2010/10/19 17:39=DJ DATA SNAP: German ZEW Econ Expectations Fell Slightly In Oct
2010/10/19 17:36*DJ Hungarian 3-Month Treasury Bill Average Yield Set At 5.26%
2010/10/19 17:31*DJ Hungary Sells HUF40B 3-Month Treasury Bills
2010/10/19 17:20*DJ Greek 13-Week Treasury Bill Bid-To-Cover Ratio 5.19
2010/10/19 17:17*DJ Greek 13-Week Treasury Bill Uniform Yield Set At 3.75%
2010/10/19 17:17*DJ Greece Sells EUR1.17B 13-Week Treasury Bills
2010/10/19 17:08*DJ Nan Ya Plastics Prices $400Mln 5-Year Bond At Par
2010/10/19 17:08*DJ 3-Month Euribor Rises To 1.008% Vs 1% Monday
2010/10/19 17:03*DJ Euro Climbs After Upbeat German ZEW Survey
2010/10/19 17:03*DJ Bunds Drift Lower On Upbeat ZEW Survey
2010/10/19 17:01*DJ German ZEW Oct Current Conditions 72 Vs 59.9 In Sep
2010/10/19 17:01*DJ German ZEW Oct Current Conditions 72.6 Vs 59.9 In Sep
2010/10/19 17:00*DJ German Oct ZEW Econ Expectations -7.2 Vs -4.3 In Sep
2010/10/19 16:50*DJ Spain Sells EUR2.216B 18-Month Treasury Bills
2010/10/19 16:48*DJ Spanish 18-Month Treasury Bill Maximum Yield Set At 2.028%
2010/10/19 16:47*DJ Spanish 12-Month Treasury Bill Maximum Yield Set At 1.859%
2010/10/19 16:44*DJ Spain Sells EUR4.183B 12-Month Treasury Bills
2010/10/19 16:37=DJ POINT OF VIEW: Gap Grows Between Economic Ideas And Americans' Fears
2010/10/19 16:28=DJ DATA SNAP: Euro-Zone Current Account Deficit Widens In August
FRANKFURT -The euro zone's current account deficit widened in August as surpluses in goods and services trade narrowed, data from the European Central Bank showed Tuesday. The current account in August was EUR7.5 billion in deficit, compared with a revised deficit of EUR4.1 billion in July. The data are adjusted for seasonal effects and take account of the number of working days in each month. The ECB said that deficits in current transfers and income were only partly offset by surpluses in services and goods. The surplus in the trade of goods narrowed to EUR0.9 billion in August from EUR2.9 billion the previous month, while the surplus in services shrank to EUR1.5 billion from EUR2.4 billion. Website: www.ecb.int
2010/10/19 16:01*DJ Euro-Zone Aug Adj Current Account Deficit EUR7.5B
2010/10/19 16:01*DJ Euro-Zone Deficit Was EUR4.1B Jul
2010/10/19 16:00DJ Greece's 2009 Budget Gap Seen At 15.5% Of GDP - Report
ATHENS -Greece's budget deficit for last year is expected to be revised sharply higher--to 15.5% of gross domestic product--following a review by the European Union's statistics agency, a Greek newspaper reports Tuesday.Without citing sources, the pro-government To Vima daily says the revision will force the Greek government to adopt additional belt-tightening measures in its 2011 budget in order to meet its deficit goals.Greece narrowly averted bankruptcy in May by agreeing to a series of austerity and reform measures in exchange for a EUR110 billion loan from the European Union and the International Monetary Fund.Under the terms of the deal, Greece aims to cut its deficit--previously estimated at 13.8% of GDP last year--to 7.8% this year and 7.0% by the end of 2011.Eurostat, the EU's statistics agency, is expected to issue the revised 2009 deficit figures for Greece on Oct. 22. According to the newspaper, the upward revision in last year's deficit is due to revisions in the accounts of Greece's public pension funds, losses at state-owned companies, and state guarantees to the state-owned Agricultural Bank of Greece, or ATEbank (ATE.AT).Late Monday, European Economic and Monetary Affairs Commissioner Olli Rehn warned that additional measures by Greece will likely be necessary. He said the revised deficit for 2010 and other years 'may require some additional measures... in order to stick to the fiscal target' for 2011.'Newspaper website: www.tovima.gr
2010/10/19 15:40DJ Japan Economy Minister: Strong Yen Poses Risk To Capex
TOKYO -Japan's economy minister expressed concern Tuesday that the strong yen may hurt business spending, as many firms that had budgeted for a weaker yen may be forced to cut investment plans if the currency's strength persists. If the yen remains strong for a long time, with the dollar-yen exchange rate staying below Y82 as it has in recent days, 'I believe that would certainly lead to a downside risk for capital expenditure,' said Minister of State for Economic and Fiscal Policy Banri Kaieda at a press conference. While capital expenditure has been 'relatively strong' recently, spending plans of most companies are based on the assumption that the dollar would trade just below Y90, Kaieda said. The Bank of Japan's September tankan quarterly business sentiment survey showed that firms based their profit forecasts on the dollar averaging Y89.66 this fiscal year. At 0700 GMT, the U.S. unit traded at Y81.50, well below that level.
