Market Rumours

2010/11/05 17:57*DJ Ireland 5-Yr Sovereign CDS 28 Bps Wider At 610 Bps - Markit

2010/11/05 17:56=DJ DATA SNAP: UK Producer Price Inflation Picks Up To 4.0%YY On Oil

2010/11/05 17:45=DJ HSBC Says 3Q Pretax Profit Slowed, Revenue Down In 2010

2010/11/05 17:31*DJ UK Oct Core Output PPI +0.4% On Month; +3.3% On Year

2010/11/05 17:31*DJ UK Oct Output PPI Was Forecast +0.2% MM, +4.4% YY

2010/11/05 17:31*DJ UK Oct Input PPI +2.1% On Month; +8.0% On Year

2010/11/05 17:31*DJ UK Oct Input PPI Was Forecast +1.0% MM, +7.2% YY

2010/11/05 17:30*DJ UK Oct Output PPI +0.6% On Month; +4.0% On Year

2010/11/05 17:30*DJ 10Y Irish/German Yield Spread Breaks 531Bp Record High

2010/11/05 17:28DJ BOJ Will Offer To Buy Corporate Bonds, Commercial Paper In Dec
TOKYO -The Bank of Japan said Friday it will announce its purchases of corporate bonds and commercial paper in early December. The central bank will offer to buy up to Y100 billion of corporate bonds Dec. 3 and Y100 billion of commercial paper Dec. 10. As part of its 'comprehensive easing,' the Japanese central bank decided in early October to launch a Y5 trillion new asset-purchase program to buy various financial assets, including government and corporate debt.
2010/11/05 17:24DJ JGBs Down As Nikkei Rises, BOJ Brings No Positive Surprises
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.690 Unchanged TSE Dec 10-Yr JGB Futures Price: 143.11 .17 10-Yr 1.0% JGB No. 310 Yield: 0.925% +0.010 TOKYO -Japanese government bonds fell Friday as strong equities dented demand for safe-haven debt, while the outcome of the Bank of Japan's monetary policy board meeting failed to offer any new support for JGBs. Lead December JGB futures closed down 0.17 at 143.11, as Japan's benchmark Nikkei Stock Average closed at a one-month high. The benchmark 10-year JGB yield rose 1.0 basis point to 0.925% as of 0600 GMT. Bond yields and prices move inversely. The Bank of Japan provided no positive surprises for JGBs, and even disappointed some participants' expectations that it would expand easing measures after the Federal Reserve's decision Wednesday to launch a second round of quantitative easing. The BOJ's decision to start purchasing JGBs next week through an asset-buying program announced last month had already been largely priced in to the JGB market, analysts said. Meanwhile, the central bank kept unchanged, at Y5 trillion, the scale of its asset purchase program. Last week, the BOJ decided to move up its meeting to immediately after the FOMC, which had fueled speculation it would ease its already extremely loose monetary policy in response to any slide in the dollar against the yen on further Fed easing. But the dollar has held up against the Japanese currency since the Fed decision Wednesday, which analysts said likely alleviated pressure on the BOJ. Nonetheless, any further yield rises in coming sessions are likely to remain contained, as the BOJ's previously announced operations continue to support demand, analysts said. 'In a nutshell, the BOJ's JGB buying is expected to soften supply pressure and put a lid on the yields,' said RuiXue Xu, a debt markets strategist at The Royal Bank of Scotland, in a report. Moreover, JGBs will avoid sharper falls ahead as the chance remains the BOJ could expand its asset purchases sometime in the coming weeks. Such a move would look increasingly likely if the dollar again resumed falling against the yen and dropped below its record low of Y79.75. Friday afternoon in Tokyo, the greenback traded hands around Y80.80. 'The willingness to start buying assets as soon as possible indicates the Bank's bias to further easing,' said JPMorgan Securities Japan economist Masamichi Adachi in a report. Sharp yen appreciation could even force the BOJ to convene an emergency policy board meeting before its next regularly scheduled meeting on Dec. 20-21, said Susumu Kato, chief Japanese economist at Credit Agricole. One option in that case would be for the central bank to increase its JGB-buying, Kato 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: 0.305% +0.015 20-Year 1.8% JGB No. 122 Yield: 1.825% +0.030 30-Year 2.0% JGB No. 33 Yield: 1.985% +0.035 ***********
2010/11/05 17:19=DJ UPDATE: PBOC Zhou: US's Quantitative Easing May Hurt World Economy
(Adds Zhou's comments on U.S. economy, communication with Fed, U.S. dollar's role.) By Aaron Back Of BEIJING -People's Bank of China Gov. Zhou Xiaochuan on Friday joined other central bankers in voicing concern over the U.S.'s quantitative easing policy, saying the Federal Reserve's latest move to print billions of dollars to reinvigorate the U.S. economy may hurt the economies of China and other countries. But he expressed some sympathy with the U.S.'s slow economic recovery, saying the PBOC understands the Fed is responsible for the U.S. economy. The comments come as policy makers around the world seek ways to counter the possible negative effects of the Fed's move on their economies, setting the stage for a debate on international monetary system reform at next week's Group of 20 industrial and developing nations meeting in Seoul. 'A domestic policy may be optimal for the U.S. alone. However at the same time it is not necessarily optimal for the world. It may cause a lot of negative impacts for the world economy,' Zhou said at a financial forum in Beijing hosted by the Caixin media group. The quantitative easing policy adopted by the Fed may cause abnormal hot money inflows into China, he said. The interest rate gap with the U.S. and exchange rate fluctuations create opportunities for speculation, Zhou said. 'It is very difficult for us to eliminate such arbitrage...that is the logic of the market economy.' Zhou noted the U.S. dollar, apart from its domestic role, is the international reserve currency. Not only that, many commodity and capital market transactions are denominated in U.S. dollars. 'There is a conflict between the U.S. dollar's domestic role and its international settlement role,' Zhou said, repeating his call for reform of the global monetary system. He has previously called for creating a super-sovereign reserve currency as the role of the U.S. dollar weakens. Last year, Zhou urged the world to move toward a multi-currency global monetary system, including increasing the role of Special Drawing Rights, an international reserve asset created by the International Monetary Fund to complement gold and the U.S. dollar. But Zhou said Friday that the PBOC has had lots of communication with the Fed on its quantitative easing policy and 'we can understand a lot of their arguments.' Zhou said the Fed's mandate is to ensure full employment and low inflation in the U.S. 'The Federal Reserve is responsible for the U.S. economy,' he said. Given that the U.S. is currently suffering from slow recovery, high unemployment and low inflation, 'we can understand the quantitative easing policy under the circumstances,' Zhou said.
2010/11/05 17:05*DJ APEC Statement: Both Deficit And Surplus Economies Must Implement Policy Measures

