Market Rumours

2010/11/08 17:53*DJ Geithner: Seeking Global Cooperation On Currency Policies

2010/11/08 17:07*DJ 10Y Greek/German Yield Spread 31Bps Tighter At 873Bps

2010/11/08 16:46*DJ Obama: Won't Comment On Fed Actions

2010/11/08 16:45*DJ Obama: Fed's Mandate And My Mandate Are To Grow Economy

2010/11/08 16:31=DJ Standard Chartered: GBP3.26 Bln Rights Issue 98.53% Subscribed
(Adds comments from Standard Chartered spokeswoman on rights issue.) By Prudence Ho and Yvonne Lee Of HONG KONG -Standard Chartered PLC (STAN.LN) said Monday its shareholders subscribed to 98.53% of its GBP3.26 billion (US$5.26 billion) rights issue.A spokeswoman for the bank said it isn't unusual that not all of the bank's shareholders opted to exercise their rights for the new shares on offer. In April 2009, HSBC Holdings PLC's over US$18 billion rights issue had a take-up rate of 96.6%.U.K.-based, Asia-focused Standard Chartered said in October it was planning to raise around GBP3.26 billion in a rights issue to boost its capital position as the Basel III capital rules begin to take effect.Under Basel III, internationally active banks will have to hold capital equal to at least 7% of their assets, much higher than current standards. Banks will also be required to hold a further countercyclical capital buffer of up to 2.5% and an additional potential buffer imposed on systematically important institutions.Some rules start to take effect in 2013, but most banks will have until 2019 to comply.Standard Chartered said it received valid acceptances for 256.69 million of the 260.5 million shares offered to shareholders.The London- and Hong Kong-listed bank planned to offer one share for every eight shares held at GBP12.80 each, or HK$156.82 a share for Hong Kong shareholders.Joint global bookrunners JPMorgan Cazenove, Goldman Sachs International, UBS Investment Bank and Standard Chartered Securities Ltd. will seek buyers for the remaining 1.47%, or 3.84 million shares, Standard Chartered said.
2010/11/08 16:30=DJ PRECIOUS METALS: Gold Off Highs In Asia As Euro Slumps

2010/11/08 16:09*DJ 10Y Greek/German Yield Spread Stable At 904Bps Post Elections

