Market Rumours

2010/11/02 17:53=DJ DATA SNAP: Euro-Zone Manufacturing Growth Picks Up In October

2010/11/02 17:45*DJ New Zealand Dollar Hits 27 Month High Above $0.7694 - EBS

2010/11/02 17:45=DJ BBVA To Buy 24.9% Of Garanti, Launch Capital Hike

2010/11/02 17:38*DJ 10Y Irish/German Yield Spread 6Bps Wider To 473Bps Record High

2010/11/02 17:37*DJ 10Y Greek/German Yield Spread Jumps 11Bps Wider To 833Bps

2010/11/02 17:16=DJ UPDATE: PBOC Adviser: Could Consider Tightening Policy To Cut Risks
(Adds quotes from Li, comments from Jia on public sector debt.) BEIJING -China's central bank could consider tightening monetary policy to counter the risk of asset price bubbles forming due to the massive amount of liquidity in the economy, People's Bank of China adviser Li Daokui said Tuesday. Li, who was speaking at a financial forum in Beijing, also called on policy makers to use the capital markets to absorb the excess liquidity in the financial system and move part of the country's foreign-exchange reserves to the private sector through overseas investments. The comments come amid signs China is moving toward normalizing the moderately loose policy that has been in place over the past two years, to combat inflationary pressure and excess liquidity. China's central bank raised interest rates for the first time in nearly three years last month. Li is one of the PBOC's three academic advisers, whose comments can contribute to or reflect domestic policy debate, but they aren't directly involved in the central bank's decision-making process. 'China's current money supply is very high,' Li said. 'That inevitably will bring about systemic financial risks.' China's broadest measure of money supply, M2, was up 19.0% from a year earlier at the end of September at CNY69.64 trillion ($10.42 trillion), more than double the country's 2009 gross domestic product of CNY34.05 trillion. The country's money supply has surged over the past two years partly as a result of the stimulus programs delivered through the state-controlled banking system following the global financial crisis. Li said excess liquidity would lead to asset price bubbles and damage the health of financial institutions. There are also risks of a sudden flight of capital overseas, he said. China's monetary policy should primarily focus on asset prices, and aim to control their movements if necessary, he said, adding the country's foreign exchange policies should focus on maintaining control over foreign exchange rate changes. Separately, Jia Kang, director of the fiscal research institute under the Ministry of Finance, said at the same forum that China's public sector debt is still at a controllable level despite heavy borrowing by local governments over the past two years. China's local government debt, mostly in the form of bank loans, totaled about CNY8 trillion at the end of June, or about 25% of the country's gross domestic product, he said. When the central government's debt is included, China's public sector debt accounts for about 50% of the country's GDP, he said. Jia said local governments should raise funds by issuing bonds rather than tapping bank lending through financing vehicles. -Lili Sun contributed to this article, ; 86-10-8400-7799; lili.sun@dowjones.com
2010/11/02 16:59*DJ Euro-Zone Sep Mfg PMI Was 53.7

2010/11/02 16:58*DJ Euro-Zone Oct Mfg PMI 54.6 - Sources

2010/11/02 16:58*DJ Euro-Zone Oct Mfg PMI Forecast At 54.1

2010/11/02 16:54*DJ German Oct Mfg PMI Forcast At 56.1

2010/11/02 16:54*DJ German Sep Mfg PMI Was 55.1

2010/11/02 16:54*DJ German Oct Mfg PMI 56.6 - Sources

2010/11/02 16:51*DJ French Oct Mfg PMI Forecast At 55.2

2010/11/02 16:48*DJ French Sep Mfg PMI Was 56.0

2010/11/02 16:48*DJ French Oct Mfg PMI 55.2 - Sources

2010/11/02 16:44*DJ Italian Sep Mfg PMI was 52.6

2010/11/02 16:43*DJ Italian Oct Mfg PMI 53.0 - Sources

2010/11/02 16:43*DJ Italian Oct Mfg PMI Forecast At 53.0

2010/11/02 16:09DJ PRECIOUS METALS: Gold Up In Asia On Weaker Dollar
SINGAPORE -Gold was higher in Asia Tuesday after the dollar weakened against the euro and regional currencies. Ironically, it was a surprise Australian rate hike that did the trick for gold. Given that the move was juxtaposed with speculation over the nature of the U.S. Federal Reserve's next step in monetary easing, it gave the U.S. dollar nowhere to go but down. At 0645 GMT, spot gold was at $1,355.80 a troy ounce, up $4.50 since Monday's New York close, with Tokyo Commodity Exchange October 2011 gold at Y3,523/gram, up Y13. The lack of consensus on the likely extent of Fed quantitative easing implies a significant risk that dollar's reaction could wrongfoot many investors, David Rosenberg, chief economist and strategist at Gluskin Sheff, said in a report. 'The risk that the markets are not fully appreciating is, what happens if the Fed becomes very aggressive and heavy asset purchases cause further weakness in the U.S. dollar, which then touches off a currency war followed by a trade war?' Rosenberg said many investors now seemed more concerned that the Fed will err on the side of caution, which could see the dollar rally, and the equity market sell-off. 'The case for gold as a hedge against this more-than-remote possibility is pretty strong,' he says In other precious metals, spot silver was at $24.72/oz, up 9 cents. Spot platinum was at $1,711/oz, up $7 and spot palladium was at $652/oz, up $2 and just below Monday's 9-year high of $655. The next cues are likely to come from German October manufacturing purchasing managers index data at 0855 GMT and euro-zone October manufacturing PMI at 0900 GMT.
2010/11/02 16:02*DJ FTSE 100 Flat After The Open