2010/11/05 17:04*DJ APEC Draft Finance Ministerial Statement: Global Economy Recovering, But Uncertainy Remains

2010/11/05 16:44*DJ Chinese Min: Want To Increase French Imports

2010/11/05 16:21*DJ HSBC Core Tier 1 Ratio Increased From 9.9% To 10.5%

2010/11/05 16:20*DJ HSBC Tier 1 Ratio Increased From 11.5% To 12.1%

2010/11/05 16:18*DJ HSBC Pre-Tax Profits For Q3 Also Well Ahead Of 2009

2010/11/05 16:17*DJ HSBC: 3Q Ahead Of Views

2010/11/05 16:07*DJ Hang Seng Index Up 7.7% For The Week

2010/11/05 16:07DJ BOJ Shirakawa: Bank Of Japan, Fed Not In Easing Competition
TOKYO -Bank of Japan Gov. Masaaki Shirakawa said Friday the Federal Reserve and the Japanese central bank are not competing in monetary easing. Still the BOJ chief said that expanding the size of its new asset purchase program is 'one leading option' when economic and price conditions deteriorate significantly. Earlier Friday, the central bank at a policy board meeting finalized its plan to purchase unconventional assets to stimulate the sluggish economy.
2010/11/05 16:06*DJ Hang Seng Index Ends Up 1.3% At 24,876.82; 2.5-Year High

2010/11/05 16:04*DJ Stoxx Europe 600 Index Up 0.2% After The Open

2010/11/05 16:03*DJ FTSE 100 Up 0.3% After The Open

2010/11/05 15:52DJ Tokyo Shares End At 1-Mo High; Nissan Jumps, Commodities Rise-2-
Brad Frischkorn Of TOKYO -Tokyo stocks rose Friday, with the Nikkei Stock Average hitting a one-month high as commodities prices shot up overnight and robust earnings from Nissan Motor soothed investor worries about the strong yen.The Nikkei rose 267.21 points, or 2.9%, to 9625.99 following Thursday's 2.2% surge. The index closed at its highest level since Oct. 7 and scored its largest percentage increase since June 3.The Topix index of all Tokyo Stock Exchange First Section issues also rose 18.65 points, or 2.3%, to 834.98. Trading volume was strong, totaling about 2.12 billion shares.The market opened sharply higher, aided by a rally overnight in U.S. shares, as well as a sharp jump in commodities prices, especially crude and gold. Pre market foreign investor purchases of Japan stocks also well outnumbered sales.Nissan helped bolster sentiment early. The auto maker closed up 6.0% at Y764 following stellar second-quarter results and an upward revision of its full-year net profit forecast to Y270 billion from an earlier-projected Y150 billion.'There were already hopes that the earnings would be good, and the figures turned out even better than expected,' said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. He noted that the broader market rise sparked a general rebound in auto shares driven by short-term investors. Toyota Motor added 1.9% to Y2,964, while Honda Motor gained 4.2% to Y2,881.But Akino cautioned that the rise in auto shares might not be sustainable until risk factors are eliminated, such the stronger yen, the possibility of a slowdown in Chinese demand, and a decline in domestic sales due to the expiry of government subsidies.The BOJ's decision to stand pat on its super-easy monetary policy produced very little stock market reaction. Further share price appreciation may hinge on U.S. jobs data due later in the global day, said one Japanese brokerage manager.The release of details of the central bank's plan to buy exchange traded funds linked to the Topix, and J-REITs rated AA or higher, did afford some nominal relief to the relevant shares. The Topix real estate subindex was among the better performers on the board, with Mitsui Fudosan adding 3.2% to Y1,593.Higher commodities prices helped general traders such as Mitsui & Co add 4.4% to Y1,319. One analyst commented that in a strong yen environment, trading companies have greater resistance to yen appreciation than exporters, and so there may be further share price upside for the sector.Elpida Memory added 0.4% to Y806 after announcing Thursday that it swung to a net profit in the July-September quarter from a year-earlier loss. The firm also announced plans to reduce production of memory chips used in personal computers, citing weakening demand and a sharp decline in prices. Elpida shares were initially volatile.'The production cut is surprising in that DRAM prices are still well above Elpida's cash cost in our view, and should be positive for the DRAM industry in total,' said MF Global analyst David Rubenstein in a research report.Resona Holdings closed limit-down for a decline of 16% to Y512 after news of its intentions to raise fresh equity capital. The Nikkei reported that the firm will use all of the up to Y600 billion it plans to raise to pay back public funds, citing company sources.December Nikkei 225 futures closed up 290 points, or 3.1%, at 9650 on the Osaka Securities Exchange.
2010/11/05 15:45DJ Tokyo Shares End At 1-Mo High; Nissan Jumps, Commodities Rise
Brad Frischkorn Of TOKYO -Tokyo stocks rose Friday, with the Nikkei Stock Average hitting a one-month high as commodities prices shot up overnight and robust earnings from Nissan Motor soothed investor worries about the strong yen. The Nikkei rose 267.21 points, or 2.9%, to 9625.99 following Thursday's 2.2% surge. The index closed at its highest level since Oct. 7 and scored its largest percentage increase since June 3. The Topix index of all Tokyo Stock Exchange First Section issues also rose 18.65 points, or 2.3%, to 834.98. Trading volume was strong, totaling about 2.12 billion shares. The market opened sharply higher, aided by a rally overnight in U.S. shares, as well as a sharp jump in commodities prices, especially crude and gold. Pre market foreign investor purchases of Japan stocks also well outnumbered sales. Nissan helped bolster sentiment early. The auto maker closed up 6.0% at Y764 following stellar second-quarter results and an upward revision of its full-year net profit forecast to Y270 billion from an earlier-projected Y150 billion. 'There were already hopes that the earnings would be good, and the figures turned out even better than expected,' said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. He noted that the broader market rise sparked a general rebound in auto shares driven by short-term investors. Toyota Motor added 1.9% to Y2,964, while Honda Motor gained 4.2% to Y2,881. But Akino cautioned that the rise in auto shares might not be sustainable until risk factors are eliminated, such the stronger yen, the possibility of a slowdown in Chinese demand, and a decline in domestic sales due to the expiry of government subsidies. The BOJ's decision to stand pat on its super-easy monetary policy produced very little stock market reaction. Further share price appreciation may hinge on U.S. jobs data due later in the global day, said one Japanese brokerage manager. The release of details of the central bank's plan to buy exchange traded funds linked to the Topix, and J-REITs rated AA or higher, did afford some nominal relief to the relevant shares. The Topix real estate subindex was among the better performers on the board, with Mitsui Fudosan adding 3.2% to Y1,593. Higher commodities prices helped general traders such as Mitsui & Co add 4.4% to Y1,319. One analyst commented that in a strong yen environment, trading companies have greater resistance to yen appreciation than exporters, and so there may be further share price upside for the sector. Elpida Memory added 0.4% to Y806 after announcing Thursday that it swung to a net profit in the July-September quarter from a year-earlier loss. The firm also announced plans to reduce production of memory chips used in personal computers, citing weakening demand and a sharp decline in prices. Elpida shares were initially volatile. 'The production cut is surprising in that DRAM prices are still well above Elpida's cash cost in our view, and should be positive for the DRAM industry in total,' said MF Global analyst David Rubenstein in a research report. Resona Holdings closed limit-down for a decline of 16% to Y512 after news of its intentions to raise fresh equity capital. The Nikkei reported that the firm will use all of the up to Y600 billion it plans to raise to pay back public funds, citing company sources. December Nikkei 225 futures closed up 290 points, or 3.1%, at 9650 on the Osaka Securities Exchange.
2010/11/05 15:33=DJ WORLD FOREX:Yen Strength Persists As BOJ Offers No More Easing -3-

