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

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

Market Rumours

2010/11/18 17:58*DJ Japan Govt Maintains View That Economy In Lull

2010/11/18 17:33=DJ DATA SNAP: Euro-Zone Current Account Deficit Rose Sharply

2010/11/18 17:32*DJ UK Oct Retail Sales Forecast +0.5% On Mo; +0.1% On Yr

2010/11/18 17:31*DJ UK Oct Retail Sales +0.5% On Mo; -0.1% On Yr

2010/11/18 17:31*DJ UK Oct PSNCR Was Expected At +GBP6.0B

2010/11/18 17:31*DJ UK Oct PSNCR +GBP2.4B Vs +GBP6.7B Year Ago

2010/11/18 17:30*DJ UK Oct PSNB +GBP10.3B Vs +GBP10.1B Year Ago

2010/11/18 17:30*DJ UK Oct PSNB Was Expected At +GBP9.4B

2010/11/18 17:05*DJ OIL FUTURES: December Nymex Crude Hits $82/bbl

2010/11/18 17:01*DJ Irish Central Bank Chief Foresees "Substantial Loan"

2010/11/18 17:00*DJ Euro-Zone Sep Adj Current Account Deficit EUR13.1B

2010/11/18 17:00*DJ Euro-Zone Deficit Was EUR6.9B Aug

2010/11/18 16:34=DJ PRECIOUS METALS: Gold Rallies In Asia On Bargain Hunting

2010/11/18 16:19DJ Tokyo Shares End Higher; Bank Rally Sends Nikkei Over 10,000-2-

