Market Rumours

2010/10/29 17:53=DJ Forex Focus: Preparing For G-20 Failure

2010/10/29 17:27=DJ DATA SNAP: Euro-zone Inflation Rate Highest Since Nov 2008

2010/10/29 17:20=DJ DATA SNAP: Euro-Zone Jobless Rate Rose To 10.1% In September

2010/10/29 17:12=DJ DATA SNAP: UK Broad Money Supply Picks Up In 3Q, Still Below Trend

2010/10/29 17:11*DJ 3-Month Euribor Unchanged At 1.045% Vs Thursday

2010/10/29 17:05*DJ Italy's Oct Preliminary CPI +0.2% On Mo; +1.7% On Yr

2010/10/29 17:02*DJ Italy Oct Prelim CPI Was Seen At +0.2% MM; +1.7% YY

2010/10/29 17:01*DJ Euro-Zone Sep Jobless Rate Was Seen At 10.1%

2010/10/29 17:01*DJ Euro-Zone Oct CPI Estimate +1.9% Vs Sep +1.8%

2010/10/29 17:01*DJ Euro-Zone Oct CPI Forecast At +1.8%

2010/10/29 17:01*DJ Euro-Zone Sep Jobless Rate 10.1% Vs 10.1% In Aug

2010/10/29 17:00=DJ DATA SNAP:UK Consumer Lending Slows, Mortgage Approvals Down

2010/10/29 16:35*DJ UK Sep Net Consumer Lending Was Forecast At +GBP1.0B

2010/10/29 16:32*DJ UK Sep Consumer Credit +GBP0.3B Vs Aug GBP0.0B

2010/10/29 16:31*DJ UK Sep Consumer Credit Was Forecast At -GBP0.1B

2010/10/29 16:31*DJ UK Sep Net Mortgage Lending +GBP0.1B Vs Aug +GBP1.6B

2010/10/29 16:31*DJ UK Sep Mortgage Approvals 47,474 Vs Aug 47,498

2010/10/29 16:30*DJ UK Sep Net Consumer Lending +GBP0.4B Vs Aug +GBP1.6B

2010/10/29 16:28DJ PRECIOUS METALS: Gold Down In Asia But Palladium Heads Up
SINGAPORE -Gold and silver were slightly lower in Asia Friday responding to some mild dollar strength.The euro reached an early intraday high of $1.3952 before retreating for the rest of the session, and was trading at 1.3872 at 0715 GMT.For now gold remains in a range between trend line support at $1,320 and Monday's high of $1,349, with the market in thrall until the size and nature of the Federal Reserve's quantitative easing program is revealed next Wednesday.At 0715 GMT spot gold was at $1,341.80 a troy ounce, down $2.30 since Thursday's New York close, with Tocom October 2011 gold at Y3,488 a gram, up Y2.However, traders said, this week the physical market was proving supportive in Asia due to seasonality.'Buyers in Asia and India in particular should continue to buy dips ahead of the end of Diwali on Nov. 5,' Standard bank said in a note.Spot silver was at $23.95/oz, down 8 cents.However, palladium was still well bid, with its recent rally being endorsed by a chorus of analysts. It looks likely to test Wednesday's nine-year high of $636.50/oz.Spot palladium was at $630/oz, up $6, while platinum was at $1,691/oz, up $2, seemingly immune to losses in gold and industrial metals.
2010/10/29 16:05*DJ Italy Sep Producer Prices +0.2% On Mo; +4.0% On Yr

2010/10/29 16:05DJ JGBs Fall On Pre-FOMC Adjustments; May Regain Ground Next Week
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.700 +0.005 TSE Dec 10-Yr JGB Futures Price: 143.20 .31 10-Yr 0.8% JGB No. 311 Yield: 0.930% +0.025 TOKYO -Japanese government bonds ended lower Friday, as players adjusted their positions ahead of a closely-watched U.S. monetary policy decision next week. But once results of the U.S. Federal Open Market Committee are out on Nov. 3, those who had held back will likely become active buyers again, possibly pushing the 10-year yield to as low as 0.9%, a trader at a Japanese bank said. The yield on benchmark 10-year cash JGBs was up 2.5 basis points at 0.930% as of 0600 GMT. Also likely to support the JGB market next week is the decision taken Thursday by the Bank of Japan to move forward its next policy board meeting to Nov. 4-5 from Nov. 15-16. Since the new timing comes just after the FOMC meeting, market participants are speculating that Japan's central bank may loosen policy further if the Federal Reserve announces aggressive quantitative easing measures. BOJ Gov. Masaaki Shirakawa has denied such speculation, saying the change of data was aimed at starting its new asset-purchase program quickly. On Oct. 5, the BOJ decided to launch a Y5 trillion fund to buy government and corporate debt. Lead December JGB futures finished the session down 0.31 at 143.20. The contract widened losses toward the end of the session, hitting the intraday low of 143.19. The 10-year yield is likely to trade in a 0.82%.97% range--levels seen since the BOJ adopted comprehensive easing earlier this month--until the end of this year, said Akito Fukunaga, chief strategist at RBS Securities. 'It is unlikely to depart this range for purely monetary-policy reasons, and other factors would have to be involved for it to break out ,' Fukunaga said. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.135% +0.005 5-Year 0.3% JGB No. 92 Yield: 0.290% +0.015 20-Year 1.8% JGB No. 122 Yield: 1.810% +0.010 30-Year 2.0% JGB No. 33 Yield: 1.970% +0.015 ***********
2010/10/29 16:01DJ PBOC Official: PBOC Doesn't Now Factor Asset Prices Into Monetary Policy
BEIJING -The People's Bank of China doesn't currently factor asset prices into monetary policy and China prefers 'tailored' policies to address property and stock prices, PBOC research bureau head Zhang Jianhua said at a forum Friday. Zhang also said the PBOC's goals are to control inflation and ensure economic growth. He was responding to comments made at the forum by Wang Xiaoguang, a researcher at the policy counsel division of the Chinese Academy of Governance, a ministry-level institute under the supervision of the State Council, China's cabinet, on Friday. Wang said China has a big asset bubble problem and a 'speculative environment' in the investment sector, and that monetary policy should consider asset as well as consumer prices. He also said China should lower its economic growth grate from the 9%-10% level since economic restructuring is difficult amid such fast growth.
2010/10/29 16:01*DJ Italy Sep Producer Prices Forecast +0.3% MM; +4.3% YY

