Market Rumours

2010/11/17 17:49*DJ BOE Majority Stood Ready To Adjust Policy In Either Direction

2010/11/17 17:47*DJ BOE Majority: Premature To Tighten While Significant Spare Capacity

2010/11/17 17:42*DJ BOE Majority: Premature To Ease Without Clear Signs Of Slowdown

2010/11/17 17:41*DJ Sterling Rising After BOE Minutes, Jobless Fall

2010/11/17 17:40*DJ BOE Sentance: Data Underpins Case For Gradual Rise In Key Rate

2010/11/17 17:39*DJ BOE Nov Minutes: MPC Voted 8-1 For BOE Rate Action

2010/11/17 17:38*DJ BOE: MPC Voted 8-1 To Hold Bond Buys At GBP200 Bln

2010/11/17 17:36*DJ Food Prices To Rise Further In 2011 If Crops Don't Increase-FAO

2010/11/17 17:34*DJ Global Cereal Production To Fall 2.1% On Year In 2010-11 -FAO

2010/11/17 17:32*DJ UK 3 Mos To Aug Avg Earnings Unchanged At +2.0%

2010/11/17 17:32*DJ BOE Nov Minutes: MPC Voted 8-1 For BOE Rate Action

2010/11/17 17:32*DJ UK 3 Mos To Sep Average Earnings +2.2%

2010/11/17 17:32*DJ UK 3 Mos To Sep Avg Earnings Was Forecast +2.2%

2010/11/17 17:31*DJ UK Oct Adj Claimant Rate Was Forecast 4.5%

2010/11/17 17:31*DJ UK ILO 3 Mos To Oct Unemployment -9,000, 7.7% Rate

2010/11/17 17:31*DJ UK Oct Adj Jobless Claimant -3,700 At 4.5% Of Workforce

2010/11/17 17:31*DJ UK Oct Adj Jobless Claimants Was Forecast At +5,000

2010/11/17 17:20*DJ German Fin Min: Able To Speak To Non-Euro Zone Countries On Aid

2010/11/17 16:46=DJ PRECIOUS METALS: Gold In Range Trade In Asia

2010/11/17 16:36*DJ German Fin Min: Irish Govt Has Described The Situation Very Clearly

2010/11/17 16:34*DJ German Fin Min: Euro Group Clearly Said Aid Measures Are Available

2010/11/17 16:29*DJ German Fin Min: Ireland Doesn't Need Advice From Other Governments

2010/11/17 16:22DJ JGBs Fall On Profit Taking; 20-Year Sale Thursday Awaited
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.660 .005 TSE Dec 10-Yr JGB Futures Price: 141.96 .43 10-Yr 1.0% JGB No. 310 Yield: 1.050% +0.025 TOKYO -Japanese government bonds fell Wednesday on selling by traders and short-term investors looking to lock in profits on earlier gains, though analysts said a 20-year auction Thursday might reveal resilient demand in the long-end of the curve that could support JGBs for the rest of the week. Downward pressure Wednesday was concentrated on lead December 10-year futures and the belly of the curve, while the super-long end avoided the brunt of such selling. 'The market was kind of twisted today,' said Naomi Hasegawa, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities. The 20-year and 30-year bonds held up well, succumbing only late in Tokyo trade to a spurt of selling that pushed the yields up slightly. In contrast, the lead December futures contract closed down 0.43 at 141.96. The 10-year yield was up 2.5 basis points at 1.050% and the five-year yield was up 2.5 basis points at 0.370% as of 0600 GMT. Players sold futures and shorter-dated debt to book profits after a rally in those maturities Tuesday, analysts said. But expectations for a smooth 20-year auction Thursday underpinned demand in the super-long end. Japanese investors, such as pension funds focused on higher yields, will likely welcome the chance to buy in the sector following dips in prices in recent days, analysts said. Thursday's tender will likely 'be absorbed smoothly or at least without difficulty, primarily on steady buying from domestic absolute-yield buyers,' said RuiXue Xu, debt markets strategist at The Royal Bank of Scotland. In addition to a strong auction result, JGBs could also be helped this week by Ministry of Finance meetings focused on JGB issuance plans for the next fiscal year. 'If the message sent out by the meetings is that additional JGB issuance pressure will not be as strong as the market expects, it will help to bring more buyers back,' said RBS's Xu. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.100% flat 5-Year 0.3% JGB No. 92 Yield: 0.370% +0.025 20-Year 1.8% JGB No. 122 Yield: 1.910% +0.005 30-Year 2.0% JGB No. 33 Yield: 2.060% +0.010 ***********
2010/11/17 16:21*DJ OIL FUTURES: Nymex Dec Crude Hits 3-Week Low $81.18/Bbl; Now Off Low

