Market Rumours

2010/11/11 17:57*DJ Greece 5-Yr Sovereign CDS Up 12 Bps At 890 Bps - Markit

2010/11/11 17:56*DJ Ireland 5-Yr Sovereign CDS Up 27 Bps At 620 Bps - Markit

2010/11/11 17:56*DJ Spain 5-Yr Sovereign CDS Up 15 Bps At 294 Bps - Markit

2010/11/11 17:54*DJ Portugal 5-Yr Sovereign CDS Up 14 Bps At 505 Bps - Markit

2010/11/11 17:54*DJ Portugal, Ireland, Spain CDS At Record Highs - Markit

2010/11/11 17:43*DJ 10Y Irish/German Yield Spread Hits Record High At 650Bps

2010/11/11 17:24*DJ Greece Eyes Further Spending Cuts To Close Deficit -Source

2010/11/11 17:23*DJ Greece 2009 Budget Deficit Seen Revised To Above 15% GDP-Source

2010/11/11 17:22*DJ Greece 2010 Budget Deficit Seen Around 9.3% Of GDP -Source

2010/11/11 17:11*DJ 10Y Irish/German Yield Spread Hits Record High At 637Bps

2010/11/11 17:10*DJ ECB Sees "Continued Slack" In The Euro Zone Economy

2010/11/11 17:09*DJ ECB: Core CPI To Edge Up Near Term, But Staying Contained

2010/11/11 16:56*DJ 10Y Portuguese/German Yield Spread Up 22Bps At Record 481Bps

2010/11/11 16:55*DJ 10Y Irish/German Yield Spread Up 6Bps At 626Bps

2010/11/11 16:44=DJ Forex Focus: G20 Will Play Into Dollar's Hands

2010/11/11 16:36DJ Obama: To Talk With Hu About Ensuring Balanced, Sustained Growth
DJ Obama: To Talk With Hu About Ensuring Balanced, Sustained Growth SEOUL -U.S. President Barack Obama said he would discuss preventing nuclear proliferation and ensuring balanced and sustained global growth with Chinese President Hu Jintao as the two leaders headed into a bilateral meeting. The U.S. has argued that Beijing hasn't fully enforced United Nations sanctions against Iran, but China says it's in full compliance with the U.N. Security Council resolution meant to force Tehran to give up its alleged nuclear weaponization program. 'As two leading nuclear powers obviously we have special obligation to deal of nuclear proliferation,' Obama said, according to a pool report. Obama also said that 'as two of the world's leading economies we have a special obligation to deal with ensuring strong, balanced, and sustained growth.' The U.S. is trying to get the Group of 20 industrial and developing nations to commit to rein in excessive deficits and surpluses, including from China's export-led growth and policy of keeping its currency artificially low. According to the report, Hu said the G-20 will produce a 'positive outcome.' 'The Chinese side stands ready to work with the U.S. side to increase dialogue, exchanges and cooperation so that we can move forward the China-US relationship on a positive, cooperative and comprehensive track,' Hu said according to the report. The leaders said the U.S. would host Hu in Washington, D.C. early in the new year and that the two governments' economic teams were continuing to make progress on the U.S.-China Strategic and Economic Dialogue.
2010/11/11 16:05*DJ Stoxx Europe 600 Index Up 0.4% After The Open

2010/11/11 16:05DJ US President Obama: Important For US To Grow For World Economy
.S. President Barack Obama said Thursday that fostering U.S. growth is the most important way the U.S. can contribute to the global economy, and expressed confidence that Group of 20 leaders will reach common ground at their two-day meeting on ways to spur balanced and sustainable growth.In a press conference with South Korea President Lee Myung-bak on the sidelines of the G-20 summit, Obama said he's confident the U.S. and South Korea can push forward a stalled free trade pact.The two sides will press ahead with talks, and a deal could be reached in 'a matter of weeks,' Obama said.Lee, for his part, told reporters that trade ministers from the two sides had discussed the FTA but need more time to resolve disputes over some details.'We to come up with an agreement that is acceptable for both sides as soon as possible,' Lee said, adding that it shouldn't take much longer to produce an agreement.Regarding the G-20, Obama said he expects the Seoul meeting to produce a communique that 'will begin to put in place mechanisms that help us track and encourage...balanced and sustainable growth.'The U.S. has come in for criticism over its loose monetary policy that critics say devalues the U.S. dollar and creates a wave of 'hot money' that could fuel inflation and asset bubbles in faster-growing economies in Asia and elsewhere.Obama declined to discuss Federal Reserve policy -- such as the decision earlier this month to step up asset purchases that will push more money into the banking system -- but U.S. officials have described the measures as necessary to jumpstart the sluggish U.S. recovery.'The most important thing the U.S. can do for the world economy is to grow, because we continue to be the world's largest market and a huge engine for all other countries to grow,' Obama said. 'Countries like Germany that export heavily benefit from our open markets, and us buying their goods. That's true for every G-20 member.'
2010/11/11 16:03*DJ FTSE 100 Up 0.2% After The Open

2010/11/11 15:56DJ Tokyo Shares End Up As Weak Yen Offsets Poor Machinery Orders Data-2-
Brad Frischkorn Of TOKYO -Tokyo stocks posted modest gains on Thursday, as an initially weaker-yen push up helped exporters such as Toyota Motor, offsetting worse than expected machinery orders data and fears about possible China monetary policy tightening.The Nikkei Stock Average rose 30.94 points, or 0.3%, to 9861.46 following Wednesday's 1.4% rise. The Topix index of all the Tokyo Stock Exchange First Section issues also added 3.39 points, or 0.4%, to 856.37, with 22 of 33 Topix subindexes closing in positive territory.Trading volume was slightly down from the prior session but still fairly robust at about 1.95 billion shares.The Nikkei rose modestly from the open, as auto and other exporter shares benefited from the dollar's rise past the Y82 level, well up from the range seen during most of the prior day's Tokyo trading hours. Yutaka Miura, senior technical analyst at Mizuho Securities, noted market sentiment was slightly soured by the steep fall in Cisco Systems shares in after-hours trading.Sluggish September machinery orders data also dragged on enthusiasm for equities, as figures showed a fall of 10.3% on-month against economists' forecast of a less severe 9.7% drop. The October-December quarter forecast also calls for a decline of 9.8%.With the Nikkei having risen in six of the last seven sessions for a 7.6% gain, Miura said Japan stocks may look overheated.As earnings reporting season winds down, market attention turns to the ongoing Group of 20 summit in Seoul, which winds up Friday. Cosmo Securities equity strategist Toshikazu Horiuchi said investors want to confirm whether Japanese banks will be exempted from the global regulatory regime as reported in a recent Financial Times article.Banking and brokerage shares were among the strongest heavyweight performers, with Mizuho Financial Group adding 2.4% to Y130 following the prior day's 7.6% rally. Nomura Holdings also added 3.6% to Y463.'We see no signs of growth or any improvement in the low profitability of banks, but if concerns over efforts to raise capital in the next one to two years are eliminated, we see valuations improving from their current deep discounts,' a Deutsche Securities analyst wrote in a client report.Toyota closed up 2.0% at Y3,115, helped primarily by the dollar's rally. A fund manager at a Japanese investment management noted that the Y82 mark is the precise level at which the car maker has set its repatriation assumption for the fiscal second half, and that more favorable currency levels could allow the firm to generate more profits than previously foreseen from its overseas operations. Toyota has said that every Y1 rise in the dollar boosts its operating profit by Y30 billion.Japan Tobacco rose 3.1% to Y286,300 amid hopes that tobacco sales have not fallen as heavily as anticipated following the Oct. 1 implementation of a tax hike on cigarettes, according to a fund manager at a Japanese asset management firm. In a report, Goldman Sachs estimated a post-tax hike structural decline in cigarette demand at 23.6% against JT's estimate of a 28.0% fall.Fears over possible Chinese monetary policy tightening impacted China-sensitive shares such as Komatsu, which fell 0.3% to Y2,245, reversing its early gains.December Nikkei 225 futures closed up 50 points, or 0.5%, at 9860 on the Osaka Securities Exchange.
2010/11/11 15:55*DJ Hu: To Meet Obama In Washington Early Next Year

