Market Rumours

2010/11/10 17:49*DJ German Economic Council Sees 2010 Budget Deficit At 3.7% Of GDP

2010/11/10 17:49*DJ German Economic Council Sees 2010 Inflation At 1.1% Vs 1.4% 2011

2010/11/10 17:49*DJ German Economic Council Sees 2011 Jobless Rate At 7.0%

2010/11/10 17:48*DJ German Economic Council Sees 2011 GDP Growth At 2.2%

2010/11/10 17:48*DJ German Economic Council Sees 2011 Budget Deficit At 2.4% Of GDP

2010/11/10 17:48*DJ German Economic Council Sees Exports +15.5% 2010, +6.7% 2011

2010/11/10 17:47*DJ German Economic Council Sees 2010 GDP Growth At 3.7%

2010/11/10 17:46*DJ German Economic Council Sees 2010 Jobless Rate At 7.7%

2010/11/10 17:00*DJ Italy Sep Industrial Output -2.1% On Mo; +4.1% On Yr

2010/11/10 17:00*DJ Italy Sep Industrial Output Was Seen At -0.8% MM; +7.6% YY

2010/11/10 16:45*DJ 10Y Portuguese/German Yield Spread 3Bps Wider At 439Bps

2010/11/10 16:44=DJ PRECIOUS METALS: Gold, Silver Rebound After Tuesday Plunge

2010/11/10 16:44*DJ 10Y Irish/German Yield Spread Hits Record Wide At 560Bps

2010/11/10 16:27=DJ DATA SNAP: French Sep Industrial Output Below Expectations
LYON, France -French industrial production rose less than expected in September, official data from national statistics agency Insee showed Wednesday. Industrial production rose 0.1% in September from August, while the market was expecting a 0.5% rise, according to a survey of economists by . Industrial production in the manufacturing sector, which is a key component of the overall figure, fell 0.1% in September from August. The weaker-than-expected industrial production figure puts growth expectations in the third quarter under pressure. France reports third-quarter gross domestic product for the first time Friday, with economists expecting a 0.4% expansion from the second quarter.
2010/11/10 16:25*DJ PBOC Adviser: Dollar-Led Global Currency System A Cause Of Financial Crisis

2010/11/10 16:23DJ JGBs Fall On Improved Stocks, Treasurys; Support Level Unclear
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.680 flat TSE Dec 10-Yr JGB Futures Price: 142.52 .18 10-Yr 1.0% JGB No. 310 Yield: 0.990% +0.020 TOKYO -Japanese government bonds ended lower Wednesday as recent stock market recovery in Japan and the U.S. as well as rising U.S. interest rates heighten uncertainty about how far the Japanese debt instrument may retreat in the near term. The lead December futures finished lower for the fourth consecutive day, shedding 0.18 to 142.52 after dipping to a seven-week low of 142.43. The Nikkei Stock Average gained 1.4%, closing at its highest level since June 24. JGB investors also used the planned auction for 5-year bonds Thursday as an excuse to stick to the sidelines after early selling. 'Investor sentiment toward JGBs may turn bearish, and the target interest rate for bargain-hunting could possibly get pushed higher in the wake of an improved U.S. economic outlook as well as share price gains,' Citigroup strategist Eiji Dohke said. While the JGB market is likely to regain ground toward the end of the year, Dohke said the current level of the lead cash 10-year issue above 0.950% isn't attractive enough to hunt for bargains. RBS Securities chief strategist Akito Fukunaga shares the view that fixed-income investors don't need to rush when it comes to finding the timing for boosting exposure to JGBs again. The low interest rate environment is sure to continue with easy monetary policies in the U.S. and Japan, and the market's rebound cycle will come provided the market is only going through a typical retreat period, said Fukunaga. 'The strategy of buying after seeing that the market has clearly bottomed should work fine rather than picking up bargains with a certain level in mind,' he said. The JGB market's recent retreat may push back the timing of its rebound, added Fukunaga, who cut his projection for the 10-year yield at the end of December to 1.1% from 0.9%. Analysts said the 5-year auction Thursday should receive solid demand given recent rises in existing 5-year JGB yields, which increase the attractiveness of the new issue for investors looking for places to park their surplus cash. Other Cash Bond Yields At 0600 GMT Change 5-Year 0.3% JGB No. 92 Yield: 0.350% +0.015 20-Year 1.8% JGB No. 122 Yield: 1.855% +0.005 30-Year 2.0% JGB No. 33 Yield: 1.995% flat ***********
2010/11/10 16:20*DJ PBOC Adviser: G-20 Should Pay Attention To Issue Of Cross-Border Capital Flows

2010/11/10 16:16*DJ Moody's Affirms B1 Rating To Hidili And Its Bonds

2010/11/10 16:07*DJ NDRC Official: May Consider Using FX Reserves To Buy Sugar, Cotton But Prices Must Be Good