2010/11/17 16:12*DJ UK Osborne: UK Ready To Help Ireland

2010/11/17 16:10*DJ FTSE 100 Dn 0.3% After The Open

2010/11/17 16:09*DJ OIL FUTURES: December Nymex Crude Down $1.07 At $81.27/Bbl

2010/11/17 16:08*DJ OIL FUTURES: Nymex Crude Extends Losses To More Than $1/Bbl

2010/11/17 16:07*DJ OIL FUTURES: ICE January Brent Crude Down $1.10 At $83.63/Bbl

2010/11/17 16:05*DJ Stoxx Europe 600 Index Dn 0.1% After The Open

2010/11/17 15:54*DJ OIL FUTURES: Nymex December Crude At $81.44/Bbl, Down $0.90

2010/11/17 15:53*DJ OIL FUTURES: Nymex December Crude Below $81.50/Bbl

2010/11/17 15:48*DJ EU Rehn: UK Contribution For Ireland Aid Under Discussion

2010/11/17 15:45*DJ Shandong Gold To Set Up Joint Venture With Argentina Firm -Exec

2010/11/17 15:41*DJ OIL FUTURES: Dec Nymex Crude Now Down $0.49 At $81.85/Bbl

2010/11/17 15:40*DJ OIL FUTURES: Dec Nymex Crude Breaches $82/Bbl

2010/11/17 15:35*DJ Hang Seng Index Falls For 4th Straight Session

2010/11/17 15:35*DJ Hang Seng Index Falls 2.0% To 23,216.47; Extends Weakness

2010/11/17 15:16*DJ OIL FUTURES: December Nymex Down $0.30 At $82.04/Bbl

2010/11/17 15:15*DJ OIL FUTURES: Nymex November Crude Falls To 2-Week Low

2010/11/17 15:05*DJ OIL FUTURES: December Nymex Down $0.24 At $82.10

2010/11/17 15:01DJ Forex Options: Dollar/Yen Options Edge Down On Stable Spot
TOKYO -Dollar/yen options edged down Wednesday in Asia as demand for hedges against the greenback's rises against the yen waned, with the U.S. unit trading in a narrow range versus its Japanese counterpart. Benchmark volatilities implied by one-month at-the-money options declined to 11.20%/11.90% from 11.25%/11.95% in New York Tuesday. The dollar traded in a Y83.26-Y83.48 range in Asian morning trade after hitting a six-week high of Y83.60 late Tuesday in New York. Demand for dollar-call/yen-put options contracts has been strong in recent days as the dollar continued to rise against the yen. But some investors are looking to sell those upside hedges, expecting the greenback to have trouble topping the six-week high it hit overnight. Meanwhile, if the dollar resumes falling and drops below Y83.00 in the coming sessions, that could reignite demand for hedges against more dollar falls, the dealer said. Demand for downside hedges would push the mid-point of volatilities up to 12.00% versus the current level of 11.55%, the dealer said.
2010/11/17 14:52DJ WGC: Q3 World Gold Demand Up 12% On Year To 922 Tons

2010/11/17 14:39*DJ BOK Likely Bought Dollars At Levels Below KRW1,140 Wed -Traders

2010/11/17 14:20=DJ WORLD FOREX: Dollar Gains Vs Yen As Commodities Fall -2-

2010/11/17 14:20=DJ WORLD FOREX: Dollar Gains Vs Yen As Commodities Fall -3-

2010/11/17 14:07=DJ Global Fund Managers At Most Bullish Since April - Survey

2010/11/17 14:05*DJ Nikkei Stock Average Closes Up 0.2% At 9811.66

2010/11/17 13:53=DJ WORLD FOREX: Dollar Gains Vs Yen As Commodities Fall

2010/11/17 13:39DJ Shandong Gold Group Plans To Invest In Deep Mine Extraction -President
TIANJIN, China -China's Shandong Gold Group plans to invest in deep mine extraction in the future as other mining resources are almost used up in the country, the group's president said Wednesday.' mines 3,000-4,000 meters below ground level are the future trend,' Wang Jianhua said during a mining conference.The Shandong Gold Group is one of China's major gold producers. -Yajun Zhang contributed to this article; ; (8610) 8400 7712; yajun.zhang@dowjones.com
2010/11/17 13:31*DJ Dollar Briefly Hits KRW1,144 High; Now At KRW1,142.2 Vs KRW1,129.5 Tue

