2010/10/21 17:52*DJ EU Paper Duties To Range From Approximately 20-40% - Source
2010/10/21 17:50*DJ EU To Place Duties On Chinese High-Quality Paper - Sources
2010/10/21 17:45DJ IMF: Asia Has Comprehensive Tools To Tackle Short-Term Inflows
JAKARTA -Asian countries have comprehensive tools to tackle short-term inflows, an official with the International Monetary Fund said Thursday. Countries in the region still have room in their fiscal and exchange rate policies to handle capital inflows, Anoop Singh, director of the IMF's Asia and Pacific Department, told reporters at a press conference, without elaborating. 'The challenge is to channel these inflows beyond the financial market, such as to infrastructure projects,' he added. Earlier Thursday, the IMF said Asia may attract further capital inflows as global interest rates may stay low, while U.S. monetary conditions are likely to remain supported for an extended period.
2010/10/21 17:21DJ G-7 To Meet On G-20 Sidelines Friday, Likely To Discuss FX
GYEONGJU, South Korea -Finance ministers from the Group of Seven industrial powers will meet Friday and likely discuss currencies, a person familiar with the matter said. The G-7 ministers will meet on the sidelines of a meeting of ministers and central bankers from the Group of 20 big industrial and emerging economies in Gyeongju, South Korea, the person told Thursday. There is no formal agenda for the G-7 meeting, the person said.
2010/10/21 17:12*DJ 3-Month Euribor Rises To 1.025% Vs 1.016% Wednesday
2010/10/21 17:07*DJ IMF Exec: Capital Inflows In Asia Haven't Gone Beyond Peak Levels
2010/10/21 17:06*DJ Swiss Oct ZEW Econ Expectations At -27.5 Vs -5.1 In Sep
2010/10/21 17:05=DJ Forex Focus: Risk Is Back On The Menu
2010/10/21 17:03=DJ DATA SNAP: UK Retail Sales Weaker Than Expected In September
2010/10/21 16:58*DJ German Econ Min Sees Growth Around 2% In Next 5 Years
2010/10/21 16:57DJ German Government Sees GDP Up 3.4% In 2010
BERLIN -Germany's economy is set to grow 3.4% this year as the recovery continues across almost all sectors and by a more modest 1.8% in 2011, the government said Thursday in its updated forecast for this year. The government's previous forecast in April predicted 1.4% growth this year, before Europe's largest economy posted a blistering 9% annualized rate of growth in the second quarter and other indicators, such as unemployment rates and business confidence, continued to suggest a more rapid rate of recovery. 'After a period in the on-ramp, our economy is now driving in the fast lane,' Economics Minister Rainer Bruederle said. A string of authorities and think-tanks have recently said that Germany's economy will grow by over 3% this year, including an influential group of institutes that advises the German government. In their semiannual report to the government last week, the institutes forecast a 3.5% rate of growth for 2010 and a 2.0% rate for 2011.
2010/10/21 16:54*DJ IMF Exec: Domestic Demand In Asia Continues To Support Growth
2010/10/21 16:31*DJ German Govt Sees GDP Up 3.4% In 2010
2010/10/21 16:31*DJ German Govt Sees GDP Up 1.8% In 2011
2010/10/21 16:30*DJ UK Sep Retail Sales -0.2% On Mo; +0.5% On Yr
2010/10/21 16:30*DJ UK Sep Retail Sales Forecast +0.7% On Mo; +1.5% On Yr
2010/10/21 16:24*DJ G-7 Meeting Likely To Discuss FX, But No Formal Agenda - Source
2010/10/21 16:23=DJ DATA SNAP: German Preliminary Oct Composite PMI 56.0 Vs Sep 54.7
2010/10/21 16:23*DJ G-7 Finance Ministers To Meet Friday On G-20 Sidelines - Source
2010/10/21 16:11=DJ IMF Raises Asia Growth Forecast, Calls For Stronger Currencies
2010/10/21 16:10*DJ Euro Hits Fresh 2 Month High Vs Swiss Franc Above CHF1.3495-EBS
2010/10/21 16:08DJ CIC President: Fund Is Keen To Invest In Latin America
CHENGDU, China -China's US$300 billion sovereign-wealth fund is keen to invest in Latin America, its president said Thursday, in a sign of China's growing interest in the region. Latin America accounted for 6.3% of China Investment Corp.'s diversified equity investments at the end of 2009, the lowest of any region except Africa at 0.9%, according to its annual report. 'We have toured all the major countries of Latin America, and our chairman is visiting the continent at present,' Gao Xiqing said at a forum in Chengdu, the capital of China's southwestern province of Sichuan. 'We are interested in the region not only because China and Latin America can be complementary in many ways...but also because Latin America still has a small share of the international capital market, which doesn't match its large contribution to the world's economy,' he said. Gao didn't name any potential investment targets, but he said CIC is interested in making private-equity investments in the region. In recent years, the sovereign-wealth fund has invested tens of billions of dollars in commodities firms and oil exploration, to help satisfy the fast-growing Chinese economy's huge demand for resources and energy. China's rising prominence in the global energy sector has led to its increasing investment in Latin America. In the January-July period, China's foreign-direct investment in Latin America amounted to US$576.6 million, or 3.2% of its total FDI, up from US$344.09 million, or 0.6% of total FDI, in the whole of 2009, according to Chinese commerce ministry data. Among Chinese investments in Latin America's energy sector, China Petrochemical Corp., the country's biggest oil refiner, acquired a 40% stake in Repsol SA's Brazilian assets for US$7.1 billion earlier this month. Despite Latin America's promising outlook, Gao said it could be a challenge for the sovereign-wealth fund to make investments in the near term, because it is still short of investment experts in the region. -Wynne Wang and Rose Yu contributed to this article, ; 8621 6120-1200; rose.yu@dowjones.com
2010/10/21 16:07=DJ BIG PICTURE: Mortgage Problems Are Also Housing's Problems
2010/10/21 16:03DJ JGBs End Slightly Lower As 20-Year Tender Impact Brief