2010/11/10 16:06DJ Tokyo Shares End At Highest Since June As Yen Weakens, Banks Rally-2-
Brad Frischkorn Of TOKYO -Tokyo stocks rose on Wednesday as a surge in Mitsubishi UFJ Financial Group and other bank shares, as well as a fall in the yen helped fuel a broad-based stock rally that pushed the Nikkei Stock Average to a four-and-a-half month high. The benchmark index rose 136.03 points, or 1.4%, to 9830.52, its highest closing level since June 24. The Topix index of all the Tokyo Stock Exchange First Section issues also rose 13.03 points, or 1.6%, to 852.98, with 30 of 33 Topix subinedexes ending in positive territory. Trading volume was fairly robust, totalling over 2.2 billion shares. Investors were encouraged by the yen's sharp weakening against the dollar. It proved immediate salve for exporter shares such as Canon and TDK, which closed up 3.1% at Y3,995 and up 4.2% at Y5,210, respectively. 'Unless the dollar falls below its all-time low of Y79.75, market players will generally feel that the stronger yen trend has subsided,' said Investrust CEO Hiroyuki Fukunaga. Bank shares soared from the opening bell following a Financial Times report saying most big Asian banks will be exempted from a global regulatory regime under the latest proposal for the industry from the world's leading economies. The FT cited people briefed on the upcoming Seoul Group of 20 summit agenda as saying officials had concluded that global regulators should focus on big banks with global businesses and exempt domestically-focused institutions with limited overseas exposure. Big lenders in countries such as Japan and China ostensibly fall into this category. ***********Japan's largest banks surged on the story, with Mitsubishi UFJ Financial Group gaining 4.2% to Y393, Sumitomo Mitsui Financial Group adding 5.9% to Y2,512, and Mizuho Financial Group jumping 7.6% to Y127. 'Investors had hesitated to buy bank stocks on capital regulation worries, so they bought back aggressively,' said a market analyst at a Japanese brokerage, adding that investors are keen to see if the reported move is true and may wait until the G-20 summit for more details before deciding what to do with their positions. Nippon Telegraph & Telephone also closed up 4.0% to Y3,900 after the company booked a July-September net profit of Y159.30 billion against a year-earlier profit of Y142.69 billion. The firm also said it will retire 125.46 million of its treasury shares, equal to around 7.97% of its outstanding shares. Softbank added 2.0% to Y2,860 after hitting a fresh 2010 high following its announcement that its mobile phone subsidiary will buy back share warrants and preferred shares worth some Y412.5 billion issued to Vodafone Group. In a client report, Barclays Capital analyst Tetsuro Tsusaka wrote that the move would eliminate the negative financial impact of various existing covenants, including a 12% plus five-year swap rate dividend obligation from the fiscal year 2013 for Y300 billion in Softbank Mobile preferred shares. Softbank shares have risen for the last five straight sessions, adding over 13% over the span. December Nikkei 225 futures closed up 120 points, or 1.2%, at 9810 on the Osaka Securities Exchange.
2010/11/10 16:02*DJ FTSE 100 Dn 0.3% After The Open

2010/11/10 16:01*DJ Stoxx Europe 600 Index Dn 0.1% After The Open

2010/11/10 16:00*DJ NDRC Official: Personally See No Risk Of Stagflation Next Year

2010/11/10 16:00*DJ NDRC: 10% GDP Growth And Around 3% Inflation Would Be A Good Combination

2010/11/10 15:56*DJ NDRC: Econ Growth Will Naturally Cause Inflation To Rise

2010/11/10 15:47*DJ NDRC: Can Import More Grains, Cotton If Global Prices Lower

2010/11/10 15:46*DJ NDRC: See Room For More Agricultural Products Imports

2010/11/10 15:45*DJ French Sep Industrial Production +0.1% on Month

2010/11/10 15:45*DJ French Sep Industrial Production Forecast +0.5%

2010/11/10 15:35*DJ NDRC: See Long-Term Trend Of Rising Agricultural Products Prices

2010/11/10 15:25*DJ OIL FUTURES: Dec Nymex Crude Up, Now In Positive Territory

2010/11/10 15:16*DJ NDRC: Global Commodities Prices Have Surged Due To US QE Policy