2010/11/17 13:16=DJ ECB WATCH: Irish banks Stand In The Way Of Policy Shift

2010/11/17 12:49*DJ Nikkei Stock Average In Positive Territory

2010/11/17 11:52=DJ Fed's Lockhart: Asset Purchases Guard Against Economy's Slip

2010/11/17 11:15DJ Lloyds Banking Arm Eyes Blacks Leisure Group -Report
The private-equity arm of Lloyds Banking Group PLC has held talks with Blacks Leisure Group PLC (BSLA.LN) over a potential acquisition of the outdoor specialist retailer, The Independent in London reported Wednesday, without citing specific sources.LDC [Lloyds TSB Development Capital] is the latest company to join the bidding process for Blacks that is believed to be progressing at pace, the newspaper said.Lion Capital, the private-equity firm that owns the parent of the Cotswold Outdoor chain, as well as Go Outdoors, Black's 27-store-strong rival, are also believed to have thrown their hats into the ring, The Independent said.Newspaper Web site: http://independent.co.uk-; dennis.baker@dowjones.com
2010/11/17 10:53=DJ Greece Pressed For More Spending Cuts, Austria Questions Aid

2010/11/17 10:52=DJ Fed's Lockhart: Fed Will Likely Complete Entire QE2 Program

2010/11/17 10:46=DJ FOREX VIEW:Euro Zone Suffers From One Currency And Many Voices

2010/11/17 10:38*DJ BOK Suspected Of Intervening In FX Market To Buy Dollars - Traders

2010/11/17 10:07*DJ Fed's Lockhart: Fed Will Likely Complete Entire QE2 Program

2010/11/17 09:51DJ White House: Bipartisan Congressional Meeting Delayed To Nov 30
WASHINGTON -A meeting between Congressional leaders from both parties that was scheduled for later this week is being postponed, dashing any hopes of a quick resolution to a dispute over Bush-era tax breaks, White House Press Secretary Robert Gibbs said Tuesday. The meeting, originally set for Thursday, will now take place Nov. 30 at the request of Republican leaders because of scheduling conflicts in organizing their caucuses, Gibbs said in a statement. The high-profile meeting was to include leaders from both parties, including House Speaker Nancy Pelosi (D., Calif.) and the likely next House Speaker, Republican John Boehner of Ohio. The meeting was seen as key to helping the two sides find common ground on an array of pressing economic issues after midterm Congressional elections gave Republicans control of the House. The delay could create more economic uncertainty, as one of the main issues the two sides were likely to attempt to resolve was a dispute over tax cuts. Bush-era tax cuts are set to expire at the end of the year, and both parties disagree on whether they should all be extended. Obama and most Democrats want them extended only for the middle class, while Republicans say any extension must cover top earners. If the two sides don't find common ground before the end of the year, millions of Americans would see their taxes go up. Such a scenario would be a major negative shock to consumer demand and the economy, the White House has said.
2010/11/17 09:09DJ France's Sarkozy Considers Scrapping Wealth Tax, Tax Shield
PARIS -French president Nicolas Sarkozy on Tuesday said he is considering scrapping the wealth tax and the tax shield to bring the country's tax system in line with Germany's and close the competitiveness gap with France's first trading partner in the euro zone. Sarkozy said the wealth tax is causing capital to flow out of the country and companies to delocalize. He called for an harmonization of France's tax system with Germany's, where the corporate tax is lower than in France but has a wider base. 'There is no tax shield in Germany...If there is no wealth tax then there is no need for a tax shield. We have to create a tax system in which our taxes would be comparable and compatible,' with taxes in Germany, Sarkozy said, speaking on television one day after he reshuffled his government. Under the French tax shield mechanism, no taxpayer is meant to pay more than 50% of their revenues in taxes. The tax shield had become a hallmark of Sarkozy's presidency, but has faced increasing impopularity in the last few months, including from within the country's ruling conservative party. Instead, Sarkozy said the government could create a new tax on capital, but repeated he doesn't plan a general increase in taxes. He said the government will present a new fiscal reform next spring.
2010/11/17 08:56DJ Senate Panel Votes 16-7 To Approve Diamond At Fed Board

