Market Rumours

2010/11/22 17:44DJ UK Osborne: In Our National Interest To Aid Ireland Bailout
LONDON -Aiding the Irish financial bailout is in the U.K.'s national interest, Chancellor of the Exchequer George Osborne said Monday. 'There is a particular economic relationship with Ireland,' Osborne said on BBC radio. 'I do not think it would have been in Britain's national interest if we had not taken part in the bailout package,' he said. Osborne did not confirm any details of the deal, apart from saying that the contribution from the U.K. would be in the billions and not tens of billions, adding 'the details of the entire package... is being worked out as we speak and we should at the end of the week hear the details of that.' Media reports Sunday suggested the size of the U.K.'s support for Ireland could be around GBP7 billion. However, a treasury spokesman would not confirm that number and said details of the package are still being discussed.
2010/11/22 17:36*DJ EU Rehn: Fiscal Consolidation Won't Cause Double Dip Recession

2010/11/22 17:20DJ Europe Debt Insurance Costs Fall As Ireland Asks For Help
LONDON -The cost of insuring European sovereign, corporate and bank debt using credit default swaps fell in early trading Monday after Ireland made a formal request for financial help from the European Union and the International Monetary Fund. Shortly after 0745 GMT, the iTraxx SovX Western Europe index, which allows investors to buy or sell default protection on a basket of 15 sovereign borrowers, was five basis points tighter at 160/162, according to index owner Markit. Very early indications were that Ireland's five-year sovereign CDS were being quoted around 25 basis points tighter at 450/500 basis points, according to one trader. The Europe index of 125 investment-grade corporate borrowers, including 25 banks and insurers, was 1.5 basis points tighter at 99/100. The Crossover index of 50 mostly sub-investment-grade corporates was eight basis points tighter at 447/451 basis points. CDS are derivatives that function like a default insurance contract for debt. If a borrower defaults, the protection seller compensates the buyer. Buyers may be protecting investments, or making bearish bets against borrowers. A basis point rise or fall in a five-year contract indicates a $1,000 increase or decrease in the annual cost of insuring $10 million of debt.
2010/11/22 17:06*DJ UK Osborne: UK Will Contribute "Around" GBP7Bn To Ireland Bailout

2010/11/22 17:00DJ Irish Fin Min: We're Not Bust, We Have Cash Reserves

2010/11/22 16:56*DJ EU Rehn:Technical Talks On Ireland Can Be Concluded By End Nov

2010/11/22 16:49*DJ EU Rehn:Currency Competition Is Greatest Risk To Global Economy

2010/11/22 16:43*DJ EU Rehn: Global Economic Imbalances Starting To Widen Again

2010/11/22 16:41*DJ EU Rehn: Downside Risks To EU Economy Are Substantial

2010/11/22 16:40DJ Sweden Considers Offering Loan To Ireland - Fin Min

2010/11/22 16:38*DJ S&P Affirms 'B' Rating On Shanghai Zendai; Outlook Is Negative

2010/11/22 16:29*DJ Ireland Fin Min: Won't Be Out Of Bond Markets

2010/11/22 16:28*DJ Ireland Fin Min: Bank M&A Cannot Be Ruled Out

2010/11/22 16:25*DJ Ireland Fin Min: Structural Changes To Banking System Needed

2010/11/22 16:24*DJ Ireland Fin Min: Unlikely Lenders Will Request Changes To Plan

2010/11/22 16:23*DJ Ireland Fin Min: Eu, IMF Might, Might Not Suggest Changes To Plan