2010/11/10 15:07=DJ DATA SNAP: French Consumer Prices Rise Slightly In October

2010/11/10 15:06*DJ NDRC Official: Recent Price Rises Due To Excessive Liquidity

2010/11/10 15:05DJ Tokyo Shares End At Highest Since June As Yen Weakens, Banks Rally
Brad Frischkorn Of TOKYO -Tokyo stocks rose on Wednesday as a surge in Mitsubishi UFJ Financial Group and other bank shares, as well as a fall in the yen helped fuel a broad-based stock rally that pushed the Nikkei Stock Average to a four-and-a-half month high. The benchmark index rose 136.03 points, or 1.4%, to 9830.52, its highest closing level since June 24. The Topix index of all the Tokyo Stock Exchange First Section issues also rose 13.03 points, or 1.6%, to 852.98, with 30 of 33 Topix subinedexes ending in positive territory. Trading volume was fairly robust, totalling over 2.2 billion shares. Investors were encouraged by the yen's sharp weakening against the dollar. It proved immediate salve for exporter shares such as Canon and TDK, which closed up 3.1% at Y3,995 and up 4.2% at Y5,210, respectively. 'Unless the dollar falls below its all-time low of Y79.75, market players will generally feel that the stronger yen trend has subsided,' said Investrust CEO Hiroyuki Fukunaga. Bank shares soared from the opening bell following a Financial Times report saying most big Asian banks will be exempted from a global regulatory regime under the latest proposal for the industry from the world's leading economies. The FT cited people briefed on the upcoming Seoul Group of 20 summit agenda as saying officials had concluded that global regulators should focus on big banks with global businesses and exempt domestically-focused institutions with limited overseas exposure. Big lenders in countries such as Japan and China ostensibly fall into this category. ***********Japan's largest banks surged on the story, with Mitsubishi UFJ Financial Group gaining 4.2% to Y393, Sumitomo Mitsui Financial Group adding 5.9% to Y2,512, and Mizuho Financial Group jumping 7.6% to Y127. 'Investors had hesitated to buy bank stocks on capital regulation worries, so they bought back aggressively,' said a market analyst at a Japanese brokerage, adding that investors are keen to see if the reported move is true and may wait until the G-20 summit for more details before deciding what to do with their positions. Nippon Telegraph & Telephone also closed up 4.0% to Y3,900 after the company booked a July-September net profit of Y159.30 billion against a year-earlier profit of Y142.69 billion. The firm also said it will retire 125.46 million of its treasury shares, equal to around 7.97% of its outstanding shares. Softbank added 2.0% to Y2,860 after hitting a fresh 2010 high following its announcement that its mobile phone subsidiary will buy back share warrants and preferred shares worth some Y412.5 billion issued to Vodafone Group. In a client report, Barclays Capital analyst Tetsuro Tsusaka wrote that the move would eliminate the negative financial impact of various existing covenants, including a 12% plus five-year swap rate dividend obligation from the fiscal year 2013 for Y300 billion in Softbank Mobile preferred shares. Softbank shares have risen for the last five straight sessions, adding over 13% over the span. December Nikkei 225 futures closed up 120 points, or 1.2%, at 9810 on the Osaka Securities Exchange.
2010/11/10 15:05*DJ NDRC Offcial: CPI Rise This Year Likely Slightly Above 3%

2010/11/10 15:05*DJ NDRC Official: Govt Has Enough Tools To Curb Inflation

2010/11/10 15:02DJ Forex Options: Dollar/Yen Options Stable, May Decline Somewhat
TOKYO -Dollar/yen options were almost unchanged Wednesday in Asia and look poised to decline somewhat over the rest of the week with the greenback pinned in a tight range in the foreseeable future.Benchmark volatilities implied by one-month at-the-money options stood at 10.00%/10.70%, almost unchanged from 9.95%/10.65% in New York Tuesday as the dollar traded in Y81.55-Y81.88 range in Tokyo morning trade.If the underlying exchange rate continues to be stable and there are no drastic upside or downside moves, an options dealer at a major Japanese bank said the mid-point for volatilities may decline gradually to 10.00%, compared with 10.35% currently.Tokyo foreign exchange dealers say that even though the dollar will likely regains its strength against major currencies on a rise in U.S. Treasury yields, its gains against the yen will likely be limited because of strong technical resistance around Y82.00. Further upside is also being capped by Japan exporter selling thickly lined up above that level.The options dealer said, though, volatilities are unlikely to fall below 10.00% as those rates are close to the lowest level this year. Also helping support volatilities' downside is bargain-hunting by some players.
2010/11/10 14:46=DJ HEARD ON THE STREET: Spain Still Europe's Flashpoint

2010/11/10 14:36=DJ WORLD FOREX: Euro Falls Vs Dollar; Hedge Funds Major Players -2-

2010/11/10 14:32=DJ WORLD FOREX: Euro Falls Vs Dollar; Hedge Funds Major Players -3-