2010/11/05 15:27=DJ WORLD FOREX:Yen Strength Persists As BOJ Offers No More Easing -2-

2010/11/05 15:22*DJ BOJ Shirakawa: BOJ, Fed Not In Easing Competition

2010/11/05 15:12DJ Asean Draft Statement Shows Concern Over US Focus On Current Account
KYOTO, Japan -Members of the Association of Southeast Asian Nations are concerned with the U.S. proposal to target current account trade gaps as a way to reduce global imbalances, according to a draft statement to be discussed by finance ministers from the group later Friday. Finance ministers from the Asean nations plan to discuss the issue on the sidelines of the Asia Pacific Economic Cooperation meeting of finance officials here. The statement, a copy of which was seen by , says that 'Asean has concerns that specific targeting of the current account could lead to measures being employed that may be detrimental to the principle of free trade.' The statement is being drafted to respond to the letter by U.S. Treasury Secretary Timothy Geithner sent to other G-20 nations on U.S. proposals to help build a sustainable global recovery. A member of one Asean delegation familiar with the matter said that the statement would also be discussed during a bilateral meeting with Geithner to take place on the sidelines of the APEC meeting. The United States is pushing for specific targets to reduce current account imbalances that are seen as a growing threat to the global economy, but the initiative has met with a negative response from many quarters. The Asean draft statement said that Asean 'would be willing to cooperate on such a broad agreement and considers that contributing to the reduction of global imbalances will be beneficial to the long term economic development of all its members.' 'Ongoing volatility as a result of global imbalances that remain uncorrected creates problems for our industries, our people and the overall health of our economies,' the statement said. But it said that any measures should take into account the differing needs of individual Asean nations. Asean members include Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, all of which are APEC members, along with non-APEC nations Laos, Myanmar and Cambodia.
2010/11/05 15:12=DJ WORLD FOREX:Yen Strength Persists As BOJ Offers No More Easing