2010/11/22 16:22*DJ Ireland Fin Min: EU, IMF Broadly Satisfied With 4-Yr Plan

2010/11/22 16:21*DJ Ireland Fin Min: No Request For Changes To Upcoming Budget

2010/11/22 16:19*DJ Ireland Fin Min: We're Not Bust, We Have Cash Reserves

2010/11/22 16:16*DJ UK Osborne: In Our National Interest To Aid Ireland Bailout

2010/11/22 16:14*DJ Portugal 5-Yr Sovereign CDS 5 Bps Wider At 410/435 - Trader

2010/11/22 16:14*DJ Spain 5-Yr Sovereign CDS 6 Bps Tighter At 254/261 - Trader

2010/11/22 16:13*DJ Ireland 5-Yr Sovereign CDS 20 Bps Tighter At 470/495-Trader

2010/11/22 16:04*DJ Stoxx 600 Index Up 0.7% After The Open

2010/11/22 16:03*DJ FTSE 100 Up 0.4% After The Open

2010/11/22 15:55*DJ 10Y Irish/German Yield Spread 10Bps Lower At 534Bps

2010/11/22 15:53*DJ 2Y Irish/German Yield Spread 11Bps Lower At 390Bps

2010/11/22 15:53*DJ 5Y Irish/German Yield Spread 20Bps Lower At 520Bps

2010/11/22 15:38DJ German MOF: Fiscal Consolidation Successful, But 2010 Deficit Record
BERLIN -German measures of fiscal consolidation so far have been helpful and successful, but nevertheless the budget deficit this year will be the highest ever, the finance ministry said Monday in its monthly report.'In the long run, only a reduction in the debt ratio can lead to higher economic growth,' Deputy Finance Minister Hans Bernhard Beus said in the report.A 2010 budget deficit of around EUR50 billion is possible, but the deficit will still come in higher than the previous deficit record of EUR40 billion reached in 1996, the report says.From January through October, the budget deficit has been EUR54.8 billion, the report said.Germany's budget deficit this year will be 'somewhat less' than EUR50 billion, German Chancellor Angela Merkel said. The budget commission of Germany's parliament last week said it expects next year's deficit to come in at EUR48.4 billion.Also last week, the German government's council of economic advisors said it expects the country's budget deficit to come down to 2.4% of gross domestic product next year from an expected 3.7% this year. That would bring the deficit below 3% of GDP--the maximum allowed under the European Union's Growth and Stability Pact-
2010/11/22 15:37=DJ PRECIOUS METALS: Gold Rises As Euro Gains On Ireland Bailout

2010/11/22 15:28=DJ PBOC WATCH:RRR Hikes Do Little To Alter Rate-Hike Expectation

2010/11/22 15:06DJ JGBs Fall On Stock Rise, Weak Yen; May Recover Later This Week
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.645 .010 TSE Dec 10-Yr JGB Futures Price: 141.23 .53 10-Yr 1.0% JGB No. 310 Yield: 1.120% +0.060 TOKYO -Japanese government bonds ended lower Monday, as gains in Tokyo share prices and the yen's recent falling trend lessened demand for safe-haven assets. But analysts expect to see bearishness in the JGB market recede when the Japanese market reopens after a national holiday on Tuesday. 'As both the Japanese and U.S. markets are moving into holidays, most of the people who needed to adjust their positions must have done so by last week, so is expected to stabilize gradually toward the end of this week,' said Akito Fukunaga, chief strategist at RBS Securities. Fukunaga expects the benchmark 10-year cash JGB yield to fall to as low as 1.03% at the end of the week, compared with 1.120% as of 0600 GMT. Lead December JGB futures ended down 0.53 at 141.23--the day's intraday low. Demand for end-month portfolio duration lengthening may also provide support to the domestic bond market later this week, said Naomi Hasegawa, a senior strategist at Mitsubishi UFJ Morgan Stanley Securities. Still, Hasegawa expects the 10-year yield to be bound in a range early this week, playing a tug-of-war between position-adjustment selling and dip-buying. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.160% +0.005 5-Year 0.3% JGB No. 92 Yield: 0.405% +0.030 20-Year 1.9% JGB No. 121 Yield: 1.925% +0.025 30-Year 2.0% JGB No. 33 Yield: 2.105% +0.030 ***********
2010/11/22 15:03DJ Tokyo Shares Hit Fresh 5-Month High As Euro Gains, Exporters Rise

2010/11/22 15:02DJ Forex Options: Dollar/Yen Options Stable As Spot In Tight Range
TOKYO -Dollar/yen options were nearly unchanged Monday in thin trade ahead of a Japanese holiday Tuesday and the U.S. Thanksgiving holiday Thursday.Benchmark volatilities implied by one-month at-the-money options stood at 9.80%/10.50% vs 9.75%/10.45% Friday in New York.The mid-point of volatilities may fall to around 10.00%, compared with the current level of 10.15% if the U.S. dollar continues to trade in a tight range against the yen, said an options dealer at a major Japanese bank. The greenback traded in a Y83.20-Y83.60 range in the Asian morning.The dealer said market participants may take cues from the minutes of the U.S. Federal Open Market Committee meeting expected to be released Tuesday. If the minutes show a strong consensus among committee members for the second round of quantitative easing announced early in November, U.S. Treasurys yields may fall.Declines in U.S. bond yields may prompt players to sell the dollar against major currencies, including the yen. In such a scenario, demand may rise for hedges against the U.S. unit's falls against the yen.The dealer said one person sold two-day dollar-call/yen-put options contract at a strike price of Y84.00 with implied volatilities of 11.25% and an unknown face value.
2010/11/22 14:56*DJ Japan Fin Min Noda: To Keep Watching FX Markets Closely, Take Decisive Action If Necessary

2010/11/22 14:55*DJ Japan PM Kan: FX Rates Should Generally Be Determined By Markets

2010/11/22 14:22=DJ WORLD FOREX: Euro Extends Gains; Equities Underpin Risk Appetite-3-