2010/11/02 16:02*DJ Stoxx Europe 600 Index Dn 0.1% After The Open

2010/11/02 15:50*DJ Sinochem Expects To Price Dollar Bond This Week - Source

2010/11/02 15:48*DJ Moody's: Economic Resilience, Debt Structure, Politics Also Key

2010/11/02 15:45*DJ Moody's:High Debt-To-GDP Ratio Need Not Cause Sovereign Default

2010/11/02 15:43*DJ Moody's: Large, Wealthy, Diverse Sovereigns Are "Well-Placed"

2010/11/02 15:41DJ Tokyo Shares: Nikkei Posts Minor Gain Ahead Of US FOMC Meet -2-
Brad Frischkorn Of TOKYO -Tokyo stocks closed a very lackluster session with the Nikkei posting a modest gain ahead of the much-awaited U.S. Federal Open Market Committee meeting, as earnings-based stories continuing to drive individual share prices.The Nikkei Stock Average rose 5.26 points, or 0.1%, to 9159.98, following Monday's 0.5% fall. The Topix index of all the Tokyo Stock Exchange First Section issues fell 0.18 point, or 0.02%, to 803.12, with 15 of 33 subindexes closing in negative territory.Trading volume tallied just 1.55 billion shares, the lowest total since Oct. 26.Stocks opened a tad lower, but spent the bulk of the session fluctuating above and below the break-even mark on investor apprehension before the U.S. Federal Reserve's Nov. 2-3 meeting, from which more quantitative easing steps are expected."A rebound in the dollar against the yen would trigger a recovery in the Nikkei, but to be honest, it's completely unclear" how currency markets will react after the Fed's prospective second round of easing, said Naoteru Teraoka, general manager at Chuo Mitsui Asset Management.He added that if the dollar continues to fall after the FOMC meets and the Nikkei subsequently falls through the 9000 mark, the index will likely bottom soon thereafter, as Japan's stocks have been laggards for too long.Kenichi Hirano, operating officer at Tachibana Securities, said there is a risk of the Nikkei falling below 8800 if the dollar keeps sliding, but many hope the BOJ will take countermeasures when it holds its own policy board meeting later this week.Nomura Holdings closed up 4.3% at Y414 on heavy volume as bargain-buying kicked in following Monday's 5.0% price drop, but not before shares initially fell to a fresh 2010 low. Nomura shares remain down 39% year to date.Sumitomo Mitsui Financial Group, or SMFG, gained 0.5% at Y2372, but its shares also hit a new 2010 low on increased worries that the banking group will need to raise new capital to meet more stringent global rules for financials.Honda shares comprised the single biggest drag on the Nikkei, closing down 2.3% at Y2,725 and extending Monday's 5.0% fall after the firm cut its second-half net profit outlook.Elpida Memory ended down 5.1% at Y764 after the DRAM chip-maker said it expects to post a July-September net profit of Y8.8 billion, a sharp decline from its April-June profit of Y30.7 billion. Analysts noted that the firm's April-September operating profit outlook of Y67.5 billion also fell below market consensus by around Y10 billion."It seems like the price decline was steeper than earlier expected," said Naoki Fujiwara, fund manager at Shinkin Asset Management. He added that the inventory adjustment of chips may take longer than expected, causing investors to sell Elpida stock despite its cheap valuation.December Nikkei 225 futures closed up 10 points, or 0.1%, at 9170 on the Osaka Securities Exchange.
2010/11/02 15:26DJ JGBs Fall A Tad; Strong 10-Year Sale Helps Recoup Losses -2-
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.695 flat TSE Dec 10-Yr JGB Futures Price: 143.03 .05 10-Yr 0.8% JGB No. 311 Yield: 0.940% .005 TOKYO -Long-term Japanese government bonds ended slightly lower Tuesday due to position reduction ahead of a closely watched U.S. monetary policy decision, but stronger-than-expected results of a 10-year JGB sale helped recoup some losses. 'JGBs are expected to gradually gain ground later this week' after the outcome of the Federal Open Market Committee due Wednesday, said Akito Fukunaga, chief rates strategist at RBS Securities. Still, even if U.S. Treasury prices jump steeply on any Fed moves, gains in JGBs may not be so large that the Fed's action won't affect the supply and demand balance in the domestic bond market, analysts say. Fukunaga expects the benchmark 10-year cash JGB yield to be capped at 1% this week. It fell 0.5 basis point to 0.940% as of 0600 GMT. Japanese markets are closed Wednesday for a public holiday. Meanwhile, lead December JGB futures ended 0.05 lower at 143.03. The contract reversed most of earlier losses in the afternoon, as strong demand for 10-year JGBs auctioned earlier in the day confirmed that investors are still looking for dip-buying opportunities. Japan's Ministry of Finance sold Y2.0092 trillion of 10-year JGBs at a lowest price of 100.26, higher than market expectations for 99.23-99.25, yielding 0.971%. The new bonds, which reopen the issue sold in September, carry a coupon of 1.0%, much higher than the 0.8% coupon on the October issue. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: no trade 5-Year 0.3% JGB No. 92 Yield: 0.300% +0.005 20-Year 1.8% JGB No. 122 Yield: 1.805% .010 30-Year 2.0% JGB No. 33 Yield: 1.955% .010 ***********
2010/11/02 15:23DJ Tokyo Shares: Nikkei Posts Minor Gain Ahead Of US FOMC Meet