2010/11/17 08:48DJ UK FSA's Turner: 'Shadow' Banks To Face Regulatory Scrutiny -FT
The chairman of the U.K. Financial Services Authority says global regulators will turn their attention to the lightly supervised market in 'shadow'' banking, the Financial Times reported late Tuesday. Lord Turner told the newspaper in an interview that it has been among regulators' 'fundamental failures' not to think in systemic terms about the role shadow banks -- such as money market funds and nonbank investment vehicles -- played in the run-up to the financial crisis. Rather than focusing on individual institutions, as banking regulators have, Turner said efforts to control the shadow sector should consider how specific groups of financial vehicles interact and amplify risk. Regulators' other focus will be finalizing how much additional capital banks should hold if they're deemed to be systemically important financial institutions worldwide, he said. He said that on top of the 7% core tier-one capital defined by the recently struck Basel III accord for all banks, such institutions will need a fixed additional capital percentage, an idea that has drawn strong opposition in some parts of Europe. Full story at http://www.ft.com/cms/s/0/d7792c9e-f1c0-11df-bb5a0144feab49a.html#axzz15UZ5i5SM -; 212-416-2900
2010/11/17 08:36DJ IMF Working With Europe On Possible Support For Ireland
WASHINGTON -The International Monetary Fund confirmed Tuesday it is working with European officials on a possible rescue package for Ireland."At the request of the Irish authorities, an IMF team will participate in a short and focused consultation, together with the European Commission, and the [European Central Bank], in order to determine the best way to provide any necessary support to address market risks," a spokesperson for the fund said in a brief statement.Earlier Tuesday, European officials announced that a team made up of representatives from the European Commission, the ECB and the IMF would soon travel to Dublin to ready a possible aid package to shore up the country's banking system. Ireland hasn't requested any assistance yet.Any deal would likely receive about half of the funding from the IMF, given its participation in the recently created European Financial Stability Facility.Ministers said they didn't discuss the size of a possible aid package for Ireland, though the Wall Street Journal cited people familiar with the matter as saying that they are considering packages for both Ireland's banks and its public finances, or possibly just funding the banking sector alone.Amounts being discussed were said to range from EUR40 billion to EUR50 billion for the banks, increasing to between EUR80 billion and EUR100 billion if support is also extended to the government.The IMF spokesperson praised Ireland's government for its "decisive" multi-year budget-cutting proposal, as well as measures aimed at strengthening its financial sector.
2010/11/17 08:33DJ ECB's Stark Maps Out 'New Normal' As Crisis Continues
FRANKFURT -European Central Bank executive board member Juergen Stark Tuesday mapped out the 'new normal' situation for central banks, as the debt crisis in parts of the euro zone intensifies. 'Conditions in both money and financial markets have improved significantly over recent months, notwithstanding the most recent tensions in some segments of the European sovereign debt market,' Stark said. He reiterated that the ECB will continue to phase out its liquidity support measures after the end of the current quarter. Stark stressed that policy makers must keep 'a sense of direction' as they deal with the sovereign debt crisis and outlined a 'new normal' that will be achieved after the crisis. He said: --Pre-crisis growth paths are unlikely to be reached again. --Risk premia will stay elevated, relative to pre-crisis levels. --More market players in financial markets will exit as their business models will have become unsustainable. --We are likely to experience more volatility in macroeconomic variables than in the pre-crisis period. --Central banks are likely to show a stronger tendency of 'leaning against the wind' if unsustainable asset-price developments emerge. --Macro-prudential risks will be monitored more closely, as exemplified by the establishment of the European Systemic Risk Board.
2010/11/17 08:14DJ Irish Fin Min: Not Inevitable That Assistance Will Be Needed
BRUSSELS -It isn't inevitable that Ireland will need external financial help to deal with problems in its banking system, Irish Finance Minister Brian Lenihan said Tuesday. Lenihan was speaking to reporters after agreeing that officials from the European Commission, the European Central Bank and the IMF should travel to Dublin to prepare activation of the European Financial Stability Facility, the emergency loan program created earlier this year by the European Union to help euro-zone countries that need help refinancing their debts. The step follows several weeks of mounting investor worries about Ireland's public finances that drove yields on Irish debt above 9%. The Irish government has repeatedly denied that it needs outside help, and Lenihan said that a request for 'assistance is not inevitable.' Lenihan said consultations with the three institutions--known as the troika when they work elsewhere--will begin immediately. -Bernd Radowitz and Ainsley Thomson, , +49 30 2888 4126; bernd.radowitz@dowjones.com
2010/11/17 08:03*DJ Lead 10-Yr JGB Futures Open Down At 142.36 Vs 142.39

