Market Rumours

2010/11/19 17:43DJ Japan Prime Minister Kan: To Consider Deflation, Growth, Jobs In FY Budget
TOKYO -Japanese Prime Minister Naoto Kan said Friday that spurring economic growth and creating jobs are key to defeating deflation, and he will consider these points in formulating the preliminary budget for the next fiscal year. 'We will get out of deflation through economic growth and employment,' Kan said before the Upper House budget committee Friday evening. 'This is our thinking as we face the formulation of next fiscal year's budget.' The comments are the latest indication that the government may opt for further stimulus spending in the fiscal year starting in April. An extra budget for the current fiscal year including Y4.85 trillion for new stimulus passed the parliament's lower house earlier this week, essentially assuring enactment. But analysts say the spending, which pales in comparison with previous economic support packages, may not be enough to halt the economyic slowdown and eliminate deflation.
2010/11/19 17:25*DJ EU's Rehn Cancels Frankfurt Speech For Ireland Talks-Spokesman

2010/11/19 17:15*DJ OIL FUTURES: January Brent Moves Up $1.00

2010/11/19 17:14DJ Daiwa Securities Completes Buy Of KBC's CB, Asia Equity Derivatives Ops
TOKYO -Daiwa Securities Group Inc.'s (8601.TO) investment-banking subsidiary said Friday it had completed the acquisition of KBC Group N.V.'s (KBC.BT) global convertible bond and Asian equity derivative operations for about $1.2 billion. It is Daiwa's largest ever overseas acquisition. In its announcement in July, Daiwa said it would pay $200 million for 150 staff, information-technology infrastructure and other assets from the Brussels-based financial group, with the remaining $800 million to cover trading positions. The deal will boost Daiwa's Asian investment-banking operations, while KBC's sale of noncore businesses will improve the Belgian banking and insurance group's capital base.
2010/11/19 17:12*DJ Rare Earthquake Felt In Hong Kong

2010/11/19 17:07DJ ECB Stark: Need To Prohibit Monetization Of Government Debt
DJ ECB Stark: Need To Prohibit Monetization Of Government Debt FRANKFURT -Credible central bank policy entails a prohibition on any monetization of government debt, a senior European Central Bank official said Friday. The financial crisis 'has not at all discredited' that principal, as well as the need for price stability and transparent communication to be central aspects of monetary policy, Juergen Stark, a member of the ECB's executive council, said at a conference. In a thinly-veiled criticism of the policy stance adopted in the past by the Federal Reserve, Stark also said it was essential for central banks to focus on medium-term inflation objectives, possibly allowing lower-than-desired inflation over the short run and basically avoiding the goal of trying to manage levels of economic activity and aggregate demand.
2010/11/19 17:00*DJ Italy Sep Industrial Orders -1.2% On Mo; +17.9% On Yr

2010/11/19 17:00*DJ Italy Sep Industrial Sales -0.3% On Mo; +10.8% On Yr

2010/11/19 16:55DJ JGB Investors See Room To Increase 2-, 5-, 30-, 40-Year Bonds
TOKYO -Japanese government bond investors see more room to increase issuance of two- and five-year sectors as well as the 30- and 40-year zones, a Ministry of Finance official said Friday. Japan's MOF discussed with JGB investors issuance ideas for the next fiscal year, which starts April 1, 2011. Many investors said there would be stable demand for two- and five-year bonds from banks on the back of the Bank of Japan's monetary easing, the official said. They also expect life insurance companies to steadily purchase 30- and 40-year JGBs, the official said. That was mostly in line with a meeting between JGB primary dealers and ministry officials Thursday. The MOF is slated to hold similar meetings with JGB investors and primary dealers in December to further discuss the matter.
2010/11/19 16:31*DJ Daiwa Sec Capital: Completed Acquisition Of KBC's CB Ops

2010/11/19 16:27*DJ Japan PM Kan: To Continue Supporting Dollar As Reserve Currency

2010/11/19 16:26*DJ Japan PM Kan: No Currency Can Replace Dollar As Global Reserve Currency

2010/11/19 16:22=DJ PRECIOUS METALS: Gold Up In Volatile Asia Session; Tracks Euro