2010/10/19 15:36=DJ PRECIOUS METALS: Gold Down In Asia; Dollar Strength Hurts
2010/10/19 15:26DJ Tokyo Shares End Higher As Banks Rebound, Yen Weakens-2-
2010/10/19 15:24DJ JGBs Ends Lower; 5-Year Tender Fails To Lift Sentiment
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.705 .010 TSE Dec 10-Yr JGB Futures Price: 143.69 .19 10-Yr 0.8% JGB No. 311 Yield: 0.885% +0.015 TOKYO -Japanese government bond futures ended lower Tuesday because of selling by investors disappointed that a hoped-for rally after a 5-year note auction failed to materialize. JGBs remained under pressure from early trading as some investors cut positions ahead of the auction. The tender, which was largely in line with expectations, triggered light buying shortly after the result came out, but selling soon increased. The outcome of the auction 'gives us the impression that investors are still cautious, and this result falls short of lifting the bond market,' said Tomohiko Katsu, deputy manager for capital markets at Shinsei Bank. Tuesday's five-year JGB auction, in which the finance ministry sold Y2.206 trillion, received Y7.567 trillion in total bids, for a bid-to-cover ratio of 3.43, improving from a ratio of 2.79 at a previous auction in September, but still short of 4.68 in the August auction. The tail, another measure of demand that looks at the difference between the average price and the lowest accepted price, also shortened to 0.02 from 0.04 at the last 5-year sale. In the August tender, the tail was 0.01; a short tail indicates strong demand. Market focus has now shifted to an auction of 20-year bonds Thursday, though analysts say the stronger-than-expected demand in the 30-year issue auction last week doesn't necessarily mean that the next tender will bring good news. As of 0600 GMT, the benchmark 10-year JGB yield was up 1.5 basis points at 0.885%. Superlong-term yields were higher, with the 20-year JGB yield rising 1 basis point to 1.750% and the 30-year yield climbing 1.5 basis points to 1.960%. The Nikkei Stock Average ended up 0.4% at 9539.45. Other Cash Bond Yields At 0600 GMT Change 5-Year 0.4% JGB No. 91 Yield: 0.270% +0.015 20-Year 1.9% JGB No. 121 Yield: 1.750% +0.010 30-Year 2.0% JGB No. 33 Yield: 1.960% +0.015 ***********
2010/10/19 15:18DJ Forex Options: Dollar/Yen Options Fall On Stable Pre-G-20 Spot
TOKYO -Dollar/yen options dropped in Asia Tuesday as the currency pair traded in a narrow range with players staying on the sidelines ahead of the Group of 20 finance ministers and central bank governors meeting later this week.Benchmark volatilities implied by one-month at-the-money options fell to 11.45%/12.15% in Tokyo from 11.70%/12.40% Monday in New York as the dollar failed to approach the key Y81.00 level and any upside moves were capped around Y81.40.An options dealer at a major brokerage in Tokyo said that players are interested in selling hedges against further falls in the U.S. unit based on the view that the recent dollar weakness is losing its momentum.The dealer added volatilities may decline further if the underlying exchange rate remains stable like today.The dealer said players are keen to find trading cues in the comments of top financial officials from major economies as the view exists G-20 member nations may discuss the dollar weakness in the context of international trade at its meeting later this week.