2010/11/18 16:08*DJ Stoxx Europe 600 Index Up 0.5% After The Open

2010/11/18 16:08*DJ FTSE 100 Up 0.7% After The Open

2010/11/18 15:46DJ Tokyo Shares End Higher; Bank Rally Sends Nikkei Over 10,000

2010/11/18 15:32*DJ OIL FUTURES: ICE January Brent Crude +$1.03 At $84.31/Bbl

2010/11/18 15:17DJ 10-Year JGB Yield Hits 2-Month High After Poor 20-Year Tender
At 0600 GMT Change TFX June 3-Mos Euroyen Price: 99.655 flat TSE Dec 10-Yr JGB Futures Price: 141.45 .51 10-Yr 1.0% JGB No. 310 Yield: 1.100% +0.045 TOKYO -The yield on benchmark 10-year Japanese government bonds rose to a two-month high on Thursday after results of a closely-watched 20-year auction turned out weaker than expected. The 10-year cash JGB yield rose to 1.1% in the afternoon for the first time since Sept. 15 and climbed further in after-hour trading to 1.105%--its highest since Sept. 14. Mitsubishi UFJ Morgan Stanley Securities' strategist Katsutoshi Inadome expects the 10-year yield to climb to as high as 1.15% within this year. The bearish momentum in the JGB market will likely continue until the beginning of the next year when economic data are expected to start showing clear deterioration in the domestic economy, he added. Lead December JGB futures also finished the day down 0.51 at 141.45. Earlier in the day, Japan's Ministry of Finance sold Y1.001 trillion worth of 20-year JGBs at a lowest price of 99.70--lower than traders' expectations for 99.90-99.95--yielding 1.920%. The bonds carry a coupon of 1.9%, higher than the October issue's 1.8% and reopening the No. 121 issue sold in September. Increasing volatility in the 20-year zone seemed to discourage those who had been expected to buy the new issue--such as banks--while life insurers, traditionally the biggest buyers of superlong bonds, have recently shifted focus to 30- and 40-year notes in search for longer durations, Mitsubishi UFJ Morgan Stanley's Inadome said. Thursday's poor auction results 'confirmed continued caution in the super-long sector,' said Maki Shimizu, a senior strategist at Citigroup Global Markets Japan. However, 'the yield curve is unlikely to keep steepening' because the economic outlook remains cloudy and the supply and demand balance in the JGB market is expected to improve in December, Shimizu added. Other Cash Bond Yields At 0600 GMT Change 2-Year 0.1% JGB No. 298 Yield: 0.160% +0.010 5-Year 0.3% JGB No. 92 Yield: 0.400% +0.025 20-Year 1.8% JGB No. 122 Yield: 1.935% +0.020 30-Year 2.0% JGB No. 33 Yield: 2.085% +0.025 ***********
2010/11/18 14:56DJ RBA Deputy Governor Says Nov Hike Was Prudent, Modest Tightening Of Rates
SYDNEY -Australia's mining-rich economy is grinding against capacity constraints and inflation is much more likely to rise over the next few years, the central bank said Thursday.Ric Battellino, Reserve Bank of Australia Deputy Governor, told an audience in Perth the most pressing challenge for policy makers was managing the lack of spare capacity in the economy at a time when the money is gushing in thanks to record demand for commodities.For those reasons, a surprise interest rate hike announced Nov. 2 was a prudent early move, Battellino said.Australian miners are expected to invest heavily over coming years to expand production of iron ore and coal in order to meet orders from Asia, especially the country's biggest trading partner China.Already the central bank has shot out of the starting blocks to lead developed nations in raising interest rates with seven increases announced since October 2009, the latest on Nov 2.Battellino said the decision to come off the sidelines after a pause extending back to May was driven by the central bank's forward looking policy approach and was needed given the upward trajectory for inflation in 2011-12."This is consistent with the forward-looking approach to monetary policy that the bank has been following for close to 20 years now, and which on balance has helped to keep the economy on a sustainable path," Battellino said.Australia's economy has expanded uninterrupted for the last 20 years so it isn't surprising that spare capacity is limited.The A$1.3 trillion economy, which has returned to average rates of economic growth having avoided recession in the wake of global banking sector upheavals in 2008, will struggle to grow at much faster rates without adding to inflation pressures, he said."With a large amount of money continuing to flow into the country over the next couple of years as a result of the resources boom, the challenge will be to manage the economy in a way that keeps economic growth on a sustainable path, with inflation contained," he said.The comments from Battellino will reinforce market expectations that interest rates will have to rise again in 2011. For now most economists believe the RBA will sit pat as major banks have raised their mortgage lending rates sharply in recent weeks, citing rising funding costs.The RBA's benchmark cash rate now stands at 4.75%.Still, the economy will have strong underpinnings with further falls in the unemployment rate expected by the central bank, he said.With already low unemployment of 5.4%, Australia's job market has been strong for close to 18 months, providing a sharp line of delineation with other major economies where growth is weak and unemployment queues lengthy.Battellino admitted the high Australian dollar was taking a toll on business, but it is also helping to allow the economy to adjust to the mining boom, which has driven export prices sharply higher. He highlighted the pain in the tourism sector, which is Australia's third biggest export.
2010/11/18 14:54DJ Forex Options: Dollar/Yen Options Fall Ahead Of US Holiday
TOKYO -Dollar/yen options fell sharply in Asia Thursday as market participants--including hedge funds and major non-Japan banks--sold contracts before closing the books prior to the U.S. Thanksgiving holiday.Benchmark volatilities implied by one-month at-the-money options fell to 10.05%/10.75% from 10.95%/11.65% in New York Wednesday.One player sold a six-month, at-the-money straddle option contract with implied volatilities of 11.95% and an unknown face value, said a dealer at a major Japanese bank. Straddles profit on wide swings in the exchange rate.The stable underlying exchange rate also contributed to falls in volatilities, the dealer said.The greenback traded in a tight, Y83.11-Y83.40 range in the Asian morning.The dealer said the mid-point of volatilities may continue to fall toward 10.00% in the near term. That compares with the current level of 10.40%.
2010/11/18 14:41DJ UK Gives Single Agency Listings, Insider-Trading Oversight -FT
A newly formed U.K. agency will regulate companies that list stock on London exchanges and will prosecute insider trading, the Financial Times reported late Wednesday, citing an official in Britain's coalition government. The dual role granted the Consumer Protection and Markets Authority resolves two remaining questions in the government's plan to split the Financial Services Authority in 2012. Many in the financial services industry had lobbied for such a move. Mark Hoban, financial secretary to the U.K. Treasury, wrote in an opinion article for the FT that the industry 'made a strong case that the same body should regulate both the new listing of companies and the ongoing trading of existing securities.' He also said the unified CPMA will strengthen the U.K.'s voice on markets issues in Europe. Website: www.ft.com -; 212-416-2900
2010/11/18 14:39=DJ WORLD FOREX: Euro Up Vs Dollar As Ireland Worries Ease For Now -3-