2010/11/05 15:10DJ Forex Options: Dollar/Yen Options Edge Down On Stable Spot
TOKYO -Dollar/yen options declined in Asia Friday as the U.S. dollar stuck to a narrow range against the yen. Benchmark volatilities implied by one-month at-the-money options edged down to 10.40%/11.00% from 10.45%/11.15% in New York Thursday. The U.S. unit kept to a range of Y80.63 to Y81.00 in Asia morning trading, staying well above the psychologically key Y80.50. Market participants therefore saw little need to hedge against any steep movement in the pair. The mid-point of volatilities may fall to 10.00% later in the global day, compared with the current 10.75%, because the greenback is unlikely to fluctuate significantly against the yen, said an options dealer at a major Japanese bank. The dealer also said that volatilities are unlikely to rise much after the release of U.S. non-farm payroll data for October due later Friday, because both the dollar and yen have been trending downward against other major currencies since the Federal Open Market Committee meeting on Wednesday.
2010/11/05 14:30=DJ INTERVIEW: Trichet: ECB Bond Buying Program Remains 'In Force'
This story was originally published Thursday. By Nina Koeppen Of FRANKFURT -The European Central Bank's bond buying program remains 'in force', ECB president Jean-Claude Trichet said Thursday, indicating that the ECB may have bought euro-zone government debt over the last couple of days.'I never comment on any particular purchase, but I can confirm that the SMP [Securities Markets Program] is in force, and I think it would be a mistake only to look at the figures that have been published, because we are publishing the purchases that have been settled once per week,' Trichet said in a joint television interview with and two other news agencies.'So no hasty conclusions from what has been published until now,' Trichet said.The ECB said Monday it didn't settle any purchases of euro-zone government bonds last week. That would have made it the third week in a row that it was not active, although ECB data generally only cover trades executed until the middle of the week.http://www.ecb.int
2010/11/05 14:23=DJ EU Turns Up Heat On Credit Ratings Agencies
BRUSSELS -The European Commission will turn up the heat on credit rating agencies Friday when it publishes a report examining ways to curb their impact on the market. New rules already agreed to in Europe subject agencies like Standard & Poor's, Moody's and Fitch to increased supervision. But heavy criticism from some European politicians of the part the agencies played in Europe's sovereign debt crisis has brought the agencies back into the line of fire. The commission's report highlights what it sees as over reliance of the financial markets on the ratings of just three main players. It explores ways to encourage new competitors on the market, increase transparency especially as to how sovereign debt ratings are compiled and it looks at alternative pay models to avoid the existing practice of banks paying the agencies for rating the debt they issue. Credit ratings agencies were criticized during the financial crisis for failing to spot the bad debt on company balance sheets or the risks associated with structured credit products that were at the heart of the credit meltdown. The condemnation reignited when downgrades on Greek sovereign debt pushed that country's cost of borrowing skywards, and sent eurozone countries scrambling to assemble an emergency bailout. 'Credit ratings agencies have been criticized for having adapted the credit ratings of certain euro-zone member states too slowly to the deterioration of their public finances and subsequently for having over reacted in the downgrading action without taking due account of supportive measures of the eurozone member states,' the report reads. Solutions could include increasing the level of transparency in sovereign debt ratings or delaying downgrades until after markets have closed to reduce volatility, the report suggests. Another possibility could be to warn countries in advance of any downgrade to give them a chance to respond to the concerns raised. The commission's report also proposes alternative pay structures. The fact that the agencies are paid by the companies they rate could lead them to award higher ratings to ensure future business, it says. The commission's report will form the base of consultations with market players over coming months before any decision is reached on whether new legislation is required.
2010/11/05 14:06*DJ Nikkei Stock Average Highest Closing Level Since October 7

2010/11/05 14:04*DJ Nikkei Stock Average Largest Percent Gain Since June 3

2010/11/05 14:03*DJ Nikkei Stock Average Closes Up 2.9% At 9625.99

2010/11/05 13:52DJ PBOC Zhou: US Monetary Policy May Hurt World Economy
BEIJING -China's central bank chief said Friday the U.S.'s monetary policy might be optimal for the U.S.'s own economy but could be negative for the rest of the world.People's Bank of China Gov. Zhou Xiaochuan said at a summit the U.S. Federal Reserve's quantitative easing program may cause abnormal hot money outflows to China.He also said the interest-rate gap between the U.S. and China creates opportunities for speculation, and it is almost inevitable that someone will take advantage of arbitrage opportunities.There is also a conflict between the U.S. dollar's domestic role and its role as an international settlement currency, showing the need to reform the global monetary system, Zhou said.
2010/11/05 13:13*DJ BOK Official: No Plan To Inspect Other Foreign Banks For Now

2010/11/05 13:11*DJ EU: Financial Markets Over Reliant On External Credit Ratings

2010/11/05 13:10*DJ EU: More Transparency Needed For Sovereign Debt Ratings

2010/11/05 13:09*DJ OIL FUTURES: Nymex Tops $87.15/Bbl; New 2-Year High

2010/11/05 13:04*DJ PBOC Zhou: Reform Of Global Monetary System Needed

2010/11/05 13:04*DJ PBOC: Almost Inevitable Someone Will Take Advantage Of Arbitrage Opportunities

2010/11/05 13:03*DJ EU Launches Consultation On New Rules For Credit Rating Agencies

2010/11/05 13:02*DJ EU: Current Pay Model For Ratings Agencies Causes Conflicts Of Interest

2010/11/05 12:55*DJ PBOC Zhou: Conflict Exists Between US Dollar's Domestic, International Settlement Roles

2010/11/05 12:54*DJ PBOC Zhou: US Monetary Policy Has Spillover Effects For World

2010/11/05 12:53*DJ PBOC Zhou: Optimal Monetary Policy For US Domestically May Hurt World Econ

2010/11/05 12:50*DJ PBOC Zhou: Chinese Way Of Curing Econ Woes Might Differ From Western Ways

2010/11/05 12:47*DJ PBOC Zhou: Shouldn't Overemphasize Any One Cure For Imbalances

2010/11/05 12:45*DJ PBOC Zhou: Rebalancing Includes Adjustment Of Export Tax Rebates

2010/11/05 12:45*DJ PBOC Zhou: Rebalancing Includes Higher Salaries, Energy, Resources Price Reforms

2010/11/05 12:43*DJ PBOC Zhou: Increasing Domestic Consumption Also Part Of Rebalancing

2010/11/05 12:43*DJ PBOC Zhou: Foreign Exhcange Rate Is Important Part Of Rebalancing

2010/11/05 12:41*DJ PBOC Gov. Zhou: Many Different Remedies Needed To Rebalance Economy

2010/11/05 12:39DJ Vietnam Central Bank Raises Benchmark Rate To 9% From 8%
HANOI -The State Bank of Vietnam said Friday it has raised its benchmark rate on dong-denominated loans to 9% from 8%.This is the first time the central bank has adjusted the benchmark rate since December 2009, when it raised the rate to 8% from 7%.The central bank also raised the rediscount annual interest rate--the rate it pays commercial banks on their surplus funds--to 7% from 6%, it said in a statement.The rate for recapitalizing banks was raised to 9% from 8%, it added.
2010/11/05 12:28*DJ Nikkei Stock Average Up More Than 3.0%