Brad Frischkorn Of TOKYO -Tokyo stocks closed a very lackluster session with the Nikkei posting a modest gain ahead of the much-awaited U.S. Federal Open Market Committee meeting, as earnings-based stories continuing to drive individual share prices. The Nikkei Stock Average rose 5.26 points, or 0.1%, to 9159.98, following Monday's 0.5% fall. The Topix index of all the Tokyo Stock Exchange First Section issues fell 0.18 point, or 0.02%, to 803.12, with 15 of 33 subindexes closing in negative territory. Trading volume tallied just 1.55 billion shares, the lowest total since Oct. 26. Stocks opened a tad lower, but spent the bulk of the session fluctuating above and below the break-even mark on investor apprehension before the U.S. Federal Reserve's Nov. 2-3 meeting, from which more quantitative easing steps are expected. 'A rebound in the dollar against the yen would trigger a recovery in the Nikkei, but to be honest, it's completely unclear' how currency markets will react after the Fed's prospective second round of easing, said Naoteru Teraoka, general manager at Chuo Mitsui Asset Management. He added that if the dollar continues to fall after the FOMC meets and the Nikkei subsequently falls through the 9000 mark, the index will likely bottom soon thereafter, as Japan's stocks have been laggards for too long. Kenichi Hirano, operating officer at Tachibana Securities, said there is a risk of the Nikkei falling below 8800 if the dollar keeps sliding, but many hope the BOJ will take countermeasures when it holds its own policy board meeting later this week. Nomura Holdings closed up 4.3% at Y414 on heavy volume as bargain-buying kicked in following Monday's 5.0% price drop, but not before shares initially fell to a fresh 2010 low. Nomura shares remain down 39% year to date. Sumitomo Mitsui Financial Group, or SMFG, gained 0.5% at Y2372, but its shares also hit a new 2010 low on increased worries that the banking group will need to raise new capital to meet more stringent global rules for financials. Honda shares comprised the single biggest drag on the Nikkei, closing down 2.3% at Y2,725 and extending Monday's 5.0% fall after the firm cut its second-half net profit outlook. Elpida Memory ended down 5.1% at Y764 after the DRAM chip-maker said it expects to post a July-September net profit of Y8.8 billion, a sharp decline from its April-June profit of Y30.7 billion. Analysts noted that the firm's April-September operating profit outlook of Y67.5 billion also fell below market consensus by around Y10 billion. 'It seems like the price decline was steeper than earlier expected,' said Naoki Fujiwara, fund manager at Shinkin Asset Management. He added that the inventory adjustment of chips may take longer than expected, causing investors to sell Elpida stock despite its cheap valuation. December Nikkei 225 futures closed up 10 points, or 0.1%, at 9170 on the Osaka Securities Exchange.
2010/11/02 15:04DJ Forex Options: Dollar/Yen Options Steady But Downward Bias Remains
TOKYO -Dollar/yen options remained unchanged in Asia Tuesday as continued demand for short-term hedges before the Federal Open Market Committee meeting and selling pressure on longer-term hedges pinned down volatilities.Benchmark volatilities implied by one-month at-the-money options stood at 11.85%/12.55%, unchanged from New York Monday.The mid-point of benchmark volatilities may fall below 12.00% in coming sessions, said an options dealer at a major Japanese bank. That is because, the dealer said, the view is growing that 'it's not likely the dollar-yen will dive below its record-low' of Y79.75 even if the FOMC meeting outcome Wednesday does push it down.Market participants widely expect the Federal Reserve to decide on another round of quantitative easing measures to kick-start the U.S. economy, but they are not certain the extent of bond purchases by the Fed in the program.Some recent U.S. economic indicators have cast doubts on expectations that the quantitative easing measures will be gigantic. The Institute for Supply Management purchasing managers' index for October released Monday rose to 56.9 from 54.4 in September, suggesting the manufacturing side of the U.S. economy continued growing in October.The options dealer said one player sold a one-month at-the-money straddle options contract with implied volatilities of 12.10%, face value of $50 million. Another sold a dollar-put/yen-call options contract that expires on Nov. 25 at a strike price of Y80.50 with implied volatility of 12.35%.
2010/11/02 15:03DJ JGBs Fall A Tad; Strong 10-Year Sale Helps Recoup Losses
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.695 flat TSE Dec 10-Yr JGB Futures Price: 143.03 .05 10-Yr 0.8% JGB No. 311 Yield: 0.940% .005 TOKYO -Long-term Japanese government bonds ended slightly lower Tuesday due to position reduction ahead of a closely watched U.S. monetary policy decision, but stronger-than-expected results of a 10-year JGB sale helped recoup some losses. 'JGBs are expected to gradually gain ground later this week' after the outcome of the Federal Open Market Committee due Wednesday, said Akito Fukunaga, chief rates strategist at RBS Securities. Still, even if U.S. Treasury prices jump steeply on any Fed moves, gains in JGBs may not be so large that the Fed's action won't affect the supply and demand balance in the domestic bond market, analysts say. Fukunaga expects the benchmark 10-year cash JGB yield to be capped at 1% this week. It fell 0.5 basis point to 0.940% as of 0600 GMT. Japanese markets are closed Wednesday for a public holiday. Meanwhile, lead December JGB futures ended 0.05 lower at 143.03. The contract reversed most of earlier losses in the afternoon, as strong demand for 10-year JGBs auctioned earlier in the day confirmed that investors are still looking for dip-buying opportunities. Japan's Ministry of Finance sold Y2.0092 trillion of 10-year JGBs at a lowest price of 100.26, higher than market expectations for 99.23-99.25, yielding 0.971%. The new bonds, which reopen the issue sold in September, carry a coupon of 1.0%, much higher than the 0.8% coupon on the October issue. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: no trade 5-Year 0.3% JGB No. 92 Yield: 0.300% +0.005 20-Year 1.8% JGB No. 122 Yield: 1.805% .010 30-Year 2.0% JGB No. 33 Yield: 1.955% .010***********
2010/11/02 14:48=DJ PBOC WATCH:1-Yr Bills Rate's Flat Do Little To Alter Interest Rate Hike Expectation