2010/11/18 14:38=DJ WORLD FOREX: Euro Up Vs Dollar As Ireland Worries Ease For Now -2-

2010/11/18 14:30=DJ WORLD FOREX: Euro Up Vs Dollar As Ireland Worries Ease For Now

2010/11/18 14:26DJ Treasury Lacks Power Over Bank Foreclosure Practices -Official

2010/11/18 14:11*DJ OIL FUTURES: Dec Nymex Crude Up $1 At $81.44/Bbl; Weak Dollar

2010/11/18 14:10*DJ Nikkei Stock Average Closes Up 2.1% At 10,013.63

2010/11/18 14:07*DJ Nikkei Stock Average Highest Closing Level Since June 22

2010/11/18 14:06DJ PBOC Adviser: Developing Nations Should Seek Stability In Major Currencies - Report
BEIJING -China and other developing countries should seek a mechanism to ensure exchange-rate stability among major currencies, and seek to restrict the 'asymmetric behavior' caused by the dollar being both a domestic and international currency, People's Bank of China adviser Xia Bin wrote in an article in the latest issue of the PBOC-backed magazine China Finance. Developing countries should 'call for and participate in a series of actions to improve the international financial system,' Xia said in the article published Tuesday. China also shouldn't rule out temporary, strong restraint on the expansion of credit by insitutions as the country faces excessive domestic liquidity and difficulty controlling economic conditions, Xia said. Xia also reiterated China needs appropriate interest-rate and exchange-rate policies, including counter-cyclical policies, among other measures to keep its financial system stable. He didn't elaborate.
2010/11/18 14:06*DJ Dollar Hits Intraday Low Of KRW1,133 Vs KRW1,143 High Earlier

2010/11/18 14:05*DJ Nikkei Stock Average Rises Over 2.0%

2010/11/18 13:57*DJ Nikkei Stock Average Breaks 10,000 Mark

2010/11/18 13:31*DJ Dollar At KRW1,140.9 Vs KRW1,136 Low So Far Today, KRW1,144.9 Wed

2010/11/18 13:10*DJ RBA Says Economy Has Limited Spare Capacity After 20 Year Expansion

2010/11/18 13:06*DJ RBA Says Overall Economy Is Doing Very Well; Unemployment To Fall

2010/11/18 13:03*DJ RBA Says Nov Hike Consistent With Forward Looking Policy Approach

2010/11/18 12:30=DJ TIP SHEET: John Hancock Fund Sells Treasurys As Fed Buys Them

2010/11/18 12:19*DJ 10-Year JGB Yield Rises To 1.1%; Highest Since Sept 15

2010/11/18 11:54*DJ Nikkei Nears 10,000 Mark As Japan Financials Continue Rise

2010/11/18 11:41=DJ HEARD ON THE STREET: Ireland Will Win This Game Of Bluff

2010/11/18 11:31=DJ ICE's Credit Derivatives Clearinghouse Seeks To Register With CFTC

2010/11/18 11:27=DJ FED WATCH: Weak Core CPI Shows Why The Fed Has Chosen To Act

2010/11/18 11:18DJ Hong Kong Confirms Its First Bird Flu Case In Humans Since 2003
HONG KONG --Hong Kong has confirmed its first case of bird flu in humans in seven years, with a 59-year-old woman in a serious condition after a visit to mainland China, health officials said Thursday. The government has raised Hong Kong's bird flu alert to 'serious,' meaning there is a 'high risk' of contracting the potentially fatal disease, a spokesman for the Department of Health said. Health officials say the 59-year-old woman tested positive for Influenza A (H5), a variant of avian influenza, after she was first diagnosed with pneumonia. She is now listed in a serious condition in hospital.
2010/11/18 10:48=DJ US Treasury Takes An Initial Public Loss On GM Shares

2010/11/18 10:31DJ GM Share Sale A 'Milestone' In US Auto Industry Turnaround -Obama
General Motors Co.'s initial public offering is a 'major milestone' for the U.S. auto industry, President Barack Obama said Wednesday. The IPO 'marks a major milestone in the turnaround of not just an iconic company but the entire American auto industry,' Obama said in a statement issued by the White House. 'Through the IPO, the government will cut its stake in GM by nearly half, continuing our disciplined commitment to exit this investment while protecting the American taxpayer,' Obama said. Supporting the U.S. auto industry 'helped save jobs, rescue an industry at the heart of America's manufacturing sector, and make it more competitive for the future,' he said.
2010/11/18 10:26*DJ Nikkei Stock Average Hits Highest Level Since June 24