2010/11/11 15:55*DJ Obama: To Talk With Hu About Ensuring Balanced, Sustained Growth

2010/11/11 15:47DJ 10-Year JGB Yield Rises To 1% For First Time Since Sept 24
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.670 flat TSE Dec 10-Yr JGB Futures Price: 142.42 .10 10-Yr 1.0% JGB No. 310 Yield: 1.000% +0.010 TOKYO -The benchmark 10-year cash Japanese government bond yield rose to the psychologically key 1% mark Thursday for the first time in almost seven weeks, after a solid five-year JGB auction failed to boost demand in the secondary market. The 10-year cash JGB yield climbed 1.0 basis point to 1%--the highest level since Sept. 24. Lead December JGB futures also finished the day down 0.10 at 142.42, giving up all of earlier gains in the afternoon. Since JGB long positions had been overly built before the announcement of the second round of U.S. quantitative easing, 'there's a prevalent mood among players that they want to get rid of JGBs when prices recover even a bit,' said Akito Fukunaga, chief rates strategist at RBS Securities. While JGB market participants focus on how the Federal Reserve's government bond buying will go, Fukunaga expects the adjustment phase to continue in the domestic market for the next few weeks until the 10-year yield hits a tad below 1.1% threshold. Thursday's JGB weakness was partly because strong five-year auction results couldn't attract further demand in the secondary market, analysts say. Earlier in the day, Japan's Ministry of Finance sold Y2.1897 trillion of 0.3% five-year JGBs at a lowest price of 99.80 yielding 0.341%. In addition to the Bank of Japan's accommodative policy, an overnight recovery in U.S. Treasurys, which had lost ground over the past few sessions, also supported investor sentiment at the auction, said Nobuto Yamazaki, executive fund manager at DLIBJ Asset Management. The solid five-year tender was 'a passage point for the JGB market to confirm that the market's unrest (after the Fed's announcement of massive government bond-buying) has eased and that players continue to feel comfortable buying the medium-term sector' amid easy monetary conditions in Japan, Yamazaki said. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.140% +0.005 5-Year 0.3% JGB No. 92 Yield: 0.345% .005 20-Year 1.8% JGB No. 122 Yield: 1.885% +0.030 30-Year 2.0% JGB No. 33 Yield: 2.025% +0.030 ***********
2010/11/11 15:46DJ OECD's Gurria Confident G-20 Willl Find Agreement On Reducing Imbalances
SEOUL-Angel Gurria, secretary general of the Organization for Economic Cooperation and Development, Thursday expressed confidence that leaders of the Group of 20 industrial and developing countries will find an agreement to reduce global imbalances, warning at the same time that working out imbalances was 'a process' that will take time. G-20 leaders are gathering for a two-day meeting in Seoul to try and hammer out an agreement to foster a more balanced global growth amid rising currency tensions. According to Korean officials, G-20 negotiators have so far been unable to agree on ways to curb global imbalances down to sustainable levels in order to resolve currency misalignments. 'There is enough focus and awareness that I believe it will be successfully addressed, but it's also a process,' Gurria told reporters Thursday.
2010/11/11 15:42DJ EU Barroso: G-20 Needs To Tackle Imbalances Decisively
SEOUL -The European Union will urge leaders of the Group of 20 industrial and developing nations to tackle global imbalances in a "decisive way" in what seems to be a stalled debate on winding down global imbalances and currency misalignments, two top EU officials said Thursday.EU leaders also said they will ask U.S. President Barack Obama to explain the Federal Reserve's recent decision to pump $600 billion of fresh liquidity into the U.S. economy through the purchase of U.S. bonds."We have to rebalance growth in a way that is good for us...not all engines are running on full power. We need to tackle imbalances decisively," Herman Van Rompuy, president of the European Council, told reporters in a briefing ahead of the start of a summit of G-20 leaders in Seoul.According to Korean officials hosting the gathering, G-20 delegates are struggling to resolve differences on how to reduce global imbalances and address rising currency tensions.Van Rompuy and European Commission President Jose-Manuel Barroso, speaking at the same press conference, called on G-20 leaders to improve coordination of their economic policies and to take into account the potential spillover effects of their actions on others.Their comments come as the Fed's pledge to buy $600 billion of U.S. bonds to spur U.S. growth has sparked protests from European and emerging nations, which complained this weighs on the dollar and puts upward pressure on their currencies."I know it has become a very important issue in the overall debate. That is why I think its important during this G-20 summit to listen to President Obama and get a better understanding of the different aspects behind the decisions of the Federal Reserve," Barroso said, adding the Fed's move has created "concern" for other nations.However, striking a more conciliatory tone, Barroso stressed the world stands to benefit from actions taken to spur U.S. growth."We should also recognize that growth in the United States is important and that growth in the United States would bring benefits to the world economy."Barroso and Van Rompuy said exchange rates should reflect economic fundamentals and be determined by markets, but that these fundamentals should be "corrected".
2010/11/11 15:30DJ Japan Kan: G20 Must Cooperate On Currency Issue, Doha
SEOUL -Japanese Prime Minister Naoto Kan on Thursday urged Group of 20 nations to work together to address fears about competitive foreign-exchange devaluation among nations and strive for a successful conclusion of the Doha round of free trade talks by 2011.'Cooperation among the G-20 nations have prevented protectionism; global trade volumes have recovered to pre-crisis levels within a year, and the global economic recovery continues,' Kan said during a session of the G-20 Business Summit in Seoul. 'But we're seeing new trade barriers...and there are worries that a competitive currency devaluation among nations might trigger another global economic crisis.''The G-20 must strike against protectionism and...cooperate to address the currency issue,' he said. 'The G-20 must strive for a common framework to seek sustainable, balanced growth.'Kan said the G-20 members need to work toward a successful conclusion of the Doha round of trade talks, warning that a failure to reach a deal will delay or weaken trade negotiatons going forward.The official also said the member nations of the Asia Pacific Economic Cooperation will also play its part in furthering the cause for free trade and investments.
2010/11/11 15:22DJ Tokyo Shares End Up As Weak Yen Offsets Poor Machinery Orders Data
Brad Frischkorn Of TOKYO -Tokyo stocks posted modest gains on Thursday, as an initially weaker-yen push up helped exporters such as Toyota Motor, offsetting worse than expected machinery orders data and fears about possible China monetary policy tightening. The Nikkei Stock Average rose 30.94 points, or 0.3%, to 9861.46 following Wednesday's 1.4% rise. The Topix index of all the Tokyo Stock Exchange First Section issues also added 3.39 points, or 0.4%, to 856.37, with 22 of 33 Topix subindexes closing in positive territory. Trading volume was slightly down from the prior session but still fairly robust at about 1.95 billion shares. The Nikkei rose modestly from the open, as auto and other exporter shares benefited from the dollar's rise past the Y82 level, well up from the range seen during most of the prior day's Tokyo trading hours. Yutaka Miura, senior technical analyst at Mizuho Securities, noted market sentiment was slightly soured by the steep fall in Cisco Systems shares in after-hours trading. Sluggish September machinery orders data also dragged on enthusiasm for equities, as figures showed a fall of 10.3% on-month against economists' forecast of a less severe 9.7% drop. The October-December quarter forecast also calls for a decline of 9.8%. With the Nikkei having risen in six of the last seven sessions for a 7.6% gain, Miura said Japan stocks may look overheated. As earnings reporting season winds down, market attention turns to the ongoing Group of 20 summit in Seoul, which winds up Friday. Cosmo Securities equity strategist Toshikazu Horiuchi said investors want to confirm whether Japanese banks will be exempted from the global regulatory regime as reported in a recent Financial Times article. Banking and brokerage shares were among the strongest heavyweight performers, with Mizuho Financial Group adding 2.4% to Y130 following the prior day's 7.6% rally. Nomura Holdings also added 3.6% to Y463. 'We see no signs of growth or any improvement in the low profitability of banks, but if concerns over efforts to raise capital in the next one to two years are eliminated, we see valuations improving from their current deep discounts,' a Deutsche Securities analyst wrote in a client report. Toyota closed up 2.0% at Y3,115, helped primarily by the dollar's rally. A fund manager at a Japanese investment management noted that the Y82 mark is the precise level at which the car maker has set its repatriation assumption for the fiscal second half, and that more favorable currency levels could allow the firm to generate more profits than previously foreseen from its overseas operations. Toyota has said that every Y1 rise in the dollar boosts its operating profit by Y30 billion. Japan Tobacco rose 3.1% to Y286,300 amid hopes that tobacco sales have not fallen as heavily as anticipated following the Oct. 1 implementation of a tax hike on cigarettes, according to a fund manager at a Japanese asset management firm. In a report, Goldman Sachs estimated a post-tax hike structural decline in cigarette demand at 23.6% against JT's estimate of a 28.0% fall. Fears over possible Chinese monetary policy tightening impacted China-sensitive shares such as Komatsu, which fell 0.3% to Y2,245, reversing its early gains. December Nikkei 225 futures closed up 50 points, or 0.5%, at 9860 on the Osaka Securities Exchange.
2010/11/11 15:02DJ Forex Options: Dollar/Yen Options Edge Down As Upside Hedges Sold
TOKYO -Dollar/yen options declined Thursday in Asia as some players sold upside hedges, taking advantage of high prices after the greenback surged to a five-week high.Benchmark volatilities implied by one-month at-the-money options edged down to 10.15%/10.85% from 10.25%/10.95% in New York Wednesday.An options dealer at a major Japanese bank said the mid-point for volatilities may fall further to 10.00% from 10.50% by the end of this week as the U.S. unit is unlikely to rise or fall sharply against the yen.The dealer said some players were interested in buying hedges against the U.S. unit's further gains versus the yen after the dollar marked a five-week high of Y82.80 late Wednesday in New York.Other players who held upside hedges were selling them at higher prices this morning, the dealer added.The dealer said one player sold a one-week dollar-call/yen-put options contract at a strike price of Y83.00 with implied volatilities of 10.55%. The face value of the deal is unknown. Another player sold a 15-day dollar-call/yen-put options contract at a strike price of Y84.00 with implied volatilities of 12.00% and face value of $120 million.
2010/11/11 14:59=DJ WORLD FOREX: Dollar Falls Vs Yen, But Upside Potential Remains-3-