2010/10/19 15:04DJ Minmetals Resources To Buy Mining Assets From Parent For US$1.85 Bln
HONG KONG -Minmetals Resources Ltd. (1208.HK) said Tuesday it agreed to buy a mining company based in Australia from its state-owned parent for US$1.85 billion, as part of plans to transform itself into an international upstream base metals producer.Minmetals Resources said in a statement it plans to give its controlling shareholder, China Minmetals Non-Ferrous Metals Co., a combination of cash, shares and convertible securities to acquire the unlisted company, Minerals & Metals Group.The purchase of Melbourne-based MMG, a producer of zinc, copper, lead, gold and silver, is part of Minmetals Resources's plans to tap into rising demand for raw materials.Chinese state-owned companies have invested heavily in overseas resources and energy sectors in recent years as they expand their ownership of raw materials needed to feed the country's booming economy.Australia was favored as a destination for Chinese investment because of its political stability, transparent tax regime and a clearer approval process than its resource-rich neighbors such as Indonesia or Papua New Guinea. Yanzhou Coal Mining Co. last year purchased Felix Resources Ltd. for A$3.5 billion, the largest acquisition of an Australian company by a Chinese firm.MMG was formed in June 2009 after China Minmetals Non-Ferrous Metals bought most of OZ Minerals Ltd.'s (OZL.AU) assets for US$1.39 billion.In the first half of this year, MMG's revenue was US$844.7 million, while earnings before interest, taxes, depreciation and amortization totaled at US$403.9 million, the statement said.MMG operates the Century, Golden Grove, and Rosebery mines in Australia, as well as the Sepon mine in Laos. It also owns a portfolio of exploration projects in Australia and Canada.The deal is subject to shareholders' approval, the statement said.Minmetals Resources is mainly involved in the trading of nonferrous metals and the manufacturing of aluminum and copper products.
2010/10/19 15:03*DJ Stoxx Europe 600 Index Dn 0.1% After The Open
2010/10/19 15:02*DJ FTSE 100 Dn 0.1% After The Open
2010/10/19 14:59DJ Tokyo Shares End Higher As Banks Rebound, Yen Weakens
2010/10/19 14:29*DJ Japan Kaieda: Economic Lull Appears Set To Persist In Oct-Dec
2010/10/19 14:28DJ ADB Executive: Expect India 2011 Economic Growth At 8.7%
DJ ADB Executive: Expect India 2011 Economic Growth At 8.7%NEW DELHI -India's economy is expected to grow 8.7% in 2011, Asian Development Bank's principal economist, Rana Hasan, said Tuesday.However, Hasan maintained ADB's 2010 growth forecast of 8.5% for India.In September, the multi-lateral agency had raised India's 2010 growth forecast to 8.5% from 8.2%.
2010/10/19 14:24*DJ Japan Kaieda: Must Watch That Persistent Strong Yen Doesn't Damage Econ
2010/10/19 14:21*DJ Japan Econ Min Kaieda: Strong Yen, Weak Shares Downside Risks To Japan Econ
2010/10/19 14:02*DJ Nikkei Stock Average Closes Up 0.4% At 9539.45
2010/10/19 14:01=DJ WORLD FOREX: Euro Falls Vs Dollar On Dovish RBA Minutes-3-
2010/10/19 14:00=DJ WORLD FOREX: Euro Falls Vs Dollar On Dovish RBA Minutes-2-
2010/10/19 13:56=DJ WORLD FOREX: Euro Falls Vs Dollar On Dovish RBA Minutes
2010/10/19 13:53DJ Japan Govt Cuts View On Economy For First Time In 20 Months
DJ Japan Govt Cuts View On Economy For First Time In 20 Months TOKYO -The Japanese government cut its view on the economy in October for the first time in over a year and half because weakened demand from Asian nations has cut into the nation's industrial output. 'The economic momentum appears to be entering a lull recently,' the government said in its monthly economic report released on Tuesday, downgrading the assessment for the first time since February 2009. A Cabinet Office official briefing reporters said the negative revision was mostly due to slowdown in the Chinese economy, which damaged business activity in other Asian nations and in turn reduced their demand for Japan-made products. 'Shipments have been weakening recently, and the latest data clearly showed industrial output has worsened,' the official said. The report also lowered its assessment for exports for the second straight month as well as for industrial output, which was revised downward in August. Both are 'weakening,' the document said. According to the government's most recent data, Japan's exports fell 5.6% in August from a month earlier. Output posted its third consecutive on-month drop by losing 0.5% in August, and is expected to decline further in September and October. The government is hopeful that the lull will be temporary and that the economy can keep growing, supported by the administration's stimulus measures as well as somewhat-improving overseas economies. But it said there are many downside risks that can send Japan into another recessionary cycle, requiring further steps. It also made a fresh request to the Bank of Japan, saying 'the government will work as one with the BOJ and expects the bank will keep supporting the economy by appropriate and flexible monetary policy management.' Earlier this month, the government compiled a stimulus package with Y5.1 trillion worth of fresh spending and the BOJ announced comprehensive monetary easing measures, including an innovative plan--with the possibility of expansion--to purchase Y5 trillion in assets. The downside risks to the economy include the strong yen, which is now trading near record-high levels against the U.S. dollar. As of 0411 GMT Tuesday, the dollar was at Y81.38 compared with the historical low of Y79.75. That is much lower than Japanese firms' average assured exchange rate of Y89.66, shown in the BOJ's latest tankan survey of corporate sentiment. 