2010/11/02 14:43DJ Beijing Vantone Chairman: No Plan To Adjust Property Pricing Strategy
BEIJING -Beijing Vantone Real Estate Co. (600246.SH) Chairman Feng Lun said the company has no plans to adjust its property-pricing strategy in the face of China's efforts to cool the residential property market because Beijing Vantone is currently focused more on commercial property.The residential housing market faces downward pricing pressure due to factors such as the expected launch of a real-estate tax and changing supply situation, Feng told on the sidelines of a forum.The Ministry of Finance said in late September it will launch a trial version of a real-estate tax in select cities before expanding it to the rest of the country, but didn't offer details on when it would launch the trial or which cities would be chosen for the pilot project.A China Securities Journal report Tuesday cited Jia Kang, director of the fiscal research institute under the Ministry of Finance, as saying China may levy a real-estate tax on homeowners by the end of the first half of next year. The ministry will introduce it in selected cities before gradually rolling it out across the country, Jia was cited as saying.China levies an annual real-estate tax only on commercial properties now, but the governments of some cities have discussed levying a tax on owners of multiple homes to damp speculation.The government has also launched a series of measures to cool the surging domestic property sector, such as raising interest rates, increasing down-payment requirements, halting lending for third homes and penalizing developers that hoard land.-Stefanie Qi and Esther Fung contributed to this article, ; 8610 8400 7799; stefanie.qi@dowjones.com
2010/11/02 14:31=DJ BOJ WATCH: BOJ To Discuss Asset-Buy Program As Post-FOMC Yen Moves Eyed

2010/11/02 14:25*DJ S&PBulletin: Agile Rating Unaffected By New Land Acquisition

2010/11/02 14:24DJ India Central Bank Ups Policy Rates By 25 BPs; Signals Pause
MUMBAI -India's central bank Tuesday raised its key interest rates by 25 basis points each, as was widely expected, to cool rising prices, but said the possibility of further rate hikes in the near-term is low.The Reserve Bank of India raised its repurchase rate, or overnight lending rate, to 6.25%, and the reverse repurchase rate, or borrowing rate, to 5.25%.It kept the cash reserve ratio--the percentage of deposits that lenders must set aside with the central bank in cash--unchanged at 6%.'Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low,' it said in the monetary policy review for the fiscal second quarter that ended Sept. 30.It, however, reiterated its concerns over flaring inflation driven by high food prices that haven't eased despite good monsoon rains.Food prices were being fueled by structural issues than just supply shortages, it said. 'Given the spread and persistence of inflation, demand-side inflationary pressures need to be contained and inflationary expectations anchored,' it said.The RBI forecast inflation at the end of the fiscal year in March at 5.5% as measured by the new wholesale price index, which it said was the same as the previous projection of 6.0% under the old series.It kept its economic growth forecast for the current fiscal year unchanged at 8.5%.
2010/11/02 14:23*DJ BOK Likely Intervened In Afternoon To Curb Won's Gains - Traders

2010/11/02 14:17*DJ India Bonds Extend Gains; RBI Says More Rate Action Unlikely Near-Term

2010/11/02 14:07=DJ WORLD FOREX: Euro Up Vs Dollar On RBA Rate Hike; May Rise More

2010/11/02 14:06*DJ India RBI Raises Repo Rate By 25BPs To 6.25%

2010/11/02 14:06*DJ India RBI Raises Reverse Repo Rate By 25BPs To 5.25%

2010/11/02 14:03*DJ Nikkei Stock Average Closes Up 0.1% At 9159.98

2010/11/02 14:03*DJ RBI Keeps Cash Ratio, Bank Rate, Bond Holding Rule Unch

2010/11/02 14:02*DJ RBI: Likelihood Of Further Rate Actions Low In Near Term

2010/11/02 13:58DJ Japan Cabinet To OK Policy On Trans-Pacific FTA Next Week -Kyodo
TOKYO -The Cabinet of Prime Minister Naoto Kan will adopt on Nov. 9 a basic policy on free trade, including its stance on a U.S.-backed trans-Pacific free trade agreement, national policy minister Koichiro Gemba said Tuesday, Kyodo News reported. Prior to that, relevant ministers will meet Friday to fine-tune their positions on the matter, Gemba told a news conference. The main focus of the planned policy is whether Japan will join the Trans-Pacific Partnership agreement.
2010/11/02 13:57=DJ WORLD FOREX: Euro Up Vs Dollar On RBA Rate Hike; May Rise More-2-

2010/11/02 13:52=DJ INTERVIEW: ASX CEO: To Apply For ASX-SGX Regulatory Approval By End Nov

2010/11/02 13:38=DJ WORLD FOREX: Euro Up Vs Dollar On RBA Rate Hike; May Rise More