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.700 flat TSE Dec 10-Yr JGB Futures Price: 143.60 .04 10-Yr 0.8% JGB No. 311 Yield: 0.880% .010 TOKYO -Japanese government bond futures ended slightly lower Thursday in choppy trading as gains made after a strong 20-year auction were eroded by profit taking. The 20-year JGB auction attracted solid demand, with brokerages seeking to boost their holdings of the long-term issue. The results were slightly stronger than market expectations, pushing lead December futures to their intraday high as investors were cheered by apparent firm demand for long-term debt. But profit-taking later in the day erased those gains and pushed JGB futures to finish slightly lower. Some analysts said the latest 20-year bond tender may not necessarily mirror strong demand from investors, and brokers may start cutting their holdings of longer-term debt if the JGB market proves lackluster in coming days. 'I think selling (in long-term bonds) could hit the market any moment,' said Shinsei Bank deputy general manager for capital markets Tomohiko Katsu. The JGB market also saw choppy trading earlier in the day, with bonds dropping after the yen fell sharply against the dollar in Tokyo on comments from U.S. Treasury Secretary Geithner in an interview with the Wall Street Journal. Geithner said that major currencies are 'roughly in alignment,' suggesting he thinks there's no need for further U.S. dollar weakness. But bonds soon trimmed their losses as the Japanese currency rebounded by late morning. As of 0705 GMT, the dollar stood at Y81.10. Thursday's 20-year auction, in which the finance ministry sold Y999.8 billion worth of the bonds, received Y4.412 trillion in total bids, for a bid-to-cover ratio of 4.41, declining from 4.56 at a previous 20-year JGB auction in September, but still at a high level compared to 2.86 in the August auction. The tail, another measure of demand that looks at the difference between the average price and the lowest accepted price, sharply shortened to 0.04 from 0.20 at the last 20-year sale. As of 0600 GMT, the benchmark 10-year JGB yield was down 0.5 basis point at 0.885%. Superlong-term yields were also lower, with the 20-year JGB yield falling 0.5 basis point to 1.755% and the 30-year yield skidding 0.5 basis point to 1.955%. The Nikkei Stock Average finished down 0.1% at 9376.48. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 297 Yield: 0.130% flat 5-Year 0.3% JGB No. 92 Yield: 0.280% +0.005 20-Year 1.9% JGB No. 121 Yield: 1.755% .005 30-Year 2.0% JGB No. 33 Yield: 1.955% .005***********
2010/10/21 16:00*DJ Euro-Zone Sep Composite PMI Was 54.1
2010/10/21 16:00*DJ Euro-Zone Sep Composite PMI Was 54.1
2010/10/21 16:00*DJ Euro-Zone Oct Composite PMI Flash Est Forecast At 53.7
2010/10/21 15:59*DJ Euro-Zone Oct Composite PMI Flash Est 53.4 - Sources
2010/10/21 15:59*DJ Euro-Zone Oct Services PMI Flash Est 53.2 - Sources
2010/10/21 15:59*DJ Euro-Zone Oct Services PMI Flash Est Forecast At 53.7
2010/10/21 15:59*DJ Euro-Zone Sep Services PMI Was 54.1
2010/10/21 15:58*DJ Euro-Zone Sep Mfg PMI Was 53.7
2010/10/21 15:58*DJ Euro-Zone Oct Mfg PMI Flash Est 54.1 - Sources
2010/10/21 15:58*DJ Euro-Zone Oct Mfg PMI Flash Est Forecast At 52.7
2010/10/21 15:34=DJ DATA SNAP: French Business Sentiment Edges Up In October
2010/10/21 15:34=DJ DATA SNAP:French Preliminary Oct Composite PMI 55.3 Vs 58.1 In Sep
2010/10/21 15:29*DJ German Sep Services PMI Was 54.9
2010/10/21 15:29*DJ German Oct Composite PMI Flash Est 56.0 - Sources
2010/10/21 15:29*DJ German Sep Composite PMI Was 54.7
2010/10/21 15:29*DJ German Oct Services PMI Flash Est Forecast 54.5
2010/10/21 15:28*DJ German Sep Mfg PMI Was 55.1
2010/10/21 15:28*DJ German Oct Services PMI Flash Est 56.6 - Sources
2010/10/21 15:28*DJ German Oct Mfg PMI Flash Est 56.1 - Sources
2010/10/21 15:28*DJ German Oct Mfg PMI Flash Est Forecast 54.5
2010/10/21 15:21*DJ 10-Year Gilt/Bund Yield Spread At 53.3 BPs, Tightest This Yr
2010/10/21 15:20*DJ PBOC: Cross-Boarder Liquidity Flows Risky
2010/10/21 15:19=DJ WORLD FOREX: Geithner Gives Dollar Brief Boost Vs Yen, Euro-3-
2010/10/21 15:18*DJ PBOC: Credit Expansion Trend Still Strong
2010/10/21 15:14*DJ PBOC: Econ Situation Makes Policy More Hard To Make
2010/10/21 15:09*DJ Sterling Falls To 6 Month Low Against Euro At GBP0.8849 - EBS
2010/10/21 15:06*DJ France Sep Composite PMI Was 58.1
2010/10/21 15:06*DJ France Oct Services PMI Flash Est Forecast 57.5
2010/10/21 15:06*DJ IMF: Letting Asian Currencies Rise Would Help Deal With Capital Inflows
2010/10/21 15:05*DJ IMF: Asia 2010 Growth Estimate Revised To 8% From 7%
2010/10/21 15:04*DJ Stoxx Europe 600 Index Dn 0.4% After The Open
2010/10/21 15:04*DJ IMF: Exchange Rate Appreciation A Major Part Of Rebalancing
2010/10/21 15:04*DJ FTSE 100 Dn 0.3% After The Open
2010/10/21 15:03DJ PRECIOUS METALS: Gold Down In Asia; Tracks Euro Retreat
SINGAPORE -Gold and silver were both lower in Asia Thursday, as the euro again set the course. Gold was hurt after U.S. Treasury Secretary Timothy Geithner prompted another spurt of dollar strength when he told the Wall Street Journal that he believes major currencies are 'roughly in alignment now.' This sent the euro down to $1.3903 at 0530 GMT after trading at $1.3958 at 0000 GMT. At 0530 GMT spot gold was at $1,341.60/oz, down $4.50 since the New York close and well off its intraday high of $1,349.05. On Tocom, August 2011 gold was at Y3,510 a gram, up Y2. Gold will likely trade sideways ahead of the Group of 20 finance ministers' meeting tomorrow and the U.S. Federal Reserve meeting on Nov. 3, said a Singapore based physical trader. 'The last two days we have been seeing good physical demand from all over Asia, but it's much quieter today. The market likes to buy these dips but there's nothing to push it on higher,' he said. Seasonal strength was likely to continue to be a support into the year-end, keeping the bias bullish, said another trader, with the gold buying season likely to extend to the Chinese Lunar New Year in early February. Silver was following gold's lead, down 19 cents at $23.74/oz, with industrial metals getting no lift from China's third-quarter GDP growth, which came in at 9.6%, in line with expectations. Spot platinum was at $1,674/oz, down $9, while palladium was at $582/oz, down $5.