2010/11/17 08:02*DJ Nikkei Stock Average Opens Down 1.1% At 9693.21

2010/11/17 08:00DJ Irish PM: Will Work With Counterparts To Normalize Market Conditions
DUBLIN -Irish Prime Minister Brian Cowen said Tuesday he is prepared to work with his European counterparts 'to normalize market conditions,' but reiterated that Ireland hasn't applied for external financial assistance. 'We are prepared to work with our counterparts in the euro area to see in what way we can...normalize market conditions,' Cowen told the Irish parliament, adding, 'We have not applied to any facility.' 'What we are doing at the moment is making sure that in relation to our own situation it's understood that we are pre-funded up until the middle of 2011,' he said. However, Cowen acknowledged that Ireland was under pressure within Europe and said that 'some people' would like the country to apply for external financial assistance. Cowen also said that the EUR15 billion four-year budget plan due to be published mid-November is at an 'advanced stage,' but he said it has yet to be approved by the government. 'I said here before that I was hoping it might be available for publication, assuming approval, the week beginning next week, but I can't anticipate the outcome of discussions that will have to take place at cabinet in relation to it...we're doing the best we can,' he said. He said gross general government debt would increase to around 98.5% of gross domestic product in 2010 due in large part to capital support being provided to the country's financial institutions. 'Statistically we're taking a hit up front, but in reality we are borrowing the money over a much longer period,' he said.
2010/11/17 07:49*DJ White House: Bipartisan Congressional Meeting Delayed To Nov 30

2010/11/17 07:43*DJ IMF Welcomes Ireland's Fiscal, Financial Sector Measures

2010/11/17 07:42*DJ IMF: To Determine Best Way To Provide Any Needed Support For Ireland

2010/11/17 07:40*DJ IMF: To Work With Europe On Possible Support For Ireland

2010/11/17 07:40DJ ECB's Noyer: No Central Bank Seeks To Depreciate Currency
DJ ECB's Noyer: No Central Bank Seeks To Depreciate CurrencyPARIS -European Central Bank policymaker Christian Noyer said Tuesday that no central bank is seeking to depreciate its currency, and he underlined that the U.S. Federal Reserve has no dollar depreciation strategy, in an interview with French TV channel LCI.Strong tensions are returning to financial markets because of Irish sovereign-debt problems but the current situation is not unmanageable, Noyer said in an interview to be broadcast Tuesday evening but made available beforehand to .There is no risk of the euro zone breaking up, he said.The situation is more satisfactory than during the Greek sovereign debt crisis in the spring because solutions now exist for member states if they need them, Noyer said. Finance ministers from the Group of 20 industrialized and developing nations have set conditions to reassure markets, he said.
2010/11/17 07:40DJ Big Japan Banks To Set Up Y100 Bln Corporate Rehab Fund - Report
TOKYO -Major Japanese banks are considering setting up an Y100 billion fund to help rehabilitate firms that have fallen on hard times, the Yomiuri Shimbun reported Wednesday. Citing sources close to the matter, the paper said that the fund would include such banks as Mitsubishi UFJ Financial Group Inc. (8306.TO) and Sumitomo Mitsui Financial Group Inc. (8316.TO) as well as Deutsche Bank AG . -Tokyo Bureau, ; +81-3-6269-2770
2010/11/17 07:33DJ Irish Fin Min: Declined To Comment On Talk Of Bailout
BRUSSELS -Irish Finance Minister Brian Lenihan declined to comment on reports that European Union officials are negotiating a bailout package for the country when he arrived at a meeting with his counterparts from the 15 other nations that use the euro Tuesday.According to people familiar with the matter, some euro-zone members are pushing for a deal to be sealed at the meeting, which runs until Wednesday. The ministers are considering packages for both Ireland's banks and its public finances as well as a proposal to stabilize the banking sector alone.The sums involved range from EUR40 billion to EUR50 billion if support is confined to the banks, and from EUR80 billion to EUR100 billion if support is also extended to the government.With his flight from Dublin delayed by fog, Lenihan was the last minister to arrive at the meeting, but didn't answer questions about the existence or terms of a package.'Yes of course the market developments of recent weeks have not been good for Ireland, but I would point out that the Irish state is fully funded until the middle of next year,' Lenihan said. 'Clearly there are difficulties in the market and we will discuss those this evening so we can address them.'
2010/11/17 07:11*DJ Rio Tinto Down 2.9% At A$83.92 Early