2010/11/02 13:29PRESS RELEASE: Fitch Revises Swire Pacific's Rating Outlook to Stable; Affirms IDR at 'A'
The following is a press release from Fitch Ratings: Fitch Ratings-Hong Kong/Seoul/Singapore1 November 2010:Fitch Ratings has today revised the Outlook on Swire Pacific Limited's Long-term foreign currency Issuer Default Rating to Stable from Negative, while affirming it at 'A'. Fitch has also affirmed Swire's foreign currency senior unsecured ratings at 'A'. 'The Outlook revision is underpinned by the better-than-expected recovery of the Hong Kong commercial property market and its key associate, Cathay Pacific Airways Limited , the expected and gradual incremental cash flow from Swire's China properties in the next 12-18 months, as well as the expected reduction of future borrowing level and capital expenditure,' said Alan Chan, Associate Director of Fitch Ratings. This is contrary to the agency's previous expectation that Swire may suffer from the potential downturn in the Hong Kong property market, and that the prolonged downturn in the aviation market would affect Cathay. Furthermore, part of Swire's increased leverage in 2010 was utilised to acquire additional equity interest in the Hong Kong Aircraft Engineering Company Ltd , to increase its stake to 75%; however Fitch notes that this could mitigate the risk of Swire's property-related capex projects by providing immediate cashflow. Swire's cashflow was further strengthened by the strong growth of Cathay, which reported 67% yoy growth for the Fitch adjusted operating EBITDA in H110. The interim cash dividend paid to Swire was about HKD545m (2009: nil). The strong business growth was underpinned by growth in both the passenger and cargo business. Fitch expects Cathay's cash flow will maintain the current momentum, following the recovery of the global aviation market and contribute positively to Swire's cash flow. Fitch expects Swire's financial leverage, in terms of the funds from the group operations adjusted net leverage ratio and the same ratio excluding cash dividend from Cathay Pacific, to be lower than 4.0x in the next 12-18 months. This is on the back of sustainable stable cashflows from the company's core property business, recovery of the cash contribution from Cathay and the expected reduction in future capex. Swire's IDR continues to reflect its diversified business mix, the recurring and stable rental income generated by its quality investment property portfolio, and its prudent financial management policy. Meanwhile, Fitch will closely monitor the development of the proposed listing of Swire Property Limited , which is wholly-owned by Swire. Fitch expects the proposed listing of SPL as a separate entity to have no immediate rating impact on Swire (for details, please refer to the rating action commentary, entitled 'Fitch: Proposed listing has no immediate impact to Swire', published on 4 November 2009). Swire's liquidity remains strong, as its short-term debt obligations (HKD8.2bn) are well covered by cash holdings (HKD4.1bn), as well as by committed bank lines (HKD22.1bn) as at 30 June 2010. Negative rating drivers include an aggressive change in the business mix, provision of financial support to Cathay, and failure to maintain the stable cash flow from its commercial property portfolio. In addition, deterioration in financial leverage, with FFO adjusted net leverage exceeding 4.5x on a sustained basis, may result in a negative rating action. Fitch does not expect a positive rating action over the next 12 months. Contact: Primary AnalystAlan ChanAssociate Director+852 2263 9929Fitch Limited28th Floor, Tower Two, Lippo CentreHong Kong Secondary AnalystJeong Min PakSenior Director+82 2 3278 8360 Committee ChairpersonKalai PillaySenior Director+65 6796 7221 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable Criteria and Related Research: Corporate Rating Methodologyhttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.***********
2010/11/02 13:29DJ Japan Finance Minister: Forex Volatility Could Damage Economic Recovery
TOKYO -Japan's finance minister warned Tuesday that volatility in exchange rates could further damage the country's faltering economic recovery, showing his continued discomfort over the strength of the yen as it hovers near a record high against the U.S. dollar. Finance Minister Yoshihiko Noda made the comments in a prepared budgetary address to the Japanese parliament, where he called on lawmakers to quickly pass a planned Y4.851-trillion supplementary budget to help cushion the impact of the strengthening yen. The Japanese economy 'has recently been at a standstill,' Noda said. 'There are expectations that the economy will pick up on the back of improvements in overseas economies and the effects of various policy steps. But there are also concerns that a possible deterioration in foreign economies as well as fluctuations in exchange rates will put further downward pressure on the economy.' Bringing Japan's economy firmly back to a recovery track 'requires the enactment of this supplementary budget as soon as possible,' Noda added. The dollar fell to a fresh 15-year-low of Y80.21 in New York Monday--close to its all-time low of Y79.75--before recouping some of its losses. A stronger yen makes Japanese exports less attractive in global markets and bites into corporate profits earned overseas, pushing many Japanese companies to issue more cautious earnings outlooks for the rest of the year. Around 0355 GMT Tuesday, the dollar stood at Y80.55. The government has been threatening to intervene in the currency market again after its Y2-trillion yen-selling action in September, but traders expect that U.S. and European opposition to such a move may make it difficult for Tokyo to carry out its threat. Noda's speech marked the start of parliamentary debates on the extra budget. The spending plan includes a Y319.9 billion outlay to create and protect jobs, Y1.124 trillion for child care, medical and nursing services, and Y3.071 trillion to help small businesses, revitalize regional economies and improve infrastructure. But opposition lawmakers may not comply with Noda's plea to pass the budget swiftly, partly because the ruling Democratic Party of Japan hasn't satisfied their demand that Ichiro Ozawa--a heavyweight DPJ politician--should testify before parliament over a political funding scandal before budgetary discussions begin.
2010/11/02 13:06=DJ TAKING STOCK: Expect A 'Simple' Post-Event Pullback For Stocks

2010/11/02 13:06DJ PBOC Adviser: Monetary Policies Should Focus On Asset Prices
BEIJING -China's monetary policies should primarily focus on asset prices, and control their movements if necessary, an adviser to the People's Bank of China said Tuesday. Li, who was speaking at a financial forum in Beijing, said China's foreign exchange policies should focus on maintaining control over foreign exchange rate changes.
2010/11/02 12:33=DJ MONEY TALKS: Chinese Criticism Of Fed QE Doesn't Add Up

2010/11/02 12:16*DJ Japan Fin Min Noda: Forex Volatility Could Damage Japan Econ Recovery