2010/10/21 15:03*DJ IMF Says Rise In Yen Rise Should Have Limited Impact In Long-Term
2010/10/21 15:02*DJ France Oct Mfg PMI Flash Est Forecast 55.0
2010/10/21 15:02*DJ IMF Predicts Japan GDP Growth At 1.50% For 2011
2010/10/21 15:01*DJ IMF Predicts Japan GDP Growth At 2.75% For 2010
2010/10/21 15:00*DJ France Oct Composite PMI Flash Est 55.3 - Sources
2010/10/21 15:00*DJ France Sep Services PMI Was 58.2
2010/10/21 14:59*DJ France Sep Mfg PMI Was 58.1
2010/10/21 14:59*DJ France Sep Mfg PMI Was 56.0
2010/10/21 14:59*DJ France Oct Services PMI Flash Est 55.3 - Sources
2010/10/21 14:59*DJ France Oct Mfg PMI Flash Est 55.2 - Sources
2010/10/21 14:59DJ Forex Options: Dollar/Yen Options Drop; Downside Hedges Sold
TOKYO -Dollar/yen options continued to fall in Asia Thursday as many players exited hedges against the greenback's decline versus the yen as the currency pair has stayed mostly above the key Y81.00 mark in recent days.Benchmark volatilities implied by one-month at-the-money options fell to 11.10%/11.80% in Tokyo from 11.20%/11.90% Wednesday in New York.One player sold an overnight dollar-put/yen-call options contract with a strike price of Y81.00, implied volatility of 10.50% and a face value of $100 million, said an options dealer at a major Japanese bank. The dealer added that another player sold a three-week dollar-put/yen-call contract with a strike of Y79.60, implied volatility of 12.00% and a face value of $60 millionAnother options dealer said one player sold a three-week dollar-put/yen-call contract with a strike of Y79.60, implied volatility of 12.10% and a face value of about $50 million.The dollar's sharp rise against the yen in Asian morning trade on U.S. Treasury Secretary Timothy Geithner's comments didn't move volatilities much as the greenback soon fell back to almost where it was against the yen earlier in the day, these dealers said.Geithner told The Wall Street Journal that the major currencies such as the dollar, euro, and yen are "roughly in alignment now," suggesting he sees no need for the U.S. unit to sink more than it already has against its European and Asian counterparts.The second dealer said benchmark volatilities are unlikely to rebound unless the U.S. unit falls close to an all-time low of Y79.75.
2010/10/21 14:58=DJ WORLD FOREX: Geithner Gives Dollar Brief Boost Vs Yen, Euro-2-
2010/10/21 14:45*DJ French Oct Business Sentiment Was Seen At 99
2010/10/21 14:45*DJ French Oct Business Sentiment 102 Vs 99 In Sep
2010/10/21 14:36DJ German MOF: Economy, Exports To Grow Moderately Through 2010
BERLIN -German exports and economic growth are set to continue at a moderate pace through the remainder of 2010, the finance ministry said Thursday in its monthly report. Deputy Minister Hans Bernhard Beus said in the report that the economic crisis has left 'marked effects on the public budget' but added that 'the economic situation in Germany is developing better than forecast earlier this year.' Last spring, the government forecast that gross domestic product would grow 1.4% this year. Since then, a string of institutes and international bodies have predicted that Europe's largest economy will grow by more than 3%, including an influential report from government advisors last week that put the rate at 3.5% this year. The government is due to update its forecast later Thursday, and Chancellor Angela Merkel said Wednesday that the new forecast would be well over 3%. Growth will be led by industrial production, the finance ministry's report said. 'After a reserved start to the third quarter, industry's economic dynamic has now improved again,' the ministry said, adding that the pace of industrial growth still doesn't match the blistering pace set in the second quarter, when Germany's economy grew by a 9% annualized rate. Private consumption 'gained strength' in the third quarter, the ministry said, driven by a strong job market. Merkel has said the number of unemployed in Germany could fall below 3 million next year. The ministry warned, though, that 'workforce demand could fall a bit over the course of this year.' Regarding the government's budget finances, the ministry's report showed that tax revenue was up 0.5% in September over the same month in 2009 to EUR45.4 billion. Federal tax revenue was down by 3.3% against 2009, due in part to high payments to the European Union, the ministry said.
2010/10/21 14:35=DJ WORLD FOREX: Geithner Gives Dollar Brief Boost Vs Yen, Euro
2010/10/21 14:17*DJ Dollar Falls Below Y81.00 On EBS
2010/10/21 14:02*DJ Nikkei Stock Average Closes Down 0.1% at 9376.48
2010/10/21 14:01*DJ German MOF: Economy, Exports To Continue Moderate Growth
2010/10/21 13:54DJ Asian Leaders To Call For Tighter Finance Cooperation - Draft
HANOI --Asian leaders will call next week for tighter financial cooperation in the face of an uncertain global economic recovery, says a draft document obtained Thursday ahead of a regional summit.The draft chairman's statement of the East Asia Summit, or EAS, calls for 'enhancing regional financial cooperation and coordination' but doesn't give details.It notes 'the current fragile world economic recovery' and says the 16 EAS members 'could play more proactive role in the international and regional efforts in restoring financial stability and generating sustainable economic growth and development.'EAS, established in 2005, is a forum for dialogue on strategic, political and economic issues involving the 10 members of the Association of Southeast Asian Nations, or Asean, as well as Australia, China, India, Japan, South Korea and New Zealand.Prime ministers and presidents from the group are to meet in the Vietnamese capital on Oct. 30.In a report earlier this week the World Bank said East Asia is leading the global recovery, but its success has attracted a surge of capital that has inflated currencies, spelling a risk to exports and future growth.The report didn't include EAS members Japan, South Korea and Singapore but focused on the region's developing nations.China remains the economic powerhouse, with projected growth of 9.5% in 2010, the World Bank said.However, confidence in developing East Asia has triggered a flood of liquidity in search of higher yields, and caused exchange rates to appreciate strongly.'So far, export growth has remained robust, but with continued real appreciation of East Asian currencies, this growth could slow,' said the Bank.Its report urged debate at the Hanoi summit, saying 'the issues need to be discussed in the context of Asean and Asean+6 , where member countries could fashion a common approach to these regional challenges.'