2010/11/19 16:12DJ JGBs End Up On Bargain-Hunting; Moderate Gains Tipped Next Week
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.655 +0.005 TSE Dec 10-Yr JGB Futures Price: 141.76 +0.31 10-Yr 1.0% JGB No. 310 Yield: 1.070% .035 TOKYO -Japanese government bonds finished moderately higher Friday as the previous day's steep decline, following weak demand at a 20-year JGB auction, lured investors into hunting bargains. While many analysts see a rise in the 10-year yield to a 2-month high of 1.1% Thursday as a cue to increase JGB exposure, the market's volatility left investors jittery. 'Now that volatility has increased, it is difficult to imagine the market will sharply rebound,' said Akito Fukunaga, chief strategist at RBS Securities. With yields in the short- and medium-term sectors near the upper ends of generally expected ranges, it makes sense to stick to dip-buying for the time being, he added. 'We only have a 2-year auction next week so I would expect the market to settle down,' said Fukunaga. Analysts see recent rises in the prices of stocks and commodities as risks for the safe-haven instruments. But many of them point to increases in JGB redemptions, and to an expected retreat in riskier asset classes, as factors supportive of JGBs through the end of the year. The Nikkei Stock Average ended up 0.1% at 10,022.39 points, and commodities such as precious metals extended price gains in Tokyo trading. Eiji Dohke, analyst at Citigroup Global Markets Japan, said despite unexpected yield rises in recent trading, the time is ripe to start increasing the buying of 10-year issues before the bond market's recovery picks up pace in the coming weeks. Any rises in JGB prices next week will likely be mild, analysts say, as investors who bought at higher prices may still be looking to take advantage of the market's rebound to unload some of their holdings. As for the market's downside, solid JGB demand below 1.1% for 10-year issues and 2.0% for 20-year bonds should provide strong support, analysts said. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.155% flat 5-Year 0.3% JGB No. 92 Yield: 0.380% .025 20-Year 1.9% JGB No. 121 Yield: 1.910% .035 30-Year 2.0% JGB No. 33 Yield: 2.080% .040 ***********
2010/11/19 16:10*DJ ECB Stark: Accept Lower Short-Run CPI To Avoid Long-Term Risks

2010/11/19 16:07*DJ ECB Stark: Need To Prohibit Monetization Of Government Debt

2010/11/19 16:03*DJ Stoxx Europe 600 Index Flat After The Open

2010/11/19 16:02*DJ FTSE 100 Up 0.1% After The Open

2010/11/19 15:38DJ Qantas Faces Several Weeks Before A380s Fly: Source -Reuters
Qantas Airways (QAN.AU) might take several more weeks to return its fleet of six Airbus A380s to service, Reuters news agency reported on its website, citing an unnamed source with direct knowledge as saying on Friday.The delay also means Rolls-Royce Group PLC likely needs more time to resolve an engine issue linked to a Nov. 4 oil fire and explosion on a Qantas jet traveling from Singapore to Sydney, the report said. Qantas grounded its A380s after the incident.'It's a very complex process and it's still in the early stages,' Reuters quoted the source as saying. 'I expect Rolls-Royce and Qantas are still several weeks away from putting together an action plan and its documentation.'The source wasn't authorized to discuss the issue and asked not to be named, the agency said.It cited a Qantas spokeswoman as saying the airline had no time schedule to put the A380 back in service, and was working with Rolls-Royce to resolve the issue. Australia's aviation safety authority ATSB also declined to discuss the investigation, the report said.Full story: http://www.reuters.com/article/idUSTRE6AI0T420101119
2010/11/19 15:21=DJ DATA SNAP: German October Producer Prices +0.4% MM, +4.3% YY

2010/11/19 15:21=DJ BIG PICTURE: The Split Between Job Haves And Have-Nots Widens

2010/11/19 15:17*DJ OIL FUTURES: December Nymex Crude Up 17c At $82.02/Bbl

2010/11/19 15:16*DJ OIL FUTURES: December Nymex Crude Rises Above $82/Bbl

2010/11/19 15:05=DJ WORLD FOREX: Dollar Drifts Lower Against Yen As Bernanke Defends QE2-2-