2010/10/29 15:45DJ Tokyo Shares End At 7-Week Low As Data Disappoints, Yen Rises -2-
Brad Frischkorn Of TOKYO -Tokyo stocks fell on Friday to a seven-week low as disappointing economic data and yen strengthening more than offset generally good corporate earnings and raised outlooks from Hitachi, Komatsu, and others.The Nikkei Stock Average fell 163.58 points, or 1.8%, to 9202.45 following yesterday's 0.2% fall, its lowest closing level since September 9. The Topix index of all the Tokyo Stock Exchange First Section issues fell 3.42 points, or 0.4%, to 810.91, with 21 of 33 subindexes ending in negative territory.Trading volume tallied 2.15 billion shares, the second consecutive day it exceeded the 2 billion mark.Gloomy pre-market economic data depressed sentiment from the start. Japan September industrial output fell 1.9%, weaker than the 0.6% fall tipped in a poll by and the Nikkei. The country's core consumer price index also dropped 1.1% on-year in September, slightly more than median forecast for a 1.0% fall in a poll of economists, dropping for the 19th straight month and showing that deflation remains deeply entrenched.Investors were also cautious before next week's U.S. Federal Open Market Committee meeting.'Investors are focusing on companies that are raising their outlooks,' said Naoki Fujiwara, fund manager at Shinkin Asset Management, adding that the trend for corporate earnings is that most manufacturers seem to be keeping their full-year outlooks after posting robust results for the fiscal first half.Hitachi rose 4.0% to Y364 on heavy volume after it raised its net profit outlook for this fiscal year, thanks to solid sales in its social infrastructure and automotive businesses. A local trader said that investors were heartened as the company managed to post profits despite recent weakness in the dollar against the yen--a point of concern for many manufacturers. Hitachi said it now expects a net profit of Y200 billion against its previously expected profit of Y130 billion.Komatsu also rose 1.8% to Y1,972 after it raised its full-year net profit forecast to Y120 billion from Y105 billion on strong equipment sales. Citigroup analyst Graeme McDonald noted in a client report that Komatsu's 13.4% interim operating profit margin at its construction and mining equipment division compares well with 8.5% for rivals Caterpillar and 3.6% for Hitachi Construction Machinery. Komatsu also plans to increase its full-year dividend by Y8 to Y36 per share.Mitsubishi Electric closed up 3.3% to Y755 on heavy volume after posting during the afternoon trading session a return to profit in the fiscal first half.Several technology shares suffered, however. Advantest lost 9.0% to Y1,531 despite posting good earnings. Citing worries over delays in orders, Nomura Securities cut its rating on Advantest to Reduce from Neutral.Softbank lost 2.1% to Y2,590 despite announcing that its July-September net profit surged nearly three-fold to a record Y57.4 billion, helped by strong sales of Apple's iPhone. SMBC Friend Research Center analyst Naoki Yokota said shares met with profit-taking after rising on earlier expectations of strong earnings.Sharp also ended down 5.8% to Y795 after cutting its FY net profit outlook by 40% after Thursday's market close. Sharp, which supplies both LCD panels and TV sets, blamed falling LCD panel prices on oversupply and the impact of a strong yen.NGK Insulators was the single largest weight on the Nikkei, dropping 21% to Y1,219 on massive volume after cutting its fiscal year profit forecast to Y23.5 billion from its prior Y25 billion view. Goldman Sachs also downgraded NGK to Neutral from Buy.December Nikkei 225 futures closed down 180 points, or 1.9%, at 9190 on the Osaka Securities Exchange.
2010/10/29 15:43*DJ Acer Chairman: Android-Based Tablet PCs To Be Launched In 2011