2010/10/21 13:49=DJ Credit Suisse 3Q Net Profit Slides Amid Wobbly Securities Mkts
2010/10/21 13:19=DJ FOREX VIEW: Policy Concerns Have Become Biggest Risk Factor
2010/10/21 12:50*DJ Credit Suisse 3Q Tier 1 Ratio 16.7%
2010/10/21 12:46*DJ Credit Suisse 3Q Rev CHF6.28B
2010/10/21 12:02DJ BOJ Shirakawa: Will Make Utmost Efforts To Overcome Deflation
TOKYO -Bank of Japan Governor Masaaki Shirakawa said Thursday the central bank will make "utmost efforts" to lift the Japanese economy out of deflation.Shirakawa told an Upper House parliamentary committee that monetary policy measures alone aren't enough to dispel deflationary pressures, but added "I am convinced that will potentially have a strong effect to pull Japan's economy out of deflation."
2010/10/21 11:59DJ Japan Noda: To Discuss Promotion Of Currency Flexibility At G-20
TOKYO -Japanese Finance Minister Yoshihiko Noda said Thursday discussions at the upcoming Group of 20 finance ministers meeting in South Korea on foreign exchange policies will stay on the track set in the Toronto summit meeting in June of promoting exchange rates flexibility 'especially in emerging economies.'While there will be no sessions at the G-20 specifically arranged for discussing exchange rate policies, 'the currency issue is the biggest topic of interest for every country and we want to sufficiently discuss policy cooperation,' Noda told the Upper House committee.The finance ministry will continue to take 'decisive steps including intervention' in the foreign exchange market to stem the yen's excessive moves, Noda said.Noda added the yen's recent appreciation against other Asian currencies such as the Korean won and Thai baht, along with Japan's limited progress in forging free trade agreements, is a drag on Japan's external trade.
2010/10/21 11:35*DJ Nikkei Stock Average Falls Back Into Negative Territory
2010/10/21 11:28*DJ Hang Seng Index Falls 0.3% To 23,489.31; Reverses Gains
2010/10/21 11:20*DJ Magnitude 5.8 Quake Strikes Off Chile Coast - USGS
2010/10/21 11:15=DJ Plosser Wonders If Benefits Of Bond Purchases Outweigh Risks
2010/10/21 11:01DJ Boeing To Earn $24 Billion In Saudi Arms Sale
WASHINGTON --U.S. aerospace giant Boeing Co. stands to make up to $24 billion from the sale of aircraft and helicopters to Saudi Arabia that the U.S. government approved Wednesday, the company said.'Boeing is pleased that the U.S. government has formally notified Congress of its intent to sell F-15s, Apaches and AH-6i to the Kingdom of Saudi Arabia,' the group said in a statement by email.The total earnings for the sale of its products 'is anticipated to be approximately $24 billion' over the lifetime of the program and a yearly earning of $4.6 billion, Boeing said.Some 77,000 Boeing employees and contractors are to work on the project.'We look forward to working with the U.S. government and the Kingdom of Saudi Arabia on these programs, which are designed to strengthen security in the region,' it added.The plan announced Wednesday allows for the sale of 84 F-15 fighter jets, 70 Apache attack helicopters, 72 tactical Black Hawk helicopters and 36 light helicopters, U.S. officials said.The delivery of the weapons to oil-rich Saudi Arabia would be spread over 15 to 20 years.U.S. defense officials said the deal had been in the works for months with the Saudis, who have grown increasingly anxious about Iran's missile arsenal.
2010/10/21 10:57=DJ Credit Investors Reverse Bearish Outlook, Survey Shows
2010/10/21 10:41*DJ Japan Fin Min Noda: Won't Comment On Current Yen Levels
2010/10/21 10:40*DJ Japan Fin Min Noda: Can't Tolerate Excessive Currency Fluctuation
2010/10/21 10:40DJ PBOC Adviser: Rate Hike Boosts Appeal Of Bank Deposits - Report
BEIJING -The lending and deposit rate hikes by China's central bank on Tuesday will encourage people to keep their money in bank deposits instead of investing it in the property or stock markets in the short term, People's Bank of China adviser Li Daokui was cited as saying in the central bank-backed Financial News on Thursday.Li said the rate hikes aren't aimed at tightening liquidity in the short term and won't affect lending volumes this year.The PBOC said Tuesday it was raising benchmark one-year interest rates on loans and deposits by a quarter of a percentage point, its first adjustment to interest rates since December 2008. It last hiked interest rates in December 2007, when inflation was over 6%.Newspaper website: http://www.financialnews.com
2010/10/21 10:39*DJ Japan Fin Min Noda: Will Take Decisive Steps On FX Including Intervention
2010/10/21 10:15*DJ Dollar Falls Vs Yen; Now Y81.17
2010/10/21 09:56*DJ BOJ Shirakawa: Will Make Utmost Efforts To Overcome Deflation
2010/10/21 09:55DJ France, Hong Kong To Sign Long-Awaited Tax Accord -Source
PARIS --France and Hong Kong on Thursday are to sign a bilateral tax agreement following 10 years of negotiations that ended when Hong Kong agreed to international standards on the exchange of tax-related data, a French finance ministry source said. 'The signature of this accord is big news for us and a good sign for the French economy,' the source said. 'Hong Kong is certainly a small territory but it represented a two-billion euro ($2.79 billion) trade surplus for France last year and will likely represent three billion this year,' he added. The finance ministry said in a statement that negotiations 'were able to be completed after Hong Kong decided to conform to international standards relative to the exchange of tax information.' 'Investors in Hong Kong will have a 10% reduction in tax rates retained at source on dividends, interest and royalties,' the ministry said, adding that the accord also called for the elimination of double taxation. The agreement, which sources said would be signed by French Finance Minister Christine Lagarde and Hong Kong counterpart John Tsang, now needs parliamentary ratification. The ministry described Hong Kong as an 'open door to China' and has a 'considerable' French population of 12,000. 'The three largest Hong Kong hotel chains are to open hotels in Paris in the next two years, creating 1,500 jobs,' according to the ministry. It said negotiations had foundered until 2009 on the exchange of data on tax fraud. The obstacle was overcome in talks last year in the Group of 20 developed and developing nations, with Hong Kong adhering to a convention model drafted by the Organisation for Economic Cooperation and Development that is considered to be particularly strict, the ministry statement said.