2010/11/19 15:05*DJ Hang Seng Index Rises 0.1% To 23,673.15; Reverses Losses

2010/11/19 15:01*DJ German Oct PPI Excl Energy +0.2% On Mo; +3.1% On Yr

2010/11/19 15:01DJ Forex Options: Dollar/Yen Options Down Slightly; Dollar Calls Sought
TOKYO -Dollar/yen options fell only slightly Friday, avoiding the steeper slides suffered earlier in the week, as investors looked for protection against rises in the greenback against its Japanese counterpart. A stable spot led to a slight fall in benchmark volatilities implied by one-month at-the-money options, which edged down to 9.65%/10.35% from 9.75%/10.45% late Thursday. But demand for dollar-call/yen-put options--tools to hedge against rises in the spot--kept volatilities from falling further, dealers said. One market participant bought a three-month dollar-call/yen-put contract with a strike price of Y86.00 and a face value of $200 million, an options dealer at a major Japanese bank said. The holder profits if the U.S. unit is trading above Y86.00 at the time of the contract's expiry.
2010/11/19 15:00*DJ German Oct PPI +0.4% On Month; +4.3% On Year

2010/11/19 15:00*DJ German Oct PPI Forecast +0.2% On Mo; +4.2% On Yr

2010/11/19 14:55=DJ HEARD ON THE STREET: Targeting Ireland's Corporate Tax Rate May Backfire

2010/11/19 14:52*DJ OIL FUTURES: Nymex December Crude Last At $81.87/Bbl, Up 2c

2010/11/19 14:51*DJ OIL FUTURES: Nymex Crude Moves Into Positive Territory; Dlr Down

2010/11/19 14:40=DJ Bernanke Fires Back At Criticism About Fed Easy Money Policies

2010/11/19 14:31=DJ WORLD FOREX: Dollar Drifts Lower Against Yen As Bernanke Defends QE2

2010/11/19 14:06*DJ Nikkei Stock Average Closes Up 0.1% At 10,022.39

2010/11/19 14:04DJ Japan Economy Minister Kaieda: Must Have Prices Rise By End FY2011
TOKYO -Japan's economy minister said Friday that the government must have prices rise by the end of the next fiscal year, which starts April 1, 2011."As prices are now in a falling phase, we must try to bring prices to positive territory during the fiscal year 2011. That's the first step," Minister of State for Economic and Fiscal Policy Banri Kaieda told at an Upper House budgetary committee.Bank of Japan Gov. Masaaki Shirakawa told the same committee that the central bank has the same price outlook as the government, but didn't mention any time limit for when it wants prices to rise.The BOJ chief reiterated that the bank will maintain close communication with the government, making its utmost effort to combat deflation.
2010/11/19 13:53*DJ December Nikkei Futures +0.5% After Hitting 5-Month High

2010/11/19 13:46DJ BOC's Boivin: Basel III Will Enhance Financial Sector Regulation
TORONTO The recent Basel III agreement will go far to improve supervision and regulatory practices in the financial sector, Bank of Canada Deputy Governor Jean Boivin said Thursday.Leaders from the G20 group of advanced and emerging economies have agreed to strengthen their banking systems by raising the amount and quality of capital and liquidity that financial institutions must carry, Boivin said."These higher standards will lower the incidence of financial crises, reduce their severity and provide for smoother economic cycles. They will also reduce the risk that resources are misallocated," he said.Boivin was speaking on the topic "Where the Economy and Finance Meet" to the Okanagan CFA Society and Faculty of Management of the Okanagan campus of the University of British Columbia in Kelowna, British Columbia.A copy of his remarks was posted on the Bank of Canada's website.The speech was Boivin's first since becoming a deputy governor at the bank. It did not address the economic or monetary policy outlook.Boivin said recent research at the bank estimated that for Canada, the net economic benefits to be gained from improving the safety and robustness of the Canadian and international financial system could amount to about C$200 billion, or about 13% of gross domestic product.There's a need for better tools to understand the "highly non-linear dynamics" through which financial imbalances build up and affect the real economy, Boivin said. "This involves improving our models, but also developing indicators that can help us to better track the risk of potential financial disruptions to the overall economy," he said."Second, we need to improve our understanding of how the real economy and system-wide forces can contribute to the development of financial imbalances, particularly through risk-taking behaviour," Boivin said. -Don Curren, ; 416-306-2020; don.curren@dowjones.com
2010/11/19 13:40*DJ Royal Bank of Scotland Group Cut To Neutral From Outperform By Macquarie