2010/11/10 14:31*DJ French Oct CPI Forecast +0.1% On Month; +1.6% On Year

2010/11/10 14:31*DJ French Oct CPI +0.1% On Month; +1.6% On Year

2010/11/10 14:06*DJ Nikkei Stock Average Closes Up 1.4% At 9830.52

2010/11/10 14:04*DJ Nikkei Stock Average Closes At Highest Level Since June 24

2010/11/10 13:59=DJ WORLD FOREX: Euro Falls Vs Dollar; Hedge Funds Major Players

2010/11/10 13:51PRESS RELEASE: Fitch Affirms Shanghai Zendai at 'B+'; Off Watch Negative; Outlook Stable
The following is a press release from Fitch Ratings: Fitch Ratings-Beijing/Singapore9 November 2010:Fitch Ratings has today affirmed Shanghai Zendai Property Limited's Long-term foreign currency Issuer Default Rating at 'B+', and simultaneously removed it from Rating Watch Negative on which it was placed on 4 February 2010. The Outlook on the IDR is Stable. The agency has also affirmed Zendai's foreign currency senior unsecured rating at 'B+'. 'These rating actions follow Zendai's settlement of the CNY9.2bn land premium for the parcel of land acquired for its Shanghai Bund Project in February 2010, as well as greater clarity on the financing and development structure for this project,' says Ying Wang, Director in Fitch's Asia-Pacific Corporates team. 'Taking into account Zendai's cash paid for the land premium, Fitch estimates that net debt-to-inventory ratio is likely to increase to 40%-45% at end-2010 (from less than 25% historically). However, the agency considers the increase in leverage to be justified by the high quality of the land bank being acquired, and expects Zendai's net debt-to-inventory ratio to remain within the 50% threshold for its rating,' adds Ms. Wang. Fitch believes the financial burden of the Shanghai Bund Project on Zendai should be manageable under its financing and development structure. Also it notes that the superior location of the project should, to a great extent, mitigate the development funding risk. However, execution risk remains with regards to the project design, construction, sales/leasing strategies, thus leaving uncertainties over the project's future cash flow return. Zendai's contracted sales and revenue from property development during the nine months ended 30 September 2010 have met the agency's expectations. Fitch notes that commercial property sales weighed more heavily than residential property sales in 2010 for Zendai, hence the company has seen limited pressure on its property sales from the government's tightening measures to cool down China's residential property market. Fitch believes Zendai's existing land bank is sufficient to support its development pipeline of the next three years. The agency expects Zendai to continue to pursue land acquisition opportunities in Tier-2 and Tier-3 cities. Zendai's rating is supported by its proven track record in developing large scale integrated commercial projects in the Greater Shanghai area, reasonably solid asset quality of its commercial and investment properties portfolio, strong EBITIDA margins (FY09: 30.6%), and relatively low exposure to the high volatilities of the residential property markets in Tier-1 cities. Over the next three to five years, Fitch expects Zendai to derive the majority of its residential property contracted sales from Tier-3 cities where average selling prices are much lower than in Tier-1 and certain Tier-2 cities, and where demand is more local end-user driven. However, Zendai's credit profile is constrained by its business focus on property development, a sector where cash flows are inherently volatile coupled with highly unpredictable regulatory/policy risks in China. The rating is further constrained by Zendai's small operating scale (FY09 EBITDA: HKD661m), potential refinancing risk in 2012, a limited track record in property development outside Shanghai, and the average quality of Zendai's residential property portfolio. At 30 June 2010, Zendai had HKD949m in unrestricted cash and HKD490m in pledged bank deposits, which Fitch expects to be sufficient to cover debt obligations in the next 12 months. Zendai does not maintain unutilised bank credit lines. While Fitch does not penalise Zendai's rating for this practice, it notes that the company's liquidity will be highly dependent on its ability to continue to obtain bank loans to fund ongoing development costs. Additionally, Fitch notes Zendai faces potential refinancing risk for its USD150m senior notes which will mature in June 2012. The Stable Outlook reflects Fitch's expectations that Zendai will maintain a stable credit profile in the next 12 to 18 months. Negative rating actions could occur if there are unfavourable changes in China's regulatory and/or macro environment , if there is a significant shift in management's risk appetite or financial policies, if Zendai fails to address its 2012 bond maturity by June 2011, and/or if aggressive land bank acquisitions result in net debt-to-inventory ratio above 50% on a sustained basis. Positive rating actions are unlikely in the near term and could arise from a significant increase in recurring income from investment properties and hotel operations. Contacts: Primary analystYing WangDirector+86 10 8567 9898 ext. 107Fitch Ratings Ltd.1903, 19/F, PICC Tower2 Jiangguomenwai AvenueChaoyang DistrictBeijing 100022, China Secondary AnalystSu Aik LimDirector+86 10 8567 9898 ext. 109 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.***********
2010/11/10 13:51DJ APEC Agrees Not To Set New Trade Barriers Until 2013 - Draft
YOKOHAMA --Leaders of the 21-member APEC grouping will agree to refrain from introducing new trade and investment barriers until 2013, according to a draft statement obtained Wednesday. Trade and foreign ministers from the Asia Pacific Economic Cooperation, or APEC, forum, meeting ahead of a weekend summit, also pledged to extend the 'standstill' on barriers first forged in 2008, Japanese officials said. There has been widespread concern that the turbulence in currency markets is increasing the risk of protectionism, as export-dependent nations seek to shield their economies from spiralling exchange rates. In a draft statement dated November 3, the leaders said they 'continue to resist protectionism, and agreed to extend our commitment on standstill made in 2008 to the end of 2013.' They said they would 'refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organisation inconsistent measures in all areas, including those that stimulate exports.' A Japanese trade ministry official said many of the APEC ministers who met Wednesday 'said they should extend the commitment on not taking new protectionist measures by three years' to 2013. 'It's in effect an agreement by ministers on this point,' he told reporters. The Japanese official said World Trade Organisation secretary general Pascal Lamy told the meeting that 2011 would be critical in concluding the Doha round of trade talks given that many countries face elections in 2012. The WTO said in a recent report that the 'dangerous cocktail of imbalances' including trade, disorderly currency movements and 'stubbornly high' unemployment must be tackled through international cooperation. 'The last few months have seen a dangerous increase in protectionist pressures generated by global imbalances at a time when the political consensus in favor of open trade and investment is already under strain,' it said. 'Higher risks for the world economy are being generated by turbulence in currency markets,' as well as by government decisions 'that some may perceive as a deliberate pursuit of an exchange-rate-induced comparative advantage.'
2010/11/10 13:03*DJ Japan Govt: Consumer Sentiment Index 40.9 In Oct Vs 41.2 Sep