2010/10/29 15:33DJ Tokyo Shares End At 7-Week Low As Data Disappoints, Yen Rises
Brad Frischkorn Of TOKYO -Tokyo stocks fell on Friday to a seven-week low as disappointing economic data and yen strengthening more than offset generally good corporate earnings and raised outlooks from Hitachi, Komatsu, and others.The Nikkei Stock Average fell 163.58 points, or 1.8%, to 9202.45 following yesterday's 0.2% fall, its lowest closing level since September 9. The Topix index of all the Tokyo Stock Exchange First Section issues fell 3.42 points, or 0.4%, to 810.91, with 21 of 33 subindexes ending in negative territory.Trading volume tallied 2.15 billion shares, the second consecutive day it exceeded the 2 billion mark.Gloomy pre-market economic data depressed sentiment from the start. Japan September industrial output fell 1.9%, weaker than the 0.6% fall tipped in a poll by and the Nikkei. The country's core consumer price index also dropped 1.1% on-year in September, slightly more than median forecast for a 1.0% fall in a poll of economists, dropping for the 19th straight month and showing that deflation remains deeply entrenched.Investors were also cautious before next week's U.S. Federal Open Market Committee meeting.'Investors are focusing on companies that are raising their outlooks,' said Naoki Fujiwara, fund manager at Shinkin Asset Management, adding that the trend for corporate earnings is that most manufacturers seem to be keeping their full-year outlooks after posting robust results for the fiscal first half.Hitachi rose 4.0% to Y364 on heavy volume after it raised its net profit outlook for this fiscal year, thanks to solid sales in its social infrastructure and automotive businesses. A local trader said that investors were heartened as the company managed to post profits despite recent weakness in the dollar against the yen--a point of concern for many manufacturers. Hitachi said it now expects a net profit of Y200 billion against its previously expected profit of Y130 billion.Komatsu also rose 1.8% to Y1,972 after it raised its full-year net profit forecast to Y120 billion from Y105 billion on strong equipment sales. Citigroup analyst Graeme McDonald noted in a client report that Komatsu's 13.4% interim operating profit margin at its construction and mining equipment division compares well with 8.5% for rivals Caterpillar and 3.6% for Hitachi Construction Machinery. Komatsu also plans to increase its full-year dividend by Y8 to Y36 per share.Mitsubishi Electric closed up 3.3% to Y755 on heavy volume after posting during the afternoon trading session a return to profit in the fiscal first half.Several technology shares suffered, however. Advantest lost 9.0% to Y1,531 despite posting good earnings. Citing worries over delays in orders, Nomura Securities cut its rating on Advantest to Reduce from Neutral.Softbank lost 2.1% to Y2,590 despite announcing that its July-September net profit surged nearly three-fold to a record Y57.4 billion, helped by strong sales of Apple's iPhone. SMBC Friend Research Center analyst Naoki Yokota said shares met with profit-taking after rising on earlier expectations of strong earnings.Sharp also ended down 5.8% to Y795 after cutting its FY net profit outlook by 40% after Thursday's market close. Sharp, which supplies both LCD panels and TV sets, blamed falling LCD panel prices on oversupply and the impact of a strong yen.NGK Insulators was the single largest weight on the Nikkei, dropping 21% to Y1,219 on massive volume after cutting its fiscal year profit forecast to Y23.5 billion from its prior Y25 billion view. Goldman Sachs also downgraded NGK to Neutral from Buy.December Nikkei 225 futures closed down 180 points, or 1.9%, at 9190 on the Osaka Securities Exchange.
2010/10/29 15:29=DJ WORLD FOREX: Yen Gains Vs Dollar, Euro As Japan Exporters Buy -3-

2010/10/29 15:27DJ Russian Central Bank Leaves Key Rates Unchanged

2010/10/29 15:24=DJ Moody's: Emerging Market Nations' Efforts To Fight Soaring Currencies Won't Hit Ratings
SINGAPORE -Efforts by emerging-market nations to cope with the surge in their currencies driven by huge capital inflows won't dent their credit ratings in the near term but could have longer-term implications that need watching, Moody's Investors Service said Friday.'While we don't see any immediate ratings impact from these actions or the developments behind them, we will be monitoring how countries adjust to this changing international landscape and its impact on economic growth, fiscal, and debt dynamics over the medium to long term,' Moody's said in a report.Emerging markets have been flooded with capital as the U.S. Federal Reserve prepares to ramp up its quantitative easing policy. The glut of dollars, pared with low interest rates and slow economic growth in developed economies against high investment yields in Asia, Latin America and other parts of the developing world, are prompting investors to pump money into emerging markets at a torrent pace.Many countries have taken steps to deal with the gush of capital inflows, including intervening in foreign exchange markets to slow the rise in their currencies and putting in place targeted capital controls and taxes.Group of 20 finance ministers and central bankers who met last weekend were unable to reach an agreement on how to confront the challenge collectively and asked the International Monetary Fund to study and monitor capital flows. The issue of trade imbalances is likely to dominate the agenda of the G-20 summit of leaders in Seoul on Nov. 11-12.Nations such as Thailand and Brazil have seen their currencies appreciate strongly as high economic growth, attractive valuations and loose monetary conditions in developed markets have caused massive capital inflows to emerging markets.The response to the 'wall of money' by governments and central banks in emerging economies have ranged from Chile's hands-off approach to the adoption of targeted capital controls in Brazil and Thailand, the Moody's report noted.The recent rise in the ratings of emerging-market countries to converge with developed nations reflects faster economic growth, more resilient public finances and less leveraged financial systems relative to the richer countries, the report said.
2010/10/29 15:23*DJ PBOC Official: PBOC Goals Are To Control Inflation, Ensure Econ Growth

2010/10/29 15:21*DJ PBOC Official: PBOC Doesn't Now Factor Asset Prices In Monetary Policy

2010/10/29 15:05DJ PBOC Official: US Quantitative Easing Will Pressure Emerging Markets
BEIJING -Emerging markets would face fund inflow pressure and volatility from further quantitative easing by the Federal Reserve, Zhang Jianhua, head of the research bureau at the People's Bank of China, said Friday.Emerging markets may face large fund inflows and outflows in the next few years, he said at a forum.The Fed is expected to launch another round of quantitative easing soon, purchasing long-term Treasury bonds to push down long-term interest rates and boost growth.
2010/10/29 15:03DJ Forex Options: Dollar/Yen Options Up; Spot Approaches 15-Year Low
TOKYO -Dollar/yen options rose slightly in Asia Friday as the U.S. dollar fell near to its recently marked 15-year low against its Japanese counterpart.Benchmark volatilities implied by one-month at-the-money options stood at 11.20%/11.90% up from 11.05%/11.75% in New York Thursday.The greenback dropped as far as Y80.56 during Asian morning trade--slightly above the Y80.41, 15-year low marked Monday--as Japanese exporters sold dollars to convert income earned overseas into their home currency for their month-end settlements.The attendant rise in volatilities, however, was only modest because the U.S. unit, despite approaching its lowest in 15 years, still stayed within a recent range against the yen, said an options dealer at a major Japanese bank. By 0350 GMT, the dollar had extended its decline slightly to Y80.53.Yet even if the dollar bounces back somewhat later in the day, the options dealer said volatilities are unlikely to decline because market participants expect further monetary easing by the Federal Open Market Committee at its Nov. 2-3 meeting. Depending on the magnitude of any measures, the outcome of the meeting may create fluctuation in the currency market.
2010/10/29 15:02*DJ FTSE 100 Dn 0.1% After The Open