2010/11/22 14:19=DJ FED WATCH: Central Bankers Give In, And Discuss The Dollar

2010/11/22 14:08=DJ WORLD FOREX: Euro Extends Gains; Equities Underpin Risk Appetite-2-

2010/11/22 14:04*DJ Nikkei Stock Average Closes Up 0.9% At 10,115.19

2010/11/22 14:03=DJ WORLD FOREX: Euro Extends Gains; Equities Underpin Risk Appetite

2010/11/22 14:03*DJ Nikkei Stock Average Closes Up 0.9% At 10,115.19

2010/11/22 13:57=DJ Top Forecasters See U.S. Economy Still Sluggish In 2011

2010/11/22 13:50DJ NZ Fin Min: Taking Steps To Reduce Foreign-Debt Vulnerability
WELLINGTON -Finance Minister Bill English said Monday that Standard & Poor's decision to lower its outlook on New Zealand's foreign-currency rating highlights the country's need to reduce its heavy reliance on foreign debt. The ratings agency earlier in the day lowered its outlook on New Zealand's foreign-currency credit rating to negative from stable, warning of a possible downgrade given the country's widening external balances. 'This is a long-standing problem for New Zealand and has left us vulnerable as a country,' said English. 'The government is taking steps to reduce this external vulnerability and to move the economy towards savings and exports.'
2010/11/22 12:51DJ ICBC (Asia) Plans to Price Benchmark Bond As Early As Today - Source
SINGAPORE -Industrial and Commercial Bank of China plans to price a benchmark-sized subordinated lower Tier II dollar bond as earlier as today, a person familiar with the offering said Monday.ICBC is seeking to pay a spread of around 237.5 basis points over the comparable U.S. Treasury bond yield for the 10-year notes, the person said.HSBC is global coordinator of the deal. HSBC and Bank of America Merrill Lynch are joint bookrunners, while ICBC International is joint lead manager.The Reg S bond is expected to carry a rating of A3 with a stable outlook by Standard & Poor's Ratings Services, and BBB+ with a positive watch by Moody's Investors Service and Fitch Ratings, the person said.
2010/11/22 12:12DJ Standard & Poor's Shifts Outlook On New Zealand To Negative
SYDNEY -Standard & Poor's Monday shifted its outlook on New Zealand's foreign currency credit rating to negative from stable, warning of a possible downgrade given the country's widening external balances.The ratings agency's move is another dent New Zealand's tepid economic recovery, which has already been hindered by a strong currency and lackluster growth. It also highlights that although the Asia-Pacific region remains the world economy's growth center, the region isn't without its weak spots.The New Zealand dollar dropped sharply after the release and was trading at US$0.7759 at 0312 GMT versus US$0.7832 prior to the news.'The outlook revision on the foreign currency ratings reflect our recognition of the risks stemming from New Zealand's projected widening external imbalances in the context of the country's weakened fiscal flexibility,' S&P sovereign ratings analyst Kyran Curry said. 'New Zealand's vulnerability to external shocks, arising from its open and relatively undiversified economy, also raises risks to the country's economic recovery and credit quality,' Curry said.The foreign currency ratings were affirmed at AA+/A-1+, while the local currency rating was unchanged at AAA/A-1+ on a stable outlook.
2010/11/22 11:57*DJ Nikkei Stock Average Up 1.4% At 10,157.85, Fresh 5-Month High

2010/11/22 11:41*DJ Nikkei Stock Average Up 1.0% In Early Afternoon Trading

2010/11/22 11:34*DJ ICBC (Asia) Plans to Price Benchmark Bond As Early As Today - Source

2010/11/22 11:13*DJ NZ Dollar Falls To US$0.7798 From US$0.7832 After S&P Outlook Warning

2010/11/22 11:11*DJ New Zealand Dollar Falls Vs Yen After S&P Announcement

2010/11/22 11:05*DJ S&P Affirms New Zealand Foreign Currency Sovereign Rating At AA+/A-1+

2010/11/22 11:05*DJ S&P Revises New Zealand Foreign Currency Rating Outlook To Negative From Stable

2010/11/22 10:49=DJ IMF Chief Says Ready To Help In Irish Financial Aid

2010/11/22 10:35DJ Portugal Says It Won't Need EU, IMF Aid - Newspaper
Portuguese President Anibal Cavaco Silva believes his country won't need a rescue package from the European Union nor from the International Monetary Fund, reports Spanish newspaper El Pais in its Monday Internet edition, without citing any sources.He said Portugal and Ireland, which on Sunday applied for aid from the EU and the IMF, are very different, as his country "doesn't have a crisis in the banking system, hasn't suffered from a real-state bubble, and the level of government debt is within the European average," according to the paper.-, enza.tedesco@dowjones.com
2010/11/22 10:08=DJ FOREX VIEW: Risk-On, Risk-Off Might Be Over For Euro-Dollar