2010/11/10 12:55DJ German Chancellor Merkel Defends Trade Surplus -Report
German Chancellor Angela Merkel defended her country's trade surplus in an interview with German daily Die Welt published Wednesday, saying the surplus proves how globally competitive Germany's products are.She also warned against currency distortions that could weaken global economic growth. A policy of keeping a currency artificially low to boost export chances is shortsighted and ultimately harmful, she told the newspaper.Merkel urged the upcoming Group of 20 meeting of industrial and developing nations to talk about currencies and the reduction of imbalances, according to the newspaper.Newspaper Web site: http://www.welt.de-; dennis.baker@dowjones.com
2010/11/10 12:13*DJ Germany Merkel: FX Distortions Could Weaken Global Econ Growth-Report

2010/11/10 12:05*DJ India Prime Minister: Have To Be Wary Of Protectionist Sentiment

2010/11/10 11:41DJ G-20 Deputies Had 'Heated Debate' On FX, Imbalances, Fed-Official
SEOUL -Deputies from the Group of 20 major nations have had 'heated' debates on key issues such as currencies, economic imbalances and the U.S. Federal Reserve's quantitative easing, but have left the key issues for government leaders to decide, an official said Wednesday. Deputy ministers and other officials at this week's G-20 summit 'had very heated discussions' on the issues at meetings running until midnight Tuesday, Kim Yoon-Kyung, spokesman for the summit preparation committee, told reporters. 'We had to physically open the door to the meeting, the debate was so hot. We were lacking oxygen.' The officials mentioned some specific potential targets for current-account imbalances and discussed the issue of avoiding 'competitive devaluation' of currencies, Kim said, but declined to comment further. The debates are at the heart of the discussions by the G-20 industrial and developing economies, who are trying to avert a global 'currency war.' The U.S. is pushing China to let its currency rise more, arguing it is undervalued and unfairly helping China's exports. China, in turn, has recently won adherents to its claim that the Fed's lax monetary policy is debasing the dollar's value and pushing a tsunami of destabilizing capital flows across the developing world, especially fast-growth Asian economies. The G-20 deputies have 'strong mandates' from their governments but aren't empowered to compromise at this stage, ahead of the summit Thursday and Friday, Kim said. The officials had a draft of the leaders' final statement 'up on the screen, but almost everything was left in brackets' for the leaders to decide, he said.
2010/11/10 11:40DJ World Bank Zoellick: Some Tensions On FX Likely To Remain
SINGAPORE -World Bank President Robert Zoellick Wednesday said that tensions are likely to remain with regard to foreign exchange and that he would like to see greater focus on growth strategies at the Group of 20 meeting in Seoul this week.Asian countries have expressed concern over the latest quantitative easing measures by the U.S. Federal Reserve, saying that the capital is finding its way into Asian markets, creating asset bubbles and inflationary pressures.Speaking to reporters in Singapore, Zoellick said growth in emerging economies will attract capital even without quantitative easing, or asset purchases."There will be currency tensions, don't think there will be any currency wars. Currency tensions risk raising protectionism if not properly managed," he said.The World Bank president also said that gold has become an alternative monetary asset, but added that he wasn't suggesting a return to gold standard.Gold is trading at record highs as investors choose to move toward safe-haven investments due to an uncertain global economic outlook. The yellow metal hit an intraday high of $1,422.10 a troy ounce in New York trade Tuesday.Zoellick said that hedging in gold showed uncertainty with regard to global economy.
2010/11/10 11:40*DJ SAFE: Some Hot Money Inflows Due To Upbeat Expectations Of Stock Market

2010/11/10 11:35=DJ SEC's Schapiro: Range Of Rules Weighed For Electronic Traders

2010/11/10 11:32*DJ Fitch Affirms Shanghai Zendai at 'B+'; Off Watch Negative; Outlook Stable

2010/11/10 11:28*DJ APEC Agrees Not To Set New Trade Barriers Until 2013 - Kyodo

2010/11/10 11:22*DJ OIL FUTURES: Crude Down, USD Slightly Up; Dec Nymex -49c At $86.23

2010/11/10 11:08DJ US Regulator To Consider Deposit Formula Friendly To Small Banks