2010/10/29 15:02*DJ Stoxx Europe 600 Index Dn 0.2% After The Open

2010/10/29 14:56=DJ WORLD FOREX: Yen Gains Vs Dollar, Euro As Japan Exporters Buy -2-

2010/10/29 14:37=DJ WORLD FOREX: Yen Gains Vs Dollar, Euro As Japan Exporters Buy

2010/10/29 14:26=DJ DATA SNAP: German Retail Sales Fall Surprisingly In September

2010/10/29 14:20DJ EU Reynders: Initial Agreement On Treaty Change Needed
BRUSSELS -Belgian finance minister Didier Reynders said Thursday that EU heads of state and government would try to reach an agreement-on-principle to change the bloc's treaties before the details are hammered out at their two-day summit.'Why not a conclusion saying it is possible to change something, but not with an exact wording for the moment about the content,' Reynders told on the way into the council meeting.'The most important thing is first to endorse the conclusion of task force and second to try, until the end of the year, to have a political agreement about the commission proposals,' he added.Reynders said sanctions for EU member countries who break rules were important, but that suspending their voting rights was 'maybe going too far'.'Today, it's more the possibility to open some elements of the treaty to discussion, but not to say that there's one real solution, such as the suspension of the voting rights, because there's no consensus on that,' he noted.The finance minister, whose country holds the rotating European union presidency, said he would seek an additional meeting of EU finance ministers before the end of Belgium's presidency to discuss the commission's proposals on EU economic and fiscal rules.'We will try to organize a specific ECOFIN before the end of the year on both sides, one side is the ratings agencies, and on the other side to try to reach an agreement on governance,' he said.
2010/10/29 14:20*DJ PBOC Official: Emerging Markets May Face Large Inflows, Outflows Next Few Years

2010/10/29 14:19*DJ PBOC Official: Emerging Markets Will Face Fund Inflow Pressure From US Quantitative Easing

2010/10/29 14:06*DJ Nikkei Stock Average Lowest Closing Level Since Sep 9

2010/10/29 14:05*DJ Nikkei Stock Average Closes Down 1.8% At 9202.45

2010/10/29 14:01*DJ German Sep Retail Sales Forecast At +0.4% On Month

2010/10/29 14:00*DJ German Sep Retail Sales Real Adj -2.3% On Month

2010/10/29 14:00*DJ German Sep Retail Sales Real +0.4% On Year

2010/10/29 13:59DJ Japan SESC: Looking Into Suspicious Trading Before Share Issuance
TOKYO -The Securities and Exchange Surveillance Commission said Friday it is looking into suspicious trading activity in shares of companies that have announced capital raising plans. Issuance of new shares often pushes down share prices since it dilutes ownership, but investors have complained that shares of companies have fallen ahead of their official announcements. 'We are reviewing these activities with the Tokyo Stock Exchange and are looking into trading information of investors who traded on these stocks,' said Tatsushi Terada, director of strategy and policy co-ordination at the SESC. He said the agency is in the early stages of looking into the matter and isn't calling it an investigation.
2010/10/29 13:01*DJ Japan Sep Construction Orders -15.0% On Year

2010/10/29 13:00*DJ Japan Sep Housing Starts +17.7% On Yr; Mkt Expected +15.3%

2010/10/29 12:41DJ EU Agrees To Prepare Limited Treaty Change Plans
BRUSSELS --European Union leaders agreed early Friday to prepare limited changes to the bloc's main treaty in efforts to defend its economy against future financial crises, a diplomatic source said. Germany, backed by France, had demanded a rewrite of the Lisbon Treaty to enable it to back the creation of a permanent rescue fund enabling the EU to fly to the aid of members in financial distress. The agreement was submitted by EU president Herman Van Rompuy. It calls on European leaders to back the establishment of a fund -- known as a permanent crisis mechanism -- to safeguard the financial stability of the euro area as a whole. It invites Van Rompuy to undertake consultations on a limited treaty change required to that effect, with more talks set for a December summit and a final decision on 'light' treaty change to come into force by mid-2013. That is the expiry date for a temporary fund set up in May to reassure markets in the aftermath of the Greek crisis. Germany contributed the lion's share of euro zone commitments to the EUR440 billion European Financial Stability Fund, but it fears opposition from its powerful constitutional court to further aid failing a change in the EU's governing Lisbon Treaty. The treaty contains a clause banning members from bailing each other out but EU leaders were wary about German Chancellor Angela Merkel's call for a rewrite given it took a decade of hard-fought negotiations and failed referendums to enact the agreement, which happened just last December.
2010/10/29 12:15=DJ EU Support Growing For Finnish Debt Crisis Plan -Sources

2010/10/29 12:04*DJ CORRECT: Japan's Auto Production +11.4% On Year In Sep

2010/10/29 12:04*DJ CORRECT: Japan's Auto Exports +10.8% On Year In Sep

2010/10/29 12:01*DJ Japan's Auto Exports +110.8% On Year In Sep

2010/10/29 12:01*DJ Japan's Auto Production +111.4% On Year In Sep

2010/10/29 11:11=DJ Major Banks Torn On Size, Scope Of Expected Fed Stimulus

2010/10/29 11:09*DJ PBOC Adviser: Published CPI Level Lower Than Actual Inflation

2010/10/29 10:47=DJ G-20 Leaders Likely To Encourage New IMF Lending Tools For Regions