2010/11/05 12:13*DJ Vietnam Central Bank Raises Benchmark Rate To 9% From 8%

2010/11/05 12:11*DJ ASEAN Draft: Willing In Principle To Work With G-20 To Cut Global Imbalances

2010/11/05 12:10*DJ ASEAN Draft: Curr Acct Targeting May Be Detriment To Free Trade

2010/11/05 12:09*DJ ASEAN Draft Proposal: Concerned About Targeting Curr Acct To Cut External Imbalances

2010/11/05 11:58=DJ BOE WATCH: Bond Buying On Hold, MPC Still Poised For Action

2010/11/05 11:26*DJ Hang Seng Index End-2011 Target Raised To 26,500 Vs 23,050 By Citigroup

2010/11/05 11:18*DJ OIL FUTURES: Nymex December Crude Breaks Above $87 A Barrel

2010/11/05 11:15DJ BOJ Leaves Overnight Call Rate Range At 0.0% To 0.1%
TOKYO -The Bank of Japan's policy board Friday decided to leave its super-easy monetary policy unchanged, and finalized its plan to purchase trust funds under its new Y5 trillion asset-purchase program. The board voted unanimously at the end of a two-day meeting to keep the bank's unsecured overnight call loan rate at a range of 0.0%.1%. The board also discussed further details of planned purchases of exchange-traded funds and real-estate investment trusts. The central bank decided to buy ETFs linked to the Topix index of all the Tokyo Stock Exchange First Section issues and the Nikkei Stock Average. It will also purchase J-REITs that are rated AA or higher. The BOJ announced aggressive 'comprehensive monetary easing' last month, which includes the new asset-buying fund. Last week, the central bank said that the asset buying will cover a much wider range of securities than previous programs, including more speculative BBB-rated corporate bonds. While the bulk of the money--Y3.5 trillion--is to be spent on Japanese government securities, the BOJ will for the first time also buy exchange traded funds and real estate investment trusts. Market participants are now waiting for BOJ Gov. Masaaki Shirakawa's remarks at a press conference starting 0630 GMT.
2010/11/05 10:47*DJ Yen Rises Slightly Vs Dlr,Euro After BOJ Policy Board Outcome

2010/11/05 10:45*DJ BOJ: To Take Appropriate Policy Based On Econ, Price Moves

2010/11/05 10:43*DJ BOJ: To Continue Efforts To Pull Japan Out Of Deflation

2010/11/05 10:42*DJ BOJ: Pace Of CPI Decline Is Slowing

2010/11/05 10:41*DJ BOJ: To Start Buying JGBs Under New Program Next Week

2010/11/05 10:41*DJ BOJ Board Votes Unanimously To Keep Rates Unchanged

2010/11/05 10:40*DJ BOJ: Japan Economic Recovery Pausing

2010/11/05 10:36*DJ BOJ Sets Overnight Call Rate Range At 0.0% To 0.1%

2010/11/05 10:04=DJ FOREX VIEW: Amid Questions, Fed Answers One: Yes, The Dollar Will Be Weak

2010/11/05 10:03DJ UK Deputy PM Clegg Hits Back At Conservative EU Skeptics - FT
The U.K. will wave through reforms of a European treaty intended to improve euro-zone governance and underpin the euro, U.K. Deputy Prime Minister Nick Clegg told the Financial Times in an article published on its website Thursday.Clegg said he wouldn't bow to Conservative backbench pressure to hold a referendum on the reform, and that it had no direct bearing on the U.K., the FT reported.Clegg also told the FT "we are not going to reopen this issue of the repatriation of powers. We are not proposing to go backwards," in response to Conservative MPs who have suggested talks on the issue could be used to reclaim sovereignty from Europe.Clegg warned though that the U.K. expected a focus on economic reform and tough budget discipline in return for its support, the FT reported.Full story: http://www.ft.com/cms/s/0/3733b27e-e854-11df-89950144feab49a.html#axzz14MU9SEFx.
2010/11/05 09:56DJ Japan Economy Minister: Amount In BOJ Asset Purchase Fund 'Small'
TOKYO -Japan's economy minister said Friday the Bank Of Japan's latest monetary easing measure, a Y5 trillion asset purchase program, is still 'small', suggesting he wants the central bank to expand the new fund. 'We appreciate the speedy decision, and the focus now is on the amount (of the asset-purchase fund),' Banri Kaieda said at a news conference after a regular cabinet meeting. On Oct. 5, the central bank launched a Y5 trillion fund to buy various financial assets, including government securities, exchange traded funds and real-estate investment trusts. Although Kaeieda said he expects the BOJ to eventually raise the amount of the fund, he added that it is not an issue that is expected to be immediately finalized at the central bank's two day policy board meeting scheduled to finish Friday.
2010/11/05 09:54DJ Volcker: Any Country Can Act If Excessive Fund Inflows Are Expected
SEOUL -Paul Volcker, an adviser to U.S. President Barack Obama, said Friday any country can take action if excessive fund inflows are expected due to quantitative easing by the U.S. and other major economies.He said at a lecture in Seoul that he's seeing asset bubbles forming in emerging market economies as a result of funds flowing into those regions.He called for concerted efforts to address global imbalances, saying a single country can't resolve the matter.
2010/11/05 09:50DJ Japan Finance Minister Noda: Need To Closely Watch US Monetary Policy
TOKYO -Japan's finance minister said Friday it is vital to keep a 'very close eye' on the U.S.'s monetary easing policy, signaling his concern about the impact it may have on the Japanese economy or the yen's exchange rates.Yoshihiko Noda's remarks come after the Federal Reserve unveiled a plan Wednesday to buy $600 billion of U.S. Treasurys over the next eight months to support the nation's slowing economy, a step some analysts say could push the dollar lower versus the yen.'I believe that it is necessary for us to watch developments regarding the U.S.'s economic conditions and monetary policy closely enough,' Noda said at a news conference after a regular Cabinet meeting. 'Likewise, we will stick to our fundamental stance that we will continue to monitor the foreign exchange market with great interest and will take decisive steps when necessary.'
2010/11/05 09:48DJ Ex-Fed Chief Volcker: Fed's Easing Move Won't Change 'General Picture'
SEOUL -Paul Volcker, an adviser to U.S. President Barack Obama, said Friday he doesn't expect the monetary quantitative easing by the U.S. Federal Reserve to significantly improve the economic conditions in the U.S. and globally. 'Obviously, the action that was taken in an effort to try to spur the economy...is not the kind of action that's likely to change the general picture that I have described of slow, labored recovery over a period of time,' the former Federal Reserve chairman said at a lecture in Seoul. The Fed Wednesday announced a $600 billion asset-buying plan, dubbed quantitative easing, to inject life into an anemic U.S. economy. Volcker said the Fed's unconventional monetary easing could eventually lead to inflation and called on the central bank to be cautious about taking further quantitative easing steps.
2010/11/05 09:14*DJ US Dollar Falls To NT$30.14; Lowest Since March 2008

