Economy in Future: May 2012

Thursday, 31 May 2012

2012.05.31 16:40:23 MARKET TALK: BRL Weakness Behind Central Bank Rate Caution

10:40 (Dow Jones) Preventing further weakness in BRL is another reason for "parsimony" in Brazilian central bank rate cuts, says Nomura's Tony Volpon in a note. Recent BCB intervention clearly signals the government isn't comfortable with BRL much weaker than the 2.00 level; BRL has traded weaker than fundamentals suggest since the central bank's surprise August 2011 rate cut, suggesting that policy action may have added to BRL underperformance, Volpon writes. The central bank may -- despite assurances to the contrary -- be worried about the currency weakness on inflation, given the widely held opinion that a good part of BRL's recent fall may be permanent in nature, he says. (matthew.cowley@dowjones.com) Call us at (212) 416-2181 or john.shipman@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:40 ET (14:40 GMT)

2012.05.31 16:39:39 UPDATE: US Jobless Claims Up By 10K Last Week; 1Q GDP Revised Down

--Jobless claims up by 10,000 to seasonally adjusted 383,000 in the week ended May 26. --First-quarter gross domestic product revised down to a 1.9% annual growth rate. --Private payrolls increased up 133,000 according to ADP National Employment Report, below expectations (Update wraps jobless claims, gross domestic product and ADP payroll reports, adds comments from analysts starting in third paragraph) By Eric Morath and Tom Barkley Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The number of Americans applying for unemployment benefits rose for the fourth straight week while first-quarter growth was revised lower, the latest signs that the economy is losing momentum. A separate report showed private businesses hired at a very modest pace this month, further indication that overall employment growth will be tepid when the government releases its broadest reading of the labor market on Friday. "While the recovery has remained largely on track, it continues to struggle to generate sufficient positive momentum…to make any meaningful progress in absorbing the significant amount of slack," said Millan Mulraine, an analyst with TD Securities USA. Initial jobless claims rose by 10,000 to seasonally adjusted 383,000 in the week ended May 26, the Labor Department said Thursday. It was the biggest jump in claims since the first week of April and above expectations of economists surveyed by Dow Jones Newswires for 370,000 new claims. Claims for the week ended May 19 were upwardly revised to 373,000 from the initially reported 370,000. The four consecutive weeks of increased unemployment applications lowers hopes that May's payroll reading will be a significant improvement from the 115,000 jobs added in April. Generally, declining layoffs coincides with increased hiring. "The labor market has stabilized but no longer appears to be strengthening," said Steven A. Wood, chief economist with Insight Economics LLC. Economists predict the economy added 155,000 jobs in May and forecast the unemployment rate to remain unchanged at 8.1%. Reinforcing expectations for lackluster growth, U.S. private-sector jobs increased by only 133,000 in May, according to a report from payroll processor Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers. The gain was below economists' expectations of 150,000 and only slightly above April's revised figure of 113,000. Separately, a Commerce Department report showed the economy slowed more than initially thought in the first quarter. Gross domestic product, the broadest measure of all the goods and services produced in an economy, increased at a 1.9% annual rate from January through March. A month ago, Commerce estimated a 2.2% gain. The economy has cooled off since expanding at the fastest pace in a year and a half in the final quarter of 2011, with a 3.0% growth rate. But the fourth-quarter acceleration was driven partly by companies aggressively restocking inventories to catch up with demand. Thursday's report showed the inventory buildup was even less than expected in the first quarter, with the contribution to GDP falling to just 0.2 percentage point from 0.6 percentage point. Consumer spending was also slightly weaker than expected, rising 2.7% instead of 2.9% as initially thought. Still, that marked the biggest gain in consumption since the fourth quarter of 2010. Declining government spending also dragged on growth. In a positive sign, companies registered their biggest quarterly gain in profits since the end of 2009. Corporate profits--after tax and unadjusted for inventories and capital consumption--increased at an 11.7% annual rate from the previous quarter. Profits were up 14.8% year on year in the first quarter, Commerce said. "That consumer and business spending are now the main growth drivers...is an encouraging sign, but policymakers will remain wary that the economy is vulnerable to negative shocks," said Peter Newland, an analyst with Barclays Bank PLC. -By Eric Morath and Tom Barkley; Dow Jones Newswires; 202-862-9279; eric.morath@dowjones.com --Andrew Ackerman, Kathleen Madigan and Jeffrey Sparshott contributed to this report. (END) Dow Jones Newswires May 31, 2012 10:39 ET (14:39 GMT)