2010/11/19 11:32*DJ OIL FUTURES: Nymex Crude Down, In Negative Territory Now

2010/11/19 11:25=DJ Bank Lobby Pushes US Treasury On Regulations Exemption For Forex

2010/11/19 11:02DJ KKR In Advanced Talks To Take Del Monte Foods Private - FT
KKR could agree a deal to take U.S. food and pet products company Del Monte Foods Co. private within weeks, following several months of discussions about a buyout, the Financial Times reported Friday on its website, citing people familiar with the matter. The price being discussed is around $18.50 a share, the FT reported the people as saying, adding that it wasn't clear that a deal would be agreed. That price would value the company at some $3.6 billion, the report said. KKR and Del Monte Foods declined to comment, the FT said. Full story: http://www.ft.com/cms/s/0/87958564-f374-11df-b34f0144feab49a.html#axzz15gr7qbZo.
2010/11/19 10:34DJ Fed's Plosser:QE2 Benefits May Not Be Enough To Outweigh Costs

2010/11/19 10:11*DJ Bernanke: US Inflation Trends To Be Quite Subdued For Some Time

2010/11/19 10:10*DJ Bernanke: US Unemployment May Rise In Near Term, Adding Risks To Recovery

2010/11/19 10:05*DJ Bernanke:Evidence Suggests Bond Purchases Can Be Effective To Help Economy

2010/11/19 10:03*DJ Bernanke:Fed 'Unwaveringly Committed' To Price Stability

2010/11/19 10:02*DJ Bernanke Fires Back At Criticism About Fed Easy Money Policies

2010/11/19 09:25DJ BOC: Correlation Between Exchange Rates And Consumer Prices Low
TORONTO Economic research shows the correlation between changes in consumer prices and changes in exchange rates has been low over the past two decades, according to an article in the quarterly Bank of Canada Review."A substantial empirical literature has shown that the correlation between changes in consumer prices and changes in the nominal exchange rate has been quite low and declining over the past two decades for a broad group of countries," said the article in the autumn edition of the review.The Bank of Canada Review reflects recent research activity at the bank and does not directly affect the bank's monetary policy deliberations.Articles in the current issue address financial stress, monetary policy and economic activity, recent trends in the issuance of financial instruments, and exchange rate "pass-through" to consumer prices, also known as "EPRT."The article on pass-through said the large body of research on the subject indicates the full effect of a depreciation or appreciation of a currency is typically not passed through to the local-currency prices of imports, even in the long run."[Exchange] rate movements are passed through to prices with a lag, such that ERPT in the short run seems to be much lower than in the longer run," it said.It also noted that there is "considerable heterogeneity" in the extent of pass-through at the industry level. It appears to be higher in industries that produce homogeneous goods, such as energy and raw materials, and lower for those that produce manufactured goods."Finally, it has been suggested, based on casual observation and empirical work, that ERPT to consumer prices may have diminished over time," it said."There is fairly convincing evidence to suggest that short-run measured [pass-through] to consumer prices has declined because of a shift to more credible monetary policy regimes," the review article said.A separate article said the recent global crisis is a prime example of the substantial impact periods of high financial sector stress can have on the real economy."Indeed, this crisis clearly demonstrates that the real economy and the financial sector can undermine each other, with financial stress and weak output feeding each other," it said.Recent research implies monetary policy actions have stronger effects when financial stress is high and that tightening monetary policy tends to have more impact than easing, the article said.The bank's research staff also concluded Canadian corporate bond and equity issuance fared relatively well in the wake of the global financial crisis. Canadian issuers were in a relatively stronger position and did not employ innovative and riskier forms of financing to the same extent as issuers from other countries, according to the review article on issuance.Although most Canadian high-yield bonds have been issued in the large U.S. market, there have been several high-yield transactions in Canada over the past year, pointing to a developing Canadian market for high-yield bonds, the article said.A number of factors are contributing to this development: the low interest-rate environment; attractive spreads on high-yield bonds relative to historical levels; and an increased appetite for high-yield bonds by Canadian investors as indicated by the more than doubling of the assets of Canadian high-yield, fixed-income mutual funds from C$4.4 billion at the end of 2008 to C$9.5 billion at the end of 2009, it said. -Don Curren, ; 416-306-2020; don.curren@dowjones.com
2010/11/19 08:37DJ Fed's Kocherlakota: 'I Did Express Support' For Bond-Buying Program