2010/10/21 09:55*DJ BOJ Shirakawa: Confident About Easy Policy Effect On Deflation
2010/10/21 09:40DJ Greek Jan-Sep Budget Deficit Falls 30.9% On Costs
ATHENS -The Greek budget deficit for the period between January to September fell 30.9%, better than the 29% targeted, due to aggressive cost controls while despite a lag in revenue, the Finance Ministry said Wednesday. The budget deficit for the nine-month period came in at EUR16.2 billion compared to EUR23.5 billion in 2009. The annual deficit reduction target promised to the International Monetary Fund and European Union in exchange for the EUR110 billion bailout to stave off bankruptcy is 36.9%. The nine month budget target varies from the annual target given the larger interest payments for the period, the Finance Ministry said. Net revenue of the ordinary budget increased only 3.6% against an annual target of an 8.7% rise, but VAT revenue was up 16.9% in September. The 4% forecast contraction in gross domestic product for 2010 in the debt laden Mediterranean country is having severe impact on revenue, economists say. Ordinary budget expenditure for the nine-month period declined by 7% while primary expenditure fell by 11.6% against an annual target of 9.2%. This was due mainly to restrictions in spending for health and social security. Interest expenditure was up 8% against a projected target of an 7.2% annual increase. The public investment budget declined by 30% compared to the same period last year.
2010/10/21 09:33*DJ Traders: Sharp Dollar Rise On Geithner Comments
2010/10/21 09:27*DJ Nikkei Stock Average Jumps Into Positive Territory
2010/10/21 09:26*DJ Euro Rises To Y113.49 From Y113.00
2010/10/21 09:24*DJ Dollar Rises To Y81.61 From Y81.05
2010/10/21 09:24*DJ Yen Falls Sharply Against Dollar, Euro
2010/10/21 09:19*DJ Dollar Falls Below Y81.00 On EBS
2010/10/21 09:19DJ EU Juncker: Deal On Sanctions For High-Debt Nations Falls Short
LUXEMBOURG -Luxembourg Prime Minister Jean-Claude Juncker Wednesday criticized a deal struck by Europe's finance ministers this week to toughen sanctions on euro countries running up large budget deficits as short on content. 'I don't think we have obtained the best result possible,' he said on the sidelines of an event. 'It is true the will allow quick and automatic decisions but it could have been quicker still and it could have been more automatic.' Juncker chairs the Eurogroup of finance ministers whose countries use the euro currency.
2010/10/21 09:15DJ Fitch: UK Spending Plans Consistent With Triple-A Rating
LONDON -Fitch Ratings said the U.K's government spending review announced earlier Wednesday enhances the credibility of its deficit reduction plan and is consistent with maintaining its triple-A rating if the government can deliver on its planned measures."The real terms reduction in spending set out in today's Spending Review is consistent with the expenditure-led deficit reduction plan set out by the UK government in the 2010 Budget. As such, it enhances the credibility of the deficit reduction plan by detailing the spending priorities and measures necessary to stabilise UK public finances and debt, and secure the UK's 'AAA' status," said David Riley, head of sovereign ratings at Fitch.U.K. Chancellor of the Exchequer George Osborne laid out sweeping welfare and spending cuts Wednesday sticking to the timetable for paring back the budget deficit that he unveiled at June's budget.In order to slash a budget deficit of some GBP155 billion, the UK government has planned a GBP113 billion fiscal tightening over the next five years, including just over GBP80 billion in cuts."Delivering on the Spending Review and deficit reduction plan will be challenging, especially against the backdrop of a modest economic recovery," said Riley, noting that weaker-than-expected global and UK economic recovery poses the biggest risk to the government plans.
2010/10/21 09:09*DJ PBOC Adviser: Rate Hike Lowers Appeal Of Stock Investment For People - Report
2010/10/21 09:09*DJ PBOC Adviser: Rate Hike Lowers Appeal Of Property Investment For People - Report
2010/10/21 09:07*DJ PBOC Adviser: Rate Hike Boosts Appeal Of Bank Deposits For Individuals
2010/10/21 09:01DJ Trichet Not On Board With Softened Euro Zone Budget Rules -FT
The head of the European Central Bank, Jean-Claude Trichet, is refusing to endorse the full slate of fiscal-austerity reforms approved this week by European Union ministers for countries that use the euro currency, the Financial Times reported late Wednesday.The newspaper said it had seen a memo from Trichet's office insisting that the report by EU finance ministers to the bloc's leaders read: 'The president of the ECB does not subscribe to all elements of this report.'Trichet declined to comment, the FT said.Word of his apprehension came amid rising criticism in Germany of a compromise deal Chancellor Angela Merkel struck Monday with President Nicolas Sarkozy of France. Critics say the revision waters down measures to enforce strict debt and deficit control in the euro zone.The ministers' conclusions, which were agreed on unanimously, will be submitted to EU leaders at their summit next week by Herman Van Rompuy, president of the European Council. A representative of Von Rompuy's office confirmed, without elaborating, that a note citing Trichet's concerns will be included in the report.Two members of the ECB's executive board -- Vitor Constancio, the vice president, and Juergen Stark -- have also expressed reservations about the proposals.Full story at http://www.ft.com/cms/s/0/c886ebca-dc78-11df-a0b90144feabdc0.html-; 212-416-2900
2010/10/21 08:45DJ UK Treasury Chief Osborne Details Spending Cuts
In a gambit to tackle its record debt, the U.K. government detailed sweeping spending cuts Wednesday, announcing double-digit budget reductions over the next few years for everyone from the police to welfare recipients and the Queen.Treasury chief George Osborne stuck to a previously announced timetable for paring back the budget deficit of GBP155 billion through a GBP113 billion fiscal tightening over the next five years, including GBP83 billion in spending cuts. The steep cuts are a gamble that weaning the U.K. off robust public spending will reinvigorate the private sector without undercutting the country's sluggish recovery from the recession and the global financial crisis."Today is the day when Britain steps back from the brink, when we confront the bills of a decade of spending," he told parliament.