2010/11/05 08:57*DJ Japan Noda: Plan To Hold Bilateral Talks With Geithner During APEC

2010/11/05 08:56*DJ Japan Kaieda: Fed's Move May Prompt BOJ To Raise Asset Purchase Amount

2010/11/05 08:55*DJ Japan Fin Min Noda: Will Take Decisive Forex Steps If Needed

2010/11/05 08:49*DJ Japan Kaieda: Amount Of Asset Purchases In BOJ Easing Small

2010/11/05 08:40*DJ Japan Econ Min Kaieda: TPP Trade Pact Important For Revitalizing Japan Econ

2010/11/05 08:36*DJ RBA: Expects Continuation Of Solid Employment Growth

2010/11/05 08:36*DJ RBA: Near-Term Inflation Outlook Lowered On High A$

2010/11/05 08:35*DJ RBA Lowers Dec 2010 CPI Forecast To 2.75% From 3.25%

2010/11/05 08:35*DJ RBA: A$ Could Appreciate Further In Current Environment

2010/11/05 08:35*DJ RBA Leaves Dec 2011 Core Inflation Forecast At 2.75%

2010/11/05 08:34*DJ RBA Lowers June 2011 CPI Forecast To 2.75% From 3.25%

2010/11/05 08:34*DJ RBA Lowers June 2011 GDP Growth Forecast To 3.5% From 3.75%

2010/11/05 08:33*DJ RBA Lowers Dec 2010 Core Inflation Forecast To 2.5% Vs 2.75%

2010/11/05 08:32*DJ RBA Lowers June 2011 Core Inflation Forecast To 2.5% Vs 3.25%

2010/11/05 08:16=DJ IMF Blanchard: IMF Still Sees 4%-5% Global Growth 2010, 2011
LONDON -International Monetary Fund Chief Economist Olivier Blanchard said Thursday the IMF still expects global growth of 4% to 5% this year and next, correcting comments he made in an interview earlier in the day. In remarks by telephone in Washington earlier, Blanchard had said world economic growth this year and next would be 3% to 4%. However, speaking in London on Thursday evening, Blanchard said he had 'made a mistake.' 'There has been no change in the forecast,' he said, reiterating that global growth would be between 4% and 5% this year and next. Blanchard praised the Federal Reserve decision to embark on a second round of quantitative easing, saying he believes it is 'worth doing,' because of the substantial risks the U.S. economy faces. He said it is 'very important that people continue' to expect inflation in the U.S. to avoid a deflationary spiral. However, he said the direct impact of quantitative easing on U.S. borrowing rates may be modest, with U.S. Treasury yields perhaps falling 10 to 20 basis points.***********Speaking on the global economy, Blanchard predicted that Japan 'has a very tough time ahead of it,' but that Germany's growth may allow it to pull 'away from the pack.'He also said quantitative easing could result in some U.S. dollar depreciation.
2010/11/05 08:05*DJ Nikkei Stock Average Opens Up 1.5% At 9500.60

2010/11/05 08:05*DJ Nikkei Stock Average Reclaims 9500 Mark, First Time Since Oct 19

2010/11/05 08:02*DJ Lead December JGB Futures Open Up At 143.37 Vs 143.28 Thursday

2010/11/05 07:51*DJ Ex-Fed Chief Volcker: Fed's Quantitative Easing To Cause Inflation

2010/11/05 07:14DJ US Fed Total Discount Window Borrowings Wed $47.17 Bln
WASHINGTON -Increasing U.S. Treasury security holdings in the latest week drove a slight expansion in the Federal Reserve's balance sheet.The Fed's asset holdings in the week ended Nov. 3 rose to $2.303 trillion from $2.298 trillion a week earlier, the Fed said in a report released Thursday.The Fed's balance sheet has hovered near the $2.3 trillion mark for months, but the central bank's assets are poised to begin rising toward $3 trillion next week as it embarks on a bond-buying plan announced Wednesday.At the conclusion of its two-day policy meeting, the Fed said it would buy $600 billion in U.S. Treasury securities in an effort to drive interest rates down further and spur economic growth. The Fed also plans to invest proceeds from another $250 billion to $300 billion in maturing mortgage-backed securities it bought earlier into additional Treasury holdings.The Fed's Treasury holdings on Wednesday stood at $842.01 billion, Thursday's report said. That compares with $837.85 billion in the prior week.The Fed's holdings of mortgage-backed securities were steady at $1.051 trillion.Meanwhile, total borrowing from the Fed's discount lending window slipped to $47.17 billion on Wednesday from $47.56 billion a week earlier.Borrowing by commercial banks through the Fed's discount window fell to $31 million on Wednesday from $47 million a week earlier.U.S. government securities held in custody on behalf of foreign official accounts climbed to $3.325 trillion from $3.300 trillion in the previous week.Treasurys held in custody on behalf of foreign official accounts as of Wednesday rose to $2.591 trillion from $2.570 trillion in the previous week.Holdings of agency securities increased to $734.11 billion from the prior week's $730.70 billion.Further data on the Fed's balance sheet, including a breakdown of district-by-district discount window borrowing, can be found at http://www.federalreserve.gov/releases/h41/Current/h41.pdf.
2010/11/05 07:09*DJ Rio Tinto Shares Up 3.0% Early