'The strong yen is weighing on corporate sentiment, which is a negative factor to the economy,' the Cabinet Office official said. A key area of discussion among analysts is whether Japan will again step into the currency market to curb the yen's rise as it did in mid-September, but the monthly report did not discuss intervention in any way. Another worrisome issue for the government is the recently ended incentive program which promoted the purchase of fuel-efficient cars. With the program over, sales of automobiles are widely expected to fall sharply. The report also highlighted Japan's high unemployment rate, which stood at 5.1% in August. Prime Minister Naoto Kan has been saying that creating jobs to prop up the economy is one of his administration's most important tasks.
2010/10/19 13:40*DJ ADB Executive: Expect India 2011 Economic Growth At 8.7%
2010/10/19 13:40*DJ ADB Executive: Keeping India 2010 Economic Growth Forecast At 8.5%
2010/10/19 13:06*DJ Japan Govt: Expect BOJ To Keep Supporting Econ Via Appropriate Policy
2010/10/19 13:04*DJ Japan Govt Cuts View On Exports, Output; Both "Weakening"
2010/10/19 13:03*DJ Japan Govt: Strong Yen A Downside Risk To Economy
2010/10/19 13:03*DJ Japan Govt: Asian Demand For Japan Goods Falling
2010/10/19 13:03*DJ Japan Govt Cuts View On Economy For First Time In 20 Months
2010/10/19 13:01DJ Japan Finance Minister: G-20 Finance Chiefs Expected To Discuss Forex
(Adds more comments from Japan's finance minister, background.) By Takashi Nakamichi Of TOKYO -Japan's finance minister showed renewed concerns over the yen's strength Tuesday, once again threatening to intervene in the currency market and urging global leaders to work together to stabilize exchange rates.'Our stance is unchanged,' Yoshihiko Noda said at a news conference as the yen hovered around Y81.30 to the dollar, a level close to 15-year highs. 'We will continue to watch market developments with great interest and, if we find it necessary, we will respond decisively.''It is indispensable for members of the international community to think very hard about foreign exchange problems and stabilize to ensure the recovery of the global economy,' Noda said, ahead of a planned meeting in South Korea Friday and Saturday of finance ministers and central bankers from the G-20 advanced and developing nations.Noda's comments reveal Japan's continued worries over the strong yen, which analysts say could hinder the nation's economic recovery by making its exports less competitive abroad. Coming before the G-20 meeting, Noda's remarks also highlight the country's desire for renewed international cooperation to bring stability to the currency market.'In the context of the global economy, foreign exchange issues will likely be taken up as a topic of discussion by many members' during the high-profile talks, which are a preparatory meeting for a G-20 leaders summit next month, he said.But whether Japan could play a leadership role in possible currency debates at the G-20 remains doubtful.Many observers speculate that a key theme of the G-20 talks will be how to head off a potential global race to push down currencies as countries seek to bolster their exports. The fear is that less-developed nations' efforts to limit the rises of their currencies through interventions, coupled with advanced economies' stepped-up monetary easing and consequential falls in their currencies, could eventually cause financial instability and damage global growth.Some critics argue that Japan's currency-market intervention last month to tame the yen's strength has added to such concerns.Japan attracted criticism from China and South Korea after Noda and Prime Minister Naoto Kan last week made comments that many interpreted as criticism against frequent currency interventions by the two nations.Noda Tuesday said his remarks on Chinese and South Korean currency policies were 'misunderstood.' He said his position on China's policy has been consistent that Beijing should see through its new policy to make the yuan more flexible. As for South Korea's currency policy, 'I didn't mean to talk about currency policies of individual countries but meant to say that has a heavy role to play (as the G-20 host) because foreign exchange is a major topic among the G-20,' he said.