2010/11/18 10:14DJ IMF Chief: French G-20 Program Can Help Stabilize Global Economy
PARIS -France's ambitious agenda for the presidency of the Group of 20 industrialized and emerging nations could help to stabilize the world economy, International Monetary Fund Managing Director Dominique Strauss-Kahn told reporters Tuesday, after meeting with France's President Nicolas Sarkozy.Strauss-Kahn met Sarkozy for an hour at the Elysee Palace to discuss the French president's roadmap for its presidency of the G-20, which started last Friday. France has prioritized tasks including exploring ways to stabilize the global currency system and increase the oversight of commodities markets and commodity derivatives, amid persistent tensions on global foreign-exchange markets.The French G-20 program 'is ambitious and contains a lot of things that relate directly to the IMF,' Strauss-Kahn said. 'It augurs for a G-20 that can help a lot to stabilize the world economy,' he added.Strauss-Kahn said he had met the leaders of all countries which formerly held the G-20 presidency, stressing it is the IMF's role to serve as a 'toolbox' for the G-20.
2010/11/18 09:36*DJ Major Japan Banks, Financials Sharply Outperforming Market

2010/11/18 09:22=DJ Silver To Trade Above $30 In 2011 - GFMS

2010/11/18 08:55*DJ Obama Says GM IPO Marks 'Major Milestone'

2010/11/18 08:47=DJ Fed Could Release Draft Debit-Card Fee Rule By Year-End

2010/11/18 08:38=DJ US Could Face Loss Of Confidence If Debt Left Untackled-Panel Chairmen

2010/11/18 08:19DJ Citigroup Reviewing 14,000 Foreclosure Files For Potential Errors

2010/11/18 08:17DJ Fed's Duke: Regulators 'Quite Concerned' About Foreclosure Document Troubles
WASHINGTON - A top U.S. Federal Reserve official said Wednesday that bank regulators are 'quite concerned' about allegations of problems with the foreclosure process and plan to report on industry practices early next year.In remarks prepared for delivery to the House Financial Services Committee on Thursday, Fed Gov. Elizabeth Duke said regulators are reviewing banks' procedures for handling foreclosures and examining individual loan files.'We are prepared to take supervisory action where necessary and appropriate to hold institutions accountable,' she said.Along with the Fed, the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Deposit Insurance Corp. are conducting the review.Several major lenders, including Bank of America Corp. , Wells Fargo & Co. , Ally Financial Inc.'s GMAC Mortgage and J.P. Morgan Chase & Co. , have been reviewing thousands of foreclosure cases amid revelations they used so-called 'robo-signers' to file large numbers of foreclosure documents without reviewing their contents.Mortgage lenders say they are fixing the problems and will return to a normal foreclosure process quickly.Obama administration officials say the federal agencies investigating the issue have not found evidence of a threat to the financial system.Duke said that the issue has 'cast a pall of uncertainty across the entire housing market' The central bank, she said, is working to understand the size of the threat to figure out the right response.'Delays and uncertainty resulting from flaws in the foreclosure process have the potential to delay recovery in housing markets and to undermine confidence in our financial and legal systems,' she said.
2010/11/18 08:11*DJ Nikkei Stock Average In Negative Territory

2010/11/18 08:10*DJ Treasury Could Reap $13.6B From Sale Of GM Shares With Overallotment

2010/11/18 08:08=DJ Irish Crisis Shakes Currency Markets; Investors Flee Risky Bets

2010/11/18 08:07*DJ Lead Dec JGB Futures Open Up At 141.97 Vs 141.96 Wed

2010/11/18 08:07*DJ Nikkei Stock Average Opens Up 0.1% At 9820.60

2010/11/18 07:36DJ BOE Tucker: Absolutely Determined To Return CPI To Target
LONDON -The Bank of England's Monetary Policy Committee is "absolutely determined" to push inflation back down to its target level while also seeking to safeguard the economic recovery, BOE Deputy Governor Paul Tucker said Wednesday."The Bank of England is absolutely determined to return inflation from its currently uncomfortably high level of around 3%, back down to our target of 2% over the next few years - and while we are doing that, to support recovery in the economy as well," he said in an interview with the BBC Radio Oxford.Tucker warned however that "choppy" economic waters still lie ahead for almost every U.K. business, although he said those in the export sector stand in better stead than firms that depend on increasingly expensive commodity imports.However, noting the continued "hazardous" risks facing the global economy and the difficulties some European economies are confronting, he said the U.K. government's deficit-reduction actions leave the domestic economy more "insulated" from sovereign debt concerns.
2010/11/18 07:32*DJ US Stake In GM Would Drop To About 37% -Obama Official