2010/11/11 14:37=DJ MONEY TALKS: G-20 Gears Up For Sound Bites Over Substance

2010/11/11 14:28=DJ WORLD FOREX: Dollar Falls Vs Yen, But Upside Potential Remains-2-

2010/11/11 14:22DJ Geithner: Won't Ever Seek To Weaken Dollar For Competitive Advantage - CNBC
SEOUL -The dollar's movement is due to safe-haven flows into the U.S., not the Federal Reserve's easing policy which the U.S. would never use for competitive advantage, Treasury Secretary Timothy Geithner said in a television interview Thursday.The comments, made by Geithner to CNBC as leaders of the Group of 20 industrial and developing nations meet in Seoul to resolve the world's pressing economic issues, follow criticism that the U.S. was weakening its currency for economic advantage."The U.S. will never do that. We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy," the Treasury secretary said. "It's not an effective strategy for any country."Looking at the broader arc of financial markets over the last two to three years, the dollar rose when the world was most concerned about the risk of a global recession and a systemic collapse, "you saw the world seek the safety of the risk-free assets of the U.S.," he said in the interview."As the world becomes more progressively confident, some of that safe-haven inflows have been reversed," Geithner said. "That's very encouraging, not just about people's confidence in U.S. but a sign of greater confidence" in the global economy, he added.-By Ian Talley, of , 202-631-5794; ian.talley@dowjone.com
2010/11/11 14:18*DJ Moody's Upgrades Three Chinese Policy Banks To Aa3 With Positive Outlook

2010/11/11 14:14=DJ WORLD FOREX: Dollar Falls Vs Yen, But Upside Potential Remains

2010/11/11 14:03*DJ Nikkei Stock Average Closes Up 0.3% At 9861.46

2010/11/11 13:56DJ Germany's Merkel: Agree Need To Negotiate On Trade Imbalances
SEOUL -German Chancellor Angela Merkel said Thursday that G-20 countries should work toward minimizing trade imbalances, but that the problem is more complicated than punishing a few countries with particularly high surpluses or deficits. Saying that there is a need for 'cooperative negotiations,' Merkel added that leaders should focus on the root causes of trade imbalances rather than on punishing countries with large surpluses. Germany is one such country, and strongly opposed a U.S. proposal last month for members of the Group of 20 leading industrial and developing countries to keep their trade surpluses or deficits within 4% of gross domestic product. Merkel spoke at a meeting of business leaders held in conjunction with the G-20 summit Thursday and Friday in Seoul.
2010/11/11 13:49=DJ PBOC Steps Up Open Market Operations To Curb Inflation
SHANGHAI -The People's Bank of China stepped up its liquidity siphoning through its regular open market operations this week as part of Beijing's efforts to ease inflationary pressures. The PBOC drained a net CNY30 billion (US$4.53 billion) from the money market, up sharply from CNY500 million last week. The move comes after its decision Wednesday to raise banks' reserve requirement ratio by 50 basis points from next week, amid concerns the U.S.'s super-loose monetary policy could lead to hot money inflows and push prices even higher. The central bank has raised the ratio four times this year. China's consumer price index rose by a more than two-year high of 4.4% in October, accelerating from September's 3.6% rise, according to official data issued Thursday. The PBOC said in a statement it sold CNY15 billion worth of three-month bills at 1.8131%, up from the 1.7726% rate on the three-month bills it had sold in the previous three weeks. The PBOC also sold CNY10 billion worth of three-year bonds at 3.00%, up from the 2.85% yield on the three-year bonds it last sold on Oct. 28. The PBOC also offered CNY40 billion worth of 91-day repurchase agreements at 1.81% in Thursday's operation. 'The higher yields on the bills and bonds could make such paper more attractive to investors, paving the way for the central bank to issue more debt in its regular open market operations in the coming weeks to sterilize the increasing hot money inflows, a main driver of the growing inflationary pressure in China,' said a Shanghai-based trader with a local bank. PBOC Vice Gov. Hu Xiaolian said on the sidelines of a forum Thursday the central bank will be flexible in using monetary policy to combat inflation. She declined to elaborate. The central bank carries out regular open-market operations Tuesdays and Thursdays. It sold CNY32 billion worth of bills in Tuesday's operation. This week, CNY67 billion worth of bills and repurchase agreements mature, up from CNY65.5 billion last week. -Wang Ming contributed to this article, ; (86-21) 6120-1200; ming.wang@dowjones.com
2010/11/11 13:43DJ TSE To Push FSA For Limits On Short-Selling After New Share Issuances - Source
TOKYO -The Tokyo Stock Exchange plans to push Japan's Financial Services Agency to put limits on current short-selling regulations during the book building period to stem the heavy selling of a company's shares following announcement of a capital raising plan, a person familiar with the matter said Thursday. The Tokyo bourse will provide information to the Financial Services Agency that outlines potential problems linked to a common trading strategy where investors cover a shorted stock with a new share issuance, the person said. The move comes after Japanese financial regulators began reviewing suspicious trading in shares of companies recently announcing new equity issuances where investors have claimed insider information has been leaked before it is publicly announced.
2010/11/11 13:39*DJ 10-Year JGB Yield Rises To 1%; Highest Since Sep 24