2010/11/19 08:18=DJ White House Report:Stimulus Plan Has Saved Or Created Up To 3.7 Mln Jobs

2010/11/19 08:02*DJ Nikkei Stock Average Opens Up 1.1% At 10,124.84

2010/11/19 08:02*DJ Lead December JGB Futures Open Down At 141.38 Vs 141.45 Thursday

2010/11/19 07:54*DJ Japan Fin Min Noda: Downside Risks Remain For Japan Economic Growth

2010/11/19 07:47*DJ Japan Fin Min Noda: Nikkei Rise Above 10,000 Is Good News

2010/11/19 07:40DJ Fitch: To Review Ireland Rating In Light Of Any IMF,EU Package
LONDON -Fitch Ratings Thursday said it plans to review its rating on Ireland in light of any aid package agreed to with the International Monetary Fund and European Union.The ratings agency said such a review would consider the financial terms and implications of any assistance provided, as well as the likelihood that the government and banks could regain access to the market at an affordable cost."It is now evident that the actions taken in September have not succeeded in restoring confidence in the banking sector," Fitch said, referring to additional capital the government injected into Irish banks Sept. 30.The banking sector is "almost wholly reliant on [European Central Bank] and Central Bank of Ireland liquidity support--some EUR130 billion and EUR35 billion, respectively, according to the latest available figures," the report said.Fitch rates Ireland at A+ with a negative outlook, a stance it took in early October based on the government's commitment to fiscal consolidation, strong liquidity position and measures taken to restructure the banking system.
2010/11/19 07:29DJ Fed's Pianalto: 'Encouraged' By Impact Of Fed Bond Buying So Far

2010/11/19 06:44=DJ WORLD FOREX: Euro Rises Strongly As Ireland Steps Closer To Aid

2010/11/19 06:35=DJ US Stocks Surge On Easing Ireland Worries As GM Debuts

2010/11/19 06:07=DJ WORLD FOREX: Euro Rises Strongly As Ireland Steps Closer To Aid

2010/11/19 06:02DJ Treasurys Fall, But Losses Limited As Higher Yields Lure Buyers

