expected to increase by between 25% and 30%, after a massive 46% surge last year, as an emerging middle class snaps up cars along with other consumer status symbols. 'At the moment, the international joint ventures just don't have enough capacity to build all the cars they could sell,' Klaus Paur, of TNS Research International, told AFP. 'This of course triggers investment decisions,' he said, adding that much of the current growth was coming from China's inland provinces where the potential for auto sales is the biggest. To meet the rising demand, foreign auto makers last year began announcing plans to increase their production capacity. While gearing up to open its 10th factory in China this year, German auto giant Volkswagen also announced it will open an 11th production facility in 2013. PSA Peugeot Citroen will boost production capacity at its joint venture plant with Dongfeng from 450,000 units to 750,000 units, while also setting up a second joint venture plant with Chinese auto maker Chang'an in Shenzhen. Since the beginning of last year, Nissan, Toyota, BMW, Hyundai, the Chinese auto maker FAW and others have all announced plans to build new factories. Local provinces and cities are also adopting numerous initiatives to encourage the expansion of production facilities. But the pace of investment in car production has raised concerns by the National Development and Reform Commission, China's powerful economic planning agency. 'Serious overproduction capacity will lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems,' Chen Bin, a leading commission official, told the National Business Daily while warning of 'blind investment' in the sector. Production capacity of 31 million vehicles projected for 2015 by 30 major manufacturers is nearly double current capacity, but remains lower than the total capacity projected by China's regional governments, the commission said. 'Manufacturers in the sector think that sales will exceed 30 million vehicles in 2015, but the NDRC thinks that this figure will not be reached,' said Jia Xinguang, an auto sector consultant. TNS researcher Paur raised concerns that there will be too much capacity in two or three years 'because the market may be slowing down.' Projecting market trends is always difficult for auto makers who often need up to two years to build new plants, he added. 'It's not the first time the government makes such an alert. It happens every three or four years,' said John Zeng, a market analyst with the consulting firm J.D. Power. 'Manufacturers are paying attention to market swings and will readjust their investment if necessary,' he said, adding that announced increases in production capacity were not always realized.
2010/10/18 10:58*DJ BOK Governor: Expect Inflation This Year At 2.9% Vs 2.8% Earlier Estimate
2010/10/18 10:58=DJ Fed's Evans: May Have To Aim For Higher Inflation
2010/10/18 10:19*DJ Euro Falls Below Y112.86 On EBS; Lowest Since Sep 28
2010/10/18 10:17*DJ BOK Governor: Hard To Rule Out A Rate Hike For Rest Of 2010 - Yonhap
2010/10/18 09:55=DJ FOREX VIEW: Pressures Likely To Remain On Dollar
2010/10/18 09:51DJ EU Almunia Sees Forex War Risks If No Substitute For G7
DJ EU Almunia Sees Forex War Risks If No Substitute For G7MARRAKECH -If a new way of discussing foreign exchange is not found the world risks currency wars or increased protectionism, EU Competition Commissioner Joaquin Almunia said Saturday."If we don't find a substitute for the [Group of Seven] to talk about exchange rates in a reasonable way we can expect serious problems of currency wars or protectionist trends," Almunia said at the World Policy Conference in Marrakech.
2010/10/18 09:36DJ German Govt To Raise 2010 GDP Growth Forecast To 3.5% - Report
FRANKFURT -The German government this week will increase its economic growth forecast for 2010 to 3.5%, in line with the expectations of the country's leading economic research institutes released Thursday, weekly magazine Focus reports ahead of publication Monday.Without identifying its sources, the magazine says the government will also increase its growth forecast for 2011 gross domestic product growth to 2%, also in line with the institutes.The government's present forecast dating back to April is for 1.4% GDP growth in 2010.The report cites the strong recovery of exports and the decline in unemployment for the increased growth forecast.The government is due to publish its updated forecast for 2010 and 2011 economic growth Oct. 21.Magazine website: www.focus.de-Frankfurt Bureau, ; 49-69-29725-500.