2010/11/11 13:29*DJ BOK: Current Account Surplus To Fall To 1% Of GDP Next Year

2010/11/11 13:18=DJ Portugal Survives Last 2010 Bond Auction But At High Cost
Portugal paid sharply higher yields Wednesday to sell EUR1.242 billion, nearly the maximum planned, of six- and 10-year debt at its last bond auction of the year, an event that was closely scrutinized for clues about investor behavior at a time of turbulence in the euro zone's weaker sovereigns. 'The fact that the country was able to sell the maximum amount intended, though at high yields, was somewhat reassuring,' said Jan von Gerich, senior analyst at Nordea in Helsinki. 'This marked the last Portuguese bond auction for the year, and thus gives the country some breathing space.' Portugal offered EUR0.75 billion to EUR1.25 billion of the 4.20% October 2016 and 4.80% June 2020 bonds. Allocation tilted towards the longer bond, contrary to the expectations of some market watchers. They had suggested Portugal might want to sell more of the shorter bond, given that 10-year Portuguese yields have recently surged to near 7%. 'For its very last action of 2010, Portugal had strong headwinds,' said Jean Francois Robin, strategist at Natixis in Paris. Among other factors, he mentioned Fitch's downgrade of Portuguese banks and questions about the country's deficit reduction path. Demand was decent, showing investors are willing to take on risk for high yields. The agency sold EUR556 million of the shorter bond at an average yield of 6.156%, compared with 4.371% at the previous auction Aug. 25. It also sold EUR686 million of the 10-year bond at an average yield of 6.846%, compared with 6.242% at an auction Sept. 22. The bid-to-cover ratios came out at 2.3 and 2.1 respectively, versus 2.1 and 4.9 previously. Euro-zone peripheral bonds suffered a fresh blow late last month when European leaders agreed to create a permanent mechanism to provide emergency lending in the event of a national debt crisis, with the idea that investors should share the burden of future bailouts. Uncertainties about how Ireland and Portugal will be able to bring their budget deficits under control have heightened fears. Nordea's von Gerich said the auction was 'no huge success' but its results 'should ease the worst fears' towards Portugal's funding situation. 'More tough budget measures along with their successful implementation are needed for the country to regain market confidence,' he said. 'Still, Portugal is not yet close to knocking on the door of the International Monetary Fund for emergency funding.' Portuguese Treasury and Government Debt Agency website: www.igcp.pt
2010/11/11 12:35DJ APEC Trade, Foreign Ministers Agree To Curb Trade Barriers
YOKOHAMA, Japan -Trade and foreign ministers from the 21 Asia-Pacific Economic Cooperation nations said in their statement Thursday they agreed no new trade barriers should be established for at least three years, as the fragile global and regional economic recovery continues.The ministers said they will recommend that APEC leaders, who meet over the weekend, make a commitment to "refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing WTO-inconsistent measures in all areas, including those that stimulate exports, until the end of 2013."They also urged that concrete actions be taken to restart the stalled Doha Round of talks under the World Trade Organization."An ambitious and balanced conclusion of the DDA will provide a much-needed stimulus for the global economy," they said. "The delay in concluding the DDA negotiations is therefore a source of continuing concern."The group said that while the global economy is back on track following the financial crisis that began two years ago, the recovery is still fragile and could be undermined by protectionist measures.The statement referred briefly to the current debate over fiscal stimulus spending and the impact of monetary easing on asset flows and exchange rates. "We are now facing challenges, in particular, of addressing volatility, creating employment and reconsolidating finance, and continuing to keep a balance between recovery and the exit strategies of fiscal and monetary policies."The ministers issued the statement at the close of two days of talks ahead of the weekend summit of APEC leaders.
2010/11/11 12:31*DJ EU'S Van Rompuy: Need To Avoid Currency Wars, Protectionism

2010/11/11 12:30*DJ EU'S Van Rompuy: Exchange Rates Should Reflect Economic Fundamentals, Be Market-Determined

2010/11/11 12:22*DJ EU Barroso: Don't Believe In Numerical Targets To Assess Imbalances

2010/11/11 12:12*DJ EU Barroso: G-20 Nations Shouldn't Pursue Growth At Expense Of Others

2010/11/11 12:10*DJ EU Barroso: G-20 Members Have To Assess Consequences Of Their Actions On Others

2010/11/11 12:08*DJ EU Barroso: G-20 Needs To Tackle Imbalances Decisively

2010/11/11 11:58*DJ Geithner: Dollar's Movement Is On Safe-Haven Flows - CNBC

2010/11/11 11:58*DJ Geithner: Won't Ever Seek To Weaken Dollar For Competitive Advantage -CNBC

2010/11/11 11:46*DJ Germany's Merkel: Support French Plans To Continue Bank Reform Talks In '11

2010/11/11 11:45DJ Standard Chartered Applies To List US$35 Bln Debt Issuance Program
HONG KONG -Standard Chartered PLC (STAN.LN) said Thursday it has applied to Hong Kong Exchanges & Clearing Ltd. (0388.HK) for the listing of its US$35 billion debt issuance program. The application gives the lender the right to list its debt, but doesn't indicate the lender will immediately raise debt. The UK-based lender said it expects permission to list its debt to become effective on or around Nov. 16. J.P. Morgan Cazenove and Standard Chartered Bank are the joint arrangers, it said in the statement.
2010/11/11 11:45*DJ Germany's Merkel: Swift Basel III Negotiations A Success

2010/11/11 11:44*DJ Germany's Merkel: Financial Markets Need Strong Regulator Framework