2010/11/19 06:00DJ US M1 Rose $91.8B In Nov 8 Week; M2 Rose $16B
NEW YORK -The Federal Reserve's latest weekly money supply report Thursday shows seasonally adjusted M1 rose by $91.8 billion to $1.88 trillion, while M2 rose $16 billion to $8.802 trillion.The figures are preliminary estimates for the week extending through Nov. 8 and are subject to revisions.More details on the report, along with weekly information on the Fed's custody holdings, repurchase agreements, Treasury portfolio and free reserves, can be found on the Internet at http://www.federalreserve.gov/releases/.
2010/11/19 05:45DJ Fed's Plosser: 'More Optimistic' Than Many About Economic Outlook
vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Frustrated With Pace Of Recovery vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Unlikely Economy Will Fall Into Deflationary Trap vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Monetary Policy Ill-Suited To Address Asset Bubble vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Monetary Policy Best Driven By Economic Variables vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Monetary Policy Should Be Rules Based, Inflation Focused vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: There Are Rare Times Where Rate Policy Can Address Bubbles vember 18, 2010 16:30 ET (21:30 GMT)*DJ Plosser: Fed Appears To Have Misjudged Policy In Mid-2000s vember 18, 2010 16:30 ET (21:30 GMT)DJ Fed's Plosser: 'More Optimistic' Than Many About Economic Outlook By Michael S. Derby Of YORK -A key Federal Reserve official disagreed Thursday with much of the gloom surrounding the economic outlook."I share the frustration of many with the pace of recovery," Federal Reserve Bank of Philadelphia President Charles Plosser said. But he added "I am more optimistic than many about the future path of the economy."The central banker also noted "the severity and financial nature of this recession has led many forecasters to anticipate a protracted period of modest economic growth, accompanied by a slow decline in unemployment. Some even worry that the economy might fall into a deflationary trap. I am not one of them."Plosser's comments came from a speech he was giving to a gathering held at the Cato Institute in Washington. He did not have much to say about the monetary policy outlook, refraining from comment despite recent signs he is uncomfortable with the Fed's decision to buy $600 billion in Treasury securities. He did allow that it appears as though the Fed made mistakes when it kept interest rates very low during the middle of the last decade.While many Fed critics have argued the Fed should have raised rates then to lean into what turned out to be a surging housing market, Plosser said that conception is not quite right."The error may not have been that policymakers failed to pay attention to the fast upward rise in asset prices, but that they deviated from a systematic approach to setting nominal interests," he explained.The bulk of Plosser's speech was dedicated to familiar themes. He said monetary policy is typically ill suited to dealing with financial market bubbles."While I understand the desire to use monetary policy to reduce or eliminate misalignment of asset prices, I believe that implementing such a policy as a practical matter would not help us deliver better performance in terms of price stability and sustainable output growth," Plosser said.As he has in a number of his past addresses, the official again affirmed what be believes is the primacy of rules-based policy making, directed mainly at currents taking place in the economy, and not markets."I continue to advocate that the Fed follow a systematic approach that keeps monetary policy focused squarely on inflation and output growth, but especially on inflation," Plosser said. He did say he could envision times when policy could take aim at assets, which the performance of a given sector posed a threat to overall economic health."To the extent that booms may engender excess leverage in systemically sensitive parts of our financial system, we need to ensure that regulations and institutional structures are designed to enhance market discipline in ways that keep risk-taking under control," the official said."Monetary policy should retain its focus on providing price stability as a means to support sustainable growth in employment and output over the long run and not chasing incipient bubbles," the official said.Plosser will be a voting member of the Federal Open Market committee in 2011.
2010/11/19 05:45*DJ Plosser: Unlikely Economy Will Fall Into Deflationary Trap

2010/11/19 05:42*DJ Plosser: Frustrated With Pace Of Recovery

2010/11/19 05:31*DJ Foreign Central Banks Agency Debt Holdings At $730.11B

2010/11/19 05:31*DJ Foreign Central Banks Treasury Holdings At $2.614T

2010/11/19 05:31*DJ Foreign Central Bk Custody Holdings At $3.344T As of Wed - Fed

2010/11/19 05:30*DJ US Fed Total Discount Window Borrowings Wed $47.00B

2010/11/19 04:48=DJ House Vote Falls Short For 3-Month Extension Of Jobless Benefits

2010/11/19 04:45DJ OIL FUTURES: Crude Rebounds As Ireland Debt Fears Wane
vember 18, 2010 14:36 ET (19:36 GMT)DJ OIL FUTURES: Crude Rebounds As Ireland Debt Fears Wane By Jerry A. DiColo Of YORK -Crude futures settled higher Thursday, bouncing back from four straight days of losses as fears over euro-zone sovereign debt subsided.Light, sweet crude for December delivery settled $1.41, or 1.8%, higher at $81.85 a barrel on the New York Mercantile Exchange. The contract expires at settlement Friday. Brent crude on the ICE futures exchange traded $1.82 higher at $85.10 a barrel.Oil prices staged a sharp rebound after falling just shy of $80 a barrel Wednesday, the lowest price in nearly a month. Officials from the European Union and the International Monetary Fund began talks in Dublin on potential aid to Ireland on Thursday, and a possible bailout deal has gained traction."The only reason this market went down was because of the problems with Ireland and the threat of China raising interest rates," said Mark Waggoner, president of Excel Futures. "Now that they have some sort of an agreement [in Ireland], the markets are going back up.""I think we're heading right back up to the highs we were at. We could break through $90 this time around," he said.Oil prices have fallen sharply over the past week, dropping from two-year highs above $88 a barrel set last Thursday. Fears about the euro zone have sent the dollar higher against the euro, pushing down energy and commodity prices as a stronger greenback makes dollar-denominated commodities more expensive for buyers in other currencies.Meanwhile, expectations have grown that China will raise interest rates to cool its growing economy, raising doubts about future crude demand in the world's second-largest oil market.But the euro's recovery against the dollar Thursday pushed traders back into crude. The euro was recently trading up 0.5% to $1.36.Broader markets also moved higher, taking their cues from rising global stock markets, falling worries in Ireland and better-than-expected manufacturing data in the U.S. The dustrial Average was recently up 1.6% to 11181. Gold futures settled up 1.2% to $1,353.10 a troy ounce, while sugar and cotton traded higher as well.Jim Ritterbusch, head of oil research firm Ritterbusch & Associates, said as the influence of macroeconomic issues wanes, investors focusing on oil supply and demand fundamentals will likely help send futures higher. Demand for products is improving, particularly diesel in China."With Chinese diesel demand and lower gasoil stocks in Europe, heating oil could help lead the charge higher," he said.Front-month December reformulated gasoline blendstock, or RBOB, settled 7.04 cents, or 3.3%, higher at $2.2283 a gallon. December heating oil settled 4.32 cents, or 1.9%, higher at $2.2951 a gallon.More information on settlements and highs and lows for futures on Nymex and ICE platforms can be found by searching for the following headlines: Nymex Light Crude Oil Close Nymex Harbor RBOB Gasoline Close Nymex Heating Oil Close ICE Brent Crude Oil Close ICE Gas Oil Close
2010/11/19 04:10DJ PRECIOUS METALS: Comex Gold Rises On Dollar Weakness, Ireland