2010/11/08 16:09*DJ 10Y Irish/German Yield Spread 7Bps Wider At 528Bps

2010/11/08 16:06*DJ Hang Seng Index Rises 8.1% Month To Date

2010/11/08 16:06*DJ Hang Seng Index Rises For 6th Straight Session

2010/11/08 16:05*DJ Hang Seng Index Ends Up 0.5% At 24,964.37; New 2.5-Year High

2010/11/08 16:04*DJ Stoxx Europe 600 Index Dn 0.1% After The Open

2010/11/08 16:01*DJ FTSE 100 Dn 0.1% After The Open

2010/11/08 15:38DJ JGBs Fall On Weak US Treasuries, But Room For Decline Limited
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.685 .005 TSE Dec 10-Yr JGB Futures Price: 142.86 .25 10-Yr 1.0% JGB No. 310 Yield: 0.955% +0.030 TOKYO -Japanese government bonds finished lower Monday as U.S. treasuries weakened following strong October payrolls data, while gains in Tokyo stocks prompted a shift out of safe-haven investments. Among cash bonds, the recently issued 30-year JGBs ended up 0.015% at 2.005%, reaching the 2.000% mark for the first time since Sept. 14. Lead December 10-year futures fell to as low as 142.85. While surprisingly strong economic indicators could dent bond demand going forward, analysts say the underlying JGB-buying trend seen in recent trading is likely to continue as the Bank of Japan guides interest rates lower through additional steps, including purchases of more JGBs and other securities. RBS Securities chief strategist Akito Fukunaga said that while U.S. Treasury auctions scheduled for this week aren't likely to hurt investor sentiment, China's economic indicators due Thursday do warrant close scrutiny. "What we should watch out for most as a potential risk for the current market trend is China CPI," Fukunaga said. The possibility of China's consumer prices having risen sharply in October isn't high, but an unexpectedly strong showing could alarm investors, who generally expect the central bank to next hike rates in the first quarter of 2011, he added. The consumer price index is expected to have risen 4.0% on year in October, according to the median forecast of 12 economists polled by . While China's official target is for inflation to average under 3.0% for 2010, the rise has been bigger in recent months due largely to unusual weather. The Bank of Japan's first round of asset purchases Monday as part of the monetary easing measures announced Oct. 5 didn't have an impact on the JGB market. The central bank said it offered to buy Y150 billion of long-term bonds and received Y888.7 billion of offers. As part of its Y5 trillion asset buying plan, the BOJ is buying Y1.5 trillion of bonds maturing in one to two years through the end of 2011. Other Cash Bond Yields At 0600 GMT Change 5-Year 0.3% JGB No. 92 Yield: 0.325% +0.020 20-Year 1.8% JGB No. 122 Yield: 1.845% +0.020 30-Year 2.0% JGB No. 33 Yield: 2.005% +0.015***********
2010/11/08 15:37DJ German Sept Unadjusted Trade Surplus EUR16.8B Vs EUR9B In Aug
DJ German Sept Unadjusted Trade Surplus EUR16.8B Vs EUR9B In Aug BERLIN -German exports rose in September from the previous month, the Federal Statistical Office said Monday, reversing two months' of declines. German exports climbed 3% on month in September to EUR84.3 billion, according to seasonally adjusted data from the office, known as Destatis. German September adjusted imports fell 1.5% on month to EUR68.7 billion. Unadjusted data showed that Germany's trade surplus shot up to EUR16.8 billion in September, from EUR9 billion in August, while the country's current account surplus rose to EUR14 billion from EUR5 billion in August. Economists in a poll had forecast a trade surplus of EUR12 billion.
2010/11/08 15:23DJ Tokyo Shares: Nikkei Ends At 3-Mo High On Firm U.S. Jobs Data-2-

2010/11/08 15:09=DJ WORLD FOREX: Euro Lower As Debt Questions Loom Again-3-

2010/11/08 15:08*DJ German Sept Exports Up Adjusted 3% On Month To EUR84.3B

2010/11/08 15:07*DJ German Sept Imports Down Adjusted 1.5% On Month To EUR68.7B

2010/11/08 15:06*DJ Economists Had Forecast Sept Trade Surplus Of EUR12 Billion

2010/11/08 15:05*DJ German Current Account Surplus EUR14B Vs EUR5B In Aug

2010/11/08 15:02*DJ German Sept Unadjusted Trade Surplus EUR16.8B Vs EUR9B In Aug

2010/11/08 14:59DJ Forex Options: Dlr/Yen Options Flat On View Spot To Stay Stable
TOKYO -Dollar/yen options remained unchanged in Asia as the U.S. dollar stuck to a narrow range against the yen. Benchmark volatilities implied by one-month at-the-money options stood at 10.10%/10.80%, unchanged from New York Friday. The U.S. unit kept to a range of Y81.14 to Y81.44 in Tokyo morning trade. 'There is a growing sense that the spot may have trouble falling below Y80,' as players hesitate to test Japanese government resolve to intervene in currency market again on any break below the record low of 79.75, said an options dealer at a major Japanese bank. Volatilities may fall slightly in coming sessions, the dealer said, if the dollar remains relatively firm overall, as the euro fell against the U.S. currency Monday. One-month 25 delta risk-reversals favor dollar-put/yen-call options by 0.55%/1.05% compared with 0.60%/1.10% in Tokyo Friday, showing a slight slackening in demand for hedges against falls in the dollar against the yen.
2010/11/08 14:57DJ Tokyo Shares: Nikkei Ends At 3-Mo High On Firm U.S. Jobs Data

2010/11/08 14:56=DJ FED WATCH: Improving Jobs Picture Complicates Fed's Bond-Buying Bid

2010/11/08 14:56=DJ FED WATCH: Improving Jobs Picture Complicates Fed's Bond-Buying Bid