2010/11/11 11:41DJ PBOC Vice Gov: Bank Reserve Ratio Hike A Measure To Manage Liquidity
BEIJING -China's latest decision to raise banks' reserve requirement ratio is a measure to manage liquidity while the authorities will continue to maintain a reasonable level of liquidity in the banking system, a deputy Chinese central banker said Thursday. 'We will continue to use traditional monetary policy flexibly and make the policy more targeted and effective,' Hu Xiaolian, a vice governor of the People's Bank of China, said at a forum. The PBOC said Wednesday it will raise banks' reserve requirement ratio by 50 basis points from Tuesday, the fourth such hike this year, as concerns about excessive liquidity increase. Hu added the central bank will continue to closely monitor consumer price trends in the country. Hu also said China should 'actively meet market demand' and further promote the use of the yuan in cross-border trade and investment, helping Chinese firms hedge against volatility in the world's major currencies. She added that the international currency system needs further reform. 'We think a multilateral currency system will benefit the stability of international finance and currencies as a whole.'
2010/11/11 11:36PRESS RELEASE: Moody's Upgrades Hong Kong's Ratings To Aa1, Assigns Positive Outlook
The following is a press release from Moody's Investors Service:New York, November 10, 2010 -- Moody's Investors Service has upgraded the government bond ratings of the Hong Kong Special Administrative Region to Aa1 from Aa2. In addition, the foreign currency bank deposit ceiling was raised to Aa1, while the foreign currency bond ceiling was raised to Aaa. The agency also assigned a positive outlook to the ratings.The main driver for the upgrades and the outlook change was Moody's upgrade of the Chinese government's bond rating to Aa3 and the positive outlook assigned to that rating. Also considered in the decision for Hong Kong were the following factors.(1) The prospects for continued and improving government financial strength, particularly in comparison to other sovereigns rated in the Aaa and Aa range; (2) The lessening vulnerability to external shocks, including any from mainland China, as demonstrated by the continued health of the financial sector through the global crisis, the increases in the Special Administrative Region's (SAR's) external financial assets, and the government's own very strong financial position; (3) Favorable prospects for Chinese economic performance in the coming few years, providing support to economic growth and financial developments in Hong Kong. RATINGS RATIONALE Moody's believes that, as a Special Administrative Region of China, Hong Kong's ratings should be linked to, although not necessarily the same as, China's. Unlike other subsovereigns, Hong Kong has a separate currency, international reserves, legal system, and foreign exchange regime. In addition, the central government does not collect taxes in Hong Kong, so there is no fiscal relationship between the two. On a stand-alone basis, Hong Kong's government financial strength, institutional strength, and economic strength are compatible with a Aaa rating, according to Moody's sovereign rating methodology. However, because of the SAR's legal status as a part of China and because of increasing financial and economic linkages with the rest of China, there is also an element of China risk inherent in Hong Kong's rating. Although China's economic performance has been positive for Hong Kong's economy since the 1997 return to Chinese sovereignty, any negative scenario for China in the future would also have consequences for Hong Kong. Moody's does not believe that such a scenario is likely, as indicated by China's high rating and positive outlook. However, the linkages between Hong Kong and the mainland do influence Hong Kong's rating level. 'Hong Kong's fiscal indicators are among the strongest of the countries and regions rated by Moody's, notwithstanding some revenue volatility,' according to Hess. 'The global financial crisis affected the government's finances, but the government has maintained a budget surplus despite a decrease in revenues and some increase in spending.' Hong Kong's government has only a minimal amount of debt, and the budget is expected to remain in surplus this fiscal year, even though the original budget showed a deficit. Furthermore, the government's large fiscal reserves make it likely that, for the foreseeable future, potential budget deficits can be financed without debt issuance. Although a number of highly rated countries experienced serious banking-sector difficulties as a result of the recent financial crisis, Hong Kong's banks proved comparatively resilient, and the Hong Kong government, although establishing a temporary facility to provide capital to the banks if needed, was not actually required to use this facility. 'In addition, the government's fiscal reserves and the large foreign assets of both the government and the private sector provide Hong Kong with a cushion against potential external shocks,' added Moody's Hess. 'The prospects for further increases in the SAR's net foreign assets are positive.' Going forward, economic developments in Hong Kong will be influenced by the pace of growth in China. Financial relations between the SAR and the mainland are deepening as Chinese demand for Hong Kong's financial and professional services increases. With the Chinese economy expected to continue to grow rapidly, this demand should expand further over time. In addition, as an intermediary for trade between China and the rest of the world, Hong Kong will continue to benefit from rising trade volumes, even as infrastructure is developed elsewhere in China. The development of the 'offshore' market in Hong Kong for renminbi financing may reinforce the SAR's advantage as a center for Chinese international financial transactions. The principal methodology used in this rating was Sovereign Bond rating methodology published in September 2008. Moody's last rating action concerning Hong Kong was on October 8, 2010, when the Aa2 government bond ratings were placed on review for possible upgrade. REGULATORY DISCLOSURES Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, and public information. Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating. Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history. The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information. Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery. Moody's Investors Service 250 Greenwich Street New York, NY 10007 U.S.A. Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, 'MOODY'S').
2010/11/11 11:21*DJ APEC Mins: Concerned About Risk Of Protectionist Measures

2010/11/11 11:19*DJ APEC Mins: To Urgently Engage In Doha Talks

2010/11/11 11:18DJ PBOC Vice Gov: Paying Close Attention To Inflation
BEIJING -People's Bank of China Vice Gov. Hu Xiaolian said Thursday the bank is paying 'close attention' to domestic inflation, after official data showed China's consumer price index rose by a two-year high of 4.4% in October. Hu said on the sidelines of a forum the central bank will use monetary policy flexibly to combat inflation. She declined to elaborate. The central bank said Wednesday it will increase the reserve requirement ratio by 50 basis points from Tuesday, amid concerns about rising inflation and unwanted capital inflows driven by the U.S. Federal Reserve's super-loose monetary policy. -Yajun Zhang contributed to this article, ; 8610 8400 7799; yajun.zhang@dowjones.com
2010/11/11 11:17*DJ APEC Mins: Want Concrete Action On Doha Round

2010/11/11 11:15*DJ APEC Mins: Recommend Not Implementing New Trade Barriers Before 2013

2010/11/11 11:09=DJ FSA Proposes More Disclosure On UK Bank Pay

2010/11/11 11:06*DJ APEC Mins Statement: Global Econ Back On Track After Financial Crisis

2010/11/11 11:04*DJ Temasek Expected To Convert BofA Rights Issue Entitlement Into Shares - Source

2010/11/11 10:49*DJ Moody's Upgrades Hong Kong's Ratings To Aa1 From Aa2, Assigns Positive Outlook

2010/11/11 10:40*DJ PBOC Vice Gov: Paying Close Attention To Inflation

2010/11/11 10:40*DJ PBOC Vice Gov: Multilateral Currency System Will Benefit Global Financial Stability

2010/11/11 10:39=DJ FOREX VIEW: G-20 Truce Unlikely But Markets Forge Middle Ground

2010/11/11 10:39DJ Geithner: Stronger Asia Currencies Help Contain Inflation Pressures - Report
DJ Geithner: Stronger Asia Currencies Help Contain Inflation Pressures - ReportSINGAPORE -U.S. Treasury Secretary Timothy Geithner said Asia is in a much better position now than in the past several decades to manage the flood of liquidity into the region, and urged Asian central banks to let their currencies rise to contain inflation and head off asset price bubbles, according to a report in The Straits Times published Thursday.The influx of capital into Asia "seems to me reasonable; it's rational, not surprising, and fundamentally desirable compared to the alternative," he told the Singapore newspaper.The inflows create "pressures and tensions" for Asian central banks, he said.He noted that the Monetary Authority of Singapore's decision last month to let the Singapore dollar--the island state's main monetary policy lever--strengthen further was a step in the right direction to manage the capital inflows."I think that's a necessary part of it... you've been able to demonstrate that part of managing that challenge is to allow the exchange rate to absorb some of those pressures," Geithner said, according the report."If you don't do that, then... the risk is those pressures will end up in higher inflation or in greater asset price bubbles," he said, according to the report.Geithner, who visited Singapore ahead of the Group of 20 leaders summit in South Korea today and Friday, said the outlook for the U.S economy is linked to Asia's economy."We want to help Americans understand that our capacity to grow as a country, future innovation and job growth, are going to depend in part on the very encouraging growth rates we're seeing in Asia as a whole," he said, according to the report.
2010/11/11 10:39*DJ PBOC Vice Gov: To Use Monetary Policy Flexibly To Combat Inflation

2010/11/11 10:38*DJ PBOC Vice Gov: Will Keep Closely Monitoring Consumer Price Trend

2010/11/11 10:35*DJ PBOC Vice Gov: Bank Reserve Ratio Hike A Measure To Manage Liquidity

2010/11/11 10:09DJ PBOC Vice Gov: US QE Policy Has Showed Spillover Effects On World Econ
BEIJING -The U.S.' quantitative easing policy has showed spillover effects on the world economy, while emerging economies have to cope with rapid capital inflows in a passive way, People's Bank of China Vice Gov. Hu Xiaolian said Thursday.Hu, who made the comments at a forum, said China will continue to manage domestic inflation and take measures to boost cross-border trade.-Yajun Zhang contributed to this article, ; 8610 8400 7799; yajun.zhang@dowjones.com
2010/11/11 10:06DJ APEC Draft Trade Statement To Freeze Protectionist Steps To 2013-Source
YOKOHAMA, Japan -The final statement to be issued by the leaders of the countries of the Asia-Pacific Economic Cooperation forum will include a pledge to freeze any new protectionist measures until 2013, according to the current draft document being circulated among member countries, a person with one of the delegations told on Wednesday.'We agreed that we are going to freeze any additional measures up to 2013,' said the person, who didn't want to be named, after the first round of meetings involving foreign and trade ministers.The pledge will be included in the leaders' statement to be issued Sunday at the conclusion of the meeting of the 21-nation grouping, the person said.The pledge effectively extends a commitment made at the 2008 APEC summit after the global financial crisis designed to stop nations from erecting trade barriers.Another person with a delegation said in a media briefing that, in addition to the final leaders' statement, there would be three separate reports.One will be an update of progress on the Bogor Goals, originally established in 1994 and designed to 'achieve free and open trade and investment in the Asia-Pacific region no later than 2010.'Another will be an APEC growth strategy, a key element for this year's APEC meetings.The third will be an examination on the feasibility of an trans-Asia Pacific free trade zone.
2010/11/11 09:56*DJ PBOC Vice Gov: Developed Countries' Low Interest Rates, QE Will Cause Currency Depreciation