2010/11/05 06:35DJ Portugal Won't Call For IMF, EU Bailout - Government Official
LISBON --The Portuguese government Thursday said it had no need for a rescue package from the International Monetary Fund or the European Union, even as it has to pay ever higher rates for fresh cash on the money markets.Portugal "rules out the possibility of seeking external help for the financing of its economy," government spokesman Pedro Silva Pereira said."Our message rather is that Portugal is doing what it must do. It is taking the budget consolidation measures which the international markets themselves judge to be absolutely necessary," Pereira said. "These measures are recognized as credible and adequate and parliament has passed a tight budget."The government statement came as Portuguese borrowing rates on the financial markets soared to historic highs despite parliamentary approval Wednesday of a tough austerity budget aimed at slashing the public deficit.Pereira said the markets were ignoring the budget measures and were driven in part by speculative interests "which is irrational."Spain, Portugal and Ireland have all been under intense pressure since debt-strapped Greece was only saved from default in May by a EUR110 billion rescue package put together by the EU and IMF.
2010/11/05 06:22=DJ WORLD FOREX: Dollar Slides Day After Fed Decision; QE3 Possibilities Weigh-2-

2010/11/05 06:15DJ US M1 Rose $16.3B In Oct. 25 Week; M2 Fell $9.6B
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $16.3 billion to $1.781 trillion, while M2 fell $9.6 billion to $8.764 trillion.The figures are preliminary estimates for the week extending through Oct. 25 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/.
2010/11/05 06:09DJ Treasurys Rally On Fed; 10-Yr TIPS Sold At Record Low Yield
(Updates bond yields; Adds price table and swap spreads.) By Min Zeng Of YORK -Treasurys rose Thursday as investors rode the euphoric wave of the Federal Reserve's $600 billion government-bond buying plan.At the peak of the buying, the five-year note's yield hit a record low of 1.015% while the two-year note's yield touched an all-time trough of 0.316%. Bonds prices move inversely to yields."The Fed is the key driver which keeps the party train moving forward," said James Combias, head of U.S. Treasury trading at Mizuho Securities USA Inc. in New York.The latest gains extend a rally from Wednesday on the Fed's release of a plan to conduct a second round of buying of Treasurys. The central bank is hoping to cut long-term borrowing costs for consumers and businesses to stimulate spending.As of 4 p.m. EDT, the benchmark 10-year note was up 27/32 in price to yield 2.480%. The yield, a benchmark for consumer and corporate borrowing, has dropped from this year's peak of 4.017% in early April.Thursday's weekly jobless-claims data also gave Treasurys a boost. Initial unemployment claims jumped by 20,000 to 457,000 in the week ended Oct. 30. Economists surveyed by had expected claims would rise by 11,000.Eric Green, chief U.S. rates strategist at TD Securities in New York, noted the 10-year yield will fall to 2.2% or even lower in the short term with the Fed as a "committed buyer."More importantly, Green noted that the Fed is devoting 23% of its $600 billion buying plan to Treasurys maturing in seven to 10 years, and that amount will be higher than the net supply of those maturities, a reason why the seven- and 10-year notes were the best performers in the bond market.But some traders said it is a sign that the planned buying from the Fed is going to distort the price action in the bond market. Another sign lies in the underperformance of the 30-year bond.The 30-year bond tumbled a day earlier with its yield rising to the highest level since late July, as only 4% of the Fed's $600 billion buying plan will be in maturities ranging from 17 to 30 years.In contrast, more than 80% will be in notes maturing between 2.5 years and 10 years, which galvanized many investors to sell the 30-year bond and buy those notes favored by the Fed's buying plan.In late afternoon trading, the 30-year bond was 10/32 higher to yield 4.032%, lagging shorter-term notes. The yield premium to own the 30-year bond over the benchmark 10-year note touched a record high of 157 basis points.David Ader, head of government-bond strategy at CRT Capital Group LLC, said the 30-year bond is likely to continue to underperform, and the yield premium to the 10-year may rise to 165 to 175 basis points in coming weeks.The 30-year bond has been a laggard in recent weeks as some investors bet that the Fed's stimulus may generate longer-term inflation that will erode the value of bond's fixed return over time.To hedge inflation, many investors have flocked to gold and Treasury inflation-protected securities, two popular tools to fend off rises in consumer prices. That has bolstered demand for TIPS sales.The Treasury Department sold $10 billion in 10-year TIPS Thursday afternoon at a record-low yield of 0.409%, a boon for the U.S. government to borrow cheaply to fund a budget shortfall.TIPS gain value if consumer prices rise. In contrast, inflation eats into the fixed return on regular Treasurys over time.The 10-year TIPS auction wrapped up a record year of an $86 billion supply of TIPS, up from $58 billion in 2009. US Swap Spreads Mixed The 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 2 basis points tighter at 14.5 basis points. The 10-year swap spread was 3.25 basis points wider at 13.75 basis points.COUPON ISSUE PRICE CHANGE YIELD CHANGE3/8% 2-year 100 3/32 up 1/32 0.330% -1.0BP3/4% 3-Year 100 5/32 up 3/32 0.441% -3.2BP1 1/4% 5-year 101 3/32 up 14/32 1.026% -9.0BP1 7/8% 7-Year 101 2/32 up 24/32 1.711% -11.5BP2 5/8% 10-year 101 8/32 up 27/32 2.480% -9.9BP3 7/8% 30-year 97 9/32 up 10/32 4.032% -1.9BP***********2-10-Yr Yield Spread: +215 BPS Vs +224 BPS Source: Tradeweb
2010/11/05 06:02=DJ WORLD FOREX: Dollar Slides Day After Fed Decision; QE3 Possibilities Weigh