2010/11/17 07:01DJ German Fin Min: Ireland Better Placed To Assess Own Situation
DJ German Fin Min: Ireland Better Placed To Assess Own SituationBRUSSELS -Ireland's government is best placed to judge its own situation, and the German government will hear what it has to say before reaching any conclusions about the need for a bailout, German Finance Minister Wolfgang Schaeuble said Tuesday.Speaking to reporters ahead of a meeting of finance ministers from the 16 nations that use the euro, Schaeuble said that Greece had been shown a lot of solidarity by the European Union and Germany, and that it should reciprocate.-Bernd Radowitz, , +49 30 2888 4126; bernd.radowitz@dowjones.com
2010/11/17 06:46DJ IMF Declines Comment On Talk Of Rescue Package For Ireland
vember 16, 2010 13:05 ET (18:05 GMT)DJ IMF Declines Comment On Talk Of Rescue Package For IrelandWASHINGTON -A spokesman for the International Monetary Fund declined to comment Tuesday on reports that European Union officials are negotiating a rescue package for Ireland.The Wall Street Journal cited people familiar with the matter as saying that euro-zone ministers are considering packages for both Ireland's banks and its public finances, or possibly just funding the banking sector alone.Amounts being discussed involve between EUR40 billion and EUR50 billion for the banks, with the range increasing to between EUR80 billion and EUR100 billion if support is also extended to the government.Any deal would likely receive about half of the funding from the IMF, given its participation in the recently created European Financial Stability Facility.
2010/11/17 06:34=DJ WORLD FOREX: Euro Falls Sharply Vs Dollar On Ireland Debt Concern

2010/11/17 06:24DJ Irish PM, Opposition To Make Statements On Economy At 1700 GMT
DUBLIN -Ireland's prime minister and leaders of his political opposition will each deliver 10-minute statements on the country's economy at 1700 GMT Tuesday, a government spokeswoman said Tuesday.A finance department spokesman said that if asked, Prime Minister Brian Cowen will reiterate his position of recent days that the government hasn't requested external financial support to ease its debt woes.Finance Minister Brian Lenihan was to join his euro zone counterparts in Brussels for their monthly meeting later Tuesday. They will be joined Wednesday by finance ministers from the 11 other countries in the European Union.
2010/11/17 06:01=DJ WORLD FOREX: Euro Falls Sharply Vs Dollar On Ireland Debt Concern

2010/11/17 06:00DJ Treasurys Rise On Fed Comments, Selling In Stocks, Commodities

2010/11/17 05:17*DJ EU Rehn: Must Collectively Defend Euro Zone Financial Stability

2010/11/17 05:14DJ OIL FUTURES: Crude Settles At Two-Week Low

2010/11/17 05:12*DJ EU Juncker:May Need Further Steps To Reform Irish Bank Sector