2010/11/08 14:55=DJ WORLD FOREX: Euro Lower As Debt Questions Loom Again-2-

2010/11/08 14:45*DJ Swiss Oct Jobless Rate At 3.5% Vs 3.5% In Sep

2010/11/08 14:36=DJ WORLD FOREX: Euro Lower As Debt Questions Loom Again

2010/11/08 14:34DJ Geithner, India's Mukherjee Discuss Capital Markets, Infrastructure Finance
NEW DELHI -U.S. Treasury Secretary Timothy Geithner and Indian Finance Minister Pranab Mukherjee discussed ways to deepen economic ties between the two countries and progress on getting a global agreement on global rebalancing, a Treasury spokeswoman said Monday. Specifically, the two officials talked about technical cooperation on capital markets, infrastructure finance, and anti-money laundering and combating the financing of terrorism, the spokeswoman said.
2010/11/08 14:19=DJ ECB WATCH: ECB's Half-Hearted Bond Buying Doesn't Impress

2010/11/08 14:04*DJ Nikkei Stock Average Closes At Highest Level Since July 28

2010/11/08 14:02*DJ Nikkei Stock Average Closes Up 1.1% At 9732.92

2010/11/08 13:50DJ BOJ: Japan Economic Recovery Pausing; Pace Of Growth Pace To Slow
TOKYO -The Bank of Japan said in its monthly economic report for November that the nation's economic recovery 'seems to be pausing' although there are still 'signs of a moderate recovery,' using a slightly weaker tone than in the central bank's previous report in October.The BOJ has said Japan's economy shows signs of a moderate recovery since upgrading its assessment in May. But it slightly weakened its view last month, adding that the pace of recovery was 'slowing down.''Japan's economy is likely to grow at a slower pace for some time, but is expected to return to a moderate recovery path thereafter,' the central bank said in the report released Monday.Last week, the BOJ's policy board voted to keep the unsecured overnight call loan rate at a range of 0.0%.1% and finalized its plan to purchase unconventional assets to stimulate the sluggish economy.
2010/11/08 13:16=DJ Japan Intervened In Forex Market Only Once In September
(Adds details on the data; foreign-reserve data; analysts' comment) By Takashi Nakamichi Of TOKYO -Official data on Japan's foreign exchange intervention showed Friday that the authorities waded into the market only once in the July-September period, lowering expectations there could be fresh attempts to drive the yen down, even as it remains near a record high against the dollar.The government of Prime Minister Naoto Kan sold Y2.125 trillion for dollars Sept. 15 in an effort to rein in a strong yen that threatens to undermine Japan's feeble economic recovery, the latest finance ministry data showed.The intervention was the first in more than six years and was the largest daily yen-selling/dollar-buying by the government on record, according to finance ministry officials. The very public action was quickly disclosed by Finance Minister Yoshihiko Noda, and initially pushed the dollar up by around Y3 during the day to nearly Y86.It was the only intervention during the month, the data showed, ending weeks of speculation that the dollar's roughly one-yen jump Sept. 24 could also have been due to government yen-selling.The lack of continued selling suggests 'it's probably hard for Japan to act' unless the dollar falls below the key Y80 mark, or plunges past the record low of Y79.75, said Koji Fukaya, chief currency strategist at Credit Suisse in Tokyo.Helped by a recent string of better-than-expected U.S. economic data, the dollar has recovered to above Y81.00 since hitting a 15-and-a-half-year low of Y80.21 on Nov. 1.The data could reinforce the growing view that Tokyo's hands are tied in its currency policy amid international efforts to reduce trade tensions.The Group of 20 industrial and developing economies have pledged to avoid setting off a potentially damaging global competition to weaken currencies to bolster exports.Should Japan intervene again, that could stoke concerns about a potential 'currency war' and undermine efforts by other advanced nations to persuade China to let its currency rise to fix trade imbalances, analysts say.Yet, pressure on Japanese politicians to do something about the yen could increase in the coming weeks, given the administration's plunging public support.A poll in the daily Yomiuri Shimbun on Monday showed the approval rating had tanked to 35% from 53% in the previous survey in early October. Among the factors pushing the rating lower are worries about the yen, which, among other things, renders Japanese exports less competitive in global markets.A person familiar with the matter told that the September intervention came as Kan's office--worried about mounting public concerns about the government's inability to stop the yen's rise--pressured a reluctant Finance Minister Noda to approve intervention.Until that day, Chief Cabinet Secretary Yoshito Sengoku had 'repeatedly' told the finance ministry behind closed doors that he wanted intervention, another person familiar with Tokyo's currency policy said.Monday's data cover only the July-September period, leaving it unclear whether the greenback's more than one-yen jump during Tokyo hours Nov. 1 was due to intervention. Most traders saw it as a result of a trading glitch or a cross-asset trade by a large hedge fund, rather than official action.Japan's foreign currency reserves stood at $1.118 trillion at the end of October, up $8.53 billion from September, the finance ministry said Monday.
2010/11/08 13:03*DJ BOJ: Japan Econ To Grow At Slower Pace For Some Time