2010/11/02 12:15*DJ Dollar Briefly Hits KRW1,110.4 Low Vs KRW1,116.6 Late Mon

2010/11/02 11:55DJ PBOC Adviser: Could Consider Tightening Policy To Reduce Risks
BEIJING -China's central bank could consider tightening monetary policy to counter the risk of asset price bubbles forming due to the the massive amount of liquidity in the economy, Li Daokui, an adviser to the People's Bank of China, said Tuesday.Speaking at a financial forum in Beijing, Li also said policy makers should use the capital markets to absorb the excess liquidity in the financial system and move part of the country's foreign-exchange reserves to the private sector through overseas investments.-Lili Sun contributed to this article, ; 86-10-8400-7799; lili.sun@dowjones.com
2010/11/02 11:52DJ Deutsche Bank In Talks To Sell India Credit Cards Business - Report
MUMBAI -Deutsche Bank AG is in talks with at least four banks to sell its credit cards business in India, the Economic Times reported Tuesday, citing three people familiar with the development. Yes Bank Ltd. (532648.BY) and IndusInd Bank Ltd. (532187.BY) are among those interested in acquiring the business, the report said, without elaborating. The report also quoted a Deutsche Bank spokesperson as saying that the lender has 'no plans to exit the unsecured lending business in the country. We continue to provide personal loans as well as credit cards to new and existing customers.' Newspaper website: http://www.economictimes.com
2010/11/02 11:45=DJ TAKING STOCK: Stocks Itchy For Big Move As Pre-Event Jitters Fade

2010/11/02 11:44*DJ US Dollar Quoted At S$1.2882; Currently At S$1.2889

2010/11/02 11:39*DJ NZ Dollar Falls To A$0.7667 From A$0.7739 After RBA Hikes Interest Rate

2010/11/02 11:36*DJ Euro Up Vs Dlr After RBA's Decision To Hike Rates

2010/11/02 11:29=DJ FOREX VIEW: Bank Of Japan Has Last Word In Central Bank-Filled Week

2010/11/02 11:25*DJ PBOC Adviser: Monetary Policies Should Focus On Asset Prices

2010/11/02 11:16=DJ FOREX VIEW: Focus On The Fed Blinds Market To Other Themes

2010/11/02 11:10DJ Japan Economy Min Kaieda: Paying Close Attention To FOMC Results
TOKYO -Japan's economy minister said Tuesday that investor speculation over this week's Federal Open Market Committee was a major factor behind the dollar's plunge to a fresh 15-year low against the yen earlier this week. Asked whether he thinks the dollar will fall below its all-time low of Y79.75, Economy Minister Banri Kaieda said at a regular press conference: 'It all depends on FOMC's outcome, so I am paying close attention to it.' The meeting of U.S. monetary policy-making FOMC will be held from Tuesday to Wednesday this week, and markets expect the central bank will likely announce additional easing measures to prop up the economy, and this is apparently having an significant impact on financial markets. Kaieda also said the Bank of Japan may 'independently' take steps 'depending on the FOMC outcome.'
2010/11/02 11:00*DJ PBOC Adviser: Could Consider Tightening Monetary Policies To Reduce Risks

2010/11/02 10:57*DJ Fitch: Swire Pacific Outlook Revised To Stable From Negative

2010/11/02 10:55*DJ Fitch Revises Swire Pacific's Rating Outlook to Stable; Affirms IDR at 'A'

2010/11/02 10:11*DJ ASX CEO: Open To Regulator Suggestions To Ensure Takeover Proceeds

2010/11/02 10:11=DJ Alibaba's Taobao.com To Boost Business-To-Consumer Business

2010/11/02 10:10*DJ ASX CEO: To Apply For ASX-SGX Regulatory Approval By End Nov

2010/11/02 10:04PRESS RELEASE: Fitch Affirms Huaneng Power International at 'BB+'; Outlook Stable
The following is a press release from Fitch Ratings: Fitch Ratings-Singapore/Beijing/Sydney1 November 2010: Fitch Ratings has today affirmed Huaneng Power International, Inc's Long-term foreign and local currency Issuer Default Ratings and senior unsecured debt rating at 'BB+', and its Short-term foreign and local currency IDRs at 'B'. The Outlook is Stable. 'The ratings reflect HNP and China Huaneng Group's status as the largest Chinese independent power producer and the largest State-owned power generation group, respectively,' notes Simon Wong, Director in Fitch's Asia-Pacific Energy and Utilities team. The ratings also reflect both entities' good geographic diversification and above-average efficiency coal-fired plants. HNP's standalone rating is downgraded from 'BB+' to 'BB' due to HNP's large ongoing debt-funded capex programme and its limited ability to pass through raising fuel costs, compressing its margins, while its total adjusted debt/operating EBITDAR leverage is expected to increase and remain above 7x in 2010 and 2011, despite the proposed equity placement. The company has an aggressive capex programme to increase its controlled capacity to 60 gigawatts by end 2010 from 50GW as at end-June 2010 to maintain its market share and leadership position. Fitch notes the completion of the Shandong Power and Luneng Development acquisition is expected by end 2010 and will contribute 3.6GW to its controlled capacity. Fitch is also concerned with HNP's higher-than-expected unit fuel costs during 9M2010, which increased 14.4% compared to FY2009, while tariff adjustments remain uncertain. Fitch applied the Parent and Subsidiary rating Linkage methodology to assess the linkages between HNP and China Huaneng. The parent's consolidated credit profile is assessed to be equal with HNP's standalone rating. In addition, Fitch has applied a 'bottom-up' approach as set out in the same methodology to notch up the final rating to 'BB+' from 'BB' to reflect HNP's and China Huaneng's strategic importance to the country and the tangible support extended by the Chinese government ('A+'/Stable). Fitch notes that HNP's good access to domestic banks and capital markets largely mitigate its liquidity risks, despite substantial debt maturing within the next 12 months (CNY47.8bn as at end-June 2010) and aggressive capex plans. The company has obtained shareholder and regulatory approval to issue A Shares (not exceeding 1,500 million shares) and H shares (not exceeding 500 million shares) to fund its domestic and overseas capex plans. Furthermore, HNP and its subsidiaries had undrawn banking facilities totalling CNY100bn at end-June 2010. The Stable Outlook reflects Fitch's expectation that the Chinese government will continue to provide support to the Chinese IPPs and that coal prices are likely to remain largely stable into 2011, baring another severe winter. Fitch also expects HNP's total adjusted debt/operating EBITDAR to remain above 7x in the medium term. Fitch may take a negative rating action if there is a prolonged suspension of the tariff mechanism during periods of substantial coal price increases and/or if capex exceeds the agency's expectations. Contact: Primary AnalystSimon WongDirector+65 6796 7235Fitch Ratings Singapore PTE Ltd6 Temasek Boulevard#353/04/05, Suntec Tower FourSingapore 038986 Secondary AnalystSteve CoxDirector+ 86 10 6533 0606 ext 116 Committee ChairpersonSteve DuroseSenior Director+ 61 2 8256 0307 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available at www.fitchratings.com. The issuer did not participate in the rating process other than through the medium of its public disclosure. Applicable Criteria and Related Research: Corporate Rating Methodologyhttp://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. ***********
2010/11/02 10:03*DJ 10 Firms Include Big State-Run Oil, Power, Telecom Companies - Sources