2010/11/11 09:55*DJ PBOC Vice Gov: Low Interest Rates In Developed Nations, QE Will Boost Commodity Prices

2010/11/11 09:49*DJ PBOC Vice Gov: Monetary Policy Increasingly Important Now In Post-Crisis Era

2010/11/11 09:39DJ ICBC To Raise Up To US$1.68 Bln In Hong Kong Rights Issue
HONG KONG -Industrial & Commercial Bank of China Ltd. (1398.HK), China's largest lender by assets, said Thursday it aims to raise as much as HK$13.05 billion (US$1.68 billion) from the Hong Kong portion of its planned rights issue. The bank said Wednesday it plans to raise as much as CNY34 billion (US$5.1 billion) from the Shanghai tranche of the rights issue. In total, ICBC could raise up to US$6.78 billion from the rights issue to shore up its capital base. According to the bank's plan, it will offer Hong Kong dollar-denominated H shares at HK$3.49 each, a 47% discount to its closing price of HK$6.63 on Wednesday. The lender will sell yuan-denominated A shares at CNY2.99 each, a 37% discount to its closing price of CNY4.74 on Wednesday.
2010/11/11 09:39*DJ PBOC Vice Gov: US QE Policy Has Showed Spillover Effects On World Econ

2010/11/11 09:39*DJ PBOC Vice Gov: Emerging Economies Have To Cope With Rapid Fund Inflows

2010/11/11 09:36DJ Paramo: ECB Doesn't Rule Out Raising Rates Medium-Term -Report
European Central Bank Executive Council member Jose Manuel Gonzalez-Paramo said the ECB could raise interest rates in the medium term, he told Expansion in an interview published in its Thursday Internet edition. 'It's perfectly possible the bank changes rates before withdrawing all the extraordinary measures [that have been implemented], if it notices signs of upward risks for price stability,' he was quoted by the paper as saying. Newspaper Web site: www.expansion.com
2010/11/11 09:32*DJ US Dollar Falls To IDR8,885; Lowest Since June 6, 2007

2010/11/11 09:23=DJ US Government Posts $140.4B October Budget Deficit

2010/11/11 09:14DJ APEC, WTO Should Discuss Export Restrictions -Japan Foreign Minister
YOKOHAMA, Japan --Japan's foreign minister said Wednesday global trade talks should tackle restrictions to exports as well as to imports, weeks after China choked off crucial rare earth shipments to Japan. Seiji Maehara said he made the comments to his counterparts in the 21-member Asia Pacific Economic Cooperation forum, or APEC, who met in Yokohama near Tokyo, ahead of the bloc's weekend summit. China has since late September restricted exports to Japan of rare earth metals that are used in a range of high-tech products, industry sources have reported, amid a bitter territorial dispute between the Asian giants. It reportedly also slowed shipments to the U.S. and elsewhere. Japan Prime Minister Naoto Kan and U.S. President Barack Obama were expected to discuss the issue when they meet on the sidelines of the summit. Maehara, after meeting other APEC ministers Wednesday, told reporters that restrictions on exports should be discussed at APEC and the World Trade Organization, or WTO. 'In my remarks, I said the discussion of the WTO has long focused on restrictions on imports,' he said. 'But we need to discuss restrictions on exports in WTO meetings, I proposed, when we face shortages of resources and foodstuffs due to the increasing population.' 'I hope we can have such discussions in upcoming WTO or APEC meetings.' China controls more than 95% of the global market in rare earths. Beijing has repeatedly denied it has cut off exports of the crucial metals and said it would not use its near-global monopoly as a 'bargaining tool.' The group of 17 elements are used in products ranging from flat-screen televisions, mobile phones, lasers and hybrid cars to military equipment such as missiles, jet engines and night-vision goggles. Maehara's comments also pointed to long-standing worries over food security in Japan, which imports more than half its food by calorie count, a concern heightened after dramatic spikes in grain prices in recent years. APEC ministers meeting in Japan last month warned that 'global food security stands at a crossroads. The food price spike in 2007 and 2008 served as a wake-up call about the vulnerability of long-term food security.'
2010/11/11 09:08DJ IMF: Ireland's Plan To Cut Budget Shows Fiscal Commitment

2010/11/11 09:06=DJ Prudential Financial To Sell $1B In Shares For Acquisition
Prudential Financial Inc. said it plans to sell $1 billion of shares to raise funds for part of its planned $4.8 billion purchase price for two life insurance units from American International Group Inc. .Shares fell 2% to $54.69 in after-hours trading.The insurer, which has a market capitalization of about $26 billion, in September said it agreed to buy AIG Star Life Insurance Co. and AIG Edison Life Insurance Co., in part with a $1.3 billion stock sale and $1.2 billion in senior notes, to expand its presence in Japan.The deal is expected to add 40 cents a share to Prudential's earnings--a calculation that includes the planned share sale, among other factors.
2010/11/11 09:02DJ EU Ministers, Parliament Seek Agreement On 2011 Budget
BRUSSELS -European budget ministers will meet representatives from the European Parliament in Brussels Thursday to try and reach an agreement on next year's European Union budget.The council, which comprises budget ministers from the bloc's 27 member states or their representatives, wants the budget for payments--the actual cash spent over the year--to increase by no more than 2.91% from this year's level of EUR122.9 billion, while the European Parliament is pushing for a 6.2% rise."At a time when many national governments around Europe are taking tough steps to clamp down on dangerous deficits, it's completely unacceptable to be talking about large increases for the European budget," a British diplomat said. "Others are continuing to argue for a budget above acceptable levels. Our objective over the next 24 hours is to nail down 2.91%."The EU budget is funded primarily through the contributions of member states and the overall budget for this year is equivalent to 1.04% of the bloc's GDP, according to the European Commission, its executive office. The commission's draft budget for commitments--the money allotted for projects--is EUR142.6 billion for 2011. Thirteen EU member states signed a letter when heads of government met here last month saying the budget increase should be no more than 2.91%, but the Parliament says a larger increase is necessary to achieve its goals."The European Parliament is accused of extravagance," Sidonia Jedrzejewska, a Polish MEP responsible for negotiations, said in a statement. "But we have to keep in mind that the increase of the 2011 EU Budget was already decided in 2006 under, somewhat ironically, the British EU Presidency, which negotiated the current financial perspective."As well as establishing how much money the bloc will have for projects, the negotiations themselves will set a precedent as it is the first time the decision has taken place under the Lisbon Treaty, the latest set of rules to govern the EU institutions. The so-called "Conciliation Committee" brings together the Parliament and Council to try and reconcile their positions, as they are now on an equal footing in the process.failure to agree on a joint text by Nov. 15 means the process will stall and next year will see the equivalent of this year's budget, adjusted for inflation, divided up into 12 monthly parcels--effectively, a cash freeze.
2010/11/11 09:02*DJ Geithner: Capital Inflows Pose 'Pressures, Tensions' For Asia Central Banks - Report

2010/11/11 09:00*DJ Geithner: Stronger Asia Currencies Help Contain Inflation Pressures - Report

2010/11/11 08:59*DJ Geithner: Capital Inflows Into Asia Reasonable, Rational - Report

2010/11/11 08:57=DJ IMF Should Consider Gold, Emerging Mkt Currencies For SDR Basket-WGC