2010/11/18 07:32*DJ US Sale Of GM Shares Would Raise $11.8B -Obama Official

2010/11/18 07:31*DJ US Agrees To Sell 358 Million Shares In GM -Obama Official

2010/11/18 06:53DJ UK Osborne: Not Concerned About Irish Exposure Of Any UK Bank
BRUSSELS -The U.K. government isn't concerned about the exposure of the nation's banks to Ireland, and that would not be its motivation were it to provide financial help to its Irish counterpart, Chancellor of the Exchequer George Osborne said Wednesday.Osborne was speaking to reporters following a meeting of finance ministers from the European Union that was dominated by talks on how to calm bond markets, which have been spooked by fears that the cost of fixing Ireland's banking system will make it impossible for the government to repay its debts.The U.K. has been asked by members of the euro zone to contribute to a financial rescue package, arguing the U.K. has a big stake in stabilizing the Irish economy given the large exposure of its banks to Irish borrowers.Osborne earlier said the U.K. is ready to help."Our engagement in this...is because we are good neighbors, not because we have any concerns about any particular U.K. bank," he said.There has been speculation that one condition for providing the financial help would be that the Irish government raise its corporation tax rate from 12.5%. Some previously U.K.-based companies have moved their headquarters to Ireland, but that likely reflects their displeasure at the way the U.K. taxes overseas income.Osborne made it clear the U.K. government won't be insisting on that condition."It's up to individual countries to determine their tax policies," he said.Osborne repeated the government's position that it won't support an increase in the EU's budget of more than 2.9%.
2010/11/18 06:48=DJ WORLD FOREX: Euro Gains After Weak US Data Bolsters Case For Stimulus