2010/11/02 09:40DJ Japan Finance Minister: Will Take Decisive Forex Steps If Needed
TOKYO -Japan's finance minister voiced discomfort Tuesday about the yen's continued strength, calling the recent appreciation 'one-sided,' and threatened intervention in the foreign-exchange markets to weaken the currency.The yen's moves from Friday to early Monday 'were one-sided, and I need to closely watch its movement today,' Finance Minister Yoshihiko Noda said at a news conference after a regular Cabinet meeting. 'I will monitor the market with great interest and take decisive steps when necessary.'The dollar fell to a fresh 15-year-low of Y80.21 in New York Monday--close to its all-time low of Y79.75--before recouping losses after the release of positive U.S. manufacturing data.As of 0110 GMT, the greenback was at Y80.68.
2010/11/02 09:26DJ UK Private Sector Must Create 1.6M Jobs To Maintain Current Levels-Survey

2010/11/02 09:04DJ UK Private Sector Must Create 1.6M Jobs To Maintain Current Levels-Survey
LONDON -The U.K. private sector will need to create around 1.6 million jobs over the next five years just to keep the economy running at the current pace, a survey shows Tuesday.The Chartered Institute of Personnel and Development estimates that is the number of jobs that will be lost as a result of government spending cuts and an impending sales tax increase."The full impact of the coalition government's planned fiscal tightening has been understated," said John Philpott, chief economic adviser at the CIPD.The U.K. Office for Budget Responsibility estimates the government's deficit reduction drive will cost the country 490,000 public sector jobs over the next five years.The CIPD says the toll is likely to be closer to 700,000 jobs. The survey suggest the private sector could shed as many as 900,000 jobs, taking into account the impact of the sale tax increase. The standard rate of value-added tax is set to rise from 17.5% to 20% in January. The institute calculates that the private sector is capable of adding 300,000 jobs per year by 2015-16, provided the economy continues to grow at a healthy clip of around 2.5% per year."But given the head-winds facing both the global and U.K. economy, this looks like a tall order, especially prior to 2013, and consequently unemployment is likely to rise throughout 2011 and much of 2012," Philpott said.
2010/11/02 08:55*DJ Japan Fin Min Noda: Will Take Decisive Forex Steps If Needed

2010/11/02 08:55*DJ Japan Noda: Watching Forex Market With Great Interest

2010/11/02 08:53*DJ Japan Fin Min Noda: Recent Yen Moves One-Sided

2010/11/02 08:35DJ BOJ Releases Minutes Of October 4-5 Policy Board Meeting
TOKYO -Some Bank of Japan policy board members expressed concern about the side effects of interest rate cuts at their first meeting in October, suggesting the bank may be unwilling to make any further cuts to its policy rate in the near future.'Some members said that if interest rates declined to an excessive degree, the negative effects of that decline would be larger than monetary easing effects, since the financial intermediary function would be impaired by the lower returns of financial institutions and investors,' minutes for the Oct. 4-5 meeting, released Tuesday, showed.At the meeting, the bank announced 'comprehensive monetary easing.' It cut its policy target rate to a range of 0.0%.1% from 0.1% previously, and said rates would remain virtually at zero until prices begin to overcome deflationary pressure.It also decided to launch a Y5 trillion fund to buy various financial assets, including government and corporate debt.
2010/11/02 08:12DJ Areva To Announce Major Chinese Contracts -Report
PARIS --French nuclear energy giant Areva SA (CEI.FR) is expected to announce a number of major Chinese contracts during President Hu Jintao's state visit to France this week, Les Echos business daily reported.The group will sign a deal worth $3 billion to supply nuclear fuel to China Guangdong Nuclear Power Corp , Les Echos reported in its Tuesday edition.This would see the French firm supply 20,000 tons of uranium over the next 10 years, the report said.Areva will also likely announce progress in negotiations with CGNPC over the construction of two new-generation nuclear reactors, the newspaper said, without citing sources.Areva may also resume negotiations with the China National Nuclear Corporation over the construction of a nuclear reprocessing facility, it added.Hu's visit starting Thursday is expected to focus on economic issues and include a series of deals in the aerospace and environmental technology sectors.
2010/11/02 08:08*DJ Nikkei Stock Average In Positive Territory