2010/11/22 09:50=DJ FOREX WEEK AHEAD: Rescue For Ireland May Also Bail Out Euro

2010/11/22 09:08*DJ New Zealand Dollar Rises Above Y65.32; Highest Since May 17

2010/11/22 08:28=DJ Irish PM: Confirms Ireland Has Applied For Aid, EU Agrees

2010/11/22 08:27=DJ Speculative Investors Ditch Pro-Euro Bets By About 63% - Scotia

2010/11/22 08:18DJ Irish Bailout Between EUR80B And EUR90B -Diplomats
DJ Irish Bailout Between EUR80B And EUR90B -DiplomatsBRUSSELS --A massive international bailout for debt-ravaged Ireland would reach between ERU80 billion and EUR90 billion, two diplomatic sources told AFP late Sunday. 'The amount envisaged is between EUR80 billion and EUR90 billion' ($110 billion and $123 billion), one of these sources said. The other source also said these numbers were likely to come at the conclusion of negotiations in Dublin between the Irish government and experts from the European Commission, the European Central Bank and the International Monetary Fund.
2010/11/22 08:08*DJ Nikkei Stock Average Opens Up 1.1% At 10,133.48

2010/11/22 08:08*DJ Lead 10-Yr JGB Futures Open Dn At 141.47 Vs 141.76 Fri

2010/11/22 07:59DJ US Treasury: Welcome Ireland's Seeking IMF, EU Assistance
DJ US Treasury: Welcome Ireland's Seeking IMF, EU AssistanceWASHINGTON -The U.S. Treasury supported Ireland's request for emergency funding from the International Monetary Fund and the European Union to help capitalize it's ailing banking industry. 'We welcome Ireland's intention to seek assistance from the IMF and the EU in support of its fiscal and banking reforms,' Treasury said in a statement. 'We will continue working closely with our European counterparts and the IMF to strengthen market stability and the global recovery,' it said. Besides harm to the Irish economy, E.U. And IMF officials are concerned that Ireland's banking problems could spread to other European countries, and want to stem potentially deteriorating conditions.
2010/11/22 07:51=DJ Irish PM: Confirms Ireland Has Applied For Aid, EU Agrees
Adds quotes, details By Ainsley Thomson and Jason Douglas Of DUBLIN -Ireland's Prime Minister, Brian Cowen, Sunday said his government had formally applied for aid from the European Union and the International Monetary Fund. Speaking at a press conference in Dublin following a lengthy cabinet meeting to approve the request, Cowen said the euro group had agreed to provide the assistance in order to safeguard financial stability in the EU and euro area. The Irish government's request paves the way for the 16-country euro zone's second government bailout this year, following the emergency EUR110 billion bailout plan for Greece last May. Finance Minister Brian Lenihan said the aid would be a joint EU/IMF program, adding that the U.K. and Sweden were also prepared to provide bilateral loans to Ireland. Lenihan and Cowen said the terms and amount of aid would be determined during negotiations with the European Commission, the IMF and in liaison with the European Central Bank. However, Lenihan the figure would be lower than EUR100 billion. The program will include a fund for potential capital needs of Ireland's banks and will involve restructuring of the banking sector, the men said. 'The Irish banks will become significantly smaller than have been in the past, and they will gradually be bought to stand on their own two feet once more,' Cowen said. The other element of the program was Ireland's strategy to reduce its budget deficit, which will reach 32% of gross domestic product by the end of 2010. 'Put simply, the government has to increase our taxes and reduce our spending to a level we can afford,' Cowen said, but stressed the country's corporate tax of 12.5% would be increased. Cowen said the next step would be to publish the four-year budgetary plan, which would detail how the government will make EUR15 billion of budget cuts over the next four years. The cuts are needed to reduce Ireland's deficit to the EU's target of 3% of GDP by 2014. Earlier Sunday, Lenihan confirmed he was recommending the government apply for aid, saying Ireland's banks had become 'too big a problem for the country.'
2010/11/22 07:10*DJ Irish Fin Min: Loans To Be Provided From Stabilization Fund

2010/11/22 07:10*DJ Irish Fin Min: Talks To Take A Few Weeks

2010/11/22 07:09*DJ Irish PM: Assistance Will Include Capital Fund For Banks

2010/11/22 07:09*DJ Irish Fin Min: IMF Also To Provide Funds

2010/11/22 07:08*DJ Irish PM: Terms, Amount Of Aid To Be Agreed In Discussions

2010/11/22 07:06*DJ Irish PM: Corportation Tax Rate Will Not Change

2010/11/22 07:06*DJ Irish PM: Confirms Ireland Has Applied For Aid