2010/11/05 05:29=DJ US Stocks Surge, DJIA Returns To Pre-Lehman Level-2-

2010/11/05 04:52=DJ US Stocks Surge, DJIA Returns To Pre-Lehman Level

2010/11/05 04:48DJ PRECIOUS METALS: Gold Leaps To Record On Inflation Concerns

2010/11/05 04:34*DJ IMF: QE Likely To Result In Some USD Depreciation

2010/11/05 04:31*DJ Foreign Central Banks Treasury Holdings At $2.591T

2010/11/05 04:31*DJ Foreign Central Banks Agency Debt Holdings At $734.11B

2010/11/05 04:30*DJ Foreign Central Bk Custody Holdings At $3.325T As of Wed - Fed

2010/11/05 04:30*DJ US Fed Total Discount Window Borrowings Wed $47.17B

2010/11/05 04:24*DJ IMF Blanchard: IMF Still Sees 4%-5% Global Growth 2010, 2011

2010/11/05 04:07*DJ Nasdaq Finishes Up 37.07 Points (1.46%) At 2577.34, Financials Lead

2010/11/05 04:06*DJ DJIA Closes Up 219.64 Points (1.96%) At 11434.77, A Two-Year High

2010/11/05 03:53DJ OIL FUTURES: Nymex Crude Rises Past $86/Bbl Following Fed Move

2010/11/05 03:19*DJ Gibbs: Obama Wouldn't Accept Permanent Extension Of Tax Cuts For Wealthy

2010/11/05 02:34*DJ OIL FUTURES: Nymex Crude Settles $1.80 Higher At $86.49/Bbl

2010/11/05 02:11*DJ Comex Dec Gold Settles At Record $1,383.10 Per Ounce

2010/11/05 01:52*DJ Chinese Min: Chinese Pres Gave Full Support To French G20 Presidency

2010/11/05 01:39*DJ NY Dec Gold Up $44.40 At $1,382 After Close, Ahead Of Settle

2010/11/05 01:34*DJ Comex Gold Poised To Settle At Record On Inflation Fears

2010/11/05 01:02DJ Irish Govt: Will Make EUR6 Billion In Budget Cuts In 2011
DUBLIN -Ireland's Finance Minister Brian Lenihan Thursday said the government would make budget cuts of EUR6 billion in 2011--double the amount previously expected--as it fights to control its huge budget deficit.The budget cuts, announced in the government's economic and budgetary outlook 2011-2014, will bring Ireland's budget deficit in 2011 down to between 9.25% to 9.5% of gross domestic product.Ireland's budget deficit is expected to reach 32% of GDP by the end of this year.A Ministry of Finance spokesman said the budget cuts will be a combination of spending cuts and tax rises in the ratio of 3:1.The government said late last month that it would need to make budget cuts of EUR15 billion over the next four years in order to reduce the country's budget deficit to 3% of GDP by 2014, as previously agreed with the European Union.The government has said these budget cuts would be significantly "frontloaded" in 2011. By Ainsley Thomson and Paul Hannon, ; 44 20 7842 9318, ainsley.thomson@dowjones.com
2010/11/05 01:01DJ Fed Creates Office To Implement Dodd-Frank Overhaul Law
WASHINGTON -The Federal Reserve is creating an office to implement legislation overhauling the U.S. financial regulation system.The Fed on Thursday announced it established the Office of Financial Stability Policy and Research. J. Nellie Liang, a Fed economist, was named as its director.The office will bring together economists, banking supervisors, and markets experts to focus on financial stability. It will coordinate Fed staff efforts to identify and analyze potential risks to the financial system and the overall economy."The financial stability team will play an important role in implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act, in our oversight of systemically important financial institutions, and in our overall surveillance of the financial markets and the economy," Fed Chairman Ben Bernanke said in a news release.The Dodd-Frank law was passed by Congress last summer, a response to widespread calls for changes in the regulatory system after the U.S. financial crisis erupted.
2010/11/05 00:45*DJ Irish Govt Will Deliver Full 2011 Budget On Dec 07

2010/11/05 00:41*DJ Irish Govt: Budget Deficit 7.25% Of GDP In 2012, 5.5% In 2013

2010/11/05 00:38*DJ Irish Govt: Unemployment Rate To Fall To 12% In 2012, 11% In 2013

2010/11/05 00:38*DJ Irish Govt: Economy To Grow By 3.25% In 2012, 3% In 2013

2010/11/05 00:36*DJ Irish Govt: Will Make EUR6 Billion In Budget Cuts In 2011

2010/11/05 00:35*DJ Irish Govt: Economy To Grow By 1.75% In 2011

2010/11/05 00:35*DJ Irish Govt: Budget Deficit 9.25% to 9.5% Of GDP In 2011

2010/11/05 00:12=DJ UPDATE: Trichet Says Unconventional Measures 'Temporary'

2010/11/05 00:12*DJ Trichet: To Decide On Non-Standard ECB Measures In December

2010/11/05 00:12*DJ Fed Creates Office To Implement Dodd-Frank Overhaul Law

2010/11/05 00:02*DJ Trichet: Irish Situation Different To Greece

2010/11/05 00:02*DJ Trichet: ECB Bond Buying Program Remains "In Force"