2010/11/08 13:01*DJ BOJ: Japan Economy Shows Signs Of Moderate Recovery

2010/11/08 13:00*DJ Japan Sep Coincident Indicators -1.3 Pts On Month

2010/11/08 13:00*DJ Japan Sep Leading Indicators -0.6 Pts On Month

2010/11/08 12:33DJ Treasury's Geithner: Broad Consensus On Need To Rebalance Global Economy
KYOTO, Japan -U.S. Treasury Secretary Timothy Geithner Saturday said there was broad consensus to develop a policy framework to avoid excessive current account imbalances threatening to derail a global economic recovery, but adding flesh to the bones of such an agreement would take time. Geithner, speaking at the end of a Asia-Pacific Economic Cooperation meeting, also defended Washington's easing monetary policy from criticism from emerging countries feeling the heat from subsequent massive cash flows into their economies, saying the U.S. recovery was essential to global growth. Washington had wanted to hammer out more detail at the leaders summit of the Group of 20 industrialized and developing nations next week in Seoul, South Korea, on a range of trajectories for deficit and surplus reductions as a way to calm roiled currency markets and avert a global trade war.
2010/11/08 11:50DJ Qantas CEO Says Inspection Found Issues In Three A380 Engines
SYDNEY -Qantas (QAN.AU) has found issues in three engines from its fleet of Airbus A380 super-jumbo jets after running tests in the wake of an emergency landing last week, chief executive Alan Joyce said Monday. The Australian airline has grounded its fleet of six super-jumbos after an engine blew out midair Thursday, forcing an emergency landing in Singapore, which the company has blamed on design issues or material failure linked to the Rolls-Royce Trent 900 engine. The A380 incident was followed Friday when a Qantas Boeing Co. 747 jet--also equipped with Rolls-Royce engines--was forced to return to Singapore with an engine problem soon after taking off. 'On three of the engines we did find some issues which we are investigating further,' Joyce told Australian Broadcasting Corp. He said talks with regulators, Airbus and Rolls Royce are ongoing and the company will leave the fleet on the ground 'for as long as it takes.' 'Hopefully over the next day or so we will have an understanding when the aircraft can get back in the air,' he said.
2010/11/08 11:28DJ Germany Opposes US Trade Proposal Ahead Of G-20 Summit -Report
Germany won't support the U.S. proposal on set targets to reduce trade imbalances and wants to present an alternative plan focusing on indicators such as the competitiveness of a country, its natural resources and demographics, weekly Der Spiegel said in an advanced report to be published Monday citing finance minister Wolfgang Schaeuble.The U.S. proposal 'isn't acceptable under any circumstances for Germany,' Schaeuble is quoted as saying ahead of the G-20 summit in Seoul later this week.He said the growth of German exports 'isn't based on some currency tricks, but on the increased competitiveness of companies.'Schaeuble said the U.S. economy is in a 'deep crisis' because of a bloated financial-services sector and because midsize industrial companies have been neglected. 'There are many reasons for the American problems--the German export surplus isn't among them,' he said.Magazine Web site: www.spiegel.de-Frankfurt Bureau, ; 49-69-29725-500.
2010/11/08 11:14*DJ Hang Seng Index Rises For 6th Straight Session