2010/11/18 06:34DJ US Stocks Fall In Choppy Trade; Financials Weigh
The dustrial Average fell for the fourth day in five after a day of choppy trading that saw the markets dragged down by financial stocks.The blue-chip index was able, however, to finish above the 11000 mark, helped by strong earnings by retailers.The Dow finished down 15.62 points, or 0.14%, at 11007.88, while the Standard & Poor's 500-stock index rose 0.25 point, or 0.02% to 1178.59 and the Nasdaq Composite gained 6.17 points, or 0.25%, to 2476.01.Financial stocks led the declines, after The Wall Street Journal reported that the Federal Reserve will require all 19 banks that underwent stress tests during the height of the financial crisis to undergo another review of their capital and their ability to absorb losses under an "adverse" economic scenario.The Journal reported separately that the Federal Deposit Insurance Corp. is conducting about 50 criminal investigations of former executives, directors and employees at U.S. banks that have failed since the start of the financial crisis.Bank of America fell 32 cents, or 2.7% to finish at $11.62, while J.P. Morgan Chase fell 43 cents, or 1.1%, to 39.18. Regions Financial dropped 38 cents, or 6.4%, to 5.54, Keycorp sank 30 cents, or 3.8%, to 7.68 and Wells Fargo declined 33 cents, or 1.2%, to 26.86.Supporting the market were consumer-discretionary stocks, which posted strong gains after a second consecutive day of encouraging results from big-box retailers. Target gained 2.08, or 3.9%, to 55.62 after third-quarter earnings rose 23%, beating analysts' forecasts. BJ's Wholesale Club added 1.37, or 3%, to 47.54 after reporting a 32% earnings jump and raising its full-year earnings forecast.The pair of strong profit reports came a day after Wal-Mart Stores and Home Depot posted positive earnings reports, though those two stocks were among the weakest of the Dow components, falling 0.9% and 2.8%, respectively, after climbing Tuesday.Other retailers were among the best-performing stocks, with Coach adding 1.68, or 3.3%, to 52.52, and Kohl's rising 2.15, or 4.2%, to 52.80."The consumer seems to be spending again--not with unbridled optimism, but spending nonetheless--what we're seeing here is the consumer finally adjusted to the 'new normal,'" said Matthew Kaufler, portfolio manager at Federated Clover Investment Advisors. "Consumers look more willing to part with that incremental dollar coming into the holiday season."The market moves came one day after the worst market rout in months, as investors worried about new dangers in Europe and the potential for policy tightening in China.On Wednesday, U.S. consumer prices showed a modest rise of 0.2%, though taking out volatile energy and food prices, underlying inflation remained flat for the third straight month. The lack of so-called core inflation was one factor in the Federal Reserve's controversial decision this month to try to stimulate the economy by buying government bonds.Meanwhile, U.S. home construction during October fell to its lowest level in 18 months, a fresh reminder that the moribund industry's recovery is sluggish. U.S. housing starts fell 11.7% to a seasonally adjusted annual rate of 519,000, while building permits increased 0.5% to 550,000.The day's economic data "tends to lend more support to the fact that the Fed is going to continue quantitative easing," said Doug Roberts, chief investment strategist at Channel Capital Research. Looking at the inflation numbers, he said, "there's nothing to indicate any uptick on the economy--you'd almost rather have a little bit of an increase."In corporate news, GlaxoSmithKline's American depositary shares gained 1.03, or 2.7%, to 39.57 after reports that a Food and Drug Administration panel backed approval of a new lupus drug jointly developed by Glaxo and Human Genome Sciences. Shares of Human Genome Sciences, however, fell 1.37, or 5.3%, to 24.51.Qualcomm advanced 1.60, or 3.5%, to 47.98 after the chief executive of the wireless semiconductor company said it's targeting double-digit revenue and earnings growth over the next five years as it continues to benefit from soaring demand for mobile devices. "When you see a company that big and important in that space come out so optimistic, it really gets you excited," said Kaufler of Federated.Car maker General Motors said it would sharply increase the size of its initial public offering by 30% to 478 million shares in response to strong demand, which could make it the biggest IPO ever.In Europe, stocks traded higher, recovering slightly after the previous session's thrashing, as investors continued to watch developments around Ireland's financial crisis. Irish authorities will meet with officials from the European Union, International Monetary Fund and European Central Bank to decide the best way to provide any necessary support to address market risks. The Stoxx Europe 600 index finished 0.5% higher.Asian stocks finished mostly lower overnight, with China's Shanghai Composite falling another 1.9% on growing concerns that officials will tighten monetary policy. Hong Kong's Hang Seng Index dropped 2%.The benchmark 10-year U.S. Treasury note fell, pushing its yield up to 2.864%.In the commodity markets, oil futures tumbled for the fourth straight day, falling 2.3% to finish at $80.44 a barrel. Oil has now fallen 8.4% over the past four days. Gold, meanwhile, edged down, while the dollar declined against major rivals.
2010/11/18 06:30=DJ WORLD FOREX: Euro Gains After Weak US Data Bolsters Case For Stimulus