2010/10/29 10:40*DJ Hang Seng Index Falls 1.0% To 22,971.83; Below 23,000

2010/10/29 10:34DJ Japan Finance Minister: Watching Forex With Great Interest
TOKYO -Japan's finance minister Friday reiterated his concerns about excessive currency moves, saying the government is watching the foreign exchange markets 'with great interest.''There is no change in our stance that the government will take decisive action when necessary,' Finance Minister Yoshihiko Noda said at a regular press conference.The U.S. dollar sank below the Y81 level Thursday in New York for the first time in three days. At 0056 GMT Friday, the dollar was at Y80.89.
2010/10/29 10:31DJ HSBC's Bloxham: RBA Will Likely Not Hike In Nov, Expect A Dec Move
DJ HSBC's Bloxham: RBA Will Likely Not Hike In Nov, Expect A Dec MoveSYDNEY -HSBC's Chief Economist for Australia and New Zealand Paul Bloxham on Friday forecast the Reserve Bank of Australia likely won't tighten policy at its November meeting but investors should expect a 25 basis points move higher in December.Bloxham's views are being closely watched given he recently joined HSBC from the RBA where he held a range of roles in the economic analysis department over a 12 year period. He was among only six economists in a poll of 25 who correctly forecast the central bank would hold its overnight target steady at 4.50% in October.The HSBC economist said with third quarter core inflation proving more benign than anticipated, policy makers have another month to assess developments before making their first move since May.'The celebrations at the Reserve Bank will be fleeting, replaced by anxiety about where the economy is headed next. Indeed, when everything is going perfectly, the most uncomfortable realization is that it can only get worse from here,' Bloxham wrote in a research note.He expects rising wage pressures and accelerating growth to pressure the bank to move.'We think there is a much higher probability that the RBA will move rates on Dec. 7, as we expect the data over the next month to be positive.'
2010/10/29 10:13DJ German Parliament Clears Huge Austerity Package
BERLIN --German lawmakers on Thursday agreed on an austerity package worth tens of billions of euros aimed at reducing the deficit mountain weighing on Europe's largest economy.The package contained the lion's share of measures passed by Chancellor Angela Merkel's cabinet last month, which bid to shave some EUR80 billion ($111 billion) from German spending by 2014, the largest austerity plan since World War II.The savings will come through reforms, including slashing certain welfare payments, cutting parental subsidies to high-earners and reducing public sector expenditure.The package also included a tax that will add between EUR8 and EUR45 to tickets on flights departing from German airports, earning Merkel EUR1 billion per year and the ire of airlines.But certain parts of the original package weren't included, such as a tax on financial market transactions from 2012 that would only come into force if substantial international opposition were to be overcome.Germany has recovered faster than expected from its worst recession in more than six decades last year, as global demand for its exports has risen strongly.Last week, Berlin more than doubled its forecast for output growth to 3.4% for this year. The government sees growth of 1.8% in 2011.Despite the rosier outlook, Economy Minister Rainer Bruederle stressed that the savings measures would go ahead as planned.On the same day, the finance ministry announced that the country's deficit would be 4% of gross domestic product this year, down from a previous estimate of 6%.Germany hopes to get under the European Union deficit bar of 3% next year.
2010/10/29 10:08DJ Japan Kaieda: Industrial Output Fall 'Very Serious'
TOKYO -Japan's minister of state for economic and fiscal policy Friday called last month's fall in industrial production 'very serious.' Data released earlier in the day showed that industrial output fell 1.9% in September from a month earlier, marking the fourth straight month of decline in the face of abating exports. Speaking at a regular press conference Banri Kaieda also blamed the weak output figures on the government's recent move to downgrade its economic assessment. But Kaieda qualified this remark somewhat. 'I don't think that is receding,' he added.
2010/10/29 09:50DJ Fosun Group Chairman: Carlyle Fund JV To Make Investment Soon
SHANGHAI -Chinese conglomerate Fosun Group's $100 million joint private equity fund with Carlyle Group L.P. will soon make its first investment targeting Chinese companies in the consumer sector, Fosun Group Chairman Guo Guangchang said Thursday.However, the fund hasn't made any investment decisions, Guo said on the sidelines of a forum on private enterprises and globalization held by Fosun Group. He didn't provide a specific time frame.Fosun Group has been frequently communicating with Carlyle on potential investment targets since the two companies established the fund early this year as part of a broader partnership, Fosun President Wang Qunbin said on the sidelines of the same forum.Wang said Fosun continues to look for investment opportunities in foreign companies and assets.'Looking forward, we hope to invest in world class consumer brands that either want to but haven't entered China or are just beginning to build up local presence,' Wang said.Fosun Group is also keen on investing in the medical industry and overseas natural resources. 'We have been looking a lot in natural resources but haven't made any investments in the sector so far,' Wang added.The Shanghai-based conglomerate, led by its Hong Kong-listed investment arm Fosun International Ltd. (0656.HK), has been raising its global profile this year as it aims to become a major international investment firm.Early this year, the company appointed former U.S. Treasury Secretary John Snow as an adviser to its board.In February, it teamed up with U.S. private-equity firm Carlyle Group L.P. in an alliance that potentially opens doors globally for the Chinese firm, while giving the U.S. private-equity firm greater access to China.
2010/10/29 09:36*DJ HSBC's Bloxham: RBA Will Likely Not Hike In Nov, Expect A Dec Move