2010/10/19 10:39=DJ FOREX VIEW: Speculative Bets Suggest Dollar Could Extend Rebound
2010/10/19 10:10*DJ World Bank: FX Market Interventions In East Asia Have Had Only Limited Success
2010/10/19 09:51DJ RBA MINUTES: RBA Can't Wait Indefinitely To Hike Rates
2010/10/19 09:49DJ RBA MINUTES: RBA Can't Wait Indefinitely To Hike Rates
2010/10/19 09:42=DJ H&R Block Sues HSBC Over Refund Anticipation Loans
2010/10/19 09:21*DJ PBOC: To Guard Against Massive Inflows Of Hot Money - Report
2010/10/19 09:20*DJ PBOC: To Strengthen Monitoring Of Speculative Capital - Report
2010/10/19 09:15DJ ECB Provopoulos Sees World Economic Growth Slowing In 2011
ATHENS -European Central Bank governing council member George Provopoulos said Monday that the world economy is poised to slow in 2011 and that a global economic recovery faces complex challenges.In a speech to tourism executives, Provopoulos, who is also governor of the Bank of Greece, called on the Greek government to craft a new growth strategy for the country even as it moves to fix the country's broken finances.'The expected global recovery in 2010, following current trends, will slow down in 2011 in both developed and emerging economies,' Provopoulos said.He added that Greek economy is struggling to exit its current debt crisis amidst an 'international environment characterized by complex challenges.''Greece needs a plan of action on development in coordination with the adjustment of public finances that details the structural policies under [the International Monetary Fund and European Union] memorandum... which will project a strong message to markets,' Provopoulos said.In May, Greece narrowly avoided bankruptcy by agreeing to a series of painful measures in exchange for an EUR110 billion bailout from the IMF and the EU. Under the terms of that deal, the country aims to cut its budget deficit from more than 13% of gross domestic product last year to around 8% by the end of 2011.While Greece appears on track to achieve those targets, the reform and austerity measures have hit the Greek economy--projected to shrink by 4% this year--and led to rising unemployment and social unrest.Among other things, Provopoulos called for efforts to reinvigorate Greece's tourism sector.Provopoulos said that central bank data showed that tourism revenues from January to the end of August fell by 7.3% even as tourist arrivals to Greece were up 1.5%.'Greece needs to become more price competitive and also compete in terms of improved quality,' Provopoulos added.Among many other suggestions to boost the local tourism sector, which makes up 16% of local gross domestic product and almost 20% of jobs, the central banker promoted the idea of exploiting the large portfolio of state real estate holdings in regions of high commercial and tourist interest.'Today's crisis in Greece can become a catalyst to reshape the economy, improve competitiveness and prosperity in the country, within the Euro-zone,' Provopoulos added.-Nick Skrekas and Alkman Granitsas, , +30 210 283 0685;nick.skrekas@dowjones.com
2010/10/19 08:47DJ FDIC Bair:'Bond Bubble' Could Hit Banks Unprepared For Higher Rates
WASHINGTON -Federal Deposit Insurance Corp. Chairman Sheila Bair on Monday warned that the so-called bond bubble could pose a threat to financial institutions that are unprepared for rising interest rates.'Private and public borrowers should avoid over-reliance on short-term funding that could leave them vulnerable to higher debt-service costs if rates rise, or even liquidity problems if financial markets should balk at rolling over large volumes of private debt,' Bair said in prepared remarks to the Risk Management Association in Baltimore.Bair said that many investors appear content to hold safe, low-yield Treasurys in an uncertain economic environment. But regulators should place heightened scrutiny on the interest-rate exposure of financial institutions, 'and ensure that these institutions can withstand interest-rate increases of as much as 500 basis points over a two- to three-year period,' she added.Bair also cautioned that a potential asset bubble may be forming in U.S. farmland values.'Strong agricultural conditions have spurred renewed interest in farmland on the part of investors. But today's positive fundamentals are subject to change,' she said.Bair said U.S. farmland values are about 58% above their 2000 levels in inflation-adjusted terms.'A sharp decline in farmland prices similar to the early 1980s could have a severe adverse impact on the nation's 1,579 farm banks,' she said.The credit structure underlying U.S. farmland does not appear to involve excessive leverage or inappropriate loans, Bair said, but cautioned that 'this is a situation that will continue to require close monitoring.'
