By Kathleen Madigan
U.S. consumers in July are feeling better about the economy but remain
wary about the labor markets, according to a report released Tuesday.
The Conference Board, a private research group, said its index of
consumer confidence increased to 65.9 in July, from a revised 62.7 in
June, first reported as 62.0.
The latest index is better than the 61.4 expected by economists
surveyed by Dow Jones Newswires.
The drop contrasts with last week's report on the Thomson
Reuters-University of Michigan sentiment report that showed U.S.
consumers feeling less optimistic at the end of July.
Within the Conference Board's report, the present situation index, a
gauge of consumers' assessment of current economic conditions, slipped
to 46.2 from an unrevised 46.6.
Consumer expectations for economic activity over the next six months
rose to 79.1 in July from June's revised 73.4, originally reported as
72.3.
Lynn Franco, director of the Conference Board Consumer Research
Center, said that despite the July gain the index remains historically
low.
"While consumers expressed greater optimism about short-term business
and employment prospects, they have grown more pessimistic about their
earnings," Ms. Franco said. "Consumer confidence is not likely to gain
any significant momentum in the coming months."
Consumers were slightly less positive about current labor-market
conditions. The board's survey showed 7.8% of respondents think jobs
now are "plentiful," down from 8.3% thinking that in June. Another
40.8% think jobs are "hard to get," down only a bit from 41.2% last
month.
Consumers are about split in their attitudes about future income. Only
14.2% expect their incomes to rise in the next six months, down from
15.3% in June. Another 14.8% expect their earnings to fall, down from
15.1% saying that in June.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
(END) Dow Jones Newswires
July 31, 2012 10:15 ET (14:15 GMT)
Tuesday, 31 July 2012
2012.07.31 16:14:31 *Brazil's Real Weakens Further, Breaks BRL2.05-to-Dollar Mark
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2012 10:14 ET (14:14 GMT)
July 31, 2012 10:14 ET (14:14 GMT)
2012.07.31 13:09:35 MARKET TALK: USD/INR Off Highs; 55.30-55.90 Tipped This Week
1109 GMT [Dow Jones] The USD/INR is off the day's high, with some
recovery in the EUR/USD keeping the greenback's gains in check, says a
trader with a privately-run bank. The pair is last at 55.64 vs 55.58
late Monday in Asia. The USD/INR traded between 55.40 and 55.85
through the day. The greenback came off lows after local stocks
finished in positive territory, but demand from oil companies to pay
for month-end import bills offered support. The pair's movements will
be governed by outcomes of central bank meetings in the US and Europe.
But more importantly, the Indian government's action to push reforms
and cut fiscal debt will be a key trigger over the medium term. The
trader tips the pair to trade in a 55.30-55.90 band this week.
(khushita.vasant@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 31, 2012 07:09 ET (11:09 GMT)
recovery in the EUR/USD keeping the greenback's gains in check, says a
trader with a privately-run bank. The pair is last at 55.64 vs 55.58
late Monday in Asia. The USD/INR traded between 55.40 and 55.85
through the day. The greenback came off lows after local stocks
finished in positive territory, but demand from oil companies to pay
for month-end import bills offered support. The pair's movements will
be governed by outcomes of central bank meetings in the US and Europe.
But more importantly, the Indian government's action to push reforms
and cut fiscal debt will be a key trigger over the medium term. The
trader tips the pair to trade in a 55.30-55.90 band this week.
(khushita.vasant@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 31, 2012 07:09 ET (11:09 GMT)
2012.07.31 10:39:54 MARKET TALK: USD/MYR Lower; 3.1250 N/T Support Tipped
0839 GMT [Dow Jones] The USD/MYR is lower at 3.1320 vs 3.1530 late
Monday in Asia, tracking the greenback's weakness against most Asian
currencies, while exporters sell dollars to settle their month-end
accounts, a trader at a local bank says. Still, the pair is unlikely
to fall sharply as players adopt a cautious approach ahead of a string
of central bank meetings later this week, he says. Near-term support
is tipped at 3.1250. The pair has risen 1.2% in July and is headed for
choppy trade in August amid ongoing concerns over the European debt
problem, while trading volumes may shrink in the run up to Eid
holidays, another currency trader at a major local bank says.
(shie-lynn.lim@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 31, 2012 04:39 ET (08:39 GMT)
Monday in Asia, tracking the greenback's weakness against most Asian
currencies, while exporters sell dollars to settle their month-end
accounts, a trader at a local bank says. Still, the pair is unlikely
to fall sharply as players adopt a cautious approach ahead of a string
of central bank meetings later this week, he says. Near-term support
is tipped at 3.1250. The pair has risen 1.2% in July and is headed for
choppy trade in August amid ongoing concerns over the European debt
problem, while trading volumes may shrink in the run up to Eid
holidays, another currency trader at a major local bank says.
(shie-lynn.lim@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 31, 2012 04:39 ET (08:39 GMT)
2012.07.31 10:35:10 Germany Calls For Bids In EUR4B April 2017 Bobl Auction Wednesday
By Emese Bartha
FRANKFURT--The German federal government has called for bids in its
coming auction of five-year federal notes, or Bobl, the Deutsche
Bundesbank said Tuesday.
The series on offer is a reopening of an issue, first auctioned May 9.
The following are details of the coming auction:
Date of auction Aug. 1, 2012
Issue five-year bobl
Coupon 0.50%
Maturity April 7, 2017
Amount on offer EUR4 bln
Average yield at
previous auction 0.52%
Settlement date Aug. 3, 2012
The scheduled auction volume includes a tranche to be initially
retained by the German Finance Agency for market-tending purposes.
The German Finance Agency manages the country's federal debt, while
the Deutsche Bundesbank is responsible for conducting the debt
auctions.
Write to Emese Bartha at emese.bartha@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 31, 2012 04:35 ET (08:35 GMT)
FRANKFURT--The German federal government has called for bids in its
coming auction of five-year federal notes, or Bobl, the Deutsche
Bundesbank said Tuesday.
The series on offer is a reopening of an issue, first auctioned May 9.
The following are details of the coming auction:
Date of auction Aug. 1, 2012
Issue five-year bobl
Coupon 0.50%
Maturity April 7, 2017
Amount on offer EUR4 bln
Average yield at
previous auction 0.52%
Settlement date Aug. 3, 2012
The scheduled auction volume includes a tranche to be initially
retained by the German Finance Agency for market-tending purposes.
The German Finance Agency manages the country's federal debt, while
the Deutsche Bundesbank is responsible for conducting the debt
auctions.
Write to Emese Bartha at emese.bartha@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 31, 2012 04:35 ET (08:35 GMT)
2012.07.31 09:55:00 *German Jul Unadj Jobless Total At 2.876M
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2012 03:55 ET (07:55 GMT)
July 31, 2012 03:55 ET (07:55 GMT)
2012.07.31 09:55:00 *Economists Saw German Jul Adj Jobless Rate At 6.8%
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2012 03:55 ET (07:55 GMT)
July 31, 2012 03:55 ET (07:55 GMT)
2012.07.31 07:25:08 *Ex ECB Stark: ECB Can't Do Everything That Politicians Suggest
(MORE TO FOLLOW) Dow Jones Newswires
July 31, 2012 01:25 ET (05:25 GMT)
July 31, 2012 01:25 ET (05:25 GMT)
2012.07.31 04:20:03 MARKET TALK: USD/PHP Lower; 41.80-41.95 Band Tipped - Trader
0220 GMT [Dow Jones] The USD/PHP falls weighed by a steady stream of
inflows from overseas Filipino workers even as oil importers place
orders for USD. The pair is at 41.88 from 41.93 late Monday. "It's a
battle of flows versus demand, and this is why we're expecting tight
trading today," says a local bank trader. He tips the pair to stay
within a tight 41.80-41.95 range for the session.
(rhea.sandique-carlos@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 22:20 ET (02:20 GMT)
inflows from overseas Filipino workers even as oil importers place
orders for USD. The pair is at 41.88 from 41.93 late Monday. "It's a
battle of flows versus demand, and this is why we're expecting tight
trading today," says a local bank trader. He tips the pair to stay
within a tight 41.80-41.95 range for the session.
(rhea.sandique-carlos@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 22:20 ET (02:20 GMT)
2012.07.31 04:14:24 Vietnam Central Bank Quotes Dollar at VND20,828; Unchanged From Monday
Tuesday Monday
Official USD/VND rate: VND20,828 VND20,828
Vietcombank rate: VND20,850-VND20,885 VND20,850-VND20,850
Gold shop rate: VND20,870-VND20,890 VND20,870-VND20,890
By Nguyen Pham Muoi
HANOI--The State Bank of Vietnam set the exchange rate for the U.S.
dollar at VND20,828 Tuesday, unchanged from Monday.
Currency dealers said rates at major commercial banks led by
Vietcombank and gold shops were unchanged due to lackluster demand for
the greenback from local businesses.
The demand for dollars has been weakening since the end of last month,
after the government said first-half economic growth slowed to 4.38%
on a year on year basis, the slowest in three years.
"State media is full of stories telling that companies have been
facing high inventories because of slow sales and weak consumption
after ten of thousands of companies became bankrupt in the first half
of this year," said a dealer with a Hanoi-based joint stock commercial
bank.
He cited government data released last month saying 26,324 local
companies declared bankruptcy in the six month ended June 30, up 5.4%
from a year earlier.
Private currency dealers in Hanoi and Ho Chi Minh City said their
rates were flat, in line with the global price of gold which stood at
$1,625 a troy ounce Tuesday, unchanged from Monday.
Private currency dealers in Vietnam often use the price of gold as a
benchmark to calculate dollar rates.
Write to Nguyen Pham Muoi at phammuoi.nguyen@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 22:14 ET (02:14 GMT)
Official USD/VND rate: VND20,828 VND20,828
Vietcombank rate: VND20,850-VND20,885 VND20,850-VND20,850
Gold shop rate: VND20,870-VND20,890 VND20,870-VND20,890
By Nguyen Pham Muoi
HANOI--The State Bank of Vietnam set the exchange rate for the U.S.
dollar at VND20,828 Tuesday, unchanged from Monday.
Currency dealers said rates at major commercial banks led by
Vietcombank and gold shops were unchanged due to lackluster demand for
the greenback from local businesses.
The demand for dollars has been weakening since the end of last month,
after the government said first-half economic growth slowed to 4.38%
on a year on year basis, the slowest in three years.
"State media is full of stories telling that companies have been
facing high inventories because of slow sales and weak consumption
after ten of thousands of companies became bankrupt in the first half
of this year," said a dealer with a Hanoi-based joint stock commercial
bank.
He cited government data released last month saying 26,324 local
companies declared bankruptcy in the six month ended June 30, up 5.4%
from a year earlier.
Private currency dealers in Hanoi and Ho Chi Minh City said their
rates were flat, in line with the global price of gold which stood at
$1,625 a troy ounce Tuesday, unchanged from Monday.
Private currency dealers in Vietnam often use the price of gold as a
benchmark to calculate dollar rates.
Write to Nguyen Pham Muoi at phammuoi.nguyen@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 22:14 ET (02:14 GMT)
2012.07.31 01:38:51 AUD/USD intraday: the upside prevails.
--Usiminas 2Q loss widens from 1Q
--Steelmaker blames real's depreciation for loss
--Brazil government stimulus hasn't yet boosted industry, Usiminas says
(Updates throughout with additional details.)
By Diana Kinch and Gerald Jeffris
RIO DE JANEIRO--Brazilian steelmaker Usinas Siderurgicas de Minas
Gerais SA (USIM3.BR, USIM5.BR, USNZY), or Usiminas, reported a
second-quarter net loss of 87 million Brazilian reais ($42.87
million), reversing its year-earlier gain of BRL157 million, largely
due to currency factors.
The company, Brazil's biggest flat-steel-products producer, said the
net loss was mainly due to a BRL255.7 million financial loss arising
from the U.S. dollar's 10.9% gain against the Brazilian real during
the quarter. This led to a loss on swap operations and contributed to
increased overall debt in terms of Brazilian reais.
The real's depreciation was also the main reason behind Usiminas
posting a widened loss from its first-quarter net loss of BRL37
million, according to the company. That was Usiminas's first net loss
in two years.
The overall second-quarter result was impacted by recession in Europe,
low growth rates in the U.S. and slowing growth in China, which have
combined to hit industrial activity and steel-demand growth rates
world-wide, the company said. In Brazil, where Usiminas derived 75% of
its revenues in the quarter, the business climate deteriorated and
industrial performance was weak, Usiminas said.
"The reductions of the Selic (base interest) rate and the government's
efforts during the quarter to stimulate industry haven't yet
stimulated demand, or the steel business," the company said.
"Expectations are that the impact of these measures may be seen during
second-half 2012."
Net revenue in the second quarter rose to BRL3.225 billion, slightly
higher than the BRL3.026 billion posted a year earlier, the company
said. Crude-steel output fell marginally to 1.845 million metric tons
in the quarter, from 1.858 million tons a year prior.
Usiminas said it has been undertaking measures to improve its
operational performance, to reduce its debt and its costs and to
maintain cash liquidity. During the quarter, it reduced its product
inventories, renegotiated debt covenants with some creditors and cut
its capital-expenditure levels.
Usiminas said it reduced its cash flow by BRL480 million in the second
quarter and by BRL938 million in the first half, mainly by reducing
inventories and operating tighter payment schedules.
Capital expenditure totaled BRL355.2 million in the second quarter,
down from BRL481 million a year earlier. Of the second-quarter
investments, 41% went toward the steelmaking area, 47% toward mining,
3% toward steel processing and 9% in the area of capital goods,
Usiminas said.
Write to Diana Kinch at diana.kinch@dowjones.com and Gerald Jeffris at
gerald.jeffris@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 19:40 ET (23:40 GMT)
--Steelmaker blames real's depreciation for loss
--Brazil government stimulus hasn't yet boosted industry, Usiminas says
(Updates throughout with additional details.)
By Diana Kinch and Gerald Jeffris
RIO DE JANEIRO--Brazilian steelmaker Usinas Siderurgicas de Minas
Gerais SA (USIM3.BR, USIM5.BR, USNZY), or Usiminas, reported a
second-quarter net loss of 87 million Brazilian reais ($42.87
million), reversing its year-earlier gain of BRL157 million, largely
due to currency factors.
The company, Brazil's biggest flat-steel-products producer, said the
net loss was mainly due to a BRL255.7 million financial loss arising
from the U.S. dollar's 10.9% gain against the Brazilian real during
the quarter. This led to a loss on swap operations and contributed to
increased overall debt in terms of Brazilian reais.
The real's depreciation was also the main reason behind Usiminas
posting a widened loss from its first-quarter net loss of BRL37
million, according to the company. That was Usiminas's first net loss
in two years.
The overall second-quarter result was impacted by recession in Europe,
low growth rates in the U.S. and slowing growth in China, which have
combined to hit industrial activity and steel-demand growth rates
world-wide, the company said. In Brazil, where Usiminas derived 75% of
its revenues in the quarter, the business climate deteriorated and
industrial performance was weak, Usiminas said.
"The reductions of the Selic (base interest) rate and the government's
efforts during the quarter to stimulate industry haven't yet
stimulated demand, or the steel business," the company said.
"Expectations are that the impact of these measures may be seen during
second-half 2012."
Net revenue in the second quarter rose to BRL3.225 billion, slightly
higher than the BRL3.026 billion posted a year earlier, the company
said. Crude-steel output fell marginally to 1.845 million metric tons
in the quarter, from 1.858 million tons a year prior.
Usiminas said it has been undertaking measures to improve its
operational performance, to reduce its debt and its costs and to
maintain cash liquidity. During the quarter, it reduced its product
inventories, renegotiated debt covenants with some creditors and cut
its capital-expenditure levels.
Usiminas said it reduced its cash flow by BRL480 million in the second
quarter and by BRL938 million in the first half, mainly by reducing
inventories and operating tighter payment schedules.
Capital expenditure totaled BRL355.2 million in the second quarter,
down from BRL481 million a year earlier. Of the second-quarter
investments, 41% went toward the steelmaking area, 47% toward mining,
3% toward steel processing and 9% in the area of capital goods,
Usiminas said.
Write to Diana Kinch at diana.kinch@dowjones.com and Gerald Jeffris at
gerald.jeffris@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 19:40 ET (23:40 GMT)
2012.07.31 00:50:50 Interbank Foreign Exchange Rates At 18:50 EST / 2250 GMT
By Paul Hannon and Ilona Billington
LONDON--U.K. consumers remained gloomy about their prospects in July,
despite a number of efforts by policy makers to stimulate economic
growth, including the announcement by the Bank of England of more bond
purchases using freshly created money.
The prospect of hosting the Olympic Games also appears to have had
little impact on confidence, a key measure of which has never been as
low for longer in its 40-year history.
The market-research firm GfK NOP Tuesday said that while Britons
became more optimistic about the outlook for the U.K. economy in the
coming 12 months, that was offset by a more downbeat assessment of the
state of the economy now.
As a result, the headline measure of consumer confidence was unchanged
from June at minus-29, in line with expectations.
The refusal of Britons to snap out of their long funk will disappoint
policy makers, including the BOE, which this month decided to buy an
additional 50 billion pounds ($78.6 billion) of government bonds,
bringing its program of quantitative easing to GBP375 billion by the
time the latest phase is completed in October.
And the government will also be disappointed. Working with the BOE, it
has a launched a new program designed to spur bank lending to
businesses and households, as well as a raft of initiatives to
stimulate investment in new homes, railways and other infrastructure
projects.
"Things are looking very bleak for the government," said Nick Moon,
managing director of social research at GfK. "This is a clear
indication that all attempts by the Government to improve the
situation in the U.K. aren't making any impressions on the public
mood."
GfK surveyed 2,002 Britons between July 6 and 15 on behalf of the
European Commission, the European Union's executive arm. The survey
was complete by the time the Office for National Statistics revealed
that the economy contracted by 0.7% in the second quarter, an
unpleasant surprise that is likely to have a negative impact on
confidence.
As long as they remain gloomy, Britons are unlikely to spend more
freely, which will make it difficult for the economy to recover. The
impact of weak confidence on spending was clear in the Confederation
of British Industry's monthly survey of retailers, the headline
balance of which slid to +11 in July from +42 in June. The balance is
the difference between the percentage of retailers reporting higher
sales and those reporting lower sales.
A balance of just +3 retailers surveyed expected retail sales to rise
next month, down from +32 in the June survey, while the volume of
orders placed upon suppliers slipped to +5 in July from +23 in June.
The Bank of England reported that total consumer lending grew by just
GBP0.3 billion in June, down from GBP1.1 billion in May, dragged down
by net mortgage repayments.
Jason Douglas and Alex Brittain in London contributed to this story
Write to Paul Hannon at paul.hannon@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 19:01 ET (23:01 GMT)
LONDON--U.K. consumers remained gloomy about their prospects in July,
despite a number of efforts by policy makers to stimulate economic
growth, including the announcement by the Bank of England of more bond
purchases using freshly created money.
The prospect of hosting the Olympic Games also appears to have had
little impact on confidence, a key measure of which has never been as
low for longer in its 40-year history.
The market-research firm GfK NOP Tuesday said that while Britons
became more optimistic about the outlook for the U.K. economy in the
coming 12 months, that was offset by a more downbeat assessment of the
state of the economy now.
As a result, the headline measure of consumer confidence was unchanged
from June at minus-29, in line with expectations.
The refusal of Britons to snap out of their long funk will disappoint
policy makers, including the BOE, which this month decided to buy an
additional 50 billion pounds ($78.6 billion) of government bonds,
bringing its program of quantitative easing to GBP375 billion by the
time the latest phase is completed in October.
And the government will also be disappointed. Working with the BOE, it
has a launched a new program designed to spur bank lending to
businesses and households, as well as a raft of initiatives to
stimulate investment in new homes, railways and other infrastructure
projects.
"Things are looking very bleak for the government," said Nick Moon,
managing director of social research at GfK. "This is a clear
indication that all attempts by the Government to improve the
situation in the U.K. aren't making any impressions on the public
mood."
GfK surveyed 2,002 Britons between July 6 and 15 on behalf of the
European Commission, the European Union's executive arm. The survey
was complete by the time the Office for National Statistics revealed
that the economy contracted by 0.7% in the second quarter, an
unpleasant surprise that is likely to have a negative impact on
confidence.
As long as they remain gloomy, Britons are unlikely to spend more
freely, which will make it difficult for the economy to recover. The
impact of weak confidence on spending was clear in the Confederation
of British Industry's monthly survey of retailers, the headline
balance of which slid to +11 in July from +42 in June. The balance is
the difference between the percentage of retailers reporting higher
sales and those reporting lower sales.
A balance of just +3 retailers surveyed expected retail sales to rise
next month, down from +32 in the June survey, while the volume of
orders placed upon suppliers slipped to +5 in July from +23 in June.
The Bank of England reported that total consumer lending grew by just
GBP0.3 billion in June, down from GBP1.1 billion in May, dragged down
by net mortgage repayments.
Jason Douglas and Alex Brittain in London contributed to this story
Write to Paul Hannon at paul.hannon@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 19:01 ET (23:01 GMT)
2012.07.31 00:38:07 Spain Won't Submit Biennial Budget by Tuesday as Required by EU -Report
The Spanish government won't hand in its budget for 2013 and 2014 to
Brussels by Tuesday as required by the European Commission when it
agreed to delay Spain's 3% deficit target by one year until 2014, El
Pais reports in its Tuesday Internet edition, citing European Union
sources.
Spain had to submit by the end of July a biennial budget to detail how
it would bring its deficit below 3% of the gross domestic product in
2014.
Sources at the Budget Ministry downplayed the delay and added the
biennial budget will be submitted in coming days, according to El
Pais.
Newspaper Website: www.elpais.com
Write to Enza Tedesco at enza.tedesco@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 18:38 ET (22:38 GMT)
Brussels by Tuesday as required by the European Commission when it
agreed to delay Spain's 3% deficit target by one year until 2014, El
Pais reports in its Tuesday Internet edition, citing European Union
sources.
Spain had to submit by the end of July a biennial budget to detail how
it would bring its deficit below 3% of the gross domestic product in
2014.
Sources at the Budget Ministry downplayed the delay and added the
biennial budget will be submitted in coming days, according to El
Pais.
Newspaper Website: www.elpais.com
Write to Enza Tedesco at enza.tedesco@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 18:38 ET (22:38 GMT)
2012.07.30 22:29:35 CHARTING MARKETS: CRB Index Moving Higher
By Stephen Cox, CMT
10Y-Note Euro$ DJIA Nasdaq S&P
S&P/TSX $Index
(CBOT U) (CME U) Comp 500
ICE
Next Resist. 136-13 99.685 13232.70 3000.40 1456.81
11935.29 84.100
First Resist. 135-01 99.627 13186.30 2976.00 1415.32
11822.91 83.053
Intraday Stop 134-20 99.620 13073.00 2945.80 1392.01
11768.10 82.822
First Support 133-30 99.435 12986.30 2835.10 1343.13
11639.75 81.186
Next Support 132-28 99.330 12887.90 2760.60 1316.63
11545.54 80.186
EUR/$ $/Yen Nikkei JGB RJ/CRB
Gold Crude
Index (TSE U)
(Comex Q) (Nymex U)
Next Resist. 1.2435 80.460 8855.93 145.23 304.08
1649.60 91.83
First Resist. 1.2304 79.056 8730.49 144.87 303.90
1635.40 90.14
Intraday Stop 1.2256 78.170 8635.44 144.09 302.50
1621.10 89.51
First Support 1.2115 77.031 8566.64 143.91 301.99
1583.60 88.47
Next Support 1.2042 76.770 8443.10 142.51 300.39
1561.90 87.17
Intraday stops define a technical stop-and-reverse point between first
support and first resistance.
Write to Stephen Cox at stephen.cox@dowjones.com
(Data by CQG)
(TALK BACK: We invite readers to send us comments on this or other
financial news topics. Please email us at
TalkbackAmericas@dowjones.com. Readers should include their full
names, work or home addresses and telephone numbers for verification
purposes. We reserve the right to edit and publish your comments along
with your name; we reserve the right not to publish reader comments.)
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(END) Dow Jones Newswires
July 30, 2012 16:29 ET (20:29 GMT)
10Y-Note Euro$ DJIA Nasdaq S&P
S&P/TSX $Index
(CBOT U) (CME U) Comp 500
ICE
Next Resist. 136-13 99.685 13232.70 3000.40 1456.81
11935.29 84.100
First Resist. 135-01 99.627 13186.30 2976.00 1415.32
11822.91 83.053
Intraday Stop 134-20 99.620 13073.00 2945.80 1392.01
11768.10 82.822
First Support 133-30 99.435 12986.30 2835.10 1343.13
11639.75 81.186
Next Support 132-28 99.330 12887.90 2760.60 1316.63
11545.54 80.186
EUR/$ $/Yen Nikkei JGB RJ/CRB
Gold Crude
Index (TSE U)
(Comex Q) (Nymex U)
Next Resist. 1.2435 80.460 8855.93 145.23 304.08
1649.60 91.83
First Resist. 1.2304 79.056 8730.49 144.87 303.90
1635.40 90.14
Intraday Stop 1.2256 78.170 8635.44 144.09 302.50
1621.10 89.51
First Support 1.2115 77.031 8566.64 143.91 301.99
1583.60 88.47
Next Support 1.2042 76.770 8443.10 142.51 300.39
1561.90 87.17
Intraday stops define a technical stop-and-reverse point between first
support and first resistance.
Write to Stephen Cox at stephen.cox@dowjones.com
(Data by CQG)
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(END) Dow Jones Newswires
July 30, 2012 16:29 ET (20:29 GMT)
2012.07.30 22:06:20 Brazil Government Acts as Mediator in GM Jobs Issue - Minister
SAO PAULO--Brazil's government will act only as a "mediator" in a
growing jobs dispute between unions and the Brazilian unit of General
Motors (GM, GMM.U.T), Labor Minister Carlos Brizola Neto said at a
news conference Monday.
"What we are most worried about is the possible impact of sudden, mass
firings," the minister told reporters. However, he added that
executives at the Brazilian General Motors subsidiary have been
"sensitive" to the issue. He said the labor ministry will act as
"mediator" regarding the question, without seeking to force a course
of action on either one side or the other.
GM is considering cutting jobs as demand weakens for the passenger-car
models produced at its Sao Jose dos Campos plant in Sao Paulo state.
The company has already ended production of three of the four models
of passenger cars it produced there. It has more workers than it needs
at the plant, a GM spokesman told Dow Jones, but stressed that the
company has yet to decide on any job cuts.
According to unions representing workers at the plant, as many as
1,500 jobs could be on the line.
Mr. Brizola Neto, however, rebutted union criticism that the
government has been lenient towards the U.S. auto maker, especially
since the government ordered cuts in value-added taxes earlier this
year for the auto industry.
Mr. Brizola Neto said, "The fact is, it's a business decision. The
company began studying this decision before the tax cuts were
announced. Furthermore, GM has promised to add jobs at its other units
in Brazil. They are not reducing jobs, on a net basis, but rebalancing
their workforce."
Brazilian Finance Minister Guido Mantega will meet Tuesday with
representatives of General Motors and Anfavea, Brazil's automakers
association, to discuss the possible layoffs, which could be
interpreted as a violation of a deal that exchanged a no-layoffs
pledge by companies in exchange for the tax cuts.
Mr. Brizola Neto said labor ministry officials will meet with GM and
union representatives Saturday to discuss the Sao Jose dos Campos
situation.
In response to slumping sales at the start of this year, in May the
government reduced what is known as the IPI tax on auto sales and also
eased reserve requirements for banks that issue auto loans. In
exchange for the stimulus measures, which are set to expire at the end
of August, the government demanded companies not reduce employment
levels in Brazil.
-Paulo Winterstein in Sao Paulo contributed to this article
Write to Tom Murphy at tom.murphy@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 16:06 ET (20:06 GMT)
growing jobs dispute between unions and the Brazilian unit of General
Motors (GM, GMM.U.T), Labor Minister Carlos Brizola Neto said at a
news conference Monday.
"What we are most worried about is the possible impact of sudden, mass
firings," the minister told reporters. However, he added that
executives at the Brazilian General Motors subsidiary have been
"sensitive" to the issue. He said the labor ministry will act as
"mediator" regarding the question, without seeking to force a course
of action on either one side or the other.
GM is considering cutting jobs as demand weakens for the passenger-car
models produced at its Sao Jose dos Campos plant in Sao Paulo state.
The company has already ended production of three of the four models
of passenger cars it produced there. It has more workers than it needs
at the plant, a GM spokesman told Dow Jones, but stressed that the
company has yet to decide on any job cuts.
According to unions representing workers at the plant, as many as
1,500 jobs could be on the line.
Mr. Brizola Neto, however, rebutted union criticism that the
government has been lenient towards the U.S. auto maker, especially
since the government ordered cuts in value-added taxes earlier this
year for the auto industry.
Mr. Brizola Neto said, "The fact is, it's a business decision. The
company began studying this decision before the tax cuts were
announced. Furthermore, GM has promised to add jobs at its other units
in Brazil. They are not reducing jobs, on a net basis, but rebalancing
their workforce."
Brazilian Finance Minister Guido Mantega will meet Tuesday with
representatives of General Motors and Anfavea, Brazil's automakers
association, to discuss the possible layoffs, which could be
interpreted as a violation of a deal that exchanged a no-layoffs
pledge by companies in exchange for the tax cuts.
Mr. Brizola Neto said labor ministry officials will meet with GM and
union representatives Saturday to discuss the Sao Jose dos Campos
situation.
In response to slumping sales at the start of this year, in May the
government reduced what is known as the IPI tax on auto sales and also
eased reserve requirements for banks that issue auto loans. In
exchange for the stimulus measures, which are set to expire at the end
of August, the government demanded companies not reduce employment
levels in Brazil.
-Paulo Winterstein in Sao Paulo contributed to this article
Write to Tom Murphy at tom.murphy@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 16:06 ET (20:06 GMT)
2012.07.30 18:29:09 EIA: U.S. May Oil Use up 1.9% From Year Earlier; 1st Rise Since March 2011
By David Bird
NEW YORK--U.S. oil demand in May rose 1.9%, or 344,000 barrels a day,
from a year earlier to 18.707 million barrels a day, revised
government data released Monday show.
The gain, led by a 2.4% jump in gasoline demand amid sliding prices,
was the first year-on-year rise in the world's biggest oil consumer
since March 2011 and the biggest since January 2011, data from the
Energy Information Administration show.
Prior to the rise reported in the May data, U.S. oil demand had fallen
by an average of nearly 550,000 barrels a day in the 13 months
beginning in April 2011.
Total demand was the highest in any month since February and was up
424,000 barrels a day, or 2.3%, from the April level.
The revised May demand figure was 0.8%, or 142,000 barrels a day,
above preliminary demand estimates the month.
Demand for gasoline, the most widely used petroleum product, rose by
212,000 barrels a day from a year earlier, to 8.996 million barrels a
day, the most in any month since June 2011 and 2% above the April
level.
The year-on-year rise in gasoline use was the most since September
2009, EIA data show.
The jump in gasoline use at the start of the summer driving season
followed a slim 0.6% year-on-year rise reported in April. Prior to
April, gasoline use had fallen by an average of 260,000 barrels a day
from the year-earlier level over the previous 13 straight months, a
time when prices were rising sharply.
The national average retail price for regular gasoline was $3.732 a
gallon in May, down 4.5% from a year ago, and the lowest monthly
average since February.
May's average retail gasoline price showed the first year-on-year drop
since December 2011 and the biggest decline since October 2009. The
drop in May of 4.3% vs April was the biggest month-to-month price drop
since June 2011.
Part of the large jump in year-on-year gasoline demand in May can be
attributed to extremely weak demand a year ago, the EIA said. May 2011
gasoline use was at a 10-year for the month, as retail prices were
38%, or $1.07 a gallon, higher than a year earlier, Tancred
Lidderdale, EIA analyst noted. The May 2011 average pump price for
regular gasoline, at $3.906 a gallon, was the third highest on record
and the most since the peak average of $4.062 a gallon in July 2008.
Write to David Bird at david.bird@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 12:29 ET (16:29 GMT)
NEW YORK--U.S. oil demand in May rose 1.9%, or 344,000 barrels a day,
from a year earlier to 18.707 million barrels a day, revised
government data released Monday show.
The gain, led by a 2.4% jump in gasoline demand amid sliding prices,
was the first year-on-year rise in the world's biggest oil consumer
since March 2011 and the biggest since January 2011, data from the
Energy Information Administration show.
Prior to the rise reported in the May data, U.S. oil demand had fallen
by an average of nearly 550,000 barrels a day in the 13 months
beginning in April 2011.
Total demand was the highest in any month since February and was up
424,000 barrels a day, or 2.3%, from the April level.
The revised May demand figure was 0.8%, or 142,000 barrels a day,
above preliminary demand estimates the month.
Demand for gasoline, the most widely used petroleum product, rose by
212,000 barrels a day from a year earlier, to 8.996 million barrels a
day, the most in any month since June 2011 and 2% above the April
level.
The year-on-year rise in gasoline use was the most since September
2009, EIA data show.
The jump in gasoline use at the start of the summer driving season
followed a slim 0.6% year-on-year rise reported in April. Prior to
April, gasoline use had fallen by an average of 260,000 barrels a day
from the year-earlier level over the previous 13 straight months, a
time when prices were rising sharply.
The national average retail price for regular gasoline was $3.732 a
gallon in May, down 4.5% from a year ago, and the lowest monthly
average since February.
May's average retail gasoline price showed the first year-on-year drop
since December 2011 and the biggest decline since October 2009. The
drop in May of 4.3% vs April was the biggest month-to-month price drop
since June 2011.
Part of the large jump in year-on-year gasoline demand in May can be
attributed to extremely weak demand a year ago, the EIA said. May 2011
gasoline use was at a 10-year for the month, as retail prices were
38%, or $1.07 a gallon, higher than a year earlier, Tancred
Lidderdale, EIA analyst noted. The May 2011 average pump price for
regular gasoline, at $3.906 a gallon, was the third highest on record
and the most since the peak average of $4.062 a gallon in July 2008.
Write to David Bird at david.bird@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 12:29 ET (16:29 GMT)
2012.07.30 18:24:57 MARKET TALK: Euro Could Rebound to $1.27 This Week -Wells Fargo
12:24 EDT - Expect the euro to rise to $1.27 this week, Wells says.
The common currency would rise on potential action from the Fed or the
European Central Bank, says Wells Fargo's Vassili Serebriakov.
Although Wells Fargo does not expect the ECB to shift policy at its
meeting Thursday, "they might make hints for more action, which could
be sufficient for the markets to continue improving," Serebriakov
says. For now, the euro is lower against major currencies as optimism
began to unwind from ECB President Mario Draghi's pledge last week to
do whatever it takes to save the currency. Euro trades at $1.2251,
down from $1.2322 late Friday. (nicole.hong@dowjones.com)
(END) Dow Jones Newswires
July 30, 2012 12:24 ET (16:24 GMT)
The common currency would rise on potential action from the Fed or the
European Central Bank, says Wells Fargo's Vassili Serebriakov.
Although Wells Fargo does not expect the ECB to shift policy at its
meeting Thursday, "they might make hints for more action, which could
be sufficient for the markets to continue improving," Serebriakov
says. For now, the euro is lower against major currencies as optimism
began to unwind from ECB President Mario Draghi's pledge last week to
do whatever it takes to save the currency. Euro trades at $1.2251,
down from $1.2322 late Friday. (nicole.hong@dowjones.com)
(END) Dow Jones Newswires
July 30, 2012 12:24 ET (16:24 GMT)
2012.07.30 18:04:50 Correction to Friday's US DATA WEEK AHEAD
Reported Earlier:
U.S. Stocks Mixed in Quiet Start to Week
By Chris Dieterich and Alexandra Scaggs
NEW YORK--Stocks made a quiet start following a week of volatile
trading, as investors weighed the likelihood of additional stimulus
measures from central bankers.
The Dow Jones Industrial Average added 26 points, or 0.2%, to 13103 in
early trading Monday. On Friday, the Dow jumped over 13000 for the
time since May 7, capping its biggest three-day point gain this year.
The Standard & Poor's 500-stock index rose 2 points, or 0.2%, to 1388.
The Nasdaq Composite Index fell 2 points, or 0.07%, to 2956.
Technology stocks were at the front of Monday's advance, with Cisco
Systems adding 2.3% to lead the Dow industrials higher.
On the economic calendar, a reading of manufacturing activity in the
Dallas region in July came in at negative 13.2, a steep drop from the
previous month's measure of 5.8.
European markets rose, with the Stoxx Europe 600 up 1.3%, as
expectations of new stimulus measures there overshadowed the weak
economic data. Jean-Claude Juncker, head of the Eurogroup of euro-zone
finance ministers, said in an interview with French newspaper Le
Figaro over the weekend that euro-zone governments, the European
Central Bank and the European Financial Stability Facility will
coordinate action to help ameliorate the region's debt crisis. Spain's
IBEX-35 index climbed 1.9%.
Treasury Secretary Timothy Geithner is set to meet with ECB President
Mario Draghi and German Finance Minister Wolfgang Schaeuble, as
euro-zone policy makers seek to put together a package of initiatives
that would reassure bond investors ahead of its Thursday meeting.
"There is some hesitation ahead of the [ECB] meeting," said Randy
Frederick, managing director of trading and derivatives with Charles
Schwab. "Markets move on anticipation," but if the commitment pledged
by Mr. Draghi last week "turns out to be less substantive, we could
see the markets pull back a little bit."
Business and consumer confidence in the euro zone fell in July from
June, with a significant weakening evident in France and Germany,
according to a survey from the European Commission. A reading on
Spain's second-quarter gross domestic product fell 0.4% from the first
quarter, its third quarterly contraction in a row. In the U.K.,
mortgage lending fell in June to the lowest level since December 2010.
Asian markets were mostly higher, with Japan's Nikkei Stock Average
rising 0.8% and Australia's S&P/ASX 200 gaining 0.9%. But China's
Shanghai Composite fell 0.9% to close at the lowest level seen since
March 2009.
Crude-oil futures eased 0.1% to $90.06 a barrel, while gold futures
ticked up 0.1% to $1,618.90 a troy ounce. The U.S. dollar rose against
the euro but fell against the yen. The yield on benchmark 10-year U.S.
Treasury bonds fell to 1.534% as demand rose.
In corporate news, shares of AT&T advanced 1.2% after the blue-chip
telecom company said it increased its stock repurchase program by 300
million shares, which represents about 5% of the company's shares
outstanding.
Diebold sank 12% after the producer of automatic-teller-machines
lowered its full-year guidance after reporting that second-quarter
earnings jumped 27%.
In deal news, Shaw Group soared 58% after the engineering and
construction company agreed to be acquired by Chicago Bridge & Iron in
a deal valued at $3 billion. Shares of Chicago Bridge & Iron slid 14%.
Roper Industries jumped 7.7%, and was the biggest gainer on the S&P
500, after posting second-quarter profits that rose 8%, and agreeing
to buy Sunquest Information Systems for about $1.4 billion.
Progenics Pharmaceuticals tumbled 49% after the company and Salix
Pharmaceuticals said the Food and Drug Administration requested
additional clinical data following a review of its constipation
treatment. Salix shares slid 12%.
Exelixis edged up 3% after the company said the accepted the new drug
application for its thyroid cancer treatment was granted priority
review designation by the FDA.
Write to Chris Dieterich at chris.dieterich@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 06:55 ET (10:55 GMT)
U.S. Stocks Mixed in Quiet Start to Week
By Chris Dieterich and Alexandra Scaggs
NEW YORK--Stocks made a quiet start following a week of volatile
trading, as investors weighed the likelihood of additional stimulus
measures from central bankers.
The Dow Jones Industrial Average added 26 points, or 0.2%, to 13103 in
early trading Monday. On Friday, the Dow jumped over 13000 for the
time since May 7, capping its biggest three-day point gain this year.
The Standard & Poor's 500-stock index rose 2 points, or 0.2%, to 1388.
The Nasdaq Composite Index fell 2 points, or 0.07%, to 2956.
Technology stocks were at the front of Monday's advance, with Cisco
Systems adding 2.3% to lead the Dow industrials higher.
On the economic calendar, a reading of manufacturing activity in the
Dallas region in July came in at negative 13.2, a steep drop from the
previous month's measure of 5.8.
European markets rose, with the Stoxx Europe 600 up 1.3%, as
expectations of new stimulus measures there overshadowed the weak
economic data. Jean-Claude Juncker, head of the Eurogroup of euro-zone
finance ministers, said in an interview with French newspaper Le
Figaro over the weekend that euro-zone governments, the European
Central Bank and the European Financial Stability Facility will
coordinate action to help ameliorate the region's debt crisis. Spain's
IBEX-35 index climbed 1.9%.
Treasury Secretary Timothy Geithner is set to meet with ECB President
Mario Draghi and German Finance Minister Wolfgang Schaeuble, as
euro-zone policy makers seek to put together a package of initiatives
that would reassure bond investors ahead of its Thursday meeting.
"There is some hesitation ahead of the [ECB] meeting," said Randy
Frederick, managing director of trading and derivatives with Charles
Schwab. "Markets move on anticipation," but if the commitment pledged
by Mr. Draghi last week "turns out to be less substantive, we could
see the markets pull back a little bit."
Business and consumer confidence in the euro zone fell in July from
June, with a significant weakening evident in France and Germany,
according to a survey from the European Commission. A reading on
Spain's second-quarter gross domestic product fell 0.4% from the first
quarter, its third quarterly contraction in a row. In the U.K.,
mortgage lending fell in June to the lowest level since December 2010.
Asian markets were mostly higher, with Japan's Nikkei Stock Average
rising 0.8% and Australia's S&P/ASX 200 gaining 0.9%. But China's
Shanghai Composite fell 0.9% to close at the lowest level seen since
March 2009.
Crude-oil futures eased 0.1% to $90.06 a barrel, while gold futures
ticked up 0.1% to $1,618.90 a troy ounce. The U.S. dollar rose against
the euro but fell against the yen. The yield on benchmark 10-year U.S.
Treasury bonds fell to 1.534% as demand rose.
In corporate news, shares of AT&T advanced 1.2% after the blue-chip
telecom company said it increased its stock repurchase program by 300
million shares, which represents about 5% of the company's shares
outstanding.
Diebold sank 12% after the producer of automatic-teller-machines
lowered its full-year guidance after reporting that second-quarter
earnings jumped 27%.
In deal news, Shaw Group soared 58% after the engineering and
construction company agreed to be acquired by Chicago Bridge & Iron in
a deal valued at $3 billion. Shares of Chicago Bridge & Iron slid 14%.
Roper Industries jumped 7.7%, and was the biggest gainer on the S&P
500, after posting second-quarter profits that rose 8%, and agreeing
to buy Sunquest Information Systems for about $1.4 billion.
Progenics Pharmaceuticals tumbled 49% after the company and Salix
Pharmaceuticals said the Food and Drug Administration requested
additional clinical data following a review of its constipation
treatment. Salix shares slid 12%.
Exelixis edged up 3% after the company said the accepted the new drug
application for its thyroid cancer treatment was granted priority
review designation by the FDA.
Write to Chris Dieterich at chris.dieterich@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 06:55 ET (10:55 GMT)
Monday, 30 July 2012
2012.07.30 15:59:02 MARKET TALK: Chile June Activity to Grow 5.3% -BICE Inversiones
9:58 EDT - Economic activity, as measured by the Chilean central
bank's Imacec monthly GDP proxy index, likely grew 5.3% year-on-year
in June, according to local investment bank BICE Inversiones. Retail
sales surged 8.9% year-on-year in June, showing domestic demand is
still fueling local growth. With a 5.3% June increase, the Imacec will
have grown 5.4% year-on-year in the first half of 2012.
(carolina.pica@dowjones.com)
(END) Dow Jones Newswires
July 30, 2012 09:59 ET (13:59 GMT)
bank's Imacec monthly GDP proxy index, likely grew 5.3% year-on-year
in June, according to local investment bank BICE Inversiones. Retail
sales surged 8.9% year-on-year in June, showing domestic demand is
still fueling local growth. With a 5.3% June increase, the Imacec will
have grown 5.4% year-on-year in the first half of 2012.
(carolina.pica@dowjones.com)
(END) Dow Jones Newswires
July 30, 2012 09:59 ET (13:59 GMT)
2012.07.30 13:37:00 FX GLOBAL CALL: Our Take on the Day's Big FX News
The FX Global Call covers the main talking points from an 1100 GMT
news meeting involving DJ FX Trader editors in New York, London and
Singapore, as well as other FX hot spots when warranted.
By Michael Casey
1. Relative calm prevails in foreign exchange markets as traders gear
up from some potentially critical central bank meeting policy
decisions from the Fed and the ECB on Wednesday and Thursday,
respectively, and for the equally important U.S. jobs report on
Friday. In general, markets continued to be buoyed by the comments
last week of ECB boss Mario Draghi, who left the impression that his
organization is preparing more aggressive action to ward off the euro
zone's debt crisis.
2. News out of the euro zone was consistent with rising expectations
for ECB action. The region's consumer confidence indicator dropped for
the fifth straight month, underscoring the economic argument for more
stimulus, while Spain's economic contraction accelerated in the second
quarter to show a minus 0.4% result. Meanwhile, Italy held a EUR5.479
billion auction of various maturity bonds and the market bought them
at lower yields than previously. That suggested that Draghi's verbal
interventions, which raised hopes for a new round of bond-buying by
the ECB, is driving investors back into the market for troubled
euro-zone sovereigns' bonds.
3. Meanwhile, the Swedish krona rose to its highest level since
September 2000 on news that Swedish GDP advanced more than expected.
The economy expanded by 2.3% on the year and by 1.6% on the quarter,
whereas economists had expected a quarter-on-quarter result of just
0.2%. Such a contrast to the euro-zone's gloomy outlook is boosting
expectations that Sweden's Riksbank will resist following the ECB into
more rate cuts, encouraging a rate differential play on the krona.
4. Another big winner in the current scenario is the Australian
dollar, which is now threatening to get above $1.05 again. The Aussie
wins for two reasons: it benefits from the pickup in risk-taking
whenever hopes are boosted that policymakers will address the euro
crisis, and because expectations for either lower rates and/or
quantitative easing from the Fed and the ECB will encourage traders to
seek to take advantage of its higher yields. This is not necessarily
good news for Australia itself, however. When the Aussie dollar was
marching to record heights last year, it did so because prices of its
commodities were also hitting new highs, which justified the move. But
those prices have since come off, which means that not only will
Australia's long-suffering manufacturing sector continue to be hurt by
the strong currency, but so too will its all-important mining
exporters.
5. China made more incremental moves to boost its housing sector, an
industry that's critical to the outlook for commodity prices around
the world. Regulators said they would expand preferential loans for
first-time home buyers. While they also vowed to keep up restrictions
on lending to developers, that was a reminder that China is
selectively trying to introduce enough stimulus to support its
softening economy while avoiding the kind of measures that might
revive the unwanted property bubble of a year or so ago.
6. In Japan, industrial production fell 0.1% versus an expected rise
of 1.6%. That prompted the government to downgrade its assessment of
industrial production for the full year and led to talk of Japan's
economy stalling again. But it will make it easier for the Bank of
Japan to take more easing measures when it next meets on Aug. 8 and 9.
7. In Latin America, investors are awaiting the release of the Chilean
central bank policy committee minutes from its July 12 meeting, when
it held rates steady. With Colombia's central bank having surprised
the market by initiating a rate cut on Friday afternoon, market
participants are looking to see whether similar inclinations toward
easing moves are arising other parts of Latin America, hitherto a
bastion of vigilance on inflation and rates.
8. Separately, central banks around the world are releasing their
latest six-month estimates of the level of foreign exchange trading in
their respective banking systems. So far, the data out of Australia
and Japan suggest there has been a drop in activity from the previous
six months, with blame being leveled on the euro crisis. But if that
trend continues, it could just as well have something to do with
trends in the industry. Some believe the surge in high-frequency is
now leveling off at the same time that the high frequency trading
phenomenon is scaring off more conventional traders. Until we hear
from London and New York later Monday, however, it is too early to
speculate on what's happening broadly to the industry.
9. In the U.S., the only data point of any note Monday is the Dallas
Fed manufacturing survey for July, which will be released at 10:30 am
EDT.
(Michael Casey is managing editor for the Americas at DJ FX Trader, a
foreign exchange news service jointly produced by Dow Jones Newswires
and The Wall Street Journal.)
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 07:37 ET (11:37 GMT)
news meeting involving DJ FX Trader editors in New York, London and
Singapore, as well as other FX hot spots when warranted.
By Michael Casey
1. Relative calm prevails in foreign exchange markets as traders gear
up from some potentially critical central bank meeting policy
decisions from the Fed and the ECB on Wednesday and Thursday,
respectively, and for the equally important U.S. jobs report on
Friday. In general, markets continued to be buoyed by the comments
last week of ECB boss Mario Draghi, who left the impression that his
organization is preparing more aggressive action to ward off the euro
zone's debt crisis.
2. News out of the euro zone was consistent with rising expectations
for ECB action. The region's consumer confidence indicator dropped for
the fifth straight month, underscoring the economic argument for more
stimulus, while Spain's economic contraction accelerated in the second
quarter to show a minus 0.4% result. Meanwhile, Italy held a EUR5.479
billion auction of various maturity bonds and the market bought them
at lower yields than previously. That suggested that Draghi's verbal
interventions, which raised hopes for a new round of bond-buying by
the ECB, is driving investors back into the market for troubled
euro-zone sovereigns' bonds.
3. Meanwhile, the Swedish krona rose to its highest level since
September 2000 on news that Swedish GDP advanced more than expected.
The economy expanded by 2.3% on the year and by 1.6% on the quarter,
whereas economists had expected a quarter-on-quarter result of just
0.2%. Such a contrast to the euro-zone's gloomy outlook is boosting
expectations that Sweden's Riksbank will resist following the ECB into
more rate cuts, encouraging a rate differential play on the krona.
4. Another big winner in the current scenario is the Australian
dollar, which is now threatening to get above $1.05 again. The Aussie
wins for two reasons: it benefits from the pickup in risk-taking
whenever hopes are boosted that policymakers will address the euro
crisis, and because expectations for either lower rates and/or
quantitative easing from the Fed and the ECB will encourage traders to
seek to take advantage of its higher yields. This is not necessarily
good news for Australia itself, however. When the Aussie dollar was
marching to record heights last year, it did so because prices of its
commodities were also hitting new highs, which justified the move. But
those prices have since come off, which means that not only will
Australia's long-suffering manufacturing sector continue to be hurt by
the strong currency, but so too will its all-important mining
exporters.
5. China made more incremental moves to boost its housing sector, an
industry that's critical to the outlook for commodity prices around
the world. Regulators said they would expand preferential loans for
first-time home buyers. While they also vowed to keep up restrictions
on lending to developers, that was a reminder that China is
selectively trying to introduce enough stimulus to support its
softening economy while avoiding the kind of measures that might
revive the unwanted property bubble of a year or so ago.
6. In Japan, industrial production fell 0.1% versus an expected rise
of 1.6%. That prompted the government to downgrade its assessment of
industrial production for the full year and led to talk of Japan's
economy stalling again. But it will make it easier for the Bank of
Japan to take more easing measures when it next meets on Aug. 8 and 9.
7. In Latin America, investors are awaiting the release of the Chilean
central bank policy committee minutes from its July 12 meeting, when
it held rates steady. With Colombia's central bank having surprised
the market by initiating a rate cut on Friday afternoon, market
participants are looking to see whether similar inclinations toward
easing moves are arising other parts of Latin America, hitherto a
bastion of vigilance on inflation and rates.
8. Separately, central banks around the world are releasing their
latest six-month estimates of the level of foreign exchange trading in
their respective banking systems. So far, the data out of Australia
and Japan suggest there has been a drop in activity from the previous
six months, with blame being leveled on the euro crisis. But if that
trend continues, it could just as well have something to do with
trends in the industry. Some believe the surge in high-frequency is
now leveling off at the same time that the high frequency trading
phenomenon is scaring off more conventional traders. Until we hear
from London and New York later Monday, however, it is too early to
speculate on what's happening broadly to the industry.
9. In the U.S., the only data point of any note Monday is the Dallas
Fed manufacturing survey for July, which will be released at 10:30 am
EDT.
(Michael Casey is managing editor for the Americas at DJ FX Trader, a
foreign exchange news service jointly produced by Dow Jones Newswires
and The Wall Street Journal.)
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 07:37 ET (11:37 GMT)
2012.07.30 13:15:43 National Bank Of Poland Zloty Exchange Rates
LONDON--HSBC Holdings PLC (HBC) said Monday that net profit fell in
the first half, as the bank was forced to put aside millions of
dollars to cover the fallout of a U.S. money-laundering probe and the
misselling of financial products.
A series of provisions at the Asia-focused bank pushed up underlying
costs by $1.9 billion and ate into the lender's bottom line, cutting
net profit in the first six months by 9% to $8.15 billion.
HSBC Chief Executive Stuart Gulliver told a conference call that he
was still confident the bank could hit profitability targets and was
working to put its compliance failings behind it. HSBC announced a
provision of $700 million to cover potential fines following a damning
report by the U.S. Senate alleging that some of HSBC's global
operations were being used by money-launderers and potential terrorist
financiers.
"What happened in Mexico and the U.S. was shameful," Mr. Gulliver
said, adding that the eventual fines could be considerably higher than
the provision. HSBC also said it was putting $1.3 billion aside mainly
to cover the misselling of payment protection insurance to U.K.
customers. The insurance, which covers buyers" mortgage or credit-card
payments if they lost their jobs or became ill, was widely sold by
U.K. banks to people who didn't need it.
Separately, the bank said it was working with regulators in a global
probe into allegations that lenders sought to manipulate the interbank
lending market. Mr. Gulliver said it is too early to predict the
impact of the probe and the bank hadn't suspended or fired any traders
in relations to the investigations.
The series of scandals didn't overshadow the group's financial
results, with shares rising 1.3% by midday as investors cheered the
level of cost reduction at the bank and a solid performance of its
Global Banking and Markets division.
"If you strip out the exceptional items, you have actually got quite a
strong cost story," said Mike Trippitt at Oriel Securities. "But the
strategic targets are quite a challenge."
Last year, Mr. Gulliver outlined a grand plan to turn the lender's
sprawling banking empire into a more nimble entity amid criticism that
it had overextended itself worldwide and wasn't providing adequate
returns to investors. At the time, Gulliver said he wanted the bank to
make a 12%-15% return on equity by 2013 and slice the cost efficiency
ratio to 52%. In the first half of the year, the bank hit a
cost-efficiency ratio of 57.5% and a return on equity of 10.5%.
On Monday, Mr. Gulliver said that he was still confident the bank
could achieve its targets.
To this end, the bank has put an emphasis cutting overheads and
building presence in a few key markets that trade heavily with one
another. It has been steadily selling off 36 businesses in less
lucrative countries since 2011. However, staff costs remain high as
workers in Asia and South America request more competitive wages.
The bank said that total operating income rose to $43.7 billion in the
first six months of the year, from $42.3 billion a year before.
The banks said the tax charge in the first six months of 2012 was $1.9
billion higher than in the year-ago half. HSBC attributed the rise to
the disposal of its Card and Retail Services business and some U.S.
branches, as well as the non-deductible provision in respect to the
U.S. anti-money-laundering probe and other investigations. It also had
a deferred tax benefit in the year-ago half.
The bank said it still faces a battle to win back the trust of
regulators and customers.
"Regulatory and compliance events in the first six months of the year
overshadowed financial performance. And that has added further to
public concern and distrust of the banking industry," HSBC Chairman
Douglas Flint said in a statement.
-Write to Max Colchester at max.colchester@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 05:25 ET (09:25 GMT)
the first half, as the bank was forced to put aside millions of
dollars to cover the fallout of a U.S. money-laundering probe and the
misselling of financial products.
A series of provisions at the Asia-focused bank pushed up underlying
costs by $1.9 billion and ate into the lender's bottom line, cutting
net profit in the first six months by 9% to $8.15 billion.
HSBC Chief Executive Stuart Gulliver told a conference call that he
was still confident the bank could hit profitability targets and was
working to put its compliance failings behind it. HSBC announced a
provision of $700 million to cover potential fines following a damning
report by the U.S. Senate alleging that some of HSBC's global
operations were being used by money-launderers and potential terrorist
financiers.
"What happened in Mexico and the U.S. was shameful," Mr. Gulliver
said, adding that the eventual fines could be considerably higher than
the provision. HSBC also said it was putting $1.3 billion aside mainly
to cover the misselling of payment protection insurance to U.K.
customers. The insurance, which covers buyers" mortgage or credit-card
payments if they lost their jobs or became ill, was widely sold by
U.K. banks to people who didn't need it.
Separately, the bank said it was working with regulators in a global
probe into allegations that lenders sought to manipulate the interbank
lending market. Mr. Gulliver said it is too early to predict the
impact of the probe and the bank hadn't suspended or fired any traders
in relations to the investigations.
The series of scandals didn't overshadow the group's financial
results, with shares rising 1.3% by midday as investors cheered the
level of cost reduction at the bank and a solid performance of its
Global Banking and Markets division.
"If you strip out the exceptional items, you have actually got quite a
strong cost story," said Mike Trippitt at Oriel Securities. "But the
strategic targets are quite a challenge."
Last year, Mr. Gulliver outlined a grand plan to turn the lender's
sprawling banking empire into a more nimble entity amid criticism that
it had overextended itself worldwide and wasn't providing adequate
returns to investors. At the time, Gulliver said he wanted the bank to
make a 12%-15% return on equity by 2013 and slice the cost efficiency
ratio to 52%. In the first half of the year, the bank hit a
cost-efficiency ratio of 57.5% and a return on equity of 10.5%.
On Monday, Mr. Gulliver said that he was still confident the bank
could achieve its targets.
To this end, the bank has put an emphasis cutting overheads and
building presence in a few key markets that trade heavily with one
another. It has been steadily selling off 36 businesses in less
lucrative countries since 2011. However, staff costs remain high as
workers in Asia and South America request more competitive wages.
The bank said that total operating income rose to $43.7 billion in the
first six months of the year, from $42.3 billion a year before.
The banks said the tax charge in the first six months of 2012 was $1.9
billion higher than in the year-ago half. HSBC attributed the rise to
the disposal of its Card and Retail Services business and some U.S.
branches, as well as the non-deductible provision in respect to the
U.S. anti-money-laundering probe and other investigations. It also had
a deferred tax benefit in the year-ago half.
The bank said it still faces a battle to win back the trust of
regulators and customers.
"Regulatory and compliance events in the first six months of the year
overshadowed financial performance. And that has added further to
public concern and distrust of the banking industry," HSBC Chairman
Douglas Flint said in a statement.
-Write to Max Colchester at max.colchester@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 05:25 ET (09:25 GMT)
2012.07.30 07:20:41 MARKET TALK: Indonesia July CPI Likely +4.64% On-Year - Poll
0520 GMT [Dow Jones] PREVIEW: Indonesia's inflation likely accelerated
to 4.64% in July from a year earlier, compared with 4.53% in June as
the start of Muslim fasting pushed up basic food prices, and the start
of the academic year brought with it education-related costs,
according to median forecast of 12 economists polled by Dow Jones. The
seasonal increase in inflation is not expected to prompt Bank
Indonesia to raise policy rates from 5.75% when it meets August 9 over
concerns over the impact of the global slowdown on the domestic
economy. The official Statistics Agency will release July CPI data
around 0400 GMT Wednesday. (i-made.sentana@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 01:20 ET (05:20 GMT)
to 4.64% in July from a year earlier, compared with 4.53% in June as
the start of Muslim fasting pushed up basic food prices, and the start
of the academic year brought with it education-related costs,
according to median forecast of 12 economists polled by Dow Jones. The
seasonal increase in inflation is not expected to prompt Bank
Indonesia to raise policy rates from 5.75% when it meets August 9 over
concerns over the impact of the global slowdown on the domestic
economy. The official Statistics Agency will release July CPI data
around 0400 GMT Wednesday. (i-made.sentana@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 01:20 ET (05:20 GMT)
2012.07.30 07:18:04 EUR/USD intraday: further upside.
EUR/USD intraday: further upside.
Update on supports and resistances.
Pivot: 1.2390.
Our Preference: SHORT positions below 1.239 with 1.224 & 1.217 as next targets.
Alternative scenario: The upside penetration of 1.239 will call for
1.244 & 1.247.
Comment: as long as 1.239 is resistance, look for choppy price action
with a bearish bias.
Trend: ST Ltd Downside; MT Range
Key levels Comment
1.247** Intraday resistance
1.244** Intraday resistance
1.239** Intraday pivot point
1.2286 Last
1.224*** Intraday support
1.217** Intraday support
1.2115** Intraday support
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Update on supports and resistances.
Pivot: 1.2390.
Our Preference: SHORT positions below 1.239 with 1.224 & 1.217 as next targets.
Alternative scenario: The upside penetration of 1.239 will call for
1.244 & 1.247.
Comment: as long as 1.239 is resistance, look for choppy price action
with a bearish bias.
Trend: ST Ltd Downside; MT Range
Key levels Comment
1.247** Intraday resistance
1.244** Intraday resistance
1.239** Intraday pivot point
1.2286 Last
1.224*** Intraday support
1.217** Intraday support
1.2115** Intraday support
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
2012.07.30 06:00:30 MARKET TALK: India Bonds Down As Market Expects RBI On Hold
0400 GMT [Dow Jones] India government bonds are trading lower as the
market expects the central bank to hold rates steady at its monetary
policy review on Tuesday, says a senior dealer with a privately-run
bank. The benchmark 8.15% 2022 bond is trading at 100.16 compared with
100.19 at Friday's close. "The 10-year paper appears overvalued given
the market sentiment and there would be some selling pressure. It
could intensify if the Reserve Bank of India gives a hawkish view on
the economy. Till then, it will be in a narrow rangebound trade," he
says. He tips the yields on the 10-year to be in a 8.12%-8.17% band in
the session compared with 8.13% now. "It may test 8.25% if the RBI's
tone is hawkish," he says. The RBI is likely to maintain its key
policy rate at 8.0% at its rate-setting meeting Tuesday to guard
against higher inflation. Fourteen of the 15 economists polled by Dow
Jones expect no change in the rate, while one tips a 25-bp reduction.
(nupur.acharya@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 00:00 ET (04:00 GMT)
market expects the central bank to hold rates steady at its monetary
policy review on Tuesday, says a senior dealer with a privately-run
bank. The benchmark 8.15% 2022 bond is trading at 100.16 compared with
100.19 at Friday's close. "The 10-year paper appears overvalued given
the market sentiment and there would be some selling pressure. It
could intensify if the Reserve Bank of India gives a hawkish view on
the economy. Till then, it will be in a narrow rangebound trade," he
says. He tips the yields on the 10-year to be in a 8.12%-8.17% band in
the session compared with 8.13% now. "It may test 8.25% if the RBI's
tone is hawkish," he says. The RBI is likely to maintain its key
policy rate at 8.0% at its rate-setting meeting Tuesday to guard
against higher inflation. Fourteen of the 15 economists polled by Dow
Jones expect no change in the rate, while one tips a 25-bp reduction.
(nupur.acharya@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 30, 2012 00:00 ET (04:00 GMT)
2012.07.30 05:55:36 *Vietnam Govt: To Reduce Public Debt Gradually to 60% GDP by 2030
Corrections & Amplifications
This item was corrected at 11:54 p.m. EDT to show the correct GDP
figure of 60%. The original GDP figure stated 45%.
(MORE TO FOLLOW) Dow Jones Newswires
July 29, 2012 23:13 ET (03:13 GMT)
This item was corrected at 11:54 p.m. EDT to show the correct GDP
figure of 60%. The original GDP figure stated 45%.
(MORE TO FOLLOW) Dow Jones Newswires
July 29, 2012 23:13 ET (03:13 GMT)
2012.07.30 05:45:58 EUR/JPY intraday: under pressure.
EUR/JPY intraday: under pressure.
Update on supports and resistances.
Pivot: 97.3
Our preference: Short positions below 97.3 with targets @ 95.6 & 95.2
in extension.
Alternative scenario: Above 97.3 look for further upside with 97.7 &
98.1 as targets.
Comment: technically, the RSI is below its neutrality area at 50.
Key levels
98.1
97.7
97.3
96.347 last
95.6
95.2
94.7
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Update on supports and resistances.
Pivot: 97.3
Our preference: Short positions below 97.3 with targets @ 95.6 & 95.2
in extension.
Alternative scenario: Above 97.3 look for further upside with 97.7 &
98.1 as targets.
Comment: technically, the RSI is below its neutrality area at 50.
Key levels
98.1
97.7
97.3
96.347 last
95.6
95.2
94.7
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Friday, 27 July 2012
2012.07.27 17:38:53 MARKET TALK: ECB's Might Bypass Buying Spain, Italy Bonds -GS
2012.07.27 17:38:53 MARKET TALK: ECB's Might Bypass Buying Spain,
Italy Bonds -GS
Italy Bonds -GS
2012.07.27 17:35:07 J.P. Morgan Reshuffles Management, Reorganizes Business Units
--J.P. Morgan shrinks number of divisions to three: consumer banking,
investment banking, and asset management
--Mike Cavanagh and Daniel Pinto to be co-CEOs of investment banking
--Dimon: Restructuring won't result in layoffs
--CFO Braunstein no longer reports to CEO
J.P. Morgan Chase & Co. (JPM) is consolidating bank divisions and
moved around top executives in leadership structuring, just days after
reporting a massive trading loss while calls to separate investment
banking from commercial banking got louder.
The changes won't result in any layoffs, Chief Executive Jamie Dimon
said in an interview.
The bank will consolidate its consumer-banking businesses and combine
its capital-markets and its trust-and-payment-processing
businesses--shrinking six divisions into three, as asset management
will remain its own division. Mr. Dimon said the changes are intended
to create an organization that is no longer structured around
products, but customer demand. He said the changes, announced Friday,
will create a more efficient bank with lower costs.
As part of the restructuring, Chief Financial Officer Douglas
Braunstein will no longer report directly to Mr. Dimon, but to
co-Chief Operating Officer Matt Zames, according to a memorandum to
J.P. Morgan staff.
In the memo, Mr. Dimon said, "Periodically, all businesses need to
reorganize to set themselves up for continued success. As the global
environment rapidly changes, we need to evolve to position ourselves
around what's best for our clients, as well as emerging trends and
opportunities for growth."
The consolidation also brought the elevation of Mike Cavanagh to
co-CEO of J.P. Morgan's enlarged investment-banking division. Mr.
Cavanagh is the bank's former chief financial officer and Mr. Dimon
put him in charge of unwinding the trading mess created by the
ill-fated attempts to hedge credit risk in London that cost the bank
$5.8 billion in losses so far this year.
Mr. Cavanagh, a potential successor to Mr. Dimon, will lead the
investment-banking business as co-CEO with Daniel Pinto. Mr. Pinto
will focus on investment banking abroad. Current investment-banking
CEO Jes Staley will become investment-banking chairman.
Gordon Smith, the head of the credit-card business, will lead all
consumer-banking and lending businesses as co-CEO with Todd Maclin
until the end of next year, when Mr. Maclin will become chairman of
that business.
Frank Bisignano, the chief administrative officer who is also in
charge of cleaning up the mortgage mess around botched foreclosures,
will become co-chief operating officer of J.P. Morgan, along with Mr.
Zames, who will remain the head of the chief investment office.
J.P. Morgan has been among the banks that not only survived the
financial crisis well, but benefited from it by buying failing
investment bank Bear Stearns Cos. and the thrift Washington Mutual
Inc. Over the last six years, Mr. Dimon repeatedly has outlined in
details how the bank's businesses work together to gain customers.
The restructuring will bring J.P. Morgan's structure closer to those
of Citigroup Inc. (C) and Wells Fargo & Co. (WFC).
J.P. Morgan said "Managing businesses that share similar customers
allows the firm to utilize its collective strengths and expertise to
do more for our clients and to grow our business."
Former Citigroup CEO Sanford "Sandy" Weill had poured cold water on
exactly the kind of organization Mr. Dimon is trying to perfect with
the decision announced Friday.
Mr. Weill, who had fired his protege Mr. Dimon more than a decade ago,
said Wednesday on CNBC big banks should be broken up. Severing
commercial and investment banking would improve the reputation of the
banks, protect taxpayers and reduce complexity, he said.
Former J.P. Morgan chairman William Harrison Jr., who bought Bank One
Corp. in 2004 in part because he wanted Jamie Dimon as his successor
at J.P. Morgan, countered in an interview with Dow Jones that breaking
up big banks into separate commercial- and investment-banking
companies would be "a huge mistake for the United States."
Friday, Mr. Dimon reiterated that clients demand both investment- and
commercial-banking products, so it makes sense to have them combined
in one bank--and one division.
Shares were fell 0.4% in recent trading to $35.66, while most other
big banks' stocks rose slightly.
--Saabira Chaudhuri contributed to this article.
Write to Matthias Rieker at matthias.rieker@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 27, 2012 09:15 ET (13:15 GMT)
investment banking, and asset management
--Mike Cavanagh and Daniel Pinto to be co-CEOs of investment banking
--Dimon: Restructuring won't result in layoffs
--CFO Braunstein no longer reports to CEO
J.P. Morgan Chase & Co. (JPM) is consolidating bank divisions and
moved around top executives in leadership structuring, just days after
reporting a massive trading loss while calls to separate investment
banking from commercial banking got louder.
The changes won't result in any layoffs, Chief Executive Jamie Dimon
said in an interview.
The bank will consolidate its consumer-banking businesses and combine
its capital-markets and its trust-and-payment-processing
businesses--shrinking six divisions into three, as asset management
will remain its own division. Mr. Dimon said the changes are intended
to create an organization that is no longer structured around
products, but customer demand. He said the changes, announced Friday,
will create a more efficient bank with lower costs.
As part of the restructuring, Chief Financial Officer Douglas
Braunstein will no longer report directly to Mr. Dimon, but to
co-Chief Operating Officer Matt Zames, according to a memorandum to
J.P. Morgan staff.
In the memo, Mr. Dimon said, "Periodically, all businesses need to
reorganize to set themselves up for continued success. As the global
environment rapidly changes, we need to evolve to position ourselves
around what's best for our clients, as well as emerging trends and
opportunities for growth."
The consolidation also brought the elevation of Mike Cavanagh to
co-CEO of J.P. Morgan's enlarged investment-banking division. Mr.
Cavanagh is the bank's former chief financial officer and Mr. Dimon
put him in charge of unwinding the trading mess created by the
ill-fated attempts to hedge credit risk in London that cost the bank
$5.8 billion in losses so far this year.
Mr. Cavanagh, a potential successor to Mr. Dimon, will lead the
investment-banking business as co-CEO with Daniel Pinto. Mr. Pinto
will focus on investment banking abroad. Current investment-banking
CEO Jes Staley will become investment-banking chairman.
Gordon Smith, the head of the credit-card business, will lead all
consumer-banking and lending businesses as co-CEO with Todd Maclin
until the end of next year, when Mr. Maclin will become chairman of
that business.
Frank Bisignano, the chief administrative officer who is also in
charge of cleaning up the mortgage mess around botched foreclosures,
will become co-chief operating officer of J.P. Morgan, along with Mr.
Zames, who will remain the head of the chief investment office.
J.P. Morgan has been among the banks that not only survived the
financial crisis well, but benefited from it by buying failing
investment bank Bear Stearns Cos. and the thrift Washington Mutual
Inc. Over the last six years, Mr. Dimon repeatedly has outlined in
details how the bank's businesses work together to gain customers.
The restructuring will bring J.P. Morgan's structure closer to those
of Citigroup Inc. (C) and Wells Fargo & Co. (WFC).
J.P. Morgan said "Managing businesses that share similar customers
allows the firm to utilize its collective strengths and expertise to
do more for our clients and to grow our business."
Former Citigroup CEO Sanford "Sandy" Weill had poured cold water on
exactly the kind of organization Mr. Dimon is trying to perfect with
the decision announced Friday.
Mr. Weill, who had fired his protege Mr. Dimon more than a decade ago,
said Wednesday on CNBC big banks should be broken up. Severing
commercial and investment banking would improve the reputation of the
banks, protect taxpayers and reduce complexity, he said.
Former J.P. Morgan chairman William Harrison Jr., who bought Bank One
Corp. in 2004 in part because he wanted Jamie Dimon as his successor
at J.P. Morgan, countered in an interview with Dow Jones that breaking
up big banks into separate commercial- and investment-banking
companies would be "a huge mistake for the United States."
Friday, Mr. Dimon reiterated that clients demand both investment- and
commercial-banking products, so it makes sense to have them combined
in one bank--and one division.
Shares were fell 0.4% in recent trading to $35.66, while most other
big banks' stocks rose slightly.
--Saabira Chaudhuri contributed to this article.
Write to Matthias Rieker at matthias.rieker@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 27, 2012 09:15 ET (13:15 GMT)
2012.07.27 17:02:36 USD/JPY intraday: bullish bias above 78.35.
11:03 EDT - Top-rated munis are taking a break from the tear they've
seen this month, with yields on AAA bonds as much as a basis point
higher today, shows an initial read on Thomson Reuters Municipal
Market Data's benchmark scale. Weaker Treasurys are giving "muni guys
a sign that the bond chase has ended for a while," says MMD's Randy
Smolik. Muni yields are already hovering at or around record lows on
MMD's scale, which dates to 1981. Meanwhile, there are few new bond
sales in the market Friday, with Maryland taking orders from
individuals on a $75M AAA deal. Yields match those offered on MMD's
scale. (kelly.nolan@dowjones.com)
(END) Dow Jones Newswires
July 27, 2012 11:03 ET (15:03 GMT)
seen this month, with yields on AAA bonds as much as a basis point
higher today, shows an initial read on Thomson Reuters Municipal
Market Data's benchmark scale. Weaker Treasurys are giving "muni guys
a sign that the bond chase has ended for a while," says MMD's Randy
Smolik. Muni yields are already hovering at or around record lows on
MMD's scale, which dates to 1981. Meanwhile, there are few new bond
sales in the market Friday, with Maryland taking orders from
individuals on a $75M AAA deal. Yields match those offered on MMD's
scale. (kelly.nolan@dowjones.com)
(END) Dow Jones Newswires
July 27, 2012 11:03 ET (15:03 GMT)
2012.07.27 17:01:53 *Fed Receives Total Coupon Submissions Of $47.087 Bln
(MORE TO FOLLOW) Dow Jones Newswires
July 27, 2012 11:01 ET (15:01 GMT)
July 27, 2012 11:01 ET (15:01 GMT)
2012.07.27 17:01:51 *Fed Sells Par Value of $7.93 Bln in Coupon Securities
(MORE TO FOLLOW) Dow Jones Newswires
July 27, 2012 11:01 ET (15:01 GMT)
July 27, 2012 11:01 ET (15:01 GMT)
2012.07.27 14:30:00 *US Final GDP In 1Q Revised To +2.0% Rate
(MORE TO FOLLOW) Dow Jones Newswires
July 27, 2012 08:30 ET (12:30 GMT)
July 27, 2012 08:30 ET (12:30 GMT)
Wednesday, 25 July 2012
2012.07.25 17:02:00 Fed Buys Par Value of $4.999 Bln in Coupon Securities
Operation Type: COUPON
Total Amount Accepted: $4.999 Bln
Total Amount Submitted: $11.314 Bln
Submitted/Accepted Ratio: 2.26
CUSIP Security Coupon Maturity Value
912828NT3 Notes 2.625 2020-08-15 $103 Mln
912828PC8 Notes 2.625 2020-11-15 $1 Mln
912828PX2 Notes 3.625 2021-02-15 $0
912828QN3 Notes 3.125 2021-05-15 $59 Mln
912828RC6 Notes 2.125 2021-08-15 $426 Mln
912828RR3 Notes 2.000 2021-11-15 $1.251 Bln
912828SF8 Notes 2.000 2022-02-15 $1.588 Bln
912828SV3 Notes 1.750 2022-05-15 $1.571 Bln
(Data was provided by the New York Federal Reserve Bank)
(MORE TO FOLLOW) Dow Jones Newswires
July 25, 2012 11:02 ET (15:02 GMT)
Total Amount Accepted: $4.999 Bln
Total Amount Submitted: $11.314 Bln
Submitted/Accepted Ratio: 2.26
CUSIP Security Coupon Maturity Value
912828NT3 Notes 2.625 2020-08-15 $103 Mln
912828PC8 Notes 2.625 2020-11-15 $1 Mln
912828PX2 Notes 3.625 2021-02-15 $0
912828QN3 Notes 3.125 2021-05-15 $59 Mln
912828RC6 Notes 2.125 2021-08-15 $426 Mln
912828RR3 Notes 2.000 2021-11-15 $1.251 Bln
912828SF8 Notes 2.000 2022-02-15 $1.588 Bln
912828SV3 Notes 1.750 2022-05-15 $1.571 Bln
(Data was provided by the New York Federal Reserve Bank)
(MORE TO FOLLOW) Dow Jones Newswires
July 25, 2012 11:02 ET (15:02 GMT)
2012.07.25 16:49:18 Treasury's Geithner:Bank of England Responsible for Fixing Libor Problem in '08
By Jeffrey Sparshott
WASHINGTON--Treasury Secretary Timothy Geithner Wednesday said the
Bank of England bore responsibility for fixing problems related to
manipulation of a key lending benchmark after U.S. officials raised
concerns.
"Our first instinct was not just to brief the broader U.S. regulatory
community and enforcement agencies, but to bring this to the British,"
Mr. Geithner told a House panel. "And we felt--and I still believe
this--that it was really going to be on them to take responsibility to
fix this."
Lawmakers repeatedly questioned Mr. Geithner on his response to signs
that the London interbank offered rate was being manipulated by banks.
Libor is used to determine the cost of credit around the world.
Mr. Geithner was head of the Federal Reserve Bank of New York when
U.S. authorities first became aware of concerns in the spring of 2008.
He said he briefed U.S. regulators and offered a detailed set of
recommendations to the Bank of England that, if adopted, would help
allay concerns.
Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 10:49 ET (14:49 GMT)
WASHINGTON--Treasury Secretary Timothy Geithner Wednesday said the
Bank of England bore responsibility for fixing problems related to
manipulation of a key lending benchmark after U.S. officials raised
concerns.
"Our first instinct was not just to brief the broader U.S. regulatory
community and enforcement agencies, but to bring this to the British,"
Mr. Geithner told a House panel. "And we felt--and I still believe
this--that it was really going to be on them to take responsibility to
fix this."
Lawmakers repeatedly questioned Mr. Geithner on his response to signs
that the London interbank offered rate was being manipulated by banks.
Libor is used to determine the cost of credit around the world.
Mr. Geithner was head of the Federal Reserve Bank of New York when
U.S. authorities first became aware of concerns in the spring of 2008.
He said he briefed U.S. regulators and offered a detailed set of
recommendations to the Bank of England that, if adopted, would help
allay concerns.
Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 10:49 ET (14:49 GMT)
2012.07.25 14:09:24 MARKET TALK: Treasurys Lower Ahead of 5-Year Note Sale
8:09 EDT - As Treasurys fell overnight after Tuesday's gains, the US
is poised to sell 5-year debt at the lowest auction-yield ever,
currently at 0.568% in the secondary market. Today's action comes amid
signs that "core" euro officials may be softening their stance on
deeper regionwide risk-sharing, with ECB council member Ewald Nowotny
saying there's a case for the ESM to extend its lending capacity by
getting a banking license. Benchmark 10-year notes fall 5/32, yielding
1.423%. (cynthia.lin@dowjones.com)
(END) Dow Jones Newswires
July 25, 2012 08:09 ET (12:09 GMT)
is poised to sell 5-year debt at the lowest auction-yield ever,
currently at 0.568% in the secondary market. Today's action comes amid
signs that "core" euro officials may be softening their stance on
deeper regionwide risk-sharing, with ECB council member Ewald Nowotny
saying there's a case for the ESM to extend its lending capacity by
getting a banking license. Benchmark 10-year notes fall 5/32, yielding
1.423%. (cynthia.lin@dowjones.com)
(END) Dow Jones Newswires
July 25, 2012 08:09 ET (12:09 GMT)
2012.07.25 11:22:55 *ECB: 36 Bidders at 3-Month Refinancing Operation
(MORE TO FOLLOW) Dow Jones Newswires
July 25, 2012 05:22 ET (09:22 GMT)
July 25, 2012 05:22 ET (09:22 GMT)
2012.07.25 08:12:02 Australian Dollar Down Late, Low Inflation Won't Seal Rate Cut
Rates At 0600 GMT
Latest Change
AUD/USD 1.0235 -0.6%
AUD/JPY 79.96 -0.9%
6.25% Apr, 2015 2.187% +0.008
5.50% Apr, 2023 2.823% +0.025
10-Yr Spread To U.S. +134 bps +2 bps
SFE Sept 3-Year Futures 97.86 -0.02
SFE Sept 10-Year Futures 97.28 -0.02
By Rachel Pannett
SYDNEY--The Australian dollar was lower late Wednesday even as markets
moved to pare back expectations of an August rate cut by the country's
central bank.
Official inflation data for the second quarter showed core inflation
rose 0.6% in the quarter and 2.0% annually--within the 2%-3% target
band the Reserve Bank of Australia uses to guide its policy decisions.
"Normally, a low inflation result like this would be enough to see the
RBA cut rates. But the difference this time around is that the RBA has
already cut rates by 75 basis points in the past three months," said
HSBC chief economist Paul Bloxham. "In our view, this has put them a
little ahead of the game," he said.
At 0600 GMT, the Australian dollar was at US$1.0235 from US$1.0301
late Tuesday and at Y79.96 from Y80.6975.
The official cash rate is currently 3.50% after the RBA cut interest
rates by 50 basis points in May and 25 basis points in June. Overnight
index swap markets are pricing in only a 30% chance of an August
easing following the inflation data.
Su-Lin Ong, head of Australian economics at RBC Capital Markets, said
the Aug. 7 interest rate decision remains a "close call", noting that
policymakers will be influenced more by developments in Europe and the
global economy than by local data. RBC still has an August rate cut
pencilled in.
-Write to Rachel Pannett at rachel.pannett@wsj.com
(Data provided by Reuters)
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 02:12 ET (06:12 GMT)
Latest Change
AUD/USD 1.0235 -0.6%
AUD/JPY 79.96 -0.9%
6.25% Apr, 2015 2.187% +0.008
5.50% Apr, 2023 2.823% +0.025
10-Yr Spread To U.S. +134 bps +2 bps
SFE Sept 3-Year Futures 97.86 -0.02
SFE Sept 10-Year Futures 97.28 -0.02
By Rachel Pannett
SYDNEY--The Australian dollar was lower late Wednesday even as markets
moved to pare back expectations of an August rate cut by the country's
central bank.
Official inflation data for the second quarter showed core inflation
rose 0.6% in the quarter and 2.0% annually--within the 2%-3% target
band the Reserve Bank of Australia uses to guide its policy decisions.
"Normally, a low inflation result like this would be enough to see the
RBA cut rates. But the difference this time around is that the RBA has
already cut rates by 75 basis points in the past three months," said
HSBC chief economist Paul Bloxham. "In our view, this has put them a
little ahead of the game," he said.
At 0600 GMT, the Australian dollar was at US$1.0235 from US$1.0301
late Tuesday and at Y79.96 from Y80.6975.
The official cash rate is currently 3.50% after the RBA cut interest
rates by 50 basis points in May and 25 basis points in June. Overnight
index swap markets are pricing in only a 30% chance of an August
easing following the inflation data.
Su-Lin Ong, head of Australian economics at RBC Capital Markets, said
the Aug. 7 interest rate decision remains a "close call", noting that
policymakers will be influenced more by developments in Europe and the
global economy than by local data. RBC still has an August rate cut
pencilled in.
-Write to Rachel Pannett at rachel.pannett@wsj.com
(Data provided by Reuters)
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 02:12 ET (06:12 GMT)
2012.07.25 08:05:02 Billabong Yet to Decide Whether to Engage With TPG
-- Billabong yet to decide whether to engage with TPG on A$695.6 million bid
-- CEO says bid being taken seriously
-- Company will reveal new strategy next month
MELBOURNE--Billabong International Ltd. (BBG.AU) Chief Executive Launa
Inman said Wednesday the company's board was yet to decide whether to
engage with U.S.-based private equity giant TPG Inc. on its 695.6
million Australian dollar (US$712.2 million) bid.
Ms. Inman said in an interview TPG's A$1.45-a-share bid was being
taken "very seriously" by Billabong.
"A decision hasn't been made at this stage but certainly it's ongoing
and we will be coming out in the not too distant future with a
decision," she said.
TPG's bid is its third this year but well below the sweetened A$3.30 a
share it offered in February which was rejected by the company as too
low. The initial approach failed after Billabong founders and
directors Gordon Merchant and Colette Paull--who between them own
about 16% of Billabong--said it undervalued the company. At the time,
they said they wouldn't support even a A$4-a-share offer.
Mr. Merchant has since appeared to have had a change of heart. Last
month, he was quoted in local media as saying he felt "bad" about
rejecting TPG's previous offer, and that he was prepared to consider a
new bid.
Ms. Inman said Mr. Merchant was taking part in the board's
deliberations but protocols were in place if his input needed to be
reviewed in future.
TPG has structured its bid so that Mr. Merchant and Ms. Paull can roll
their shareholdings into the bid if they choose, effectively making
them partners with TPG.
Ms. Inman said she still planned to reveal a new strategy for the
struggling surf and snow clothing and accessory retailer late next
month no matter what happened with the TPG bid.
"I do believe that this business does have potential and what we are
doing and the work we're undertaking at the moment, regardless of
whatever the outcomes are, it is work that is absolutely essential and
needs to be done and can only position the business for a better
future," she said.
Billabong's shares have been smashed over the past 12 months as the
company downgraded earnings, sold part of its Nixon brand to ease
debt, closed underperforming stores, and launched a A$225 million
capital raising that almost half of all eligible retail shareholders
snubbed. The company was also hurt as it branched into the retail
space around the time of the global financial crisis when consumers
began to rein in their spending.
At 0540 GMT, Billabong's shares were up half a cent at A$1.32, while
the benchmark S&P/ASX 200 was down 0.2%.
Ms. Inman said despite global economic uncertainty and difficult
trading conditions, "there's always opportunities out there" for the
company, including improving its market share.
She said the company needed to understand its customers and how to
engage with them, improve its retail experience and improve its supply
chain and sourcing.
"As you want to be a business of really cool brands and talking to the
youth you also have to have the professional back of house aspects of
the business in order for it to be effective," she said.
Write to Gavin Lower at gavin.lower@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 01:35 ET (05:35 GMT)
-- CEO says bid being taken seriously
-- Company will reveal new strategy next month
MELBOURNE--Billabong International Ltd. (BBG.AU) Chief Executive Launa
Inman said Wednesday the company's board was yet to decide whether to
engage with U.S.-based private equity giant TPG Inc. on its 695.6
million Australian dollar (US$712.2 million) bid.
Ms. Inman said in an interview TPG's A$1.45-a-share bid was being
taken "very seriously" by Billabong.
"A decision hasn't been made at this stage but certainly it's ongoing
and we will be coming out in the not too distant future with a
decision," she said.
TPG's bid is its third this year but well below the sweetened A$3.30 a
share it offered in February which was rejected by the company as too
low. The initial approach failed after Billabong founders and
directors Gordon Merchant and Colette Paull--who between them own
about 16% of Billabong--said it undervalued the company. At the time,
they said they wouldn't support even a A$4-a-share offer.
Mr. Merchant has since appeared to have had a change of heart. Last
month, he was quoted in local media as saying he felt "bad" about
rejecting TPG's previous offer, and that he was prepared to consider a
new bid.
Ms. Inman said Mr. Merchant was taking part in the board's
deliberations but protocols were in place if his input needed to be
reviewed in future.
TPG has structured its bid so that Mr. Merchant and Ms. Paull can roll
their shareholdings into the bid if they choose, effectively making
them partners with TPG.
Ms. Inman said she still planned to reveal a new strategy for the
struggling surf and snow clothing and accessory retailer late next
month no matter what happened with the TPG bid.
"I do believe that this business does have potential and what we are
doing and the work we're undertaking at the moment, regardless of
whatever the outcomes are, it is work that is absolutely essential and
needs to be done and can only position the business for a better
future," she said.
Billabong's shares have been smashed over the past 12 months as the
company downgraded earnings, sold part of its Nixon brand to ease
debt, closed underperforming stores, and launched a A$225 million
capital raising that almost half of all eligible retail shareholders
snubbed. The company was also hurt as it branched into the retail
space around the time of the global financial crisis when consumers
began to rein in their spending.
At 0540 GMT, Billabong's shares were up half a cent at A$1.32, while
the benchmark S&P/ASX 200 was down 0.2%.
Ms. Inman said despite global economic uncertainty and difficult
trading conditions, "there's always opportunities out there" for the
company, including improving its market share.
She said the company needed to understand its customers and how to
engage with them, improve its retail experience and improve its supply
chain and sourcing.
"As you want to be a business of really cool brands and talking to the
youth you also have to have the professional back of house aspects of
the business in order for it to be effective," she said.
Write to Gavin Lower at gavin.lower@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 25, 2012 01:35 ET (05:35 GMT)
2012.07.25 07:23:48 USD/JPY intraday: capped by a negative trend line.
USD/JPY intraday: capped by a negative trend line.
Update on supports and resistances.
Pivot: 78.45.
Our Preference: SHORT positions @ 78.35 with 77.9 & 77.75 in sight.
Alternative scenario: The upside penetration of 78.45 will call for a
rebound towards 78.65 & 78.8.
Comment: as long as the resistance at 78.45 is not surpassed, the risk
of the break below 77.9 remains high.
Trend: ST Ltd Downside; MT Range
Key levels Comment
78.8** Intraday resistance
78.65** Intraday resistance
78.45*** Intraday pivot point
78.12 Last
77.9** Intraday support
77.75** Intraday support
77.6** Intraday support
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume
24.07.2012 22:45 Down
23.07.2012 22:45 Down Down
Time Candlestick Last Opinion Invalidation
24.07.2012 03:10 Hammer 78.39 Up 77.94
Update on supports and resistances.
Pivot: 78.45.
Our Preference: SHORT positions @ 78.35 with 77.9 & 77.75 in sight.
Alternative scenario: The upside penetration of 78.45 will call for a
rebound towards 78.65 & 78.8.
Comment: as long as the resistance at 78.45 is not surpassed, the risk
of the break below 77.9 remains high.
Trend: ST Ltd Downside; MT Range
Key levels Comment
78.8** Intraday resistance
78.65** Intraday resistance
78.45*** Intraday pivot point
78.12 Last
77.9** Intraday support
77.75** Intraday support
77.6** Intraday support
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume
24.07.2012 22:45 Down
23.07.2012 22:45 Down Down
Time Candlestick Last Opinion Invalidation
24.07.2012 03:10 Hammer 78.39 Up 77.94
2012.07.25 05:31:26 UPDATE: IMF Sees China Making 'Soft Landing,' More Stimulus Possible
-- IMF sees China heading for soft landing barring major external shocks
-- IMF says China is ready to apply more stimulus measures if needed
-- IMF and China continue to disagree on yuan valuation
-- IMF says China external surplus could rebound if yuan doesn't
continue to appreciate
(Combines two earlier stories, adds content from report and background
throughout.)
By Aaron Back and Jamila Trindle
BEIJING--China's economy is headed toward a "soft landing," but there
are still significant downside risks, the International Monetary Fund
said in a report Wednesday.
Beijing is also ready to deploy additional stimulus measures,
especially if the global economic situation worsens, Markus Rodlauer,
deputy director of the IMF's Asia Pacific Department, told reporters
on a conference call following the release of the report.
"The authorities have also told us that, in light of the large
uncertainties in the global economy and the risk of intensifying
strains and crisis in Europe, they are prepared to do more, and
significantly more, if needed in the face of a large external shock,"
he said.
So far this year, China has cut interest rates twice and cut the level
of required reserves three times. The government has also accelerated
approval of investment projects such as infrastructure construction,
and rolled out incentives for the purchase of energy-efficient
appliances.
Mr. Rodlauer characterized these moves as "calibrated so far mainly to
remove the previous restrictive bias and not to engage in a broad new
stimulus."
"The authorities have taken their foot off the brakes, but they have
not yet stepped on the accelerator in a major way," he said.
In its report, the IMF maintained its current forecasts for China's
gross domestic product to grow 8% this year and 8.5% next year.
The fund also predicted that China's current-account surplus, the
broadest measure of a nation's trade, would be 2.3% of GDP in 2012 and
2.5% of GDP in 2013.
That is down from the massive surplus of over 10% of GDP in 2007, and
the IMF applauded China's progress in rebalancing away from dependence
on external demand.
But it warned that China has been less successful at rebalancing its
internal economy away from investment and toward consumption.
Current high levels of investment may not be sustainable amid weak
external demand and excess capacity, it said.
Last month, the IMF shifted its stance on China's currency, describing
it as "moderately undervalued" against a broad basket of currencies,
instead of "substantially undervalued." China's declining external
surplus and years of accumulated appreciation of the yuan factored
into the decision.
On the call with journalists, Mr. Rodlauer declined to give an
explicit estimate of the degree of undervaluation in the currency.
He also acknowledged that Chinese authorities disagree with the IMF's
stance on the currency, saying they feel it is near equilibrium.
Underpinning the IMF's view is the possibility of a rebound in China's
external imbalances.
"We are confident in our judgment that at current exchange rate and
currency policies...it will be very likely that the current account
surplus will go back up again."
To prevent such a scenario, the IMF believes that "continued gradual
appreciation" of the currency will be needed in the coming years, he
said.
The IMF said inflation pressure had eased and it expected inflation in
China to fall to 3% to 3.5% in 2012 and to 2.5% to 3% in 2013,
"barring further shocks to agricultural supply."
"Price pressures have eased across all major components of the
[consumer price index] basket, led by declining food inflation," the
IMF said.
The IMF also commented on China's real-estate market, saying that the
Chinese government should further reform financial markets to give
consumers more investment options.
"Eliminating the potential for property bubbles requires reforms to
channel household savings away from housing and toward other financial
assets," the IMF said.
The IMF also said that it approved of steps that the Chinese
government has taken toward market-determined interest rates and
"encouraged further deployment of market-based policy instruments."
Write to Aaron Back at aaron.back@dowjones.com and Jamila Trindle at
jamila.trindle@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 23:31 ET (03:31 GMT)
-- IMF says China is ready to apply more stimulus measures if needed
-- IMF and China continue to disagree on yuan valuation
-- IMF says China external surplus could rebound if yuan doesn't
continue to appreciate
(Combines two earlier stories, adds content from report and background
throughout.)
By Aaron Back and Jamila Trindle
BEIJING--China's economy is headed toward a "soft landing," but there
are still significant downside risks, the International Monetary Fund
said in a report Wednesday.
Beijing is also ready to deploy additional stimulus measures,
especially if the global economic situation worsens, Markus Rodlauer,
deputy director of the IMF's Asia Pacific Department, told reporters
on a conference call following the release of the report.
"The authorities have also told us that, in light of the large
uncertainties in the global economy and the risk of intensifying
strains and crisis in Europe, they are prepared to do more, and
significantly more, if needed in the face of a large external shock,"
he said.
So far this year, China has cut interest rates twice and cut the level
of required reserves three times. The government has also accelerated
approval of investment projects such as infrastructure construction,
and rolled out incentives for the purchase of energy-efficient
appliances.
Mr. Rodlauer characterized these moves as "calibrated so far mainly to
remove the previous restrictive bias and not to engage in a broad new
stimulus."
"The authorities have taken their foot off the brakes, but they have
not yet stepped on the accelerator in a major way," he said.
In its report, the IMF maintained its current forecasts for China's
gross domestic product to grow 8% this year and 8.5% next year.
The fund also predicted that China's current-account surplus, the
broadest measure of a nation's trade, would be 2.3% of GDP in 2012 and
2.5% of GDP in 2013.
That is down from the massive surplus of over 10% of GDP in 2007, and
the IMF applauded China's progress in rebalancing away from dependence
on external demand.
But it warned that China has been less successful at rebalancing its
internal economy away from investment and toward consumption.
Current high levels of investment may not be sustainable amid weak
external demand and excess capacity, it said.
Last month, the IMF shifted its stance on China's currency, describing
it as "moderately undervalued" against a broad basket of currencies,
instead of "substantially undervalued." China's declining external
surplus and years of accumulated appreciation of the yuan factored
into the decision.
On the call with journalists, Mr. Rodlauer declined to give an
explicit estimate of the degree of undervaluation in the currency.
He also acknowledged that Chinese authorities disagree with the IMF's
stance on the currency, saying they feel it is near equilibrium.
Underpinning the IMF's view is the possibility of a rebound in China's
external imbalances.
"We are confident in our judgment that at current exchange rate and
currency policies...it will be very likely that the current account
surplus will go back up again."
To prevent such a scenario, the IMF believes that "continued gradual
appreciation" of the currency will be needed in the coming years, he
said.
The IMF said inflation pressure had eased and it expected inflation in
China to fall to 3% to 3.5% in 2012 and to 2.5% to 3% in 2013,
"barring further shocks to agricultural supply."
"Price pressures have eased across all major components of the
[consumer price index] basket, led by declining food inflation," the
IMF said.
The IMF also commented on China's real-estate market, saying that the
Chinese government should further reform financial markets to give
consumers more investment options.
"Eliminating the potential for property bubbles requires reforms to
channel household savings away from housing and toward other financial
assets," the IMF said.
The IMF also said that it approved of steps that the Chinese
government has taken toward market-determined interest rates and
"encouraged further deployment of market-based policy instruments."
Write to Aaron Back at aaron.back@dowjones.com and Jamila Trindle at
jamila.trindle@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 23:31 ET (03:31 GMT)
2012.07.25 04:50:42 Interbank Foreign Exchange Rates At 22:50 EST / 0250 GMT
Latest Previous %Chg Daily
Daily %Chg
Dollar Rates Close High
Low 12/31
USD/JPY Japan 78.12-16 78.17-21 -0.06 78.20
78.08 +1.59
EUR/USD Euro 1.2073-76 1.2060-63 +0.11 1.2076
1.2054 -6.83
GBP/USD U.K. 1.5509-14 1.5503-07 +0.04 1.5511
1.5492 -0.20
USD/CHF Switzerland 0.9943-48 0.9956-60 -0.12 0.9964
0.9946 +6.11
USD/CAD Canada 1.0211-16 1.0219-24 -0.08 1.0231
1.0214 +0.04
AUD/USD Australia 1.0232-34 1.0218-22 +0.13 1.0234
1.0180 +0.24
NZD/USD New Zealand 0.7828-30 0.7844-50 -0.23 0.7851
0.7812 +0.68
Euro Rates
EUR/JPY Japan 94.33-38 94.28-33 +0.05 94.40
94.16 -5.23
EUR/GBP U.K. 0.7783-86 0.7777-80 +0.07 0.7787
0.7776 -7.95
EUR/CHF Switzerland 1.2008-12 1.2007-13 0.00 1.2011
1.2010 -1.33
EUR/CAD Canada 1.2330-38 1.2325-32 +0.05 1.2340
1.2323 -6.79
EUR/AUD Australia 1.1798-802 1.1798-804 -0.01 1.1849
1.1794 -7.05
EUR/DKK Denmark 7.4369-412 7.4370-412 0.00 7.4405
7.4384 +0.05
EUR/NOK Norway 7.3745-818 7.3714-818 +0.02 7.3904
7.3616 -4.74
EUR/SEK Sweden 8.4184-248 8.4141-218 +0.04 8.4273
8.4150 -5.55
EUR/CZK Czech Rep. 25.563-99 25.502-82 +0.15 25.586
25.540 -0.06
EUR/HUF Hungary 289.40-90.16 289.37-90.27 -0.01 289.78
289.88 -8.03
EUR/PLN Poland 4.2173-226 4.2131-226 +0.05 4.2314
4.2170 -5.54
Yen Rates
AUD/JPY Australia 79.93-98 79.88-94 +0.06 79.98
79.56 +2.22
GBP/JPY U.K. 121.16-26 121.18-27 -0.02 121.24
120.96 +1.39
CAD/JPY Canada 76.47-54 76.46-52 +0.02 76.52
76.34 +1.56
NZD/JPY New Zealand 61.15-20 61.31-39 -0.29 61.38
61.02 +2.28
Other Dollar Rates
USD/CZK Czech Rep. 21.171-98 21.148-210 +0.02 21.207
21.172 +7.26
USD/HUF Hungary 239.69-40.28 239.94-40.65 -0.13 240.25
240.22 -1.30
USD/DKK Denmark 6.1594-620 6.1667-90 -0.12 6.1712
6.1608 +7.38
USD/NOK Norway 6.1077-128 6.1120-202 -0.10 6.1271
6.1010 +2.24
USD/PLZ Poland 3.4930-68 3.4935-5007 -0.06 3.5083
3.4952 +1.39
USD/RUB Russia 32.956-3.030 32.916-92 +0.12 32.994
32.812 +2.62
USD/SEK Sweden 6.9724-66 6.9769-820 -0.07 6.9879
6.9742 +1.37
USD/ZAR S. Africa 8.5065-190 8.5064-258 -0.04 8.5421
8.5128 +5.26
USD/CNY China 6.3877-98 6.3871-92 +0.01 6.3877
6.3890 +1.10
USD/HKD Hong Kong 7.7572-78 7.7574-80 0.00 7.7580
7.7574 -0.12
USD/MYR Malaysia 3.1785-886 3.1750-818 +0.16 3.1872
3.1806 +0.19
USD/INR India 56.080-95 56.140-240 -0.18 56.173
56.095 +5.78
USD/IDR Indonesia 9459-521 9438-500 +0.22 9490
9410 +5.06
USD/PHP Philippines 41.999-2.200 41.907-2.156 +0.16 42.035
42.100 -3.99
USD/SGD Singapore 1.2611-20 1.2622-29 -0.08 1.2644
1.2614 -2.69
USD/KRW S. Korea 1149.29-51.80 1147.99-50.50 +0.11 1153.09
1149.60 -0.87
USD/TWD Taiwan 30.139-200 30.109-70 +0.10 30.159
30.160 -0.31
USD/THB Thailand 31.745-804 31.776-838 -0.10 31.790
31.774 +0.55
USD/VND Vietnam 20589-1262 20810-85 +0.37 20589
21262 -0.53
USD/BRR Brazil 2.0433-64 2.0451-82 -0.09 2.0459
2.0464 +9.61
USD/MXN Mexico 13.6789-860 13.7034-154 -0.20 13.7244
13.6844 -1.89
USD/ARS Argentina 4.5696-772 4.5697-772 0.00 4.5707
4.5752 +6.14
Source: ICAP Plc.
(END) Dow Jones Newswires
July 24, 2012 22:50 ET (02:50 GMT)
Daily %Chg
Dollar Rates Close High
Low 12/31
USD/JPY Japan 78.12-16 78.17-21 -0.06 78.20
78.08 +1.59
EUR/USD Euro 1.2073-76 1.2060-63 +0.11 1.2076
1.2054 -6.83
GBP/USD U.K. 1.5509-14 1.5503-07 +0.04 1.5511
1.5492 -0.20
USD/CHF Switzerland 0.9943-48 0.9956-60 -0.12 0.9964
0.9946 +6.11
USD/CAD Canada 1.0211-16 1.0219-24 -0.08 1.0231
1.0214 +0.04
AUD/USD Australia 1.0232-34 1.0218-22 +0.13 1.0234
1.0180 +0.24
NZD/USD New Zealand 0.7828-30 0.7844-50 -0.23 0.7851
0.7812 +0.68
Euro Rates
EUR/JPY Japan 94.33-38 94.28-33 +0.05 94.40
94.16 -5.23
EUR/GBP U.K. 0.7783-86 0.7777-80 +0.07 0.7787
0.7776 -7.95
EUR/CHF Switzerland 1.2008-12 1.2007-13 0.00 1.2011
1.2010 -1.33
EUR/CAD Canada 1.2330-38 1.2325-32 +0.05 1.2340
1.2323 -6.79
EUR/AUD Australia 1.1798-802 1.1798-804 -0.01 1.1849
1.1794 -7.05
EUR/DKK Denmark 7.4369-412 7.4370-412 0.00 7.4405
7.4384 +0.05
EUR/NOK Norway 7.3745-818 7.3714-818 +0.02 7.3904
7.3616 -4.74
EUR/SEK Sweden 8.4184-248 8.4141-218 +0.04 8.4273
8.4150 -5.55
EUR/CZK Czech Rep. 25.563-99 25.502-82 +0.15 25.586
25.540 -0.06
EUR/HUF Hungary 289.40-90.16 289.37-90.27 -0.01 289.78
289.88 -8.03
EUR/PLN Poland 4.2173-226 4.2131-226 +0.05 4.2314
4.2170 -5.54
Yen Rates
AUD/JPY Australia 79.93-98 79.88-94 +0.06 79.98
79.56 +2.22
GBP/JPY U.K. 121.16-26 121.18-27 -0.02 121.24
120.96 +1.39
CAD/JPY Canada 76.47-54 76.46-52 +0.02 76.52
76.34 +1.56
NZD/JPY New Zealand 61.15-20 61.31-39 -0.29 61.38
61.02 +2.28
Other Dollar Rates
USD/CZK Czech Rep. 21.171-98 21.148-210 +0.02 21.207
21.172 +7.26
USD/HUF Hungary 239.69-40.28 239.94-40.65 -0.13 240.25
240.22 -1.30
USD/DKK Denmark 6.1594-620 6.1667-90 -0.12 6.1712
6.1608 +7.38
USD/NOK Norway 6.1077-128 6.1120-202 -0.10 6.1271
6.1010 +2.24
USD/PLZ Poland 3.4930-68 3.4935-5007 -0.06 3.5083
3.4952 +1.39
USD/RUB Russia 32.956-3.030 32.916-92 +0.12 32.994
32.812 +2.62
USD/SEK Sweden 6.9724-66 6.9769-820 -0.07 6.9879
6.9742 +1.37
USD/ZAR S. Africa 8.5065-190 8.5064-258 -0.04 8.5421
8.5128 +5.26
USD/CNY China 6.3877-98 6.3871-92 +0.01 6.3877
6.3890 +1.10
USD/HKD Hong Kong 7.7572-78 7.7574-80 0.00 7.7580
7.7574 -0.12
USD/MYR Malaysia 3.1785-886 3.1750-818 +0.16 3.1872
3.1806 +0.19
USD/INR India 56.080-95 56.140-240 -0.18 56.173
56.095 +5.78
USD/IDR Indonesia 9459-521 9438-500 +0.22 9490
9410 +5.06
USD/PHP Philippines 41.999-2.200 41.907-2.156 +0.16 42.035
42.100 -3.99
USD/SGD Singapore 1.2611-20 1.2622-29 -0.08 1.2644
1.2614 -2.69
USD/KRW S. Korea 1149.29-51.80 1147.99-50.50 +0.11 1153.09
1149.60 -0.87
USD/TWD Taiwan 30.139-200 30.109-70 +0.10 30.159
30.160 -0.31
USD/THB Thailand 31.745-804 31.776-838 -0.10 31.790
31.774 +0.55
USD/VND Vietnam 20589-1262 20810-85 +0.37 20589
21262 -0.53
USD/BRR Brazil 2.0433-64 2.0451-82 -0.09 2.0459
2.0464 +9.61
USD/MXN Mexico 13.6789-860 13.7034-154 -0.20 13.7244
13.6844 -1.89
USD/ARS Argentina 4.5696-772 4.5697-772 0.00 4.5707
4.5752 +6.14
Source: ICAP Plc.
(END) Dow Jones Newswires
July 24, 2012 22:50 ET (02:50 GMT)
2012.07.25 04:36:26 EUR/JPY intraday: the downside prevails.
USD/CAD intraday: further upside.
Update on supports and resistances.
Pivot: 1.0175
Our preference: Long positions above 1.0175 with targets @ 1.025 &
1.0265 in extension.
Alternative scenario: Below 1.0175 look for further downside with
1.015 & 1.0125 as targets.
Comment: the RSI is mixed with a bullish bias.
Key levels
1.03
1.0265
1.025
1.0213 last
1.0175
1.015
1.0125
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume
24.07.2012 22:45 Up Up
Update on supports and resistances.
Pivot: 1.0175
Our preference: Long positions above 1.0175 with targets @ 1.025 &
1.0265 in extension.
Alternative scenario: Below 1.0175 look for further downside with
1.015 & 1.0125 as targets.
Comment: the RSI is mixed with a bullish bias.
Key levels
1.03
1.0265
1.025
1.0213 last
1.0175
1.015
1.0125
Copyright 1999 - 2012 TRADING CENTRAL
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011
Time MA20 MA50 MA20_50 MACD_SL MACD_0 Bollinger RSI70 RSI30 Volume
24.07.2012 22:45 Up Up
2012.07.25 01:51:07 WSJ(7/25) Fed Moves Closer To Action
(From THE WALL STREET JOURNAL)
By Jon Hilsenrath
Federal Reserve officials, impatient with the economy's sluggish
growth and high unemployment, are moving closer to taking new steps to
spur activity and hiring.
Since their June policy meeting, officials have made clear -- in
interviews, speeches and testimony to Congress -- that they find the
current state of the economy unacceptable. Many officials appear
increasingly inclined to move unless they see evidence soon that
activity is picking up on its own.
Amid the recent wave of disappointing economic news, conversation
inside the Fed has turned more intensely toward the questions of how
and when to move. Central bank officials could take new steps at their
meeting next week, July 31 and Aug. 1, though they might wait until
their September meeting to accumulate more information on the pace of
growth and job gains before deciding whether to act.
Fed officials could take some actions in combination or one after
another. Fed Chairman Ben Bernanke, in testimony to Congress last
week, listed several options under consideration, including a new
program of buying mortgage-backed or Treasury securities, new
commitments to keep short-term interest rates near zero beyond 2014 or
an effort to push already-low benchmark short-term interest rates even
lower.
Determined to keep trying to get the economy going without causing
inflation, the Fed is exploring other novel measures. One idea
mentioned by Mr. Bernanke in his testimony would be to use a facility
the Fed calls its discount window to provide cheap credit directly to
banks that make new business or consumer loans. But it isn't clear
such a program would do much good when banks already have ample access
to cheap credit and this kind of program doesn't appear to be winning
favor at the moment.
Mr. Bernanke told Congress he wants to see more progress in reducing
unemployment and he expressed frustration the economy appears to be
"stuck in the mud." The Fed chairman has spoken in the past about the
importance of the economy achieving what he calls "escape velocity" --
growth that is fast enough to give the economy forward,
self-reinforcing momentum.
New worries are emerging at the Fed that the economy is falling short
of that speed. The Commerce Department is expected to report this week
that the economy grew at a rate substantially below 2% in the second
quarter after expanding just 1.9% in the first quarter. The
unemployment rate, at 8.2% in June, has moved little since January.
Retail sales have been soft in recent months and financial markets,
particularly in Europe, have become strained in past weeks. Some
officials believe the outlook for growth has worsened a bit since the
Fed's June meeting, when the central bank marked down its projections.
Several officials have expressed both frustration with the
disappointing recovery and a willingness to act if growth and
employment don't pick up. Sandra Pianalto, president of the Cleveland
Fed, said in public comments earlier this month she would be prepared
to act if weak economic data persisted. Dennis Lockhart, the Atlanta
Fed president, said more action could be needed barring a "step-up of
output and employment growth."
Fed "hawks" -- who tend to worry more about inflation and have opposed
more action to stimulate the economy -- have softened their tone and
acknowledged the frustration. "I know people feel like we haven't made
enough progress," James Bullard, St. Louis Fed president, said in an
interview this month. He said he would be prepared to act if inflation
falls too low or if a new shock hits the economy.
There are several reasons why Fed officials might wait for their
September meeting to decide whether to proceed. By then they will have
seen two more monthly unemployment reports and two more months of data
on output, spending and investment. Fed officials update their
economic projections at the September meeting and Mr. Bernanke holds
his a quarterly news conference after, which would give him an
opportunity to publicly explain the Fed's thinking.
Moreover, some officials believe the Fed's June decision to continue a
program known as "Operation Twist" through year-end could help the
economy and want to give it time to work. Under that program, the Fed
is buying $267 billion worth of long-term Treasury securities and
selling an equal amount of short-term securities in an attempt to push
down long-term interest rates to spur spending and investment.
The most controversial option on the Fed's list is a large bond-buying
program in which the Fed would acquire long-term securities with newly
created money -- a step known to many as "quantitative easing," or QE.
In the Fed's first round of QE in 2009 and early 2010, it bought $1.25
trillion worth of mortgage-backed securities and $300 billion of
Treasury securities and debt issued by Fannie Mae and Freddie Mac. In
its second round in 2010 and 2011, the Fed bought $600 billion of
Treasury securities. A third round could involve similarly substantial
sums. Many officials have signaled a preference for buying mortgage
securities. One reason: They fear that if they buy many more Treasury
securities, the Fed could become too large a presence in that market
and disrupt trading.
For years, critics have warned that such programs would spur
inflation, a collapse in the value of the dollar or a new financial
bubble. Most measures of consumer price inflation, however, are close
to the Fed's 2% goal, and broad measures of the dollar exchange rate
have strengthened in the past 12 months, which has damped the power of
these warnings.
Mr. Bernanke, meanwhile, has argued that the programs are helpful,
while acknowledging their effects can be limited under certain
conditions, such as when interest rates are already very low and
demand for credit remains weak.
A new round of bond-buying would be politically controversial so close
to the November presidential election. During Mr. Bernanke's testimony
last week, Democrats made clear they wanted the Fed to act and
Republicans said it should proceed cautiously. The Fed chief has said
the central bank will seek to do what is best for the economy,
regardless of political pressure.
Another option is a change in the Fed's public communication about its
plans. Since January the Fed has been saying it doesn't expect to
raise short-term interest rates until late 2014. The Fed could change
its policy statement in September to move that date into 2015. Such
pronouncements about the expected path of short-term rates tend to
reduce long- and medium-term interest rates. The Fed thinks this
supports near-term spending and investment.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 19:51 ET (23:51 GMT)
By Jon Hilsenrath
Federal Reserve officials, impatient with the economy's sluggish
growth and high unemployment, are moving closer to taking new steps to
spur activity and hiring.
Since their June policy meeting, officials have made clear -- in
interviews, speeches and testimony to Congress -- that they find the
current state of the economy unacceptable. Many officials appear
increasingly inclined to move unless they see evidence soon that
activity is picking up on its own.
Amid the recent wave of disappointing economic news, conversation
inside the Fed has turned more intensely toward the questions of how
and when to move. Central bank officials could take new steps at their
meeting next week, July 31 and Aug. 1, though they might wait until
their September meeting to accumulate more information on the pace of
growth and job gains before deciding whether to act.
Fed officials could take some actions in combination or one after
another. Fed Chairman Ben Bernanke, in testimony to Congress last
week, listed several options under consideration, including a new
program of buying mortgage-backed or Treasury securities, new
commitments to keep short-term interest rates near zero beyond 2014 or
an effort to push already-low benchmark short-term interest rates even
lower.
Determined to keep trying to get the economy going without causing
inflation, the Fed is exploring other novel measures. One idea
mentioned by Mr. Bernanke in his testimony would be to use a facility
the Fed calls its discount window to provide cheap credit directly to
banks that make new business or consumer loans. But it isn't clear
such a program would do much good when banks already have ample access
to cheap credit and this kind of program doesn't appear to be winning
favor at the moment.
Mr. Bernanke told Congress he wants to see more progress in reducing
unemployment and he expressed frustration the economy appears to be
"stuck in the mud." The Fed chairman has spoken in the past about the
importance of the economy achieving what he calls "escape velocity" --
growth that is fast enough to give the economy forward,
self-reinforcing momentum.
New worries are emerging at the Fed that the economy is falling short
of that speed. The Commerce Department is expected to report this week
that the economy grew at a rate substantially below 2% in the second
quarter after expanding just 1.9% in the first quarter. The
unemployment rate, at 8.2% in June, has moved little since January.
Retail sales have been soft in recent months and financial markets,
particularly in Europe, have become strained in past weeks. Some
officials believe the outlook for growth has worsened a bit since the
Fed's June meeting, when the central bank marked down its projections.
Several officials have expressed both frustration with the
disappointing recovery and a willingness to act if growth and
employment don't pick up. Sandra Pianalto, president of the Cleveland
Fed, said in public comments earlier this month she would be prepared
to act if weak economic data persisted. Dennis Lockhart, the Atlanta
Fed president, said more action could be needed barring a "step-up of
output and employment growth."
Fed "hawks" -- who tend to worry more about inflation and have opposed
more action to stimulate the economy -- have softened their tone and
acknowledged the frustration. "I know people feel like we haven't made
enough progress," James Bullard, St. Louis Fed president, said in an
interview this month. He said he would be prepared to act if inflation
falls too low or if a new shock hits the economy.
There are several reasons why Fed officials might wait for their
September meeting to decide whether to proceed. By then they will have
seen two more monthly unemployment reports and two more months of data
on output, spending and investment. Fed officials update their
economic projections at the September meeting and Mr. Bernanke holds
his a quarterly news conference after, which would give him an
opportunity to publicly explain the Fed's thinking.
Moreover, some officials believe the Fed's June decision to continue a
program known as "Operation Twist" through year-end could help the
economy and want to give it time to work. Under that program, the Fed
is buying $267 billion worth of long-term Treasury securities and
selling an equal amount of short-term securities in an attempt to push
down long-term interest rates to spur spending and investment.
The most controversial option on the Fed's list is a large bond-buying
program in which the Fed would acquire long-term securities with newly
created money -- a step known to many as "quantitative easing," or QE.
In the Fed's first round of QE in 2009 and early 2010, it bought $1.25
trillion worth of mortgage-backed securities and $300 billion of
Treasury securities and debt issued by Fannie Mae and Freddie Mac. In
its second round in 2010 and 2011, the Fed bought $600 billion of
Treasury securities. A third round could involve similarly substantial
sums. Many officials have signaled a preference for buying mortgage
securities. One reason: They fear that if they buy many more Treasury
securities, the Fed could become too large a presence in that market
and disrupt trading.
For years, critics have warned that such programs would spur
inflation, a collapse in the value of the dollar or a new financial
bubble. Most measures of consumer price inflation, however, are close
to the Fed's 2% goal, and broad measures of the dollar exchange rate
have strengthened in the past 12 months, which has damped the power of
these warnings.
Mr. Bernanke, meanwhile, has argued that the programs are helpful,
while acknowledging their effects can be limited under certain
conditions, such as when interest rates are already very low and
demand for credit remains weak.
A new round of bond-buying would be politically controversial so close
to the November presidential election. During Mr. Bernanke's testimony
last week, Democrats made clear they wanted the Fed to act and
Republicans said it should proceed cautiously. The Fed chief has said
the central bank will seek to do what is best for the economy,
regardless of political pressure.
Another option is a change in the Fed's public communication about its
plans. Since January the Fed has been saying it doesn't expect to
raise short-term interest rates until late 2014. The Fed could change
its policy statement in September to move that date into 2015. Such
pronouncements about the expected path of short-term rates tend to
reduce long- and medium-term interest rates. The Fed thinks this
supports near-term spending and investment.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 19:51 ET (23:51 GMT)
2012.07.24 23:07:55 G7 Political, Economic Calendar - Week Ahead -3-
Producer Prices Monthly -0.3%
Producer Prices Yearly +2.2%
1145 US Jul 28 ICSC-Goldman Sachs Chain Store Sales Index
Chain Store Sales Index - WoW +1%
Chain Store Sales Index - YoY +3.3%
1230 US Jun Personal Income & Outlays
Personal Income +0.2%
Personal Spending 0%
PCE Price Index Monthly -0.2%
PCE Price Index Yearly +1.5%
PCE Core Price Index Monthly +0.1%
PCE Core Price Index Yearly +1.8%
1230 US Q2 Employment Cost Index
1230 CAN May GDP by Industry
GDP +0.3%
1230 CAN Jun Industrial product & raw materials price indexes
Industrial Prices 0%
Raw Material Prices -1%
1255 US Jul 28 Johnson Redbook Retail Sales Index
MoM % Change -1.3%
12MonChgPct +1.7%
52WkChgPct +1.3%
1300 US May S&P / Case-Shiller Home Price Index
SP Composite-10 MoM +1.3%
SP Composite-10 YoY -2.2%
SP Composite-20 MoM +1.3%
SP Composite-20 -1.9%
1345 US Jul ISM-Chicago Business Survey - Chicago PMI
Employment Index 60.4
New Orders Index 51.9
Prices Paid Index 54
Purchasing Managers Index
(Adjusted) 52.9
Supplier Deliveries Index 54.2
1400 US Jul Consumer Confidence Index
Consumer Confidence Index 62
Expectation Index 72.3
Present Situation Index 46.6
1700 US Jul Dow Jones Economic Sentiment Indicator
DJ Economic Sentiment
Indicator 42.8
1900 US Jul Agricultural Prices
2030 US Jul 27 API Weekly Statistical Bulletin
Crude Stocks (Net Change) +1.35M
Gasoline Stocks (Net Change) +2.35M
Distillate Stocks (Net Change) +2.64M
Refinery Runs 93.6%
2301 UK National Institute of Economic & Social Research - NIESR
Economic Review of UK and World economies
2301 UK Jul Shop Price Index
N/A UK National Institute of Economic & Social Research - NIESR UK
& World Economic Review press conference
N/A JPN Jun Provisional Labour Survey - Earnings, Employment & Hours
Worked
N/A US Federal Reserve Board - U.S. Federal Open Market Committee
meeting
N/A US State of Texas - Texas primary runoff elections incl
Dewhurst v Cruz in GOP Senate race
Wednesday, August 1, 2012 Exp Prev
GMT
0500 JPN Jun Steel Imports & Exports Statistics
0515 JPN Jul Auto sales
Domestic Auto Sales (on year) +40.9%
0745 ITA Jul Italy Manufacturing PMI
PMI Manufacturing 44.6
0750 FRA Jul France Manufacturing PMI
PMI Manufacturing 45.2
0755 GER Jul Germany Manufacturing PMI
PMI Manufacturing 45
0800 EU Jul Eurozone Manufacturing PMI
PMI Manufacturing 45.1
0830 UK Jul CIPS Manufacturing PMI
Manufacturing Output 48.6
0830 UK Jul Bank of England narrow money
0900 EU Q1 Quarterly sectoral accounts
1100 US MBA Weekly Mortgage Applications Survey
1215 US Jul ADP National Employment Report
Private Payrolls Forecast +176000
1300 US U.S. Department of the Treasury - U.S. Department of the
Treasury's quarterly refunding announcement
1300 US Jul US Manufacturing PMI
1330 CAN Jul Canada Manufacturing PMI
1400 US Jun Metropolitan Area Employment & Unemployment
1400 US Jul Online Help Wanted Index
1400 US Jun Construction Spending - Construction Put in Place
New Construction +0.9%
1400 US Jul ISM Manufacturing Report on Business
Manufacturing PMI 49.7
Prices Index 37
Employment Index 56.6
Inventories 44
New Orders Index 47.8
Production Index 51
1430 US EIA Weekly Petroleum Status Report
1500 US Jul Global Manufacturing PMI
1815 US U.S. interest rate decision
Federal Funds Rate (Dir) 0
Discount Rate 0.75
Discount Rate Change 0
FOMC Vote For Action 11
FOMC Vote Against Action 1
Federal Funds Rate Change High
Range 0.25
Federal Funds Rate Change Low
Range 0
2000 US Jul Domestic Auto Industry Sales
Vehicle Sales 14.08M
2350 JPN Jul Monetary Base
N/A UK Aug Bank of England - Bank of England Monetary Policy Committee
meeting
N/A UK Bank of England - Funding for Lending Scheme opens for
drawings
(END) Dow Jones Newswires
July 24, 2012 17:07 ET (21:07 GMT)
Producer Prices Yearly +2.2%
1145 US Jul 28 ICSC-Goldman Sachs Chain Store Sales Index
Chain Store Sales Index - WoW +1%
Chain Store Sales Index - YoY +3.3%
1230 US Jun Personal Income & Outlays
Personal Income +0.2%
Personal Spending 0%
PCE Price Index Monthly -0.2%
PCE Price Index Yearly +1.5%
PCE Core Price Index Monthly +0.1%
PCE Core Price Index Yearly +1.8%
1230 US Q2 Employment Cost Index
1230 CAN May GDP by Industry
GDP +0.3%
1230 CAN Jun Industrial product & raw materials price indexes
Industrial Prices 0%
Raw Material Prices -1%
1255 US Jul 28 Johnson Redbook Retail Sales Index
MoM % Change -1.3%
12MonChgPct +1.7%
52WkChgPct +1.3%
1300 US May S&P / Case-Shiller Home Price Index
SP Composite-10 MoM +1.3%
SP Composite-10 YoY -2.2%
SP Composite-20 MoM +1.3%
SP Composite-20 -1.9%
1345 US Jul ISM-Chicago Business Survey - Chicago PMI
Employment Index 60.4
New Orders Index 51.9
Prices Paid Index 54
Purchasing Managers Index
(Adjusted) 52.9
Supplier Deliveries Index 54.2
1400 US Jul Consumer Confidence Index
Consumer Confidence Index 62
Expectation Index 72.3
Present Situation Index 46.6
1700 US Jul Dow Jones Economic Sentiment Indicator
DJ Economic Sentiment
Indicator 42.8
1900 US Jul Agricultural Prices
2030 US Jul 27 API Weekly Statistical Bulletin
Crude Stocks (Net Change) +1.35M
Gasoline Stocks (Net Change) +2.35M
Distillate Stocks (Net Change) +2.64M
Refinery Runs 93.6%
2301 UK National Institute of Economic & Social Research - NIESR
Economic Review of UK and World economies
2301 UK Jul Shop Price Index
N/A UK National Institute of Economic & Social Research - NIESR UK
& World Economic Review press conference
N/A JPN Jun Provisional Labour Survey - Earnings, Employment & Hours
Worked
N/A US Federal Reserve Board - U.S. Federal Open Market Committee
meeting
N/A US State of Texas - Texas primary runoff elections incl
Dewhurst v Cruz in GOP Senate race
Wednesday, August 1, 2012 Exp Prev
GMT
0500 JPN Jun Steel Imports & Exports Statistics
0515 JPN Jul Auto sales
Domestic Auto Sales (on year) +40.9%
0745 ITA Jul Italy Manufacturing PMI
PMI Manufacturing 44.6
0750 FRA Jul France Manufacturing PMI
PMI Manufacturing 45.2
0755 GER Jul Germany Manufacturing PMI
PMI Manufacturing 45
0800 EU Jul Eurozone Manufacturing PMI
PMI Manufacturing 45.1
0830 UK Jul CIPS Manufacturing PMI
Manufacturing Output 48.6
0830 UK Jul Bank of England narrow money
0900 EU Q1 Quarterly sectoral accounts
1100 US MBA Weekly Mortgage Applications Survey
1215 US Jul ADP National Employment Report
Private Payrolls Forecast +176000
1300 US U.S. Department of the Treasury - U.S. Department of the
Treasury's quarterly refunding announcement
1300 US Jul US Manufacturing PMI
1330 CAN Jul Canada Manufacturing PMI
1400 US Jun Metropolitan Area Employment & Unemployment
1400 US Jul Online Help Wanted Index
1400 US Jun Construction Spending - Construction Put in Place
New Construction +0.9%
1400 US Jul ISM Manufacturing Report on Business
Manufacturing PMI 49.7
Prices Index 37
Employment Index 56.6
Inventories 44
New Orders Index 47.8
Production Index 51
1430 US EIA Weekly Petroleum Status Report
1500 US Jul Global Manufacturing PMI
1815 US U.S. interest rate decision
Federal Funds Rate (Dir) 0
Discount Rate 0.75
Discount Rate Change 0
FOMC Vote For Action 11
FOMC Vote Against Action 1
Federal Funds Rate Change High
Range 0.25
Federal Funds Rate Change Low
Range 0
2000 US Jul Domestic Auto Industry Sales
Vehicle Sales 14.08M
2350 JPN Jul Monetary Base
N/A UK Aug Bank of England - Bank of England Monetary Policy Committee
meeting
N/A UK Bank of England - Funding for Lending Scheme opens for
drawings
(END) Dow Jones Newswires
July 24, 2012 17:07 ET (21:07 GMT)
2012.07.24 23:02:43 New York Money Market Rate Indications
Bankers acceptances at 4:06 P.M. New York time.
1M 0.20
2M 0.25
3M 0.33
6M 0.43
9M 0.61
1Y 0.72
Federal funds: days high 0.1600; low 0.1600; latest 0.16
bid 0.14; offered 0.17; prime lending rate at major banks 3.25; broker
call loan
rate 2.00
Dealer-placed commercial paper
30 days 0.13
60 days 0.11
90 days 0.09
Treasury bills
30 days 0.0725- 0.0625
90 days 0.1075- 0.0975
180 days 0.1500- 0.1400
Moody's yield figures
AAA corps 3.27
Note: Figures in parentheses relect a minus
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 17:02 ET (21:02 GMT)
1M 0.20
2M 0.25
3M 0.33
6M 0.43
9M 0.61
1Y 0.72
Federal funds: days high 0.1600; low 0.1600; latest 0.16
bid 0.14; offered 0.17; prime lending rate at major banks 3.25; broker
call loan
rate 2.00
Dealer-placed commercial paper
30 days 0.13
60 days 0.11
90 days 0.09
Treasury bills
30 days 0.0725- 0.0625
90 days 0.1075- 0.0975
180 days 0.1500- 0.1400
Moody's yield figures
AAA corps 3.27
Note: Figures in parentheses relect a minus
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(END) Dow Jones Newswires
July 24, 2012 17:02 ET (21:02 GMT)
2012.07.24 22:20:42 *Riverbed Technology Shares Up 16% After Earnings Release>RVBD
2012.07.24 22:20:42 *Riverbed Technology Shares Up 16% After Earnings
Release>RVBD
Release>RVBD
2012.07.24 19:55:56 Google Agrees to Outline of Europe Antitrust Deal -FT
Google Inc. (GOOG) has accepted the outline of an antitrust settlement
with Europe's competition commission and will now enter talks on a
formal agreement, the Financial Times reported Tuesday.
Under the outline, Google proposed concessions on both its PC-based
and mobile search services, according to the newspaper.
Google has addressed several EU concerns, including a claim that
Google's search results favor the company's own products, the FT
reported.
The office of Joaquin Almunia, the EU's competition commissioner,
declined to comment to the FT. A Google spokesman told the FT "we
continue to work cooperatively with the commission."
Full story at www.ft.com
Write to nymonitoring@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 13:55 ET (17:55 GMT)
with Europe's competition commission and will now enter talks on a
formal agreement, the Financial Times reported Tuesday.
Under the outline, Google proposed concessions on both its PC-based
and mobile search services, according to the newspaper.
Google has addressed several EU concerns, including a claim that
Google's search results favor the company's own products, the FT
reported.
The office of Joaquin Almunia, the EU's competition commissioner,
declined to comment to the FT. A Google spokesman told the FT "we
continue to work cooperatively with the commission."
Full story at www.ft.com
Write to nymonitoring@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 13:55 ET (17:55 GMT)
2012.07.24 19:55:35 Spain's Economy Minister to Meet French Counterpart in Paris
MADRID (AFP)--Spanish Economy Minister Luis de Guindos will hold talks
with his French counterpart Pierre Moscovici in Paris on Wednesday, a
Spanish government source said.
The meeting comes as Spain's borrowing costs spiral out of control
amid fears that it could soon require a full-blown international
bailout; and after France and Italy denied a statement by the Spanish
government that the three countries wanted an immediate application of
emergency reforms agreed by the euro zone in June.
(END) Dow Jones Newswires
July 24, 2012 13:55 ET (17:55 GMT)
with his French counterpart Pierre Moscovici in Paris on Wednesday, a
Spanish government source said.
The meeting comes as Spain's borrowing costs spiral out of control
amid fears that it could soon require a full-blown international
bailout; and after France and Italy denied a statement by the Spanish
government that the three countries wanted an immediate application of
emergency reforms agreed by the euro zone in June.
(END) Dow Jones Newswires
July 24, 2012 13:55 ET (17:55 GMT)
Tuesday, 24 July 2012
2012.07.24 17:02:13 *Fed Receives Total Coupon Submissions Of $3.802 Bln
(MORE TO FOLLOW) Dow Jones Newswires
July 24, 2012 11:02 ET (15:02 GMT)
July 24, 2012 11:02 ET (15:02 GMT)
2012.07.24 16:55:04 Richmond Fed Manufacturing Index Plunges In July
Economic activity among manufacturers in the central Atlantic region
contracted sharply this month, the Federal Reserve Bank of Richmond
reported Tuesday. The service sector reported a plunge in revenues
this month.
The bank's manufacturing general-business index dropped to -17 from -1
in June, first reported as -3. The Richmond Fed said it has
recalculated historical data to reflect new seasonal factors.
Numbers above zero indicate expanding activity.
Last week the factory reports from the Fed banks of New York and
Philadelphia were mixed. The New York report showed regional activity
expanding at a faster pace in July than in June, while the
Philadelphia survey showed area manufacturing activity still
contracting this month.
The Richmond subindexes generally were sharply weaker in July.
The shipment index plummeted to -23 this month from 0 in June, first
reported -2, and the new orders index declined to -25 from -7,
originally put at -12.
The employment index dropped to 1 from an unrevised 8 last month.
Looking out over the next six months, businesses are less optimistic.
The shipments-expectation index fell to 16 from 29, first reported as
33 in June. The orders-expectations index slipped to 16 from 29, first
put at 30.
Price pressures continue to ease. The current prices-paid index fell
to 1.33 from 1.39, first reported as 1.38, while the prices-received
index slipped to 0.51 from 0.66, previously reported as 0.48.
On the service side, the Richmond survey was much weaker this month
after rebounding in June.
The revenues index plunged to -11 from 11 in June, first reported as
9, and the employees index dropped to -3 from 6, previously put at 5.
The Richmond Fed surveys cover businesses in Washington D.C.,
Maryland, North Carolina, South Carolina, Virginia and most of West
Virginia.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 10:55 ET (14:55 GMT)
contracted sharply this month, the Federal Reserve Bank of Richmond
reported Tuesday. The service sector reported a plunge in revenues
this month.
The bank's manufacturing general-business index dropped to -17 from -1
in June, first reported as -3. The Richmond Fed said it has
recalculated historical data to reflect new seasonal factors.
Numbers above zero indicate expanding activity.
Last week the factory reports from the Fed banks of New York and
Philadelphia were mixed. The New York report showed regional activity
expanding at a faster pace in July than in June, while the
Philadelphia survey showed area manufacturing activity still
contracting this month.
The Richmond subindexes generally were sharply weaker in July.
The shipment index plummeted to -23 this month from 0 in June, first
reported -2, and the new orders index declined to -25 from -7,
originally put at -12.
The employment index dropped to 1 from an unrevised 8 last month.
Looking out over the next six months, businesses are less optimistic.
The shipments-expectation index fell to 16 from 29, first reported as
33 in June. The orders-expectations index slipped to 16 from 29, first
put at 30.
Price pressures continue to ease. The current prices-paid index fell
to 1.33 from 1.39, first reported as 1.38, while the prices-received
index slipped to 0.51 from 0.66, previously reported as 0.48.
On the service side, the Richmond survey was much weaker this month
after rebounding in June.
The revenues index plunged to -11 from 11 in June, first reported as
9, and the employees index dropped to -3 from 6, previously put at 5.
The Richmond Fed surveys cover businesses in Washington D.C.,
Maryland, North Carolina, South Carolina, Virginia and most of West
Virginia.
Write to Kathleen Madigan at kathleen.madigan@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 10:55 ET (14:55 GMT)
2012.07.24 13:55:05 Oil Stable on Mixed PMI Data
LONDON--Crude-oil futures were little changed Tuesday in choppy trade
as China's better-than-expected manufacturing activity figures were
counter-balanced by a new set of downbeat news from the euro zone.
At 1103 GMT, the front-month September Brent contract on London's ICE
futures exchange was 24 cents, or 0.2%, lower at $103.02 a barrel. The
front-month September contract on the New York Mercantile Exchange was
trading down 15 cents, or 0.2%, at $87.99 per barrel.
Overnight data from China showed that manufacturing activity in the
world's second-largest oil consumer shrank less in July than forecast
by analysts.
"It's hard to call these numbers very bullish [for the oil market],
but they are definitely less bearish," said Torbjorn Kjus, oil market
analyst at DnB NOR.
"The preliminary purchasing managers' indices from the euro zone, on
the other hand, remain persistently at recession level and are thus
likely to counter any stronger price recovery," Commerzbank said in a
note.
Worries that a sharp economic slowdown would cut global demand for oil
have pressured crude futures for months.
At 1300 GMT, the U.S. July manufacturing activity data will be
published, and the numbers could move oil prices significantly as the
U.S. is the world's largest oil consumer, Mr. Kjus said.
Market participants will also focus on a weekly U.S. oil inventories
survey published by the American Petroleum Institute, an industry
body, at 2030 GMT.
"If Brent can hold to $102.50 a barrel, then it can still hope at
another attempt on $105 a barrel," Petromatrix said in a note.
But if the $102.50-a-barrel level can't hold, then Brent will have to
move back to $100.75 a barrel for a strong line of support, before the
$100-a-barrel level, it said.
At 1103 GMT, the ICE's gasoil contract for August delivery was down
$7.50, or 0.9%, at $887.25 per metric ton, while Nymex gasoline for
August delivery was 299 points, or 1%, lower at $2.8530 per gallon.
Write to Konstantin Rozhnov at konstantin.rozhnov@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 03:05 ET (07:05 GMT)
as China's better-than-expected manufacturing activity figures were
counter-balanced by a new set of downbeat news from the euro zone.
At 1103 GMT, the front-month September Brent contract on London's ICE
futures exchange was 24 cents, or 0.2%, lower at $103.02 a barrel. The
front-month September contract on the New York Mercantile Exchange was
trading down 15 cents, or 0.2%, at $87.99 per barrel.
Overnight data from China showed that manufacturing activity in the
world's second-largest oil consumer shrank less in July than forecast
by analysts.
"It's hard to call these numbers very bullish [for the oil market],
but they are definitely less bearish," said Torbjorn Kjus, oil market
analyst at DnB NOR.
"The preliminary purchasing managers' indices from the euro zone, on
the other hand, remain persistently at recession level and are thus
likely to counter any stronger price recovery," Commerzbank said in a
note.
Worries that