2010/10/29 09:12DJ Hidili Industry Issues US$400 Mln Notes At 8.625% Due 2015
HONG KONG -Hidili Industry International Development Ltd. (1393.HK) said Friday it is paying 8.625% on US$400 million worth of senior notes due 2015.Hidili, which is based in China's 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, it said in a statement.Bank of America-Merrill Lynch, Citigroup Inc., J.P. Morgan and UBS AG are joint bookrunners on the offering, the statement said.
2010/10/29 09:07=DJ UPDATE: BoCom 3rd-Quarter Net Rises 24%; Sees Pressure Ahead
(Adds the bank's comments on fourth-quarter performance.)SHANGHAI -Bank of Communications Co. (3328.HK), China's fifth-largest lender by assets, said Thursday its third-quarter net profit rose 24% from a year earlier, due to strength in both its lending and fee-based businesses.The bank, in which HSBC Holdings PLC owns a 17.3% stake, said its net profit for the three months ended Sept. 30 was CNY9.18 billion ($1.4 billion), up from CNY7.39 billion a year earlier. The result was slightly below the average CNY9.7 billion forecast of seven analysts.Like its peers, BoCom has benefited from China's economic rebound and the residual effects of last year's credit boom, but investors are now concerned that the abrupt surge in stimulus-related lending could lead to a sharp rise in bad loans.'Commercial banks are expected to face new challenges and pressures during the fourth quarter of 2010,' BoCom said in a statement.'Strictly abiding by regulatory requirements, the bank will continue to optimise its asset structure and keep the scale and the pace of loan growth at reasonable levels,' it added.China has repeatedly told banks to slow their lending to preempt rise in bad assets and help the government rein in stubborn inflation and rising asset prices.BoCom said its net interest income rose 24% to CNY21.60 billion from CNY17.39 billion, as a slightly tighter credit environment improved banks' loan-pricing ability amid continuing strong demand for credit.Chinese banks' net interest margin is likely to improve further after last week's unexpected interest rate rise, the first since 2007, which could signal the beginning of a rate-hike cycle. China maintains a floor for lending rates and a ceiling for deposit rates, so higher interest rates boost banks' interest margins.Shanghai-headquartered BoCom said strong sales of wealth-management products and Shanghai World Expo tickets boosted its net fee and commission income to CNY3.54 billion in the third quarter, up 16% from a year earlier.The bank was among the first Chinese banks to raise funds to shore up its capital base after last year's credit boom. The bank said in July it had raised CNY33 billion in a rights issue in Shanghai and Hong Kong.As of Sept. 30, BoCom's capital adequacy ratio was 12.53%, up slightly from 12.17% at the end of June and above the 11.50% regulatory minimum for large Chinese banks.-Rose Yu contributed to this article, ; 8621 6120-1200; rose.yu@dowjones.com
2010/10/29 08:44*DJ Japan Fin Min Noda: Will Take Decisive Steps When Necessary

2010/10/29 08:43*DJ Japan Fin Min Noda: Watching Forex With Great Interest

2010/10/29 08:25DJ MARKET TALK: EUR/JPY To Consolidate
0753 [Dow Jones] EUR/JPY to consolidate as market awaits U.S. 3Q GDP data. Cross supported by increased investor risk tolerance, threat of further Japan JPY-selling intervention, prospect of further BOJ monetary easing at its next meeting Nov. 4-5; Japan importer demand. But EUR/JPY gains tempered by Japan exporter sales, positions adjustment ahead of week-, month-ends. Daily chart mixed as MACD bearish, 5- & 15-day moving averages falling; but stochastics neutral. Support at 112.36 , then at 112.16 (yesterday's low); breach would expose downside to 111.54 (Oct. 20 low, near 100-day moving average), then 111.20 (55-day moving average), 110.63 (Sept. 16 low) and 109.55 (previous cap set Aug. 30). Resistance at 112.97 (yesterday's high), then at 113.13 (downtrend resistance line from Oct. 7 high of 115.66); breach would target 113.27 (Tuesday's high), then 113.77 (Monday's high), 113.94 (Oct. 21 high), 114.79 (Oct. 14 high) and 114.95 (Oct. 8 high).
2010/10/29 08:20*DJ Hidili Industry Issues US$400M Notes At 8.625% Due 2015

2010/10/29 08:17=DJ DATA SNAP: Japan Sept Industrial Output -1.9% On Mo; Mkt Expected -0.6%
TOKYO -Japanese industrial production fell 1.9% in September from a month earlier, the Ministry of Economy, Trade and Industry said Friday, marking the fourth straight month of decline in the face of abating exports.The fall was larger than expected by economists surveyed by , who estimated on average that industrial production would decline by 0.6% from the prior month after adjustment for seasonal factors.The ministry also said it expects output to fall 3.6% in October on month and then increase 1.7% in November, based on surveys of companies.METI said overall production is showing a weakening trend. Web site: http://www.meti.go.jp/english/statistics/index.html
2010/10/29 08:15DJ MARKET TALK: EUR/GBP To Consolidate With Risks Skewed Lower
0753 [Dow Jones] EUR/GBP to consolidate with risks skewed lower. Cross undermined by reduced odds of more BOE bond purchases next month. Daily chart negative-biased as MACD & stochastics bearish; 5-day moving average staging bearish crossover against 15-day. Support at 0.8709 , then at 0.8699.8696 band (yesterday's low-Oct. 12 low); breach would target 0.8682 (Oct. 6 low), then 0.8635 (38.2% Fibonacci correction of 0.8139.8941 Aug. 23-Oct. 25 advance), 0.8624 (Oct. 5 low) and 0.8571 (200-day moving average). Resistance at 0.8752 , then at 0.8771 (yesterday's high); breach would expose upside to 0.8879 (Tuesday's high), then 0.8941 (Monday's 7-month high) and psychological 0.9000.
2010/10/29 08:03*DJ Nikkei Stock Average Opens Down 0.4% At 9327.25

2010/10/29 08:02DJ Japan Sep Core CPI -1.1% On Year; Mkt Expected -1.0%
DJ Japan Sep Core CPI -1.1% On Year; Mkt Expected -1.0% TOKYO -Japan's core consumer price index fell 1.1% from a year earlier in September, the Ministry of Internal Affairs and Communications said Friday, in the latest sign that deflation has yet to loosen its grip on the country's economy. The fall marked the 19th straight month of decline as sluggish domestic demand continues to depress prices. The reading exceeded the median forecast for a 1.0% drop in a poll of economists by and the Nikkei. It also exceeded the 1.0% fall in the previous month. Prime Minister Naoto Kan has made beating deflation a priority for the government, but Friday's result suggests any success in achieving that goal won't come easily or soon. A persistently strong yen and uncertainty in key overseas markets aren't helping. Core CPI for the Tokyo metropolitan area--a leading indicator of national trends--fell 0.5% in October, government data also showed, coming in under economists' expectations for a 0.8% fall. In September, the index fell 1.0%. Web Site: http://www.stat.go.jp/english/data/cpi/index.htm
2010/10/29 08:01*DJ Lead December JGB Futures Open Down At 143.47 Vs 143.51 Thursday