2010/11/08 11:13*DJ Hang Seng Index Rises 0.1% To 24,892.25; Reverses Losses

2010/11/08 10:54DJ World Bank Pres: G-20 Cooperation Needed To 'Rebalance Demand, Spur Growth' - FT
World Bank president Robert Zoellick, writing on The Financial Times' website Sunday, said Group of 20 nations need to cooperate 'not just to rebalance demand but to spur growth,' and also suggested using gold 'as an international reference point of market expectations about inflation, deflation and future currency values.' Writing ahead of the G-20 meetings to be held in South Korea this week, Zoellick also suggested that major economies, 'starting with the G-7,' forego currency intervention. He said the incoming U.S. Congress 'will need to address structural spending and ballooning debt that will tax future growth,' and also said the U.S. and China could mutually agree on steps to boost growth. He called on G-20 nations to support infrastructure, agriculture and labor in developing nations, and said they should 'complement this growth recovery program with a plan to build a cooperative monetary system that reflects emerging economic conditions.' Full story at: http://www.ft.com/cms/s/0/5bb39488-ea99-11df-b28d0144feab49a.html#axzz14dKEeR16 -; 212-416-2800
2010/11/08 10:52DJ Huijin Exec: Banks To Have More Financing Needs In Next Few Yrs
BEIJING -Chinese banks may have more fund-raising needs over the next few years as the country's economy develops further and savings deposits continue to grow, a senior executive at Central Huijin Investment Ltd. said Saturday.Li Jiange, vice chairman of Huijin, a government-run vehicle that controls stakes in big state lenders, made the comments at a forum hosted by the Caixin media group. His comment came after a number of Chinese banks either have or plan to raise fresh funds from the capital market this year in a bid to meet stricter regulatory requirements.Industrial & Commercial Bank of China Ltd. (1398.HK) received securities regulatory approval Friday to raise as much as CNY45 billion ($6.7 billion) from a rights issue.In the past two weeks, Bank of China Ltd. (3988.HK, BACHY) said it is raising as much as CNY60 billion and China Construction Bank Corp. (0939.HK, CICHY) said it's raising up to CNY61.6 billion from rights issues.The China Banking Regulatory Commission requires big banks' capital adequacy ratio to be at least 11.5%. Local media reported in recent months that the regulator might increase the CAR requirement further next year, though CBRC Vice Chairman Cai Esheng declined to comment on the report on the sidelines of the forum Saturday.Li, who stressed his view is personal and doesn't represent Huijin's stance, said banks might have even greater fund-raising needs in the future if the regulator would relax its control on banks' loan expansion, in line with international practices.The CBRC has strictly controlled banks' lending growth this year after the government's economic stimulus program led to explosive loan growth last year. The regulator has targeted the banking sector's new yuan loans at around CNY7.5 trillion this year, down from last year's nearly CNY10 trillion.Li, who is also chairman of China International Capital Corp., a leading investment bank in the local market, said banks' financing activities have helped boost CICC's business.CBRC's Cai, in his speech at the forum Saturday, also cautioned about potential risks in the domestic-banking sector, despite that some of the regulatory requirements set by the CBRC have already met or even exceeded the BASEL III requirements.He said meeting CBRC's regulatory requirements may not necessarily mean banks would be fully capable of coping with risks, especially systemic risks. He didn't elaborate.-Victoria Ruan contributed to this article, ; 8610 8400 7799; victoria.ruan@dowjones.com
2010/11/08 10:09DJ BOJ Yamaguchi: Expanding New Asset-Buy Program Is One Policy Option
TOKYO -Bank of Japan Deputy Gov. Hirohide Yamaguchi reiterated Monday that expansion of a newly introduced Y5 trillion asset-buying program is one policy option if the nation's economy deteriorates significantly down the road."If downside risks in economic and price conditions become apparent, we will try to consider policy steps in a flexible and timely manner--including expansion of the asset-purchase fund," Yamaguchi said at a Lower House budget committee.In early October, the central bank decided to launch a Y5 trillion fund to buy various financial assets. While the bulk of the money--Y3.5 trillion--will be spent on Japanese government securities, the BOJ will also purchase corporate bonds, and for the first time, exchange traded funds and real-estate investment trusts.
2010/11/08 09:45DJ APEC Finance Ministers Call For Action By Surplus and Deficit Economies
KYOTO, Japan -APEC finance ministers said Saturday that both deficit and surplus economies must take steps to keep the global economy growing, but avoided any specifics on the most-sensitive issues of capital flows and exchange rates.The statement, which was announced at the close of their annual meeting here, set goals for both sides in what has become something of a showdown between "deficit" and "surplus" nations.The statement said that deficit economies, a phrase normally used for the U.S. and other developed economies, need to "boost domestic saving, including through medium-term fiscal consolidation, while ensuring that consolidation is carefully sequenced with attention to local economic conditions, so as not to derail nascent recoveries."It also had recommendations for surplus nations, typically seen as China and other fast-growing developing economies."Economies with current account surpluses need to reduce their reliance on external demand and undertake structural reforms that catalyze stronger domestic demand-led growth, such as enhancing infrastructure finance and strengthening social safety nets," it said.It avoided any discussion on specific targets for current account imbalances, a concept promoted by Washington at the G-20 meeting of finance ministers last month.In a late change to earlier drafts, it covered concerns among Asean nations over the recent inflow of so-called "hot money," saying that the high level of such flows has raised "the risk of capital flow volatility and increases in asset prices in some economies."On exchange rates, it said that "we will move toward more market-determined exchange rate systems that reflect underlying economic fundamentals and will refrain from competitive devaluation of currencies," language that matches the statement from the recent meeting of Group of 20 finance ministers.The report also touches on regulation of financial markets, warning about "regulatory arbitrage," where business moves to jurisdictions with less-stringent regulations. This in turn can cause looser regulations as countries seek to bolster their financial service industries.
2010/11/08 09:13DJ PBOC Adviser: Current Account Surplus Under 3% Of GDP In 3 Years--Report
BEIJING -China is likely to shrink its current account surplus to below 3% of gross domestic product in the next three years, down from nearly 10% of GDP prior to the financial crisis, Saturday's China Daily quoted People's Bank of China adviser Li Daokui as saying.The newspaper didn't specify when Li made the remarks. On Friday, Chinese Vice Foreign Minister Cui Tiankai rejected a U.S. proposal, made at the Group of 20 major economies, that countries should target specific reductions in their trade imbalances.But the proposal actually initiated from Chinese central bank officials, when PBOC Vice Governor Yi Gang offered a pledge last month to reduce China's current-account surplus to less than 4% of gross domestic product over a period of years.
2010/11/08 08:47*DJ BOJ Yamaguchi: To Take Monetary Policy Steps Flexibly