2010/11/19 03:44DJ BOE Posen: Still Believe More QE Would Be Good For UK Economy
WASHINGTON -Adam Posen, a committee member at the Bank of England, said Thursday that he still believes a weak U.K. economy would benefit from additional bond purchases, also known as quantitative easing, or QE.Though not his central scenario, Posen said "there's a risk" of deflation as the U.K. budget cuts start to hit an already soft economy. Posen said his growth and inflation forecasts are "meaningfully below" those of his colleagues at the Bank of England.Minutes of the Bank of England's latest meeting, which took place this month, Wednesday showed that Posen continued to vote for a GBP50 billion extension of the BOE's GBP200 billion program. But the committee was split, with member Andrew Sentance once again calling for tighter policy by raising the key interest rate a quarter-point to 0.75%.In the U.K., the Bank of England suspended its bond-buying in February, but left the door open to fresh asset purchases if conditions worsen.Posen declined to comment on the U.S. Federal Reserve's controversial decision Nov. 3 to resume buying government bonds. The Fed plans to buy $600 billion through June.
2010/11/19 03:39*DJ OIL FUTURES: Crude Rebounds As Ireland Debt Fears Wane

2010/11/19 03:38*DJ OIL FUTURES: Nymex Crude Settles Up $1.41 At $81.85/Bbl

2010/11/19 03:25*DJ Fed's Kocherlakota:Impact Of Extending Bush Tax Cuts Much Larger Than QE2

2010/11/19 03:22*DJ Fed's Pianalto: Fed Does Not Coordinate With Other Central Banks

2010/11/19 03:21*DJ Fed's Warsh: Politicized Monetary Policy Will Hurt Economy

2010/11/19 03:20*DJ Fed's Warsh: Fed's Independence Is Crucial

2010/11/19 03:19*DJ Fed's Warsh: Policy Debate Shouldn't Be 'Politicized'

2010/11/19 03:18DJ Irish Fin Min: 'We Will Need Some Form Of External Assistance'
DUBLIN -Irish Finance Minister Brian Lenihan said Thursday Ireland will need some kind of financial assistance from its European Union counterparts, and said any aid will be funneled through the state--not the banks.Officials from the EU, European Central Bank and International Monetary Fund are in Dublin to examine the country's finances and troubled banking system. This may include the activation of the European Financial Stability Facility, the EUR440 billion emergency loan program established to help euro-zone countries refinance their debts."It's clear we will need some form of external assistance," Lenihan told state broadcaster RTE Television."We have to find a find a resolution to our banking difficulties with whatever external assistance is appropriate," he added.On the possibility of Ireland losing its sovereignty, Lenihan said, "I certainly don't feel a sense of shame for fighting hard for this country for the last two years."He added, "We're members of the euro zone, we will face up to our obligations as members of the euro zone."Lenihan noted that comments by Central Bank of Ireland Governor Patrick Honohan--who said earlier Thursday that a loan of "tens of billions" of euros would be made to Ireland by its EU counterparts--were referring to contingency funding.In relation to Honohan's comments that Ireland has the "firepower" to deal with its problems, Lenihan said, "He may well be right on that."Lenihan said Ireland must keep its 12.5% corporation tax rate. "That is an absolute red line...We will not have economic recovery if we do not maintain our strong, international export-focused drive."
2010/11/19 02:39*DJ Kocherlakota: Fed Bond Buying Impact Likely To Be 'Relatively Modest'