2010/10/18 09:20DJ EU Juncker: Premature To Discuss Greek Loan Extension - Report
ATHENS It is premature to discuss giving Greece more time to repay international lenders, the chairman of the Eurogroup of euro-zone finance ministers, Jean Claude Juncker, said in an interview published in Greek newspaper To Vima Sunday.In May, the debt-laden Mediterranean country signed a EUR110 billion deal with the International Monetary Fund and the European Union to stave off bankruptcy.Recently, both the IMF and the Greek finance minister confirmed an extension of repayments on the bailout has been the subject of unofficial discussions, but Greece hasn't formally asked for an extension."I don't think it is the right time to start discussing an extension of the repayment of the loans. I believe it is a premature discussion," Juncker reportedly said.Germany has been cautious on the idea of a payment extension and the European Commission has played down prospects."Other than the memorandum there is no other road to achieve fiscal consolidation, which is important not just for Greece but for the euro zone," Juncker is quoted as saying."Greece has made remarkable progress regarding its public finances. The deficit is falling at a remarkable pace," Juncker is quoted as adding.
2010/10/18 09:04DJ Chinese Investors Line Up To Take Stakes In AIG's AIA -Report
hina Investment Corp. and Ping An (601318.SH) are among the big institutional investors from mainland China who are pursuing substantial stakes in AIA, the Asian businesses of AIG in this month's share sale of up to $20 billion, according to a Financial Times story on its website Sunday, citing people working on the deal.One person involved says China Life (601628.SH) and Taikang Life Insurance also are lining up for stakes, along with a number of regional life insurers, including the Asian arm of Prudential of the U.K. Full story athttp://www.ft.com/cms/s/0/e9f8bb34-da17-11df-bdd70144feabdc0.html-, 212-416-2800
2010/10/18 08:49DJ AIA To Offer 5.86 Billion Shares In IPO
HONG KONG --AIA Group Ltd. said Sunday it could raise up to US$20 billion in a global public offering, putting it on track to be the world's second-biggest IPO this year.Announcing details of the sale at a press conference in Hong Kong, the Asian unit of U.S. insurer AIG said it said it will offer 5.86 billion shares priced at between 18.38-19.68 Hong Kong dollars each, or up to US$15 billion.It said it could issue up to 8.08 billion shares if it exercised a greenshoe option, which would bring the total raised to around US$20 billion.AIG, which is looking to repay U.S. taxpayers after a government bailout in 2008, won approval last month for the sale of its Asian unit and is planning to float about half of AIA.'This IPO serves as a great catalyst for the next and exciting phase in the AIA's history,' Mark Tucker, group executive chairman and chief executive, said via a live video feed from the U.S.Earlier this year, Agricultural Bank of China raised a total of US$22.1 billion from an IPO, exceeding the previous record set by the Industrial and Commercial Bank of China, which raised US$21.9 billion in 2006.Shares will be offered from Monday, Oct. 18, to Oct. 21, with trading expected to begin on Oct. 29.AIA said that as of May 31, it had total assets of US$95.7 billion and an operating profit of US$1.1 million.The company believes its consolidated operating profit for the fiscal year ending Nov. 30 won't be less than US$2 billion.
2010/10/18 08:43DJ ECB's Trichet Supports Government Bond-Buying Program - Report
MILAN -The president of the European Central Bank Sunday distanced himself from Bundesbank chief Axel Weber's comments on ECB policy, adding that the governing council as a whole didn't agree with Weber's remarks last week that the ECB's government bond purchase program had no effect on financial markets and should be phased out.In an interview with Italian daily La Stampa, Trichet said that Weber's position--who is also an ECB member of the governing council--wasn't the one of the European Central Bank. "The president of the ECB is also the spokesperson for the governing council," Trichet noted.Last week, Weber warned that the risks associated with "exiting too late" from the government bond-buying program are greater that possible negative implications from "exiting too early."Weber is one of the possible candidates, together with Financial Stability Board Chairman Mario Draghi, to be president of the ECB next year when Trichet's mandate expires.Trichet, once again, called for strong action by European governments to cut public deficits and urged tougher measures against countries that break budget rules. He also said that it was important that U.S. authorities recently confirmed that a strong U.S. dollar is in the interest of the U.S.Newspaper website: www.lastampa.it-Milan Bureau, ; +39 02 5821 9901
2010/10/18 08:42DJ AIA: Sees No Change In Operations Despite Parent Offload Stake
HONG KONG -AIA Group Ltd, which aims to raise as much as US$20.57 billion through a Hong Kong listing, said business operations won't be changed even though its parent is expected to continue to offload its stake in the insurer following the listing.'It would make no difference to the way we run the company, we are looking to optimize values for all shareholders,' Mark Tucker, chief executive of AIA, told reporters gathered at the Island Shangri-la Hotel in Hong Kong on Sunday.The concern over AIA's ownership emerges as the goal of the U.S. government to exit American International Group Inc., parent of AIA, as soon as possible, representing a possible further AIG shares sale in AIA in the future.The AIA offering, part of a broader plan to repay the government aid, seeks to raise US$13.9 billion to US$14.9 billion this month. The proceeds could rise to US$17.1 billion, or even US$20.57 billion, if options to increase the offering due to strong investor demand are exercised, which would reduce AIG's stake to as low as 32.9%.So far, the average offer from investors has been at the top end of that range, the people familiar with the deal said. Institutional investors can take up 90% of the offering, with retail investors in Hong Kong making up the rest.AIA is slated to list in Hong Kong on Oct. 29, and it will price its deal on Oct. 22. The shares are on sale at HK$18.38 to HK$19.68 each.Citigroup Inc. , Deutsche Bank AG , Goldman Sachs Group Inc and Morgan Stanley are joint global coordinators for the IPO. AIG has hired a total of 11 bookrunners to market the offer.