2010/11/08 08:46*DJ BOJ Yamaguchi: May Expand New Asset Buy Program If Econ Downside Risks Become Clear

2010/11/08 08:42=DJ FOREX WEEK AHEAD: Turning The Page On Quantitative Easing

2010/11/08 08:21DJ Microsoft, Saxo Bank Team On Online Trading Platform - Report
Microsoft Corp. and Saxo Bank plan to launch an online trading platform Wednesday, The Financial Times reports on its website Sunday. According to the report, the MSN Trader platform will allow users to trade 11,000 shares on 23 exchanges across the globe. The system will also allow users to trade bonds, ETFs and foreign-exchange options, the FT said. Full story at: http://www.ft.com/cms/s/2/631cd63e-ea9a-11df-b28d0144feab49a.html#axzz14cf6GPra -; 212-416-2800
2010/11/08 08:08*DJ Japan MOF Official: Sept 15 Move Marks Biggest Dollar-Buying, Yen-Selling Intervention On Record

2010/11/08 08:06*DJ Nikkei Stock Average Breaks 9700 Level, 1st Time Since Oct 7

2010/11/08 08:03*DJ Nikkei Stock Average Opens Up 0.8% At 9699.79

2010/11/08 08:02*DJ Lead December JGB Futures Open Down At 143.04 Vs 143.11 Friday

2010/11/08 07:55*DJ DBS Target Raised To S$15.90 From S$14.90 By Citi

2010/11/08 07:53*DJ DBS Raised To Buy From Hold By Citi

2010/11/08 07:46*DJ Lead Nikkei Futures Open Up 45 Points At 9680 On SGX

2010/11/08 07:40*DJ Treasury's Geithner: Don't Expect Current Account Target At G-20

2010/11/08 07:20*DJ APEC Finance Mins: Capital Inflows Have Raised Risk of Asset Price Increases In Some Economies