2010/11/10 10:32*DJ S&P Takes Hongkong Electric Holdings Ltd. Off Watch; Outlk Stable

2010/11/10 10:31DJ World Bank Pres Zoellick: Not Advocating Return To Gold Standard - Reuters
SINGAPORE -World Bank President Robert Zoellick said Wednesday he was not advocating a return to the gold standard, according to a Reuters report.Zoellick said it was important for policy makers to look beyond exchange rates and focus on economic fundamentals, the report said.China was more likely to let the yuan rise if there was an agreement on economic fundamentals, he said, according to Reuters.The World Bank president said that investor interest in gold indicated a lack of confidence in economic policy, the report said.
2010/11/10 10:30DJ PBOC Adviser: US QE Effect Similar To 'Rampantly Issuing Currency'

2010/11/10 10:30*DJ S&P Takes Cheung Kong Infrastructure Holdings Ltd. Off Watch; Outlk Stable

2010/11/10 10:20DJ PBOC Adviser: US QE Effect Similar To 'Rampantly Issuing Currency'
BEIJING -China's central bank adviser Xia Bin Wednesday said the effect of the U.S.'s monetary policy is similar to "rampantly issuing currency," and called for emerging economies to step up oversight of capital accounts.The U.S. Federal Reserve's quantitative easing policy could affect international commodities prices, Xia said on the sidelines of a forum. Under the QE policy, the Fed buys bonds to inject cash into the U.S. economy.China should step up oversight of the commercial real estate sector to prevent speculations, said Xia, who is an academic adviser at the policy board of the People's Bank of China.The direction of China's real-estate tightening shouldn't change, Xia said, adding that it will take two to three years for the government to complete property sector adjustments.
2010/11/10 10:01*DJ Zoellick: Investor Interest In Gold Shows Lack Of Confidence In Econ Policy - Reuters

2010/11/10 09:59*DJ World Bank Pres Zoellick: Not Advocating Return To Gold Standard - Reuters

2010/11/10 09:54=DJ IMF Official: US Fed QE May Have Limited Impact
(Adds quotes, context, background.) By Natasha Brereton Of LONDON -The extra stimulus being undertaken by the U.S. Federal Reserve may have a 'limited' impact, but it is no substitute for households and financial institutions cleaning up their debts, a senior International Monetary Fund official said Tuesday. The Fed's decision to buy $600 billion more Treasury bonds through June reflected a desire to put a floor under inflation expectations, Jose Vinals, director of the IMF's Monetary and Capital Markets Department told reporters after a speech in London. But he acknowledged there was a knock-on impact on exchange rates and capital flows, and stressed the need for a more collaborative approach to international policy making in the future. 'Quantitative easing has the objective of supporting the U.S. economic recovery, but of course...this is having an impact through exchange rates and capital flows on other countries,' Vinals said. He noted that the IMF had been pushing for greater coordination in economic policies in order to reach a 'superior' global outcome, and pointed out that the Group of 20 industrial and emerging economies had already been seeking to improve coordination. 'But it's clear that the current sensitivity on the part of emerging markets to capital flows requires that further thought is given on how to achieve more collaborative outcomes that can be better for the global economy,' Vinals added. He stressed the need for advanced and emerging economies to work together to achieve a necessary rebalancing of the world economy, involving a shift in demand from countries with net external surpluses to countries with net deficits. 'That can be favored by the adjustment of exchange rates, meaning that on average the emerging markets exchange rates need to appreciate visibly [over] those of advanced economies,' he said. At meetings last month, G-20 finance officials vowed to avoid 'competitive devaluation' of their currencies while curbing their external imbalances, in a bid to defuse a potential 'currency war' and set the stage for more balanced global economic growth. G-20 leaders will meet again in Seoul Thursday and Friday. Vinals said he didn't believe there was a currency war, only 'currency movements,' but said that now was the time to take a more collaborative approach to prevent a 'deterioration of the climate.' He declined to speculate on the viability of numerical targets for current-account imbalances. Some countries' officials, including U.S. Treasury Secretary Timothy Geithner, had pushed for targets at last month's G-20 meetings but ran into stiff opposition from others. 'More than a numerical target, what is important is the rebalancing of the world economy in a way that is natural and consistent with medium-term fundamentals,' Vinals said. He said that rebalancing should involve a number of very different policies in different parts of the world: macroeconomic policies, exchange-rate flexibility, macroprudential policies, and--under very special circumstances--measures to limit capital flows. On the Irish economy, he said he hoped the authorities would continue to take measures--as they had been doing for some time--to achieve a 'definitive solution' to the country's problems. At the Seoul meetings, the Financial Stability Board is due to present guidelines, incorporating a timetable for future action, on how to deal with systemically important financial institutions--also known as too-big-to-fail banks--but the process still has a long way to run. Asked about the chances of substantive agreement on the issue, Vinals said SIFIs were 'very much a priority' in the reform agenda. 'I have no doubt that the G-20 process will continue...endorsing this work, because it is fundamental. It is one of the key things that has to be done in order to deal with systemic risk and to avoid some of the problems that have been so important in the recent past.'
2010/11/10 09:39*DJ PBOC Adviser: Need To Strengthen Property Oversight To Curb Hot Money