2012.05.31 16:38:49 Danish Central Bank Cuts Lending Rate To Defend Strong Krone

COPENHAGEN (Dow Jones)--The Danish central bank Thursday cut its key lending rate by 15 basis points to defend the Danish krone, as the euro zone debt crisis continues to make investors flood to the small Nordic country. The cut is bank's second policy move in the space of a week to defend the currency, which is pegged to the euro. With the most recent rate reduction, the key lending rate has reached an all-time low 0.45%, 55 basis points below the comparable European Central Bank refinancing rate. Nationalbanken said in a statement the move followed currency purchases by the bank in the market. Nationalbanken also lowered its current account rate to zero, its certificates of deposit rate to 0.05% and its discount rate 50 basis points to 0.25%. In a statement, the central bank for the first time cautioned that its rates may eventually turn negative in the coming days or months, if the upward pressure on the krone continues. "Nationalbanken has the instruments to handle potential negative interest rates," it said. -By Flemming Emil Hansen, Dow Jones Newswires; +45 33 12 44 88; flemming.hansen@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:38 ET (14:38 GMT)

2012.05.31 16:33:30 MARKET TALK: Eonia Fixes Lower, Liquidity Flush

(This story has been posted on The Wall Street Journal Online's Real Time Economics blog at http://blogs.wsj.com/economics.) By Jeffrey Sparshott The government made a sharp downward revision to fourth-quarter income figures Thursday, a sign of stagnant wages and a potential hurdle for consumer spending. The figures, tucked in to the latest GDP report, show real disposable personal income--income minus taxes, adjusted for inflation--rose only 0.2% in the fourth quarter, compared with an earlier estimate of 1.7%. The change is largely due to lower-than-expected paychecks. Real first-quarter income was unrevised at a 0.4% gain. The upshot: consumers are saving less in order to spend more. Consumer outlays rose a solid 2.1% in the fourth quarter and 2.7% in the first three months of this year. But the personal savings rate for the first quarter dropped its lowest level since the start of the recession. Americans stashed away 3.6% of personal income in the first quarter, down from 4.2% in the fourth quarter and a near-term peak of 6.2% in the second quarter of 2009. "With real wages and salaries now estimated to have grown at only a 0.7% annualized rate in [the fourth quarter and first quarter], and the saving rate revised down, the consumer is clearly in a weaker position than previously reported. Lower gasoline prices will help to cushion the blow, but, as always, the direction of the labor market will be the key variable in coming months," Joshua Shapiro, chief U.S. economist at MFR Inc., said in a research note. The wage and salary revisions dragged down one measure of economic growth. Real gross domestic income, an alternative measure of growth which tallies the costs incurred and the incomes earned in the production of GDP, was revised to a 2.6% growth rate in the fourth quarter, down 1.8 percentage points from the previous estimate. GDI was up 2.7% in the first quarter. -For continuously updated news from The Wall Street Journal, see WSJ.com at http://wsj.com. (END) Dow Jones Newswires May 31, 2012 10:36 ET (14:36 GMT)

2012.05.31 16:32:19 USD/CAD intraday: bullish bias above 1.0285.

USD/CAD intraday: bullish bias above 1.0285. Update on supports and resistances. Pivot: 1.0285 Our preference: Long positions above 1.0285 with targets @ 1.0345 & 1.0375 in extension. Alternative scenario: Below 1.0285 look for further downside with 1.0255 & 1.0215 as targets. Comment: the RSI is bullish and calls for further upside. Key levels 1.04 1.0375 1.0345 1.03218 last 1.0285 1.0255 1.0215 Trading Central recommends MT5 to publish FX charts Copyright Trading Central 1999-2011

2012.05.31 16:30:20 *IMF: Fund's Review Of Spain's Economy Starts June 4

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800) May 31, 2012 10:30 ET (14:30 GMT)

2012.05.31 16:30:19 *IMF: Fund Not Drafting Any Plans For A Spanish Bailout

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800) May 31, 2012 10:30 ET (14:30 GMT)

2012.05.31 16:30:10 *IMF: Urgent EU Creates Stronger Risk-Sharing Amid Escalating Debt Crisis

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800) May 31, 2012 10:30 ET (14:30 GMT)

2012.05.31 16:30:00 *IMF Chief 'Regrets' Her Remarks On Greece Were 'Misunderstood' - Spokesman

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800) May 31, 2012 10:30 ET (14:30 GMT)

2012.05.31 16:29:15 MARKET TALK: Classic-Bond Futures Hit All-Time High After PMI

10:29 (Dow Jones) September classic Treasury futures, the new lead-month contract, surges to a record high as the ISM-Chicago business barometer suggests the US economy might be headed back to recession. Classics cover 15-25yr maturities, which is where investors can find higher rates of return. September futures reach 150-05, improving on Wednesday's peak of 149-28. Meanwhile, 10-year futures for September, the new lead-month issue, hit a contract high of 134-00+. June reached 134-25 on Wednesday. (howard.packowitz@dowjones.com) Call us at (212) 416-2354 or email kevin.kingsbury@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:29 ET (14:29 GMT)

2012.05.31 16:25:50 Hungary Ministry: In Talks On Ctrl Bk Law Amendments Requested By IMF, ECB

BUDAPEST (Dow Jones)--Talks on the disputed Hungarian central bank law between the European Central Bank, the European Union, the International Monetary Fund, the Hungarian central bank and the economy ministry on Hungary's central bank law are ongoing, the ministry told Dow Jones Newswires Thursday. Central bank Governor Andras Simor said at a Tuesday briefing that there aren't any talks scheduled among these five parties. The ministry said the talks focus on further amendments to the central bank law requested by the ECB and in part by the IMF, the ministry said in an e-mailed response. Hungary needs to amend its central bank law in order to be able to start talks with its international lenders but also for the European Commission to end an infringement procedure against Hungary. -By Veronika Gulyas, Dow Jones Newswires; +361-267-0623; veronika.gulyas@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:25 ET (14:25 GMT)

2012.05.31 16:25:41 *Hungary Ministry: In Talks On Amendments Requested By IMF, ECB

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:25 ET (14:25 GMT)

2012.05.31 16:25:35 *Hungary Ministry: Five-Party Talks Ongoing On Central Bank Law

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:25 ET (14:25 GMT)

2012.05.31 16:25:06 ECB's Draghi Calls For Banking Union

-- Wants euro-zone level bank resolution body, deposit insurance and centralized bank supervision -- Draghi says ESM can be used to recapitalize banks -- Four suspended Greek banks have regained access to ECB liquidity -- ECB stands ready to supply liquidity to solvent banks BRUSSELS -- European Central Bank President Mario Draghi called on European politicians to come up with a vision for the euro zone for the years ahead to better tackle the region's debt crisis and to restore confidence, suggesting that a centralization of financial sector regulation should be the first step. "The sooner the vision is clarified the better for the European Union," Draghi said Thursday at a hearing in front of the European Parliament's Committee of Monetary and Financial Affairs. Coming forward with a vision for the euro would restore confidence in the euro zone and be the best means to boost sagging economic growth, Draghi said. As the first possible step for a more unified euro zone, Draghi called for "a banking union," entailing a euro-zone level fund for resolving failed banks, a euro-zone level deposit insurance guarantee scheme, and a banking sector supervision that's more centralized on a European level. The banking resolution fund shouldn't use taxpayer money to bail out banks, Draghi said. Most EU countries already have deposit insurance schemes that are funded by their respective banking systems, and some policy-makers have suggested that an EU deposit insurance scheme would only need to coordinate such national ones, rather than ask for extra funds. ECB Vice President Vitor Constancio recently said that the euro zone could also look at the US as an example for how bank insolvencies are tackled there when establishing a banking resolution body. Draghi also argued that the euro-zone's permanent rescue fund, the European Stability Mechanism, could be used to recapitalize banks, on the basis of a "memorandum of understanding". Under its charter, the ESM is only allowed to lend to governments. That makes it impossible for many governments to recapitalize their countries' banks without putting unbearable stress on their own public finances. Against such a backdrop, Draghi noted that governments tend to underestimate recapitalization needs and hinted that they were also reluctant to come clean about them, noting that transparency about recapitalization is crucial. The issue is particularly acute in Spain, where the government earlier this month was forced to come to the aid of Bankia SA (BKIA.MC), the country's third largest lender by assets, which faces much bigger recapitalization needs than previously thought. Pressure has been mounting for a change in the ESM treaty that would allow it to inject capital directly into banks, breaking the direct link with sovereign finances. But so far, no-one has spelled out the kind of conditionality that would need to be attached to such assistance, and Draghi also avoided that subject Thursday. Draghi was speaking in his capacity as chairman of the European Systemic Risk Board, rather than as ECB President. He noted, however, that the ECB has carried out numerous steps in a very short time to tackle the crisis and now the ball is in the governments' court. He repeated his familiar message that the ECB can't compensate for the absence of fiscal discipline or the political will for necessary structural reform. As for ECB action, "the ECB will continue lending to solvent banks and we will keep the liquidity lines active and alive with solvent banks," Draghi said. The four Greek banks that were cut off from access to ECB operations recently have been recapitalized and have now regained access to the central bank's monetary policy operations, Draghi said. In his opening remarks, Draghi warned again about the emergence of new risks in the financial system as certain lending activities migrate away from banks to other, less regulated parts of the system, although he noted that "such developments can, in principle, be of benefit to the system." He also warned about the increasing tendency for banks to rely on secured funding in short-term markets, as opposed to unsecured funding, which he said might dangerously reduce the flexibility of banks' operations. "If taken too far, insufficient amounts of unencumbered bank assets in the future could reduce the stability of funding within the system and, in a self-fulfilling manner, reinforce the lack of access to private unsecured markets today," Draghi said. -By Margit Feher, Dow Jones Newswires; +49 162 99 811 55; margit.feher@dowjones.com (Geoffrey T. Smith contributed to this article.) (END) Dow Jones Newswires May 31, 2012 05:05 ET (09:05 GMT)

2012.05.31 16:24:50 Hungary Ministry: In Talks On Ctrl Bk Law Amendments Requested By IMF, ECB

2012.05.31 16:24:45 *Hungary Ministry: Aims For Central Bank Law That Ensures Independence

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:24 ET (14:24 GMT)

2012.05.31 16:24:41 *Hungary Ministry: In Talks On Amendments Requested By IMF, ECB

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:24 ET (14:24 GMT)

2012.05.31 16:24:40 UPDATE: US Jobless Claims Up By 10K Last Week; 1Q GDP Revised Down

2012.05.31 16:24:36 *Hungary Ministry: Five-Party Talks Ongoing On Central Bank Law

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:24 ET (14:24 GMT)

2012.05.31 16:20:25 Table Of Data From US Chicago Purchasing Managers' Report

Seasonally Adjusted Indexes May Apr Mar Feb Jan Dec Business Index 52.7 56.2 62.2 64.0 60.2 62.2 Production 50.0 57.1 68.6 67.8 63.8 64.9 New Orders 52.9 57.4 63.3 69.2 63.6 67.1 Order Backlogs 46.3 56.8 54.3 53.6 48.3 57.3 Inventories 49.4 53.9 57.4 49.6 51.6 52.0 Employment 57.0 58.7 56.3 64.2 54.7 59.2 Supplier Deliveries 56.2 55.6 57.8 57.7 61.5 56.6 Prices Paid 60.4 68.6 70.1 65.6 62.4 63.8 (END) Dow Jones Newswires May 31, 2012 10:20 ET (14:20 GMT)

2012.05.31 16:19:54 UPDATE: Canada 1Q Current Account Deficit Widens Less Than Expected

--Goods surplus narrows --Investment income gap narrow, services shortall widens --First net outflow in portfolio investment account since 2008 (Adds economists' comments in paragraphs 7-10, 14-15.) By Nirmala Menon Of DOW JONES NEWSWIRES OTTAWA -(Dow Jones)- Canada's current account deficit widened less than expected in the first quarter as lower exports thinned the goods surplus, which was partly offset by a smaller gap in the investment account balance. The shortfall in the fourth quarter was revised lower on the back of a wider goods surplus. The current account deficit in January through March swelled to C$10.27 billion (US$9.98 billion) from C$9.67 billion in the fourth quarter of 2011, Statistics Canada said Thursday. The latter figure was originally estimated at C$10.33 billion. The consensus call was for the gap to widen to C$10.9 billion in the first quarter, according to a report from Royal Bank of Canada. The current account is the broadest indicator of trade in goods and services. The goods surplus narrowed to C$2.39 billion from C$3.72 billion in the prior period. Exports declined by C$1.3 billion to C$120.21 billion as shipments of precious metals, and machinery and equipment declined. Exports of energy products strengthened on record sales of crude petroleum although natural gas shipments were the lowest since 1997 as prices continued to fall. Natural gas prices declined 40% over the last two quarters. The widening of the current account and thinner goods surplus is "somewhat of a price story rather than a volume story," Mazen Issa, Canada macro strategist at TD Securities, said in an interview. Monthly trade figures indicate that export volumes - which feed into economic growth figures - outpaced imports in the first quarter, so net exports likely contributed positively to gross domestic product in January through March, he said. StatsCan will issue the GDP report Friday. BMO Capital Markets economist Benjamin Reitzes estimated that the first-quarter current account gap represents about 2.3% of GDP, a little wider than in the prior three months, but an improvement over the 2.8% average for last year. "However, given the stiff foreign headwinds and recent drop in commodity prices, some deterioration in the current account is likely in Q2," Reitzes wrote in a report. The services deficit widened to C$6.22 billion from C$6.04 billion as the transportation services gap increased. The deficit on investment income slimmed to C$5.75 billion from C$6.55 billion, reflecting a reduction in income payment flows on foreign investment. There was a net outflow of funds on the portfolio investment account for the first time since 2008 as Canadian investment in foreign securities exceeded foreign investment in Canadian securities. Foreign investment in Canadian securities was the lowest in over three years. StatsCan noted that portfolio inflows had largely contributed to the financing of Canada's current account deficits from 2009 to 2011. Given the current global uncertainty and risk aversion in markets, portfolio flows will likely not provide much support to the Canadian dollar in the current quarter, Reitzes said. Still, according to Issa, foreign investors will likely continue to favor Canada in the longer term because "in an environment plagued with crises and volatility, you want to look to park your cash in a region which is relatively stable and Canada fits the bill." Foreign direct investment in Canada increased to C$14.58 billion from C$3.02 billion in the fourth quarter, primarily a result of mergers and acquisitions in the energy and metallic mineral sector. Canadian direct investment abroad slowed to C$8.50 billion from C$15.75 billion. Website: http://www.statcan.gc.ca -By Nirmala Menon, Dow Jones Newswires; 613-237-0668; nirmala.menon@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:19 ET (14:19 GMT)

2012.05.31 16:18:37 Chicago Business Barometer Signals Economy On Edge Of Recession

--IPC stock index down 0.7% in early trade --Peso weakens to MXN14.2780/USD --String of disappointing US data weighs on markets By Amy Guthrie Of DOW JONES NEWSWIRES MEXICO CITY (Dow Jones)--Mexican stocks were lower early Thursday after a string of disappointing data from the U.S., Mexico's biggest trade partner. The IPC index of Mexico's most-traded shares was recently down 281 points, or 0.7%, to 37790 points on volume of 30 million shares traded worth 800 million pesos ($56 million). In the U.S., ADP Inc.'s read on private-sector hiring was disappointing, jobless claims are rising and economic growth in the first quarter was slower than first estimated. The Mexican peso was also losing ground early Thursday, at MXN14.2780 to the U.S. dollar compared with MXN14.1465 at the close Wednesday. Mexican research firm MetAnalisis warned in a morning note that pressure on the peso could further limit gains in Mexican equities as a weaker currency would make the shares less attractive. Local brokerage Vector recommended that investors remain cautious and liquid due to the complicated global scenario. Vector said it expects some increase in trading activity in the latter half of Thursday's session as investors adjust positions at the month's end and to reflect the rebalancing of the IPC stock index. Among Mexican blue-chip shares in early trade, wireless carrier America Movil was down 1.4% to MXN16.75, cement maker Cemex was off 0.9% to MXN7.72, retailer Walmex gave back 1.9% to MXN35.82 and financial group Banorte was ahead 2.8% to MXN65.10. Banorte-Ixe Chairman Guillermo Ortiz said Wednesday that the bank isn't likely to acquire Banco Bilbao Vizcaya Argentaria's Mexican pension business, which is for sale, due to restrictions on market share for the Mexican pension funds known as Afores. -By Amy Guthrie, Dow Jones Newswires; 5255-5980-5177; amy.guthrie@dowjones.com (END) Dow Jones Newswires May 31, 2012 10:18 ET (14:18 GMT)

2012.05.31 16:15:13 Fed Buys Coupon Securities Outright

Operation Type: COUPON INCLUSIONS: CUSIP Security Coupon Maturity 912810FT0 Bills 4.500 2036-02-15 912810PT9 Bills 4.750 2037-02-15 912810PU6 Bills 5.000 2037-05-15 912810QA9 Bills 3.500 2039-02-15 912810QB7 Bills 4.250 2039-05-15 912810QC5 Bills 4.500 2039-08-15 912810QD3 Bills 4.375 2039-11-15 912810QE1 Bills 4.625 2040-02-15 912810QH4 Bills 4.375 2040-05-15 912810QK7 Bills 3.875 2040-08-15 912810QL5 Bills 4.250 2040-11-15 912810QN1 Bills 4.750 2041-02-15 912810QQ4 Bills 4.375 2041-05-15 912810QS0 Bills 3.750 2041-08-15 912810QT8 Bills 3.125 2041-11-15 912810QU5 Bills 3.125 2042-02-15 912810QW1 Bills 3.000 2042-05-15 EXCLUSIONS: CUSIP Security Coupon Maturity 912810PW2 Bills 4.375 2038-02-15 912810PX0 Bills 4.500 2038-05-15 (Data was provided by the New York Federal Reserve Bank) (MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:15 ET (14:15 GMT)

2012.05.31 16:15:13 *Fed Seeks Dealer Submissions by 11:00 AM

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:15 ET (14:15 GMT)

2012.05.31 16:15:12 *Fed Accepts 2036-02-15 Through 2042-05-15 Maturities

(MORE TO FOLLOW) Dow Jones Newswires May 31, 2012 10:15 ET (14:15 GMT)

2012.05.31 13:06:00 Bank Indonesia Deputy Gov Sees 2Q Balance Of Payments Swinging To Surplus

JAKARTA -(Dow Jones)- Bank Indonesia Deputy Governor Halim Alamsyah said Thursday that Indonesia's balance of payments would likely return to a surplus of $2 billion in the second quarter of 2012 after posting a deficit of $1 billion in the first quarter. Alamsyah, speaking during an investment presentation, said the current account deficit could narrow to $2.4 billion from $2.9 billion in the first quarter, while the financial account surplus could rise to $4.4 billion from $2.2 billion. Alamsyah also said inflation in May would likely be steady after it reached 4.50% in April and 3.97% in March, adding that "inflation under the current situation really is benign." The median forecast in a Dow Jones Newswires poll of 12 regional economists was for inflation to come in at 4.60% in May. Official figures are due Friday. Worries over the country's current account deficit have added pressure on the rupiah, which has fallen around 3% this month as risk-averse foreign investors cut their holdings of rupiah assets amid worries about the crisis in the euro zone. Official figures on the balance of payments will likely be released in August. Alamsyah also reiterated that the central bank had no plans to institute capital controls, a concern raised recently as the spread between Bank Indonesia's spot rate for the U.S. dollar-rupiah pair and rates elsewhere in the market widened last week. He also reiterated that BI would continue to "heavily intervene" in the currency market. "We are trying to give confidence to the market that BI is always willing to fill the gaps when the need arises," he said. The central bank is suspected of selling hundreds of millions of dollars each day this week to arrest the slide in the rupiah, which is likely to amount to its largest intervention efforts this year. -By Ben Otto, Dow Jones Newswires; +62 21 3983 1277; ben.otto@dowjones.com (END) Dow Jones Newswires May 31, 2012 07:06 ET (11:06 GMT)

2012.05.31 13:05:48 UPDATE: German Jobless at Record Low; May Be Labor Market's Limit

BRUSSELS (Dow Jones)--Europe needs to put more effort into showing that its financial firewalls are strong and can be used, because they are imperative for driving the euro zone out of its current crisis, said Angel Gurria, Secretary General of the Organization for Economic Cooperation and Development, Thursday. "We have a number of instruments...isn't that then a question of putting all this weaponry together and showing that it adds up to a very, very large amount of money and that leaders are not only in possession of the weapon, a loaded weapon, but (also) that they are willing to shoot?" Gurria said, speaking at a conference. "What we have been saying for months, for years, is why we can't do things, why we can't use the institutions to their fullest," he added. Gurria explained that Europe also needs to do more to promote growth. Financial consolidation is indispensable, but it shouldn't be implemented at the expense of jobs, he said. -By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88; alessandro.torello@dowjones.com (END) Dow Jones Newswires May 31, 2012 07:05 ET (11:05 GMT)

2012.05.31 12:58:07 MARKET TALK: Indonesia S/T Debt Up; Most Players Still Sidelined

LONDON (Dow Jones)--The Bank of England has advised the International Monetary Fund of the following middle rates for the dollar in the market at noon local time (1100 GMT), for use in calculating the Special Drawing Right (SDR): EUR 0.0000 JPY 0.00 GBP 0.0000 Contact London Newsroom, Dow Jones Newswires; +44-20-7842-9376 (END) Dow Jones Newswires May 31, 2012 07:01 ET (11:01 GMT)