2010/11/11 08:40DJ ECB's Noyer: No Country Should Manipulate Its Currency -Report
PARIS -Christian Noyer, a member of the European Central Bank's Governing Council, spoke out against countries "manipulating" their currencies in order to gain an economic competitive edge.In an interview with French daily Le Figaro to be published in Thursday's edition, Noyer also said he met with U.S. Federal Reserve officials over the weekend in Basel, where central bankers gathered for a meeting at the Bank Of International Settlements, or BIS. During their meeting, Fed officials assured other central bankers that they had "no deliberate intention" to weaken the dollar's value on foreign exchange markets.Noyer, who is also governor of the Bank of France, noted that contrary to perceptions, the ECB wasn't less accommodative toward economic growth than the Fed, saying the situations in the euro zone and U.S. were different. Speaking on the euro zone, Noyer was quoted as saying there was no deflation nor inflation risk there. He also said the U.S. economy's current growth was "significantly below its potential," while the euro zone's growth rate was close to its potential.
2010/11/11 08:29DJ ECB Honohan:Irish Bond Yields Won't Stay At Crisis Levels
(Adds details, quotes) By Nicholas Winning Of DUBLIN - Patrick Honohan, governor of the Central Bank of Ireland, said Wednesday that Irish bond yields won't return to pre-crisis levels, but they couldn't continue at their current levels either."We'll never get back to the yields that we had before the crisis...because the crisis has exposed the scale of the risks that can be involved and investors are going to want to be compensated for that," he told a parliamentary committee.Honohan, who is a member of the European Central Bank's governing council, also said: "These are crisis levels of yield--these will not continue."The Irish government is working on a plan to make EUR15 billion of budget cuts over the next four years--EUR6 billion of them in 2011 alone--in an effort to reduce the country's budget deficit to the European Union's target of 3% of gross domestic product by 2014.Investors' concerns about the budget cut plan and whether the government will muster the political support to push it through have driven up Irish government bond yields and lifted the cost of insuring the country's sovereign debt against the risk of a default to record highs.Investors are also worried about the impact the austerity drive will have on the growth outlook for the Irish economy.Asked by one lawmaker what would be a sustainable rate for the Irish government to borrow funds on international bond markets, Honohan said there was no single rate that he would set out as an absolute."It depends on the dynamic of sentiment in the market...But I would readily say that the existing interest rates are well above the rate at which one would go back into the market," he told the Joint Committee on Economic Regulatory Affairs.Asked about concerns there may be more losses that have yet to come to light in the financial sector, Honohan said there wasn't anything else "that's not laid out there."But he added that it was difficult to be precise about losses in the residential mortgage market because they extended over a long period of time and depended on the path of the economy and employment and unemployment.The central bank chief said that if you took the example of the U.S. that would give you a high loss rate, but in the historical experience of Ireland and the U.K. it was "hard to get worrying figures.""That is the area we're going to continue to do work on--and as soon as we get stuff, and if it's bad stuff, we'll put it out," Honohan said.
2010/11/11 08:21=DJ Cost Of Protecting Irish, Portuguese, Spanish Debt Soars

2010/11/11 08:18DJ ECB Honohan: Irish Fiscal Package Is The Kind IMF Would Like To See
DUBLIN -Patrick Honohan, a member of the European Central Bank's governing council and governor of the Central Bank of Ireland, said Wednesday that the Irish government's fiscal package was the kind the International Monetary Fund would like to see. Asked at a conference whether Ireland would benefit from support from the IMF or the European Financial Stability Facility, Honohan said it wasn't his call to make and it was hard to see support measures of that nature as a remedy for all the country's problems. 'My take would be is that the sort of policy package that the IMF would want to see Ireland doing is very much the sort of policy package that the government is putting together on the fiscal side,' he said. 'So at this juncture it doesn't seem to me that... what you're talking about would entail a change of direction.'
2010/11/11 08:13DJ Japan Sep Core Machinery Orders -10.3% On Mo; Expected -9.7%
TOKYO -Japanese core machinery orders fell 10.3% in September from August, the government said Thursday, falling back sharply after orders in the metal sector jumped in the previous month and lifted the overall figure. The fall was larger than expected by economists surveyed by and the Nikkei, who estimated core orders shrank 9.7% from the previous month. Unadjusted core orders also rose 4.2% from the year-earlier month. Machinery orders are widely regarded as a leading indicator of corporate capital investment. Core orders exclude those from electric power companies and those for ships, which are often a source of volatility in the overall data due to their large sizes.
2010/11/11 08:11DJ NY Fed To Buy $105B In Treasury Purchases Over Next Month
NEW YORK -The Federal Reserve will buy $105 billion in Treasury securities over the next month, the Federal Reserve Bank of New York said Wednesday. The bank said $75 billion of the purchases will be tied to its new stimulus program, whereas $30 billion will result from its ongoing reinvestment of mortgage securities proceeds. The New York Fed offered a very active calendar of interventions, which will buy a wide range of government bonds, as well as inflation indexed securities. The operational details provided by the New York Fed Wednesday follow by a week the central bank's decision to restart its program of buying longer dated Treasurys. The Fed said that on top of around $300 billion in government bonds it will buy as part of its effort to reinvest the proceeds of its mortgage holdings, it will buy an additional $600 billion in Treasurys. The Fed is acting because it believes current levels are too weak to meaningfully lower very high levels of unemployment, and bring inflation back up toward what central bankers consider a more sustainable level. The effort to pump more liquidity into the financial system is spurring widespread consternation in international circles, as many fear the inflationary impact of Fed engineered liquidity. Meanwhile, even some on the Fed are skeptical of the need to act, largely because they fear monetary policy can't really fix the forces that are holding back the economy right now. On Saturday, Fed Chairman Ben Bernanke addressed some of the critics and explained that Fed policy makes sense in an environment where core price pressures are weak and getting weaker. He went on to say what the Fed is now doing with bond buying 'is just monetary policy' that 'can be helpful' in pushing economic growth toward better levels. 'We see an economy which has a very high level of under-utilization of resources and a relatively slow growth rate,' Bernanke said. 'The standard considerations suggest we should be using expansionary monetary policy, and that was the purpose of the action.' The New York Fed has already announced that over the course of the purchases 5% would come in the 1.5- to 2.5-year range, whereas 20% of purchases would fall into both the 2.5- to four-year range and the four- to 5.5-year range. The Fed would devote 23% of the purchases to the 5.5- to seven-year and seven- to 10-year range, and 2% to the 10- to 17-year part of the curve. The Fed will direct 4% of the buying to the 17- to 30-year range and 3% to the 1.5- to 30-year inflation index part of the Treasury market.
2010/11/11 08:10*DJ Japan Govt: Oct-Dec Core Machinery Orders Seen Down 9.8%