2010/11/10 09:28*DJ PBOC Adviser: Need 2-3 Years For Govt To Complete Property Sector Adjustments

2010/11/10 09:25*DJ OIL FUTURES: Dec Nymex Crude Pares Losses, Now -1c At $86.71/Bbl

2010/11/10 09:23*DJ PBOC Adviser: Should Step Up Oversight On Speculation In Commercial Real Estate

2010/11/10 09:15*DJ PBOC Adviser: Emerging Econs Should Step Up Capital Account Oversight

2010/11/10 09:12*DJ PBOC Adviser: US QE Effect Similar To 'Rampantly Issuing Currency'

2010/11/10 09:10*DJ G-20 Deputies Reached No Agreements On Trade Liberalization, Climate Change-Official

2010/11/10 09:08*DJ PBOC Adviser: US QE Could Affect International Commodity Prices

2010/11/10 08:40DJ EU Juncker:Private Sector Part In EU Crisis Mechanism An Option
LUXEMBOURG -The private sector could be involved in resolving a future crisis in the European Union in some cases but shouldn't be an essential part of it, the chairman of the Eurogroup of 16 nations using the euro said Tuesday. 'The involvement of the private sector should not be seen as an ex-ante, a priori 'must' when it comes to the resolution of financial crises,' Jean-Claude Juncker, who is also the Prime Minister of Luxembourg, told reporters at a press conference.
2010/11/10 08:29DJ IEA Report: OPEC To Supply Over 50% Of Oil Demand In 2035
LONDON -The International Energy Agency said Tuesday that the Organization of Petroleum Exporting Countries will make up more than half of global oil supplies within the next 25 years, putting the onus on the group to meet the largest part of world's energy demand. As a result, national oil companies, which play a dominant role in most OPEC countries, will account for all the rise in production by 2035, the agency said. 'The role of OPEC is going to increase substantially, and we expect that OPEC's share in the next 25 years will come over 50%--which for the first time will be equal to their share before the first oil price shock of 1973-1974,' the IEA's chief economist Fatih Birol said in the organization's annual outlook report.
2010/11/10 08:20*DJ Nikkei Stock Average Breaks 9800, 1st Time Since July 14

2010/11/10 08:06*DJ Nikkei Stock Average Opens Up 0.6% At 9748.61

2010/11/10 08:03*DJ Lead December JGB Futures Open Down At 142.52 Vs 142.70 Tuesday

2010/11/10 06:57=DJ WORLD FOREX: Nervous Investors Rush Into Dollar

2010/11/10 06:48DJ EU Drafting Plan To Open Non-EU Government Purchasing-De Gucht
BRUSSELS -The European Commission will propose legislation next year aimed at pushing countries against the European Union to open their government purchasing markets to European companies, European Trade Commissioner Karel De Gucht said Tuesday.The issue has been a source of growing disgruntlement from EU companies, which have focused their complaints on obstacles that the Chinese government has put in place to limit foreign firms from winning government contracts.De Gucht said he will propose legislation that will allow the EU to block companies from a non-EU country from getting government contracts if European companies aren't allowed the same opportunities in that country.The mechanism would allow retaliation against companies in particular sectors, not against every company from a foreign country, De Gucht said. 'It should be sector specific and aimed at practices we cannot accept from third countries,' he said.
2010/11/10 06:25DJ Greek Minister: Should Renegotiate IMF-EU EUR110B Bailout
ATHENS -In response to flagging voter sentiment, Greek Justice Minister Haris Kastanidis said Tuesday that Greece should renegotiate the EUR110 billion bailout with international lenders to ease deficit-reduction efforts and spread out budget cuts over a longer time frame.In May, the debt-laden Mediterranean country inked the bailout agreement with the International Monetary Fund, the European Commission and European Central Bank, to stave off bankruptcy in exchange for very tough measures that have led to protests and voter discontent.Greece has promised to slash a 2009 budget deficit that looks likely to come in higher than 15% of gross domestic product--more than fives times higher than European Union cap rules--to about 8.6% this year under the original memorandum agreement."I am of the opinion that the first thing that we should do when the troika [IMF-ECB-EC] of international lenders visits Athens next week is to renegotiate the terms of the memorandum...ameliorating the promised reduction of deficits and spreading it out over a longer period of time," Kastanidis said on local radio station Real FM.In it's draft 2011 budget, the ruling Pasok government is targeting cutting the budget gap to 8.1% of GDP in 2010 and hopes to further reduce the deficit to 7.6% in 2011 to appease its international lenders and financial markets.Kastanidis's comments come after Sunday's regional and municipal elections where the ruling socialist party won a very narrow victory, coming in about two percentage points ahead of the main conservative opposition. The outcome was barely enough for Prime Minister George Papandreou to withdraw his threat to take the country to early national elections and preserve political stability.Greece has had to impose unprecedented austerity measures, such as cuts to pensions and public-sector wages as well as tax increases, as conditions for the financial bailout. Together with the crisis and the strenuous measures, the economy is set to contract 4% this year, sinking further into recession. Unions expect unemployment to rise further and reach close to 20% by year's end.Sunday's vote by a disgruntled electorate and the historically high abstention rate of about 40% have shrunk the socialists' lead from 10% in October's national elections over the main opposition center right, prompting the first sign of grumbling within the socialist cabinet.
2010/11/10 06:21DJ Treasurys Tumble; Investors Anxious About 30-Year Auction