2010/10/18 08:34*DJ Hidili Industry Proposes International Senior Notes Offering
2010/10/18 08:28DJ CNPC Starts Operations At Iran's South Pars Gas Field-Report
LONDON -China National Petroleum Corp., or CNPC, has started operations at a giant Iranian natural gas field, a top Iranian oil official was quoted as saying Saturday. The news comes as Iran has switched to domestic and Asian companies to develop its oil and natural gas reserves after Western companies refrained to sign a deal due to sanctions. The Mehr news agency quoted Ali Vakili, the managing director of Pars Oil and Gas Co. as saying on Saturday that CNPC had started 'executive operation' at phase 11 of the South Pars field. It was not clear when the operations had started and what they consisted of. CNPC signed a $5 billion contract with National Iranian Oil Co. in 2009 for the development of South Pars' phase 11 after Total SA of France failed to strike a deal. According to the signed contract with CNPC, Total and Malaysia's Petronas can return to the project and collaborate with CNPC, if they express readiness, Mehr said. But Total said earlier this month it won't sign any new investment deal in Iran due to international sanctions. -By Benoit Faucon, -
2010/10/18 08:04*DJ Lead 10-Yr JGB Futures Open Down At 143.71 Vs 143.84 Fri
2010/10/18 08:04*DJ Nikkei Stock Average Opens Up 0.2% At 9517.68
2010/10/18 07:51*DJ Lead Nikkei Futures Open Up 10 Points At 9530 On SGX
2010/10/18 07:44=DJ BHP Billiton, Rio Tinto End Iron Ore JV Plans
(adds detail, background) By David Fickling Of SYDNEY -BHP Billiton Ltd. (BHP.AU) and Rio Tinto Ltd. (RIO.AU) have terminated a planned US$116 billion iron ore production joint venture following discussions with regulators, the companies said Monday. The planned joint venture, which would have been responsible for around a third of the global iron ore trade, had been facing problems for months as regulators in Germany, the European Union, Japan, Korea, Taiwan, China and Australia picked over the details of the proposal. Germany's Federal Cartel Office last week informed the companies that it intended to block the venture, and weekend media reports from Europe suggested a meeting with European Union regulators Friday also cast a poor light on the deal. In a statement, Rio Tinto Chief Executive Tom Albanese said: 'I am disappointed that ultimately the regulators did not agree with us.' The company has promised to commit US$13 billion by the end of 2011 to capital spending, mainly on iron ore projects. Rio Tinto said that the parties had also been advised the deal 'would not be approved in its current form' by E.U., Australia, Korean, and Japanese competition regulators. BHP Billiton Chief Executive Marius Kloppers said: 'It became clear that this transaction is unlikely to obtain the necessary approvals to allow the deal to close and as a result, both parties have reluctantly agreed to terminate the agreement.' A US$275.5 million break fee payable by any party seen to be not negotiating in good faith or breaking off the deal will not be paid, as both companies agreed mutually to walk away, BHP said. The deal was first proposed 16 months ago at a time when Rio Tinto was still struggling from the aftermath of the financial crisis.
2010/10/18 07:20*DJ BHP Billiton, Rio Tinto End Iron Ore JV Plans
2010/10/18 05:45*DJ NZ 3Q Consumer Price Index +1.1% On Qtr; Consensus +1.0%
2010/10/18 05:45*DJ NZ 3Q Consumer Price Index +1.5% On Yr; Consensus +1.5%