2010/11/02 08:06*DJ Lead 10-Yr JGB Futures Open Down At 142.90 Vs 143.08 Mon

2010/11/02 08:05*DJ Nikkei Stock Average Opens Down 0.2% At 9140.28

2010/11/02 08:00*DJ BOJ Minutes: Suda: JGB Buying Via New Fund May Cause Bubble In JGB Market

2010/11/02 07:57*DJ BOJ Minutes: Some: Have To Make Clear New Asset-Buying Fund Temporary

2010/11/02 07:57*DJ BOJ Minutes: One: Big Uncertainty About When Japan Will Return To Recovery Path

2010/11/02 07:56*DJ BOJ Minutes: Suda: Market May Regard JGB Buying Via New Fund As Fiscal Financing

2010/11/02 07:56*DJ BOJ Minutes: Some: US Growth May Stay Weak For Long Time

2010/11/02 07:55*DJ BOJ Minutes: One: New Asset Buying Will Help Ease Fundraising Costs

2010/11/02 07:55*DJ BOJ Minutes: Many: Yen Rise Likely To Weigh On Overall Econ

2010/11/02 07:52*DJ BOJ Minutes: Some: Excessive Interest Rate Falls May Hurt Functioning In Financial System

2010/11/02 07:51*DJ BOJ Releases Minutes Of Oct 4-5 Policy Board Meeting

2010/11/02 06:49=DJ WORLD FOREX: Dollar Rallies On Better US Data, Likely Modest QE Awaits

2010/11/02 06:14=DJ WORLD FOREX: Dollar Rallies On Better US Data, Likely Modest QE Awaits

2010/11/02 05:57=DJ US Blue-Chip Stocks Eke Out Slim Gain Ahead Of Elections-2-

2010/11/02 05:32DJ Treasurys End Mixed After Data As Fed Vigil Moves To Center

2010/11/02 05:23=DJ US Plans Borrowing $362B In Oct-Dec Quarter - Treasury

2010/11/02 05:00=DJ US Blue-Chip Stocks Eke Out Slim Gain Ahead Of Elections

2010/11/02 04:31DJ PRECIOUS METALS: NY Gold Eases As Economy, Dollar Improves

2010/11/02 04:11DJ OIL FUTURES: Crude Up As Saudi Minister Signals Higher Prices

2010/11/02 04:02*DJ DJIA Closes Up 6 (0.1%) At 11124; Intel, Pfizer Rise

2010/11/02 03:51DJ Global Crisis Has Cost 30 Million Jobs: IMF Chief
AGADIR --The global crisis has cost 30 million jobs around the world, International Monetary Fund director general Dominique Strauss-Kahn said Monday, opening a human development forum in Morocco.Employment should be the priority of further globalisation, Strauss-Kahn added."The world has lost 30 million jobs because of the global crisis, and the expectations for the years to come are 400 million," Strauss-Kahn warned the International Forum on Human Development, taking place at Agadir in southern Morocco on Monday and Tuesday."In the framework of the new globalisation, the first priority is employment, the second priority is employment and the third priority is employment," he insisted.More than 1,500 international experts are taking part in the forum, including the president of the Islamic Development Bank, Sheikh Ahmed Mohamed Ali.
2010/11/02 03:40DJ Two Bomb Parcels Had 300, 400 Grams Of Explosives: Germany
BERLIN --The two U.S.-bound bomb parcels from Yemen contained 300 grammes and 400 grammes of explosives respectively and could have caused "significant damage", a German official said Monday.The government official, who spoke on condition of anonymity, confirmed that the two bombs contained the explosive PETN.If they had gone off, "they would have caused significant damage," he said, without specifying the source of the information.Qatar Airways said a package containing explosives was flown from the Yemeni capital Sanaa to Doha and then on to Dubai Friday on one of its aircraft. A source said on condition of anonymity that the plane was a passenger flight.The other parcel was found at East Midlands airport in central England and travelled through Cologne in western Germany. U.K. Prime Minister David Cameron said it appeared designed to blow up a plane.U.S. officials have said the two packages originating from Yemen were addressed to synagogues in Chicago.They have cited Ibrahim Hassan al-Asiri, an alleged Al-Qaeda bombmaker born in Saudi Arabia but based in Yemen, as a "leading suspect" in the case.Evidence suggests the same person built the intercepted parcel bombs and the device worn by the "underwear" bomber Umar Farouk Abdulmutallab who botched an attack on a passenger flight to Detroit on Christmas Day 2009.That bomb reportedly contained 80 grammes of PETN.Germany earlier announced it had stepped up its air security measures, extending a ban on air freight from Yemen to passenger flights.
2010/11/02 03:05*DJ US Expects To Issue $431B In Debt In Jan-Mar Quarter

2010/11/02 03:05*DJ Borrowing Estimate Oct-Dec Lower Than Earlier Estimated

2010/11/02 03:03*DJ US Expects To Issue $362B In Debt In Oct-Dec Quarter

2010/11/02 02:34*DJ OIL FUTURES: Nymex Crude Settles $1.52 Higher At $82.95/Bbl

2010/11/02 02:33*DJ OIL FUTURES: Nymex Crude Closes $1.56 Higher At $82.99/Bbl

2010/11/02 00:53*DJ Britain Suspends Unaccompanied Air Freight From Somalia-Minister