2010/10/19 08:38*DJ RBA: Rates Will Need To Rise; Timing A Matter Of Judgment
2010/10/19 08:36*DJ RBA: 3Q Core Inflation Of 2.5%-2.75% Would Be Consistent With RBA Forecast
2010/10/19 08:36*DJ RBA: Higher Exchange Rate Will Help Keep Core Inflation Within Band
2010/10/19 08:34DJ Strong Magnitude 5.0 Aftershock Hits Christchurch, New Zealand
WELLINGTON -A 5.0-magnitude aftershock hit just outside New Zealand's second largest city of Christchurch mid-morning Tuesday, New Zealand's Geological agency GNS Science confirmed.The agency said the aftershock had struck at a depth of 9 kilometers around 10 kilometers south-west of Christchurch at 11:32 a.m. local time(2232 GMT).Local media organizations have reported the quake caused powers cuts, has sparked evacuations in parts of the city and has resulted in cell phone networks being overloaded.This quake is one of hundreds that have hit the region since a magnitude 7.0 earthquake shook the area on September 4.
2010/10/19 08:28=DJ EU Governments Reach Deal On Sanctions, Possible Treaty Changes
2010/10/19 08:24*DJ Japan Noda: Advanced Nations' Monetary Easing Lifting Emerging Country FX Rates
2010/10/19 08:24*DJ Japan Noda: Govt Has No Plans To Craft Fiscal Reform Bills
2010/10/19 08:19*DJ Japan Noda: Many G-20 Participants Expect To Discuss Forex At Meeting
2010/10/19 08:18*DJ Japan Noda: G-20 Likely To Discuss Forex As Part Of Economic Talk
2010/10/19 08:17*DJ Japan Noda: Forex Stability Necessary For Economy
2010/10/19 08:17*DJ Japan Noda: Can't Overlook Excessive Forex Moves
2010/10/19 08:16*DJ Japan Noda: Will Watch Forex Markets With Great Interest
2010/10/19 08:16*DJ Japan Noda: No Comment On Yen's Levels
2010/10/19 08:16*DJ Japan Noda: Will Take Decisive Forex Steps If Needed
2010/10/19 08:15*DJ Japan Fin Min Noda: Excessive, Disorderly Forex Moves Hurt Economy
2010/10/19 08:05*DJ Nikkei Stock Average In Positive Territory
2010/10/19 08:03*DJ Nikkei Stock Average Opens Down 0.1% At 9490.09
2010/10/19 08:01*DJ Lead December JGB Futures Open Down At 143.84 Vs 143.88 Monday
2010/10/19 07:58=DJ Fed's Lockhart: Quantitative Easing Must Be 'Reasonably Large'
2010/10/19 07:47*DJ Strong Magnitude 5.0 Aftershock Hits Christchurch, New Zealand
2010/10/19 07:39=DJ Federal Reserve Unveils Rule Curbing Appraisal Values
2010/10/19 07:20*DJ Rio Tinto Down 0.5% At A$82.60 Early
2010/10/19 06:39DJ Geithner: Delaying Currency Report In Hopes Of Greater Intl Support
2010/10/19 06:35=DJ WORLD FOREX:Dollar Falls Vs Most Rivals; QE Expectations Weigh-2-
2010/10/19 05:26*DJ Rio Tinto Upgraded To Buy From Hold - GS
2010/10/19 05:23*DJ Geithner: Delaying Currency Exchange Report In Hopes Of Greater International Support
2010/10/19 05:14DJ Treasurys Rally; Focus On Fed, More Bond Buying
2010/10/19 05:12=DJ US Stocks Close Higher, Lifted By Citigroup, Housing Data-2-
2010/10/19 04:56=DJ WORLD FOREX:Dollar Falls Vs Most Rivals; QE Expectations Weigh
2010/10/19 04:43=DJ US Stocks Close Higher, Lifted By Citigroup, Housing Data
2010/10/19 04:35*DJ Geithner: Government Working To Strengthen Confidence In Currency, Financial System
2010/10/19 04:32*DJ Geithner: US Won't Devalue Dollar
2010/10/19 04:30DJ OIL FUTURES: Crude Gains On Rising Equities, French Strike
NEW YORK -Crude futures rose Monday, topping $83 a barrel on improving hopes for the broader economy and worries about the effects of prolonged strikes in France.Light, sweet crude for November delivery settled $1.83, or 2.3%, higher at $83.08 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $1.96 higher at $84.41 a barrel.Oil prices rebounded from levels of technical support around $80.30, aided by gains in equities markets and data that showed U.S. home-builder confidence rose in October for the first time in five months. Meanwhile, strikes in France related to the government's plans to raise the retirement age have disrupted or halted production at the country's 12 