2010/11/19 02:38*DJ Kocherlakota: Inflation And Employment Are 'Too Low'

2010/11/19 02:37*DJ Kocherlakota: Fed Has Tools To Manage Balance Sheet Inflation Potential

2010/11/19 02:36*DJ Kocherlakota: Recovering Pace 'Too Slow,' Economic Growth Softening

2010/11/19 02:34*DJ Fed's Kocherlakota: 'I Did Express Support' For Fed Bond Buying Program

2010/11/19 02:33*DJ Irish Fin Min: Keeping 12.5% Corp Tax Rate "Is Absolute Red Line"

2010/11/19 02:30*DJ Irish Fin Min: Figures Have Not Been Discussed Yet

2010/11/19 02:28*DJ Irish Fin Min: "We Will Need Some Form Of External Assistance"

2010/11/19 02:15DJ Irish Minister: 12.5% Corporation Tax "Not Up For Negotiation"
DUBLIN -Ireland's low corporate tax rate is "not up for negotiation" as part of the solution to the country's financial crisis, the minister for enterprise and trade said Thursday.Officials from the European Union, the European Central Bank and the International Monetary Fund were in Dublin Thursday to examine the country's finances and troubled banking system. The discussions could lead to activation of the European Financial Stability Facility, the EUR440 billion emergency loan program established to help euro-zone countries refinance their debts."Our 12.5% corporation tax rate is a vital draw for foreign direct investment and it remains a key component of our industrial policy," Irish Minister Batt O'Keefe said."It is an aspect of taxation on which the government is not for turning, and it is vital that we keeping hammering that message home to the international investor community."He said foreign firms support some 240,000 Irish jobs and account for 50% of corporate tax revenues and 70% of national exports. They inject EUR19 billion into the Irish economy, including EUR7 billion in payroll."Our economic recovery will be driven by sustainable economic export-led growth," he said.Earlier Thursday, Patrick Honohan, member of the ECB's governing council and governor of the Central Bank of Ireland, said he believed that a loan of "tens of billions" of euros will be made to Ireland by its EU counterparts."It's my expectation that that is what is definitely likely to happen," Honohan said. "That's why the large technical teams are sitting down discussing these matters."
2010/11/19 00:58DJ IMF: Team In Dublin Conducting Review; No Aid Request Yet
ASHINGTON -Ireland hasn't yet requested assistance from the International Monetary Fund, but an IMF mission in Dublin is focusing on whether the ailing economy may need help, a fund official said Thursday."Our expectation is to look at whatever measures might be needed to support financial stability and protect against market risks in the light of the Irish government's four-year budgetary plan," IMF spokeswoman Caroline Atkinson said.Mission chief Ajai Chopra is already on the ground in Dublin meeting with Irish officials and will be joined shortly by nearly a dozen other IMF staff, including banking experts.Although Atkinson declined to comment directly on a hypothetical IMF loan to Dublin, she said the fund generally is "able to act very quickly and flexibly" if a request is made in the coming days.
2010/11/19 00:28*DJ BOE Posen Sees Small Risk Of Deflation, Not Central Scenario

2010/11/19 00:26=DJ DATA SNAP: Philadelphia Area Factories See Hot November

2010/11/19 00:25DJ US Conference Board: Oct Leading Index +0.5%

2010/11/19 00:22DJ DJ-BTMU Barometer Increases In Latest Week

2010/11/19 00:20*DJ BOE Posen: Still Believe More QE Would Be Good For UK Economy