2010/11/10 06:08=DJ WORLD FOREX: Nervous Investors Rush Into Dollar

2010/11/10 05:11DJ PRECIOUS METALS: Gold Climbs To New Record On Euro Zone Concerns

2010/11/10 05:01DJ German Government Advisors See GDP Up 2.2% In 2011 - Report
FRANKFURT -The German government's council of economic advisors, or Five Wise Men, expect growth in Europe's largest economy to slow to 2.2% next year, from 3.7% in 2010, the Handelsblatt newspaper reported Tuesday.It cited an advance copy of an annual report by the council, due for publication later this month.The advisors expect the average number of unemployed in Germany to fall by 179,000 to 2.9 million, the newspaper said. That would be the first time in 20 years that the jobless rate has averaged less than 3 million over a full year.'The recovery in Germany is weakening,' Handelsblatt cited the report as saying. 'Above all, external impulses will diminish.'Website: www.handelsblatt.com
2010/11/10 04:57DJ OIL FUTURES: Crude Falls, Ending Streak, As Dollar Rebounds

2010/11/10 04:10DJ Alibaba Approached About Potential Bid For Yahoo -Reuters
The founder of China's largest e-commerce company, Alibaba Group, has been approached by private equity investors to measure his interest in participating in a joint bid for Yahoo Inc. , which owns a 40% stake in Alibaba, Reuters reported Tuesday on its website, citing a person close to the situation.Jack Ma has not made a decision on the approach. The private equity firms were not identified.Yahoo is not in active discussions with financial or strategic partners and is not at present reviewing or eliciting proposals, according to another person described as being close to Yahoo.John Spelich, a spokesman for Alibaba, declined comment to . Meanwhile, the New York Post, citing people familiar with the situation, Tuesday reported that KKR & Co. is among a list of private equity firms interested in taking Yahoo private or assisting in financing such a transaction. Yahoo in mid-October hired Goldman Sachs Group Inc. to deal with takeover approaches, the newspaper reported on its website. The Wall Street Journal, citing people familiar with the matter, on Monday reported that AOL Inc. has hired financial advisers to explore strategic alternatives for the firm, including some kind of deal with Yahoo. Full story at: www.reuters.com/article/idUSTOE6A806O20101109 and www.nypost.com/p/news/business/yahoo_on_kkr_radar_4bxM6zQonkN1kaCgeJvFAJ***********-; 212-416-2900
2010/11/10 03:36*DJ OIL FUTURES: Nymex Crude Settles 34c Lower At 86.74/Bbl

2010/11/10 02:34*DJ Gold Futures Poised To Settle At New Record Above $1,410/Oz

2010/11/10 01:36DJ OECD's Gurria: Modest, Fragile OECD Econ Recovery Through 2012
PARIS -The economic recovery in the countries making up the Organization for Economic Cooperation and Development will be modest and fragile at least through 2012, OECD chief Angel Gurria said in a French radio interview Tuesday.The OECD cannot expect booming economies in China and India alone to carry the world's economic recovery, he added.The Group of 20 leading industrialized and developing nations must tighten cooperation, he said. The subject of currencies appears to be overtaking other important issues on the G20 agenda, he added.The Federal Reserve's continued monetary easing to spur the U.S. economy has the effect of weakening the dollar, he said.
2010/11/10 01:12*DJ Qatar Oil Minister Doesn't Expect OPEC To Change Quotas At Next Meet

2010/11/10 00:54*DJ Fitch: Chevron's Ratings Unaffected by Announced Atlas Acquisition

2010/11/10 00:39DJ Bank Of Canada Buys Back C$235M Of Bonds At Tuesday Operation
OTTAWA -The Bank of Canada, on behalf of the Government of Canada, announced the results of a repurchase operation conducted Tuesday. The central bank said C$234.8 million of Government of Canada marketable bonds were repurchased. Of the total, it repurchased C$209.8 million of 2.75%, Dec. 1, 2010 bonds and C$25 million of 1.00%, Sept. 1, 2011 bonds. The settlement date is Nov. 10. The number of bonds outstanding after repurchase includes about C$6.6 billion of 2.75%, Dec. 1, 2010 bonds and C$7.5 billion of 1.00%, Sept. 1, 2011 bonds. The next cash-management bond repurchase operation is scheduled for Nov. 16.
2010/11/10 00:35=DJ IMF: UK Bank Exposure To Troubled Euro-Zone Members A Risk