refineries."Today's support came off of two things: the French labor issues are still a significant supporting force...and we seem to have latched onto the equities in the last couple of days," said Jim Ritterbusch, head of Ritterbusch and Associates, which tracks the market.Hundreds of gasoline pumps across France were closed Monday amid protests against the proposed pension overhaul, which would raise the retirement age to 62. A strike at the southern Fos-Lavera port also continued into its 22nd day, causing a backlog of 65 cargo ships off the world's third-largest oil port.The strike action lent support to gasoline and heating oil futures as well as crude. Front-month November reformulated gasoline blendstock, or RBOB, settled 4.77 cents, or 2.3%, higher at $2.1515 a gallon. November heating oil settled 4.53 cents higher at $2.2761 a gallon.Equities markets rose Monday, adding to some hopes that segments of the economy are improving. The National Association of Home Builders said its housing market index rose 3 points to 16 in October, the first improvement in the index in five months. The index measures builder confidence for sales prospects of new, single-family homes.The dustrial Average was recently up 76 points, or 0.7%, to 11138.The data come as investors await more signals from the Federal Reserve on the extent to which the central bank will help support the economy. Comments Friday from Fed Chairman Ben Bernanke left markets without any additional insights into the Fed's plans, though most expect some form of stimulus is ahead."We saw a bit of a turnaround in the equities markets," which helped crude prices, said Matt Smith, an oil analyst with Summit Energy. "It's a reaction to the sell-offs late last week and we've seen a buying interest from that."The ICE dollar index, which measures the dollar against a basket of currencies, was recently down 0.2%, retreating from gains earlier in the session.U.S. oil inventories are expected to rise in data due Wednesday from the U.S. Department of Energy. Crude oil stockpiles are seen increasing by 2.4 million barrels, according to a survey of analysts conducted by . Gasoline inventories are seen falling by 1.3 million barrels, while distillates, which include heating oil and diesel are expected to fall by 900,000 barrels.More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines: Nymex Light Crude Oil Close Nymex Harbor RBOB Gasoline Close Nymex Heating Oil Close ICE Brent Crude Oil Close ICE Gas Oil Close
2010/10/19 04:24*DJ Geithner: US Should Support Economic Growth With Fiscal Responsibility
2010/10/19 04:17*DJ Geithner: US Should Be 'Tougher, Smarter' In Expanding Exports
2010/10/19 04:16*DJ US Treasury Secy Geithner: Economy "Definitely Healing," Making Progress
2010/10/19 04:07DJ PRECIOUS METALS: Gold Ends Flat As Market Eyes Dollar
2010/10/19 04:05*DJ DJIA Closes Up 81 (0.7%) At 11144; BofA, JP Morgan Lead Climb
2010/10/19 03:33*DJ Juncker: Excessive Forex Volatility Unwelcome; To Observe Market Developments
2010/10/19 03:32*DJ Juncker: Currencies Should Reflect Fundamentals
2010/10/19 03:31*DJ Juncker: Euro Group Discussed Currencies
2010/10/19 02:41*DJ OIL FUTURES: Crude Gains On Rising Equities, French Strike
2010/10/19 02:35*DJ OIL FUTURES: Crude Settles Up $1.83 At $83.08/Bbl
2010/10/19 01:57DJ Fed's Lockhart: 'Leaning In Favor' Of Renewed Monetary Stimulus