2010/11/18 06:07DJ Treasurys Fall, Give Up Rally Despite Soft CPI, Fed Buying
(Adds swap spreads and price table.) By Min Zeng Of YORK -Longer-dated Treasurys fell Wednesday as many investors cashed out of a rally ahead of new government debt supply.As of 3:52 p.m. EST, the benchmark 10-year Treasury note was 10/32 lower to yield 2.878%. Bond yields move inversely to their prices.Bond prices rose earlier as a bout of U.S. data supported the Federal Reserve's move to launch a $600 billion government debt-buying program earlier this month. U.S. housing starts suffered an 11.7% drop while a key gauge of inflation that is closely tracked by the Fed posted the smallest gain on record.Trading has been choppy after the bond market suffered heavy sell-offs from Friday through Monday. Rising criticism of the second round of the Fed's "quantitative easing" program -- an economic-stimulus effort dubbed QE2 -- has made many investors skittish about the Treasurys market, which had rallied significantly in recent months."Treasury positions accumulated over the past few months in anticipation of [the Fed bond-buying program] are now being reduced. That selling is overwhelming the actual buying by the Fed, and the weaker economic data of the past few days," said Alan De Rose, head Treasurys trader at Oppenheimer and Co. in New York.This position reduction may continue to dominate the market over the near term, said De Rose, adding that supply from a broad range of fixed-income markets, including Treasurys, corporate and municipal debt, also weighed in.The Treasury Department on Thursday morning will release the sizes for next week's sales of notes maturing in two years, five years and seven years.Stephen Stanley, chief economist of Pierpont Securities, said he expects the sizes to be unchanged from last month's auctions: $35 billion each for the two-year and five-year note auctions and $29 billion in seven-year notes.The Fed on Wednesday bought $8.15 billion in Treasurys maturing in eight years to 10 years as part of its bond-buying program. The central bank has bought $21.5 billion in Treasurys since the start of this week and plans to buy Treasurys on Thursday and Friday.The benchmark 10-year note's yield hit a three-month high of 2.970% on Monday amid rising criticism that the Fed's program will fuel asset bubbles in emerging-market nations and may generate too much inflation in the U.S. in the longer term.The 10-year note's yield has risen from the recent trough of 2.332% hit in October, though it is still below this year's peak of 4.017% set in April.Tame inflation was one of the key factors pushing the Fed to start the bond-buying program. The central bank is trying to jump-start the economy while warding off the threat of deflation, a persistent decline in consumer prices that discourages consumer spending and erodes corporate earnings.Wednesday's data reinforced the Fed's case for bond buying. The annualized consumer price index excluding food and energy rose just 0.6%, the lowest amount since records began in 1957. That is well below the Fed's informal inflation target of between 1.5% and 2%."Very poor economic data discourages those who believed [the Fed's bond-buying program] may be diminished or discontinued," said Jason Rogan, director of U.S. government trading in New York at Guggenheim Partners LLC.St. Louis Federal Reserve Bank President James Bullard, who votes on monetary policy this year, said after the CPI report Wednesday that he is worried about disinflation, adding that it is important to defend inflation from the low side."The data justified what the Fed is doing to support the economy, but trading is likely to be choppy," said Thomas Roth, executive director in the U.S. government bond trading group at Mitsubishi UFJ Securities Inc. in New York. "The whole world has been long Treasurys and before year-end people don't want to take a lot of risks."Roth said he still expects yields to go lower again but this will take time, adding that the 10-year note's yield will range between 2.5% to 3% in the near term.U.S. Swap Spreads MixedU.S. two-year swap spread, which measures the differential between the two-year swap rate and two-year Treasury yield and a main gauge of credit risks, was 1.75 basis points tighter at 18.25 basis points. The 10-year swap spread was 0.75 basis point wider at 15.5 basis points.COUPON ISSUE PRICE CHANGE YIELD CHANGE3/8% 2-year 99 25/32 up 1/32 0.492% -1.2BP1/2% 3-Year 99 7/32 up 2/32 0.759% -2.4BP1 1/4% 5-year 98 31/32 dn 1/32 1.467% +0.9BP1 7/8% 7-Year 98 9/32 dn 8/32 2.140% +4.2BP2 5/8% 10-year 97 26/32 dn 10/32 2.878% +3.6BP4 1/4% 30-year 99 5/32 dn 14/32 4.299% +2.7BP***********2-10-Yr Yield Spread: +239 BPS Vs +234 BPS Source: Tradeweb
2010/11/18 05:45*DJ NZ 3Q Producer Input Prices +0.7% Vs 2Q; Consensus +0.3%

2010/11/18 05:45*DJ NZ 3Q Producer Output Prices +1.2% Vs 2Q; Consensus +0.6%

2010/11/18 05:37DJ US Stocks Fall In Choppy Trade; Financials Weigh

2010/11/18 05:07*DJ Nasdaq Ends Up 6.17 (0.25%) At 2476.01; Consumer Discretionary, Energy Gain

2010/11/18 05:06DJ OIL FUTURES: Crude Nears $80/Bbl On Worries About Demand

2010/11/18 05:06*DJ Dow Ends Down 15.47 Points (0.14%) At 11008.03; Home Depot, BofA Lag

2010/11/18 04:55=DJ Fed's Bullard: QE2 Aimed At Defending Inflation From 'Low Side'