2010/11/11 08:07=DJ APEC Begins Trade Talks With High Aspirations, High Hurdles

2010/11/11 08:04*DJ Nikkei Stock Average Opens Up 0.5% At 9878.11

2010/11/11 08:04*DJ Lead 10-Yr JGB Futures Open Dn At 142.47 Vs 142.52 Wed

2010/11/11 07:51*DJ Japan Sep Core Machinery Orders +4.2% On Year

2010/11/11 07:51*DJ Japan Oct Domestic CGPI +0.9% On Year

2010/11/11 07:50*DJ Japan Sep Core Machinery Orders -10.3% On Mo; Expected -9.7%

2010/11/11 07:50*DJ Lead Nikkei Futures Open Up 25 Points At 9830 On SGX

2010/11/11 07:28DJ Obama: Rebalancing Global Demand, Market-Set FX Rates Best For Global Recovery
SINGAPORE A strong economic recovery is the most important contribution the U.S. can make to the global economy, and the strength of the U.S. dollar depends on the health of the U.S. economy, President Barack Obama wrote in a letter to the Group of 20 industrial and developing nations. The letter, coming before a summit of G-20 leaders in South Korea Thursday and Friday, also addressed the thorny issue of foreign exchange levels, saying avoiding currency undervaluation can help promote adjustments in the global economy. 'A rebalancing of the sources of global demand, along with market determination of exchange rates that reverses significant undervaluation, are the best base for the shifts needed to bring about the vigorous and well-balanced recovery that we all want,' Obama said in the letter. The U.S. has come in for heavy criticism from China and other nations over the Federal Reserve's recent decision to engage in a new round of quantitative easing. U.S. authorities hope the asset purchases will boost the sluggish economy, but the wave of cash may eventually find its way to fast-growing Asian economies that are struggling with currency appreciation and asset bubbles. Several officials in Asia have criticized the recent Fed measures. There are doubts about what the G-20 meeting can achieve in the current climate. A draft communique prepared Wednesday for the G-20 leaders said the group will increasingly let markets determine currency rates. 'We will move towards more market-determined exchange-rate systems and enhance exchange-rate flexibility to reflect underlying economic fundamentals,' says the G-20 draft, seen by . But that is just in line with a statement G-20 finance ministers issued in late October. In his letter to the G-20, Obama called for decisive action to 'halt the fall in activity caused by the deepest crisis we have experienced in generations.' He noted the role the U.S. should play in a global recovery: 'A strong recovery that creates jobs, income and spending is the most important contribution the United States can make to the global recovery. The dollar's strength ultimately rests on the fundamental strength of the U.S. economy.' Obama also said it was important to discuss how to move forward on the Doha trade talks, and said a framework was needed for the cross-border wind-down of failed banks. 'We must press ahead with the other important financial sector reform items on this agenda. We need to work together to assure that the momentum of reform does not falter.'
2010/11/11 07:25=DJ WORLD FOREX: Euro Claws Back Against Dollar In A Seesaw Session

2010/11/11 07:19DJ ICBC To Raise $5.1B With Shanghai Rights Issue
SHANGHAI -Industrial & Commercial Bank of China Ltd. (1398.HK, 601398.SH, IDCBY) said Wednesday it will start a rights issue in Shanghai to raise around CNY34 billion ($5.1 billion) to shore up its capital base. ICBC, China's largest lender by assets, said it plans to sell 11.3 billion A shares at CNY2.99 each in Shanghai from Nov. 16 to Nov. 22. It will sell 0.45 share for every 10 existing Shanghai-listed A shares, the lender said. ICBC said its A shares will be suspended from trading from Nov. 16 to Nov. 23. China raised the minimum capital adequacy ratio of its big banks to at least 11.5% last year, from 8% in earlier years, because of the global financial crisis and the explosion in bank lending. Financial institutions in China issued a record CNY9.6 trillion worth of local-currency loans last year. The central bank has targeted new yuan lending of CNY7.5 trillion this year.
2010/11/11 07:15DJ Merkel: Germany Won't Support Current Account Limits At G-20
BERLIN -Germany won't support proposals to set limits to countries' current account balances at this week's meeting of the Group of 20 industrial and developing nations, Chancellor Angela Merkel said at a briefing Wednesday before flying to the summit in Seoul, South Korea. Merkel also said that protectionism currently is the greatest danger to the world economy, and stressed the importance of starting the last phase of the Doha trade talks. The chancellor added that she will discuss monetary policy with the U.S. at the summit.
2010/11/11 07:03=DJ WORLD FOREX: Euro Claws Back Against Dollar In A Seesaw Session

2010/11/11 06:59DJ Trichet:Strong US Dollar In Interest Of US, EU, International Community
LYON, France -European Central Bank President Jean-Claude Trichet Wednesday said a strong U.S. dollar is in the interest of the U.S., Europe and the international community.Trichet made the comment when asked to comment on the U.S. Federal Reserve's decision last week to embark on a second round of quantitative easing."My only comment is the following. Treasury Secretary Timothy Geithner and Ben Bernanke say that a strong dollar against other convertible currencies is in U.S. interest," Trichet said."I am convinced it's in the interest of U.S. and Europe and international community that we have a strong dollar against other convertible currencies," he said.He said the European Central Bank is doing what its mandate demands, which is to keep inflation close to but less than 2%.Trichet also said it is necessary to be continually alert to monetary markets. He said that when turbulence started the ECB took decisions in less than half a day as the European monetary market was escaping the central bank's control.
2010/11/11 06:16DJ Treasurys Rally As Fed Unveils Bond-Buying Details After Auction

2010/11/11 05:20*DJ Nasdaq Gains 15.80 (0.62%) To 2578.78; Financials Lead

2010/11/11 05:17*DJ DJIA Closes Up 9.46 (0.08%) At 11356.21; BofA, Chevron, 3M Gain

2010/11/11 05:14DJ OIL FUTURES: Oil Settles Higher As Inventories Drop

2010/11/11 04:56DJ PRECIOUS METALS: NY Gold Ends Below $1,400 On Dollar Strength

2010/11/11 04:25DJ Trichet: Monetary Union Requires 'Quasi-Budgetary Federation'
LYON, France -European Central Bank President Jean-Claude Trichet on Wednesday said that a monetary federation in the euro zone requires a "quasi-budgetary federation."Speaking at a conference here, Trichet stressed the importance for members of the euro zone to respect the Stability and Growth Pact, which stipulates that countries' public deficits shouldn't exceed 3% of gross domestic product.Trichet said there is a problem of confidence in Europe, and government must show fiscal wisdom.He also said that structural reforms should be as ambitious as possible.
2010/11/11 04:13*DJ White House:Obama Won't Comment On Draft Fiscal Report

2010/11/11 04:03*DJ Trichet: Must Always Be Alert On Monetary Markets

2010/11/11 03:54*DJ Noyer: Global Monetary System Reform Is On Long-Term Basis Only

2010/11/11 03:52*DJ Noyer: G20 Current Account Imbalances Can't Be Fixed By Monetary Policy Alone

2010/11/11 03:51*DJ ECB's Noyer: US 'Significantly' Below Its Growth Potential

2010/11/11 03:50*DJ ECB's Noyer: No Deflation, Nor Inflation Risk In Euro Zone

2010/11/11 03:50*DJ ECB's Noyer: Fed Officials Assured They Don't Intend To Weaken Dollar

2010/11/11 03:50*DJ Trichet:Strong Dollar In Interest Of US,EU,International Communinty

2010/11/11 03:46*DJ ECB's Noyer: No Country Should Manipulate Its Currency

2010/11/11 03:43*DJ OIL FUTURES: Nymex Crude Closes $1.02 Higher At $87.74/Bbl

2010/11/11 03:26*DJ Yield Spread On Irish 10-Yr Bonds Vs. German Bunds Rises To Highest Level On Sovereign Woes - Tr

2010/11/11 03:17*DJ Trichet:Structural Reforms Must Be As Ambitious As Possible

2010/11/11 03:06*DJ 10-Yr Treasury Note Up, Erasing Earlier Losses

2010/11/11 03:05*DJ Treasurys Recover After Fed Releases Bond Buying Details

2010/11/11 02:10*DJ 10-Yr Treasury Yield Hits 2.783%, Highest Level Since Sep 17

2010/11/11 02:09*DJ 30-Yr Treasury Yield Hits 4.335%, Highest Level Since May 18

2010/11/11 02:02DJ EU Approves Extension Of Irish Bank Guarantee Scheme
BRUSSELS -The European Commission Wednesday approved the extension of Ireland's Ibank guarantee scheme until June 30, 2011. The commission, the European Union's executive arm, said the measure, which also covers some short-term liabilities, remains in line with the EU's policy of allowing certain state aid measures during the economic crisis as long as the aid is short-term and proportionate.
2010/11/11 01:47=DJ Irish Debt Woes Hit European Markets

2010/11/11 01:12*DJ ECB's Honohan: Irish Model Of Economic Growth Isn't Broken

2010/11/11 00:14=DJ WORLD FOREX: Dollar Rallies Against Yen, Euro After Encouraging Data -2-