NEW YORK -Another U.S. central bank official is giving support to the Federal Reserve embarking on a program of asset buying to help spur growth in a moribund U.S. economy."I am leaning in favor of additional monetary stimulus while acknowledging the longer-term risks the policy may present," Federal Reserve Bank of Atlanta President Dennis Lockhart said in the text of a speech to be delivered Monday."At this juncture, and given the circumstances of sluggish growth and measured inflation that is too low, I give greater weight to the risk of further disinflation leading to deflation," the official said. Buying long-term assets "is a form of risk management--an insurance policy that is prudent to put in place at this time."Lockhart's comments came from a speech he was giving in Savannah, Ga., before a gathering of the Savannah Rotary Club. The official's comments came as market expectations are growing that central bank officials will soon restart a program to buy long-term assets, in a bid to drive up growth, and bring down overly high levels of unemployment while spurring inflation to a more acceptable level.The prospect of renewed Fed intervention is something the central bank itself has fueled. At their late September policy meeting central bankers noted they were prepared to provide additional support. In a speech Friday Fed Chairman Ben Bernanke said "there would appear--all else being equal--to be a case for further action," although he noted what the Fed does next depends on incoming economic data. On Saturday Chicago Fed President Charles Evans said "much more policy accommodation is appropriate today," as Boston Fed President Eric Rosengren argued in favor of an aggressive approach to prevent deflationary price trends from taking place.Most on Wall Street expect the Fed to buy long-dated Treasurys, and opponents of further intervention, like Kansas City Fed President Thomas Hoenig, have framed their critique on the assumption the Fed will buy government bonds. The major fear is that further Fed action may not have much of a positive impact in an economy that has plenty of liquidity, and where many households and firms are actively looking to cut debt, rather than acquire more.In offering his support for further Fed action, Lockhart noted it's not just credit availability where another round of so-called quantitative easing could work. He noted that by acquiring more Treasurys, the central bank could drive some investors into riskier and potentially more economically productive holdings, like corporate bonds.Lockhart noted a restarted bond-buying program could also affect the dollar. Market speculation "has already caused a drop in the dollar's value on exchange markets and contributed to the rising concern over competitive efforts among nations to influence the relative position of currencies," he said. "Sellers of the dollar are responding to the prospect of lower yields."That said, the official said more bond buying can work. "There is scope, at the margin, for further monetary stimulus to induce households and businesses to overcome their current spending caution, even while deleveraging." He explained, "a quantitative easing program of scale should have the effect of making credit cheaper and, if successful in upgrading the outlook, more available as loan demand rises."Lockhart detailed an economic environment that was of concern. "The recent performance of the economy has been disappointing" and "unemployment remains high," while "inflation has settled at a level considered by many to be unacceptably low," he said."The risks are more to the downside," Lockhart said, adding "the fact that growth is so sluggish and inflation so near zero presents the possibility of a deflationary situation developing, with very serious implications for employment." It is this that the Fed needs to counter.Lockhart also observed that he believes the current rate of high unemployment is the result of both structural and traditional economic forces. He added another force countering growth is "uncertainty."
2010/10/19 01:32*DJ ECB Provopoulos: World Economy Faces Complex Challenges
2010/10/19 01:31*DJ ECB Provopoulos Sees World Economic Growth Slowing In 2011
2010/10/19 00:53*DJ Lockhart: Weak Growth And Low Inflation Raise Risk Of Deflation
2010/10/19 00:52*DJ Lockhart: Downside Risks To Outlook Favor More Fed Action
2010/10/19 00:51*DJ Fed's Lockhart: 'Leaning In Favor' Of Renewed Monetary Stimulus