2010/11/17 05:08*DJ EU's Juncker: Has Confidence In Upcoming Irish Budget Plan

2010/11/17 05:07*DJ EU's Juncker: Welcomes Ireland Efforts To Deal With Budget

2010/11/17 04:56DJ PRECIOUS METALS:Gold Plummets On Inflation Outlook, Dollar Gains
(Adds gold settlment price, other metals and price chart.) By Matt Whittaker Of YORK -Investors dumped gold Tuesday as they felt less of a need for the metal as an inflation hedge, preferring the dollar as worries about euro-zone debt persisted.That added to pressure from news the exchange where gold is traded planned to raise the margin required for buying and selling the metal.The most actively traded gold contract, for December delivery, fell $30.10, or 2.2%, to settle at $1,338.40 a troy ounce on the Comex division of the New York Mercantile Exchange."This is just massive liquidation of positions that have been built up all year long," said Frank Lesh, broker and futures analyst with FuturePath Trading. "You're forced to do this as the market comes down around you."Just last week, gold hit a record intraday high of $1,424.30 primarily on investor-led buying, priming the market for a large sell-off when investment whims shifted."This is the hot money that's coming out of here," Lesh said.Moves to combat rising prices in Asia helped spark the selling in gold, which is considered an inflation hedge.China's State Council is drafting measures aimed at curbing overly fast price rises, according to a government statement. The nation also announced new limits restricting the ability of foreigners to buy residential or commercial property on the mainland, the country's latest effort to ease inflationary pressures.Also, the Bank of Korea raised its base rate by a quarter of a percentage point, to 2.5%, in an effort to stem inflationary pressures.Outright rate increases, such as the one from China last month, are particularly hard on gold prices. Low interest rates as nations have tried to combat the economic downturn have been a huge boon to gold investment by lowering the opportunity costs of owning the metal, which pays no interest itself.Tuesday data showed further disinflationary pressures as U.S. producer prices rose less than expected in October and underlying wholesale prices posted the biggest decline since July 2006.A sharply strengthening dollar was also weighing on gold by making the dollar-denominated metal more expensive for buyers using other currencies. The ICE Futures U.S. Dollar Index was recently up 0.9%.The buck was gaining as investors continued fretting about whether Ireland will change course and petition the European Union for emergency funding. The Wall Street Journal reported European officials are weighing a EUR80 billion-EUR100 billion rescue for Ireland.Meanwhile, CME Group, which owns Nymex, said late Monday afternoon it will raise margins for gold, platinum and palladium after the close of business Tuesday, crimping buying further."Raising margins can have a dampening affect on markets," said Bill O'Neill, a principal with LOGIC Advisors.Most commodities futures are bought on margin, where the buyer has to put up only a fraction of what the contract is actually worth. Exchanges periodically raise or lower the requirements to buy in based on prices and volatility.Margins to initiate trading on a benchmark gold futures contract will increase to $6,075 from $5,739 and margins to hold those contracts overnight will go to $4,500 from $4,251.Initial margins for platinum and palladium will rise to $4,950 from $4,125, and maintenance margins will increase to $4,500 from $3,750.Last week, the exchange announced that traders will be required to put up $6,500 in margin to hold a benchmark silver contract overnight. The previous margin was $5,000. Initial margins went to $9,788 from $8,775. Gold and silver fell sharply on the news."They don't want to put up the extra money right now because the dollar got stronger," George Gero, vice president with RBC Capital Markets Global Futures, said of why participants are selling ahead of the gold margin increase.Some traders were also selling gold ahead of December gold options expiration Nov. 23, Gero said.As some participants use futures to hedge their options positions, options expiry can affect futures prices as these traders adjust those hedges.Other precious metals traded in New York also lost considerable ground.Comex December silver fell 3.3%. Nymex January platinum lost 2.4% and December palladium fell 5.2%. These markets are less liquid than gold's, meaning they are often much more volatile. Settlements (ranges include open-outcry and electronic trading): London PM Gold Fix: $1,349.00; previous PM $1,368.50 Dec gold $1,338.40, down $30.10; Range $1,329.00-$1,364.30 Dec silver $25.233, down 85.9 cents; Range $24.980-$25.850 Jan platinum $1,645.70, down $40.10; Range $1,638.10-$1,679.00 Dec palladium $645.90, down $35.40; Range $636.00-$678.75
2010/11/17 04:23DJ Fed's Bullard: Future Of Fed QE Program Depends On Economy - Bloomberg Radio
NEW YORK -Federal Reserve Bank of St. Louis President James Bullard said the amount of bonds the central bank will buy depends on how the economy performs.In an interview with Bloomberg Radio Tuesday the central banker said that even though the Fed has announced it will purchase $600 billion in Treasurys by the middle of next year, "there is no sense prejudging" what will be done, and more or less bonds could be bought depending on what happens with the economy.The central banker told the radio channel that he's "cautiously optimistic" about the economy and said growth could even surprise to the upside. Bullard also noted that he continues to believe that against a dual mandate of growth promotion and price stability, it is the latter the central bank is most effective at influencing.Bullard was relatively confident the Fed's asset buying program will work. "If you look at this through the Treasury market ... where the Fed is an active player in the market, then [quantitative easing] can have a substantial impact," Bullard said. On that score, he said, there had already been a big effect on prices "if you look at what happened in the leadup to the November announcement."-
2010/11/17 03:40*DJ OIL FUTURES: Nymex Crude Settles Down $2.52 At $82.34/Bbl