(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)The U.K.'s plans pitches it into the center of an international economic debate in which with some countries, mainly in Europe, are calling for austerity measures while others, led by the U.S., say stimulus is still necessary. The U.K. spending review represents an attack on the size of the state in a country where public spending represents around 50% of the economy, one of the largest shares in the developed world.But while Osborne announced the biggest cuts in spending since the Second World War, he calculated that average department budget cuts will be 19% over the next four years, rather than the 25% he had previously predicted. That took wind out of opposition criticisms that he was cutting too fast too far, given they themselves had talked of 20% cuts.Osborne also announced investment in capital projects and said he would protect the education and science budgets in a bid to spur private growth. Still, the coalition government's cuts will lead to the loss of 490,000 jobs in the public sector by 2015 and will likely herald a period of industrial unrest in the U.K. European countries from France to Greece are seeing disruptive industrial action, and some workers in Britain have mounted short strikes in recent weeks.The government will also face accusations that it is damaging Britain's important arts industry, impairing law enforcement and weakening the country's armed forces."Painful job losses are inevitable but the real challenge, working out how to deliver services with fewer people, remains to be tackled," said Jon Sibson, a public sector expert at PricewaterhouseCoopers LLP.Government departments now will go away and work out what the cuts mean, before returning in a month to publish a four-year business plan."It is a hard road, but it leads to a better future," Osborne said of the spending cuts. "We are going to bring the years of ever-rising borrowing to an end. We are going to ensure, like every solvent household in the country, that what we buy, we can afford."Osborne announced annual cuts in police spending of 4% for the next four years; deep cuts in the central government grant to local government, of 7.1% a year in inflation-adjusted terms; a 14% cut in 2013-14 to the Royal Household's budget and 33% hit to the budget of his own Treasury department.Osborne also added an extra GBP7 billion of cuts to the GBP11 billion already earmarked for the welfare bill. The U.K. Treasury estimates that spending on a raft of state benefits--from unemployment compensation and worker disability to government retirement benefits, but excluding health care--will total around GBP 200 billion in fiscal 2010-2011, about 14% of the country's gross domestic product.There was little immediate reaction on foreign-exchange or gilt markets to Osborne's statement.Since taking office in May, the government has insisted that deep and immediate spending cuts would help the U.K. avoid a debt crisis and restore the confidence needed to ensure a strong economic recovery.However, the opposition Labour Party has said the spending cuts will endanger the economy, risking sending the U.K. back into recession after the deep, protracted downturn of 20089. Labour, which had also promised significant cuts before the election, says a renewed downturn would risk worsening the public finances, with weak growth suppressing tax revenues."The rush to cut the deficit endangers the recovery and reduces the prospects of employment in the short term and prosperity in the long term," said Alan Johnson, the opposition Labour Party's Treasury spokesman. -By Alistair MacDonald, The Wall Street Journal -By Laurence Norman, (Paul Hannon contributed to this report.)
2010/10/21 08:24DJ Yahoo's Bartz: Watching Alibaba; Will Do Right Thing For Holders-Fox Business
ting that her job 'involves a lot of heat,' Yahoo Inc. Chief Executive Carol Bartz said Wednesday in an interview on Fox Business Network that she 'couldn't be more proud' of her company's third-quarter results and that 'we're back to growing our business.'Yahoo reported mixed third-quarter results on Tuesday with revenue of $1.6 billion slightly above analysts' estimates and sales results slightly short of forecasts.About a possible acquisition by AOL Inc. , partnership with NewsCorp. , or purchase by various equity groups, Bartz said it 'wasn't appropriate to comment on buyout rumors' or market speculation.Bartz said Yahoo's venture with Microsoft on its Bing search engine was 'on schedule for profitability' and was a 'wise and important investment decision.'Bartz also deferred comment about a possible sale of Yahoo's stake in Alibaba Group, the Chinese internet giant, saying the board was watching the company very carefully and would do 'what was best for the shareholders.'News Corp. owns & Co., the publisher of this newswire.Website: www.foxbusiness.com-; 212-416-2900
2010/10/21 08:09*DJ Nikkei Stock Average Briefly Dips Into Negative Territory
2010/10/21 08:03*DJ Lead Dec JGB Futures Open Up At 143.65 Vs 143.64 Wed
2010/10/21 08:03*DJ Nikkei Stock Average Opens Up 0.7% At 9443.95
2010/10/21 07:56=DJ Fed's Lacker Signals He's Not Concerned By Dollar Weakness
2010/10/21 07:48*DJ Lead Nikkei Futures Open Up 105 Points At 9480 On SGX
2010/10/21 07:42DJ US Treasury Official: G-20 Must Address Currency Policies That Resist Appreciation
WASHINGTON -Group of 20 countries must effectively deal with growing conflicts over currency policies by committing to the orderly adjustment of exchange rates and current account balances, a senior Treasury official said Wednesday.While not calling out China by name, the official said that "when large economies with undervalued exchange rates act to keep their currencies from appreciating, that compels other countries to do the same, setting off a dynamic of competitive non-appreciation."An early draft of a communique being considered by G-20 finance ministers and central bankers meeting this weekend in South Korea includes a pledge to "refrain from competitive undervaluation" of their currencies.The official claimed not to have seen the document but stressed the importance "that our cooperative efforts address any instances that policies may have the effect of resisting appreciation in line with market forces."Global rebalancing will be the dominant theme going into this weekend's meeting and next month's leaders summit, the official said. The key issues include allowing an orderly adjustment of external imbalances, allowing more exchange-rate flexibility and avoiding excessive capital inflows for emerging economies that have flexible currencies.The International Monetary Fund also must play a major role and be more frank with countries in their obligations on currency and rebalancing policies, the official said.Asked whether ultra-low rates in advanced economies are contributing to the problem, the official declined to comment on monetary policy but said "accommodative policies are appropriate" given the slow rate of growth.