2010/10/29 07:55*DJ Japan Sep Indus Output -1.9% On Mo; Mkt Expected -0.6%

2010/10/29 07:55*DJ Japan Sep Inventories +0.2% On Mo

2010/10/29 07:52*DJ Japan Jul-Sep Industrial Output -1.9% On Quarter

2010/10/29 07:51*DJ Japan Cos Forecast Nov Indus Output +1.7% On Mo

2010/10/29 07:51*DJ Japan Cos Forecast Oct Indus Output -3.6% On Mo

2010/10/29 07:51*DJ Japan Sep Shipments -0.7% On Mo

2010/10/29 07:51*DJ Japan Sep Inventory-Shipments Ratio +1.3% On Month

2010/10/29 07:47=DJ DATA SNAP: UK Oct Consumer Confidence Up On Personal Finances

2010/10/29 07:33*DJ Japan Sep Propensity To Consume +0.8 Pts On Yr

2010/10/29 07:33*DJ Tokyo Oct Overall CPI +0.5% On Mo

2010/10/29 07:32*DJ Japan Sep Overall CPI +0.3% On Mo

2010/10/29 07:32*DJ Tokyo Oct Overall CPI +0.3% On Yr

2010/10/29 07:32*DJ Japan Sep Propensity To Consume 87.3%

2010/10/29 07:32*DJ Japan Sep Wage-Earner Household Spending +2.5% On Yr

2010/10/29 07:32*DJ Japan Sep Overall CPI -0.6% On Yr

2010/10/29 07:32*DJ Japan Sep All Household Spending Unch On Yr; Expected +0.6%

2010/10/29 07:32*DJ Tokyo Oct Core CPI -0.5% On Year; Mkt Expected -0.8%

2010/10/29 07:31*DJ Japan's Sep Jobless Rate 5.0%; Market Expected 5.1%

2010/10/29 07:31*DJ Japan Sep Core CPI -1.1% On Year; Mkt Expected -1.0%

2010/10/29 07:01*DJ UK GfK Oct Consumer Confidence -19 Vs -20 Sep

2010/10/29 07:01*DJ UK GfK Oct Consumer Confidence Was Forecast At -24

2010/10/29 06:58=DJ WORLD FOREX: Dollar Falls; Risk Bid Higher; Possible Fed Action Weighs-2-

2010/10/29 06:41*DJ EU Agrees To Consider Limited Treaty Change

2010/10/29 06:36DJ US M1 Fell $8.8 Bln In Oct 18 Week; M2 Rose $13 Bln
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 fell by $8.8 billion to $1.764 trillion, while M2 rose $13 billion to $8.773 trillion.The figures are preliminary estimates for the week extending through Oct. 18 and are subject to revisions.More details on the report, along with weekly information on the Fed's custody holdings, repurchase agreements, Treasury portfolio and free reserves, can be found on the Internet at http://www.federalreserve.gov/releases/.
2010/10/29 06:29DJ US Fed Total Discount Window Borrowings Wed $47.56 Bln

2010/10/29 06:10=DJ WORLD FOREX: Dollar Falls; Risk Bid Higher; Possible Fed Action Weighs

2010/10/29 06:00DJ PRECIOUS METALS: Gold Futures Rise As Easing, Economy Face Off

2010/10/29 05:46*DJ NZ Sep Imports NZ$3.7B; Exports NZ$3.2B

2010/10/29 05:46*DJ NZ 12-Mo To Sep Trade Surplus NZ$0.921B; Mkt Surplus NZ$979M

2010/10/29 05:45*DJ NZ Sep Goods Trade Deficit NZ$532M; Consensus Deficit NZ$450M

2010/10/29 05:30=DJ Blue-Chip Stocks Close Slightly Lower, Industrials Weigh-2-

2010/10/29 05:28DJ Some EU States Say 2011 Budget Increase Must Not Exceed 2.91%

2010/10/29 04:59=DJ Blue-Chip Stocks Close Slightly Lower, Industrials Weigh

2010/10/29 04:40DJ OIL FUTURES: Nymex Crude Rises On Weaker Dollar; GDP Eyed

2010/10/29 04:35*DJ US Fed Total Discount Window Borrowings Thu $47.56B

2010/10/29 04:31*DJ Foreign Central Banks Treasury Holdings At $2.570T

2010/10/29 04:30*DJ Foreign Central Bk Custody Holdings At $3.300T As of Thu - Fed

2010/10/29 04:30*DJ Foreign Central Banks Agency Debt Holdings At $730.70B

2010/10/29 04:15DJ Treasurys Rise As Higher Yields, Strong 7-Yr Sale Boost Demand

2010/10/29 04:15DJ Treasurys Up As Higher Yields Boost 7-Year Sale Before Month End