2010/11/18 04:44=DJ Blackstone Likely Front-Runner For Citigroup's Egg - Sources

2010/11/18 04:11DJ PRECIOUS METALS: Comex Gold Slips On Easing Inflation Worries

2010/11/18 04:05DJ Irish PM: "Sensible, Precautionary" Talks With EU Counterparts
DUBLIN -Irish Prime Minister Brian Cowen said Wednesday his government is having "sensible, precautionary" discussions with its European counterparts, and reiterated that Ireland has not applied for external financial aid."We haven't started any negotiations," he told RTE Television in an interview, but he said the government was embarking on talks of a technical nature. "There are sensible, precautionary discussions taking place at the moment...We have not applied for a facility."Officials from the EU, the European Central Bank and IMF will travel to Dublin on Thursday 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."The important question is to have discussions as to what the best options are and to see what would be the best terms that would apply to our circumstances," Cowen said.He added, "We first of all have to decide what our best options are...We will deal with those matters step by step."
2010/11/18 03:40*DJ Fed's Duke: Regulators 'Quite Concerned' About Foreclosure Document Troubles

2010/11/18 03:35*DJ OIL FUTURES: Nymex Crude Settles Down $1.90 At $80.44/Bbl

2010/11/18 03:23DJ ECB Constancio: Euro-Zone Recovery Ongoing Despite Debt Crisis
FRANKFURT -The European Central Bank's vice president Wednesday tried to calm jittery financial markets, saying that the debt crisis in parts of the euro zone has had no impact on the region's overall economic performance."The economic recovery is still going on at a euro-area level, as anticipated," Vitor Constancio told reporters on the sidelines of an event in Frankfurt. "There've been no consequences on the real economy of the [euro-zone] area as a whole so far," he said.Speaking at the Euro Finance Week, he said the ECB's exit from special liquidity support to banks will depend on the region's economic performance, among other things."When we decide on our policy, we take into consideration the overall situation in the euro area. We are data dependent," Constancio said.Asked how the ECB plans to address concern that some banks are addicted to central bank cash, he said: "That's the situation which is linked to the financial crisis. It is a sort of legacy and, of course, will be dealt with as we come out of this situation, as we will in the end."Constancio also referred to the ECB's lending policy, saying "we have an established collateral policy, which means that banks have to present collateral to access ECB liquidity. We proceed according to those rules."Constancio said Europe will overcome the current confidence crisis."I certainly expect [some normalization in financial markets]. Europe has proved in the recent past that it can deal with these sort of problems."
2010/11/18 02:45*DJ Irish PM: "Sensible, Precautionary" Talks With EU Partners

2010/11/18 01:38*DJ IMF Chief: French G20 Program Can Help Stabilize World Monetary System

2010/11/18 01:32DJ Bernanke Briefing Senate Panel On Bond-Purchase Plan -Reports
Federal Reserve Chairman Ben Bernanke on Wednesday is briefing members of the U.S. Senate Banking Committee about the Fed's bond-buying program, also known as quantitative easing, according to reports.Bernanke was meeting with members of the committee on Capitol Hill, Bloomberg News reported, citing two congressional aides. Reuters also reported the Bernanke appearance Wednesday.Full story at: www.bloomberg.com/news/2010-11-17/bernanke-said-to-brief-senate-banking-committee-on-latest-bond-purchases.html-; 212-416-2900
2010/11/18 01:25*DJ BOE Tucker: BOE Absolutely Determined To Return CPI To Target

2010/11/18 01:19*DJ BOE Tucker: Austerity Measures Leave UK On Better Footing

2010/11/18 01:06*DJ Fed's Bullard Sees Euro Debt As Econ Risk At Least 18 Months

2010/11/18 01:06*DJ Fed's Bullard: Fed Must 'Communicate Better' On QE, Policy

2010/11/18 01:05*DJ Fed's Bullard: Worried About Disinflation After Latest CPI

2010/11/18 01:03*DJ Fed's Bullard Sees Euro Debt Woes To Linger 'Quarters And Years'

2010/11/18 01:02*DJ Fed's Bullard: Important To Defend Inflation From Low Side

2010/11/18 01:00*DJ Fed's Bullard: Adjust Policy Based On Incoming Economic Data

2010/11/18 01:00*DJ Fed's Bullard: 'Would Love To Debate' Narrower Fed Mandate

2010/11/18 00:54*DJ Fed's Bernanke Meeting US Senators To Discuss Bond Purchases

2010/11/18 00:01*DJ OIL FUTURES: Crude Stockpiles Post Largest Drop In 15 Months

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"