2010/11/17 03:15=DJ Geithner Sees US Tax-Cut Deal This Year
WASHINGTON -U.S. Treasury Secretary Timothy Geithner Tuesday said a deal is likely this year on tax cuts for individuals, though the Obama administration remains opposed to a permanent extension of Bush-era tax breaks for the wealthiest Americans.The Bush-era tax cuts are scheduled to expire at the end of the year. Republicans are seeking extensions of tax cuts for all Americans, arguing that a tax increase for the wealthy would hurt the economy and ensnare many small-business owners.Geithner, speaking at The Wall Street Journal CEO Council, acknowledged one of the private sector's complaints--that the lack of clarity on tax policy adds to uncertainty for businesses.'You can resolve uncertainty lots of different ways--you can resolve it by providing clarity about the duration of the extensions,' Geithner said. 'I will say that it is not a sensible way to run a country to have this magnitude of tax issues left to annual uncertainty.'Geithner said the Obama administration favors a permanent extension of middle-class tax cuts but would 'be very much against a permanent extension' of cuts for high-end earners.Geithner didn't outline a potential compromise.'I think it is quite likely you are going to see an agreement on tax policy for individuals,' he said.Geithner also touched on other economic policy issues, acknowledging that the financial crisis damaged U.S. economic credibility internationally.'It is going to take us a while to dig out of that loss of credibility,' he said. The best remedy would be to grow out of the mess.'We still need to make sure we have a transition to recovery led by private demand that can be self-sustaining and that the government of the United States is doing things to reinforce that transition,' Geithner said.He also said he expects China to allow its currency to rise, though only gradually.'They are very averse to a precipitous, large move, which I understand,' he said.
2010/11/17 02:52=DJ European Stocks Slump On Ireland Worries

2010/11/17 02:46*DJ US Treasury Official: G-20 Was 'Big Step' In Rebalancing Effort

2010/11/17 02:40*DJ Fed's Bullard: US Might Not Complete $600 Bln In T-Bond Buys If Economy Improves -Bloomberg

2010/11/17 02:39*DJ Fed's Bullard: 'Cautiously Optimistic' On Economic Outlook

2010/11/17 02:36*DJ Fed's Bullard: Economy May Surprise To Upside

2010/11/17 02:35*DJ Fed's Bullard: Fed's Main Power Is Controlling Inflation

2010/11/17 02:30*DJ Fed's Bullard: QE Mkt Impact Already Substantial--Bloomberg Radio

2010/11/17 02:29*DJ Fed's Bullard: Fed QE Program Mainly Aimed At Price Stability

2010/11/17 02:25*DJ Fed's Bullard: Future Of Fed QE Program Depends On Economy - Bloomberg Radio

2010/11/17 02:14*DJ IMF Declines Comment On Talk Of Rescue Package For Ireland

2010/11/17 02:01*DJ US Treasury Official: US Needs To Expand Export Opportunities

2010/11/17 01:59*DJ ECB's Noyer: Situation Can Be Contained If States Conduct Structural Reforms

2010/11/17 01:58*DJ ECB's Noyer: US FED Worried About Risk Of Deflation

2010/11/17 01:57*DJ ECB's Noyer: US Fed Has No Dollar Depreciation Strategy

2010/11/17 01:54*DJ ECB's Noyer: ECB Is Acting To Smooth Situation On Mkts

2010/11/17 01:28*DJ Irish Fin Min: Markets Have Been Difficult For Ireland Lately

2010/11/17 01:23*DJ Irish Fin Min: Declined To Comment On Talk Of Bailout

2010/11/17 01:20*DJ Irish PM: Gross General Govt Debt Seen Around 98.5% Of GDP In 2010

2010/11/17 00:41*DJ Irish PM: Has Not Applied For External Financial Assistance

2010/11/17 00:24*DJ Dutch Fin Min: IMF Must Be Involved In Any Aid For Ireland

2010/11/17 00:18*DJ Greek Fin Min:Will Take Measures To Meet 2011 Budget Target

2010/11/17 00:17*DJ ECB Stark: Rates Must Not Stay Low For "Too Long"