2010/10/21 07:21DJ Bank Of England's Weale: 2nd Half UK Growth Likely To Slow
LONDON -Bank of England Monetary Policy Committee member Martin Weale said Wednesday that the rate-setting body thinks economic growth is likely to be weaker in the latter half of the year than in the first six months, but that was different from predicting a renewed dip in output. 'We do think that...the economy is likely to grow more slowly in second half of year than it did in the first half of year, but that's different from saying we think there's likely to be a double dip,' he said in a recorded interview with regional radio station BBC Radio Shropshire. 'There's obviously a risk of that, but there's always a risk of something like that,' he added. The nine members of the BOE's rate-setting body have been visiting to the West Midlands region this week talking to local firms and business groups to gauge the strength of the economic recovery and help it formulate monetary policy. Bank of England website: www.bankofengland.co.uk
2010/10/21 06:18DJ 30-Yr Treasury Rises, 10-Yr Note Erases Earlier Losses On Fed
2010/10/21 05:05DJ US Stocks Erase Most Of Previous Day's Losses
2010/10/21 04:55DJ OIL FUTURES: Crude Up On US Stockpiles Data, Weak Dollar
NEW YORK -Crude-oil futures settled higher Wednesday, rebounding from a fall of more than 4% in the previous session, as a government report showed a drop in total U.S. crude oil and fuel supplies and the dollar weakened.Light, sweet crude oil for November delivery settled $2.28, or 2.9%, higher at $81.77 a barrel on the New York Mercantile Exchange. The contract expired at settlement Wednesday, and the more-actively traded December contract settled $2.38 higher at $82.54 a barrel.Brent crude oil on the ICE futures exchange settled $2.50 higher at $83.60 a barrel.The Department of Energy's Energy Information Administration said total U.S. commercial crude-oil and fuel stockpiles fell by 2 million barrels in the week ended Oct. 15, continuing a decline from 27-year highs hit last month.The EIA report combined with a sharply weakening dollar to retake much of the ground crude lost Tuesday, when a stronger dollar and fears of slowing demand in China pushed oil futures below $80 a barrel for the first time this month.A weakening dollar has led crude higher in recent weeks, making oil and other commodities more attractive as investors seek hard assets. Traders said oil is likely to continue following the greenback, and further weakness should keep oil prices in a new trading range between roughly $80 and $85 a barrel."It was quite the rebound," said Mike Zarembski, senior commodities analyst at OptionsXpress. "If you looked at the EIA numbers, they were slightly bullish, but it was the complete turnaround from the correction in the dollar. It's loud and clear that the dollar is what's controlling these markets right now."The dollar plunged to a new 15-year-low against the yen, and the ICE Dollar Index, which measures the dollar against a basked of currencies, was recently down 1.3%.The euro rose 1.7% to $1.3958.Still, the EIA report provided support as some analysts had expected a sharp rise in U.S. oil inventories. Crude stocks rose by 700,000 barrels in the week ended Oct. 15, a much smaller increase than the 2-million-barrel rise predicted by an analyst survey.Gasoline inventories rose by 1.2 million barrels, while stockpiles of distillates, which include heating oil and diesel, fell by 2.2 million barrels. Analysts surveyed by expected a 1.3-million-barrel decline in gasoline stocks and a 600,000-barrel fall in supplies of distillates.The bigger-than-expected draw in distillates helped boost heating-oil futures, with the November contract settled up 6.55 cents, or 3%, higher at $2.2548 a gallon.Front-month November reformulated gasoline blendstock, or RBOB, settled up 3.43 cents at $2.0826 a gallon. "We're beginning to draw down inventories slowly but surely, and I think that's going to be the trend here," said Andy Lebow, an oil analyst with MF Global. 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***********
2010/10/21 04:14DJ PRECIOUS METALS: Gold Posts Mild Gains On Weaker Dollar
2010/10/21 04:05*DJ Nasdaq Finishes Up 20.44 Points (0.84%) At 2457.39; Materials Climb
2010/10/21 04:05*DJ DJIA Closes Up 129.20 Points (1.18%) At 11108.04; Boeing, DuPont Lead
2010/10/21 03:20DJ Fed Beige Book: US Economic Growth Continues At Modest Pace
WASHINGTON U.S. economic activity continued to rise modestly in September and early October, with growth picking up in several districts, according to a report released Wednesday by the Federal Reserve.Several sectors in some districts, however, showed continued signs of sluggishness, the Fed's latest beige book indicated.Housing markets remained weak, with most of the Fed's 12 regional districts reporting sales below those of a year ago, the Fed said."Home inventories were elevated or rising according to most District reports," the Fed said.The report comes as the Fed is widely expected by investors to announce new government bond purchases at its next meeting on Nov. 2-3 in a bid to boost the slowing recovery.Minutes from Fed policymakers last meeting Sept. 21 showed most officials believing that the central bank needed to undertake new measures to boost growth, given that inflation remains too low and unemployment too high.The U.S. central bank compiles the beige book eight times a year from anecdotal information collected by the dozen regional Fed banks scattered around the country. The report, which is based on interviews with businesses, economists and market experts, helps inform Fed officials as they decide the future course of monetary policy.This latest beige book was prepared by the Federal Reserve Bank of Dallas, based on information collected on or before Oct. 8, and is prepared for the central bank's next policy-setting meeting.With the central bank concerned that inflation is too low, the beige book found that input costs increased slightly but were generally not being passed on to consumers in the form of higher prices for goods and services."Pass-through of rising input costs to final prices remained limited although there were scattered reports of increases," the Fed said.Most districts reported minimal wage pressure, though there were numerous reports from all the districts that firms expected health-care reform to increase the cost of employee benefits.According to the beige book, retail spending was flat to up slightly in most districts, and retailers said that "consumers are slowly regaining confidence." But the Fed also said that consumers are confining their purchases largely to must-buy items. Atlanta and Richmond districts were the exceptions to the generally positive trend; each suffered declining shopping traffic and sales, the Fed said."Looking ahead, retailers in several districts expected modest sales growth through year-end. In particular, some contacts in New York planned to add more holiday staff than last year," the report said.In most districts, new auto sales either held steady or grew. Sales of used vehicles were reported to be strong, with prices rising thanks to demand and lean inventories, the report said."Respondents' outlooks were for slight growth in sales through year-end," the Fed said.Manufacturing continued to expand across most districts, with exports boosting activity in several regions.But hiring by manufacturing firms "remained sluggish," the Fed said.A few districts saw improvement on the housing front, including Philadelphia, which reported an uptick in sales of existing homes. Richmond, Kansas City and Dallas districts also reported increased home sales in the higher price range.Lending activity reported during the early fall remained at low levels, but "there were some reports that demand picked up slightly," the Fed said. Richmond and Dallas both reported an uptick in lending activity."Some contacts noted there was pressure to price loans slightly more aggressively," the Fed said.
2010/10/21 02:50*DJ OIL FUTURES: Nymex Crude Settles Up $2.28 At $81.77/Bbl
2010/10/21 02:35*DJ OIL FUTURES: Crude Up On US Stockpiles Data, Weak Dollar
2010/10/21 02:34*DJ OIL FUTURES: Nymex Crude Closes Up $2.44 At $81.93/Bbl
2010/10/21 02:13=DJ BOC's Carney: Economic Outlook For Canada Has Changed
OTTAWA -The economic outlook for Canada has changed and Canadians need to remain vigilant about running up debt, Bank of Canada Governor Mark Carney said Wednesday.His comments come a day after the central bank held its benchmark overnight rate steady at 1.00% following three consecutive increases, citing rising tensions in currency markets and a weaker recovery in the United States, among other factors."What we need to focus on is the medium term, making sure household balance sheets are sustainable," Carney said, adding that despite weaker growth in the third quarter there remained "underlying momentum in the economy."Earlier Wednesday, the Bank's quarterly monetary policy report lowered growth forecasts for 2010 and 2011 and revised down the inflation outlook. It now expects the economy to return to full capacity by the end of 2012, a year later than projected in July. The report cited downside risks that relate to Canada's international competitiveness, global growth prospects and a more pronounced correction in the Canadian housing market."Household expenditures are going to moderate to a pace more consistent with income growth," Carney said. "But we all need to remain vigilant," he said.
2010/10/21 02:05*DJ Fed Beige Book: Housing Markets Remained Weak In Most Districts
2010/10/21 02:04*DJ Fed Beige Book: Consumers 'Slowly Regaining Confidence' In Most Districts
2010/10/21 02:03*DJ Fed Beige Book: Prices Of Goods And Services Remain Stable Despite Higher Input Costs
2010/10/21 02:02*DJ Fed Beige Book: US Economic Growth Continues At Modest Pace
2010/10/21 01:58*DJ Fed's Plosser Expects Inflation At 1.5% To 2% In 2011
2010/10/21 01:35*DJ Part Of Times Square Area Closed For Suspicious Vehicle -Reuters
2010/10/21 01:14*DJ Fitch: Weaker Recovery Poses Greatest Risk To UK Fiscal Plan
2010/10/21 01:13*DJ Fitch: UK Spending Cuts Enhance Credibility Of Deficit Plan
2010/10/21 01:12*DJ Fitch: UK Reduction In Spending Consistent With 2010 Budget
2010/10/21 01:07=DJ BOC: Risks To Inflation Outlook Are Balanced
TORONTO -The Bank of Canada downgraded growth forecasts for this year and next and pushed out the date for inflation to return to its 2% target in its quarterly monetary policy report Wednesday, reinforcing expectations for an extended policy pause at Canada's central bank.The report repeated the key elements of the Bank's policy statement Tuesday, when it left its overnight target rate at 1.00% after raising it by a cumulative 75 basis points earlier this year.Wednesday's policy report, the first since July, fleshed out the changed domestic outlook the Bank announced bluntly in Tuesday's report, downgrading its forecast for real gross domestic product growth to 3% in 2010, 2.3% in 2011, 2.6% in 2012. Its July report had forecast 3.5% in 2010, 2.9% in 2011 and 2.2% in 2012.On a quarterly basis, the Bank estimates that real GDP growth slowed to 1.6% in the third quarter from the 2% recorded in the second, but will recover to 2.6% in the fourth. In July, it had forecast 3% growth in the second quarter, 2.8% in the third and 3.2% in the fourth."This more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending," the report said.It calls for total annual inflation of 1.8% in the third quarter and 2.1% in the fourth. In July it had forecast 2.1% inflation in both quarters. For core inflation, the bank is forecasting 1.6% for both the third and fourth quarter, down from the 1.8% projected for both quarters in July.The report forecasts the closing of output gap and return of inflation to 2% target by the end of 2012. In July, it had forecast the output gap being closed by the end of 2011.Inflation will edge towards the 2% target as excess supply in the economy is absorbed, the report said. "As well, ongoing modest growth in labor compensation, combined with an anticipated pickup in productivity, is expected to restrain growth in unit labor costs and, in turn, inflation pressures," the report said.Considerable slack remains in the economy, according to various indicators cited by the bank.The outlook assumes a Canadian/U.S. dollar exchange rate at 98 cents U.S., energy prices in line with recent futures prices, higher prices for non-energy commodities as the global economy recovers and supportive global credit conditions."The projection includes a gradual reduction in monetary stimulus over the projection horizon, consistent with achieving the inflation target," the report said.The Bank said important risks remain around its inflation outlook and it judges that the risks are roughly balanced. The main upside risks are higher commodity prices, a stronger-than-anticipated recovery in the U.S. economy and the possibility of greater-than-projected momentum in the Canadian household sector.The downside risks relate to Canada's international competitiveness, global growth prospects and the possibility of a more pronounced correction in the Canadian housing market."A combination of disappointing productivity performance and persistent strength in the Canadian dollar could dampen the expected recovery of Canada's net exports," the report said."Heightened tensions in foreign exchange markets could inhibit necessary global adjustment and put additional pressure on freely floating currencies," it said.
2010/10/21 01:01*DJ BOE Weale:UK Economy To Grow More Slowly In 2H Than 1H-Radio
2010/10/21 00:57*DJ Yahoo's Bartz: Watching Alibaba, Will Do Right Thing For Shrholders
2010/10/21 00:55*DJ Yahoo's Bartz: On Track For Profitablity With Microsoft Deal
2010/10/21 00:51*DJ Yahoo's Bartz Says Won't Comment On Buyout Talk
2010/10/21 00:47*DJ Plosser: Economy Gradually Recovering From Recession