2010/10/29 04:14DJ Treasurys Up As Higher Yields Boost 7-Year Sale Before Month End
(Updates bond yields; adds swap spreads and price table.) By Min Zeng Of YORK -Treasurys rose Thursday as higher yields from the selling earlier this week lured buyers who are confident the Federal Reserve will announce additional government-debt purchases next week to support a flagging economy.A well-bid $29 billion auction in seven-year notes added to the rally. Demand for the sale was the strongest since the seven-year notes were reintroduced in February 2009.The market fell in the previous two sessions as some investors cut bets on a shock-and-awe type of Fed bond-buying plan. The resulting higher yields attracted buyers who believe lower Treasury yields are key to the Fed's strategy because they will lead to lower interest rates for consumers and businesses.An extra boost came from some fund managers who need to buy bonds to match the month-end adjustments of the benchmark bond indexes, traders said. On the last trading day of each month, newly minted bonds will replace maturing securities in the indexes."The seven year sector has been a key focus in the Fed's purchases and typically gets strong support from foreign buyers," said James Golden, head of Treasury trading in New York at Jefferies & Co. "We have month end tomorrow. This combination of factors boosted demand for the seven-year auction and the Treasury market in general."The five-year and the seven-year notes were the best performers. The 30-year bond underperformed as many investors bet the long bond will not be the favorite on the Fed's shopping list.As of 3:44 p.m. EDT, the benchmark 10-year note was up 18/32 to yield 2.661%.The five-year note was 17/32 higher to yield 1.237%. The seven-year note was 22/32 higher to yield 1.938%. Bond prices move inversely to yields.The Treasury sold the seven-year notes at the second-lowest yield of 1.970% for the maturity, allowing the U.S. government to borrow at historically low interest rates to fund a budget shortfall. The record low yield was set at last month's sale at 1.890%.The auction wrapped up this week's $109 billion new government notes supply.The 10-year note's yield, the benchmark for consumer and corporate borrowings, touched 2.731% Wednesday, the highest level since Sept. 20.Bond prices fell Wednesday as The Wall Street Journal reported that the central bank would purchase only a few hundred billion dollars of Treasurys over the next few months. That measured approach contrasts with the $2 trillion in stimulus during the first round of bond buying, unveiled during the financial crisis.The recent rise in bond yields cast a shadow over the Fed's efforts to bolster an economy still straddled with a near 10% jobless rate. The 10-year note's yield has increased by more than 30 basis points from the recent trough earlier this month.While some investors have cut holdings of Treasurys as speculation diminished on large-scale bond purchases, others snapped up cheapened bonds on the belief that the Fed's monetary stimulus will help keep yields low.The optimism over Fed bond buying was bolstered by a Bloomberg News story overnight saying the Fed asked bond dealers and investors for projections of government-bond purchases over the next six months, along with the likely effect on yields."The Fed doesn't want to disappoint the markets," said Ted Ake, head of Treasury and Agency trading in New York at Societe Generale SA. "That is why they sent out the questionnaires to dealers to gauge market expectations."Ake noted that Thursday's rise in bond prices reflected that expectations are rising that the size may be higher as the Fed wants to keep long-term interest rates low to support the housing market and the broader economy.Lou Brien, a market strategist with DRW Trading Group in Chicago, said the bond market is "very vulnerable to any perceived wink, nod or grimace from the Fed on the style and substance" of government-bond buying, and will continue to be so until next Wednesday afternoon's announcement from the central bank.Friday, the key U.S. data will be the gross domestic product report for the third quarter, which is due at 8:30 a.m. EDT.US Swap Spreads TightenThe two-year spread, which measures the differential between the two-year swap rate and two-year Treasury yield and a main gauge of credit risks, was 1.25 basis point tighter at 15.25 basis points. The 10-year swap spread was 0.25 basis point tighter at 8.25 basis points.COUPON ISSUE PRICE CHANGE YIELD CHANGE3/8% 2-year 100 up 3/32 0.371% -4.7BP3/4% 3-Year 99 27/32 up 7/32 0.551% -7.7BP1 1/4% 5-year 100 2/32 up 17/32 1.237% -11.1BP1 7/8% 7-Year 99 19/32 up 22/32 1.938% -10.6BP2 5/8% 10-year 99 22/32 up 18/32 2.661% -6.8BP3 7/8% 30-year 96 29/32 up 3/32 4.054% .6BP***********2-10-Yr Yield Spread: +229 BPS Vs +231 BPS Source: Tradeweb
2010/10/29 04:10*DJ DJIA Closes Down 17 (0.2%) At 11110; 3M, Caterpillar Weigh

2010/10/29 04:07*DJ Nasdaq Closes Up 4 (0.2%) At 2507; Health Care Leads

2010/10/29 03:19*DJ KKR May Drop Out Of Bid Group For Seagate Tech -Bloomberg

2010/10/29 03:17DJ Some EU States Say 2011 Budget Increase Must Not Exceed 2.91%
BRUSSELS -A group 11 European countries said in a statement Thursday that a proposed increase of 6% in the EU's 2011 budget is unacceptable and the increase should not exceed 2.91%.The European Commission--the EU's executive arm--and the European Parliament have proposed raising the EU budget by 6%."These propositions are particularly unacceptable at a time when we are obliged to take difficult decisions at a national level to manage public spending," the statement read.The statement was signed by France, U.K., Germany, the Netherlands, Sweden, Denmark, Finland, Slovenia, Austria, Estonia and the Czech Republic."We cannot accept any more" than the 2.91% proposed by the European Council, the main decision making body of the 27 state European Union.U.K. Prime Minister David Cameron had said Wednesday that a sharp rise in the EU budget is unacceptable.The U.K. government had pushed for a freeze on the E.U. 2011 budget at the European Council earlier this year.The summit in Brussels is scheduled to be discussing improving economic governance and setting the agenda for the upcoming summit of Group of 20 leading economies.Cameron met briefly with German Chancellor Angela Merkel and French President Nicolas Sarkozy to discuss the EU budget just before the main EU summit talks started in Brussels.A spokesman for the U.K. Prime Minister said after three-way meeting that there was "a great deal of common ground."
2010/10/29 02:35*DJ OIL FUTURES: Nymex Crude Settles 24c Higher At $82.18/Bbl

2010/10/29 02:34*DJ Group Of EU Countries:Can't Accept More Than 2.91% Budget Rise

2010/10/29 01:57*DJ EU Agrees To Landmark Deal To Tighten Budgetary Discipline

2010/10/29 01:06*DJ Treasury Prices Hit Session Highs; 10-Yr Yield Down 7 BPs

2010/10/29 01:05*DJ Treasurys Extend Gains On Strong 7-Yr Auction

2010/10/29 01:04*DJ Treasury Sells 7-Yr Notes At Second-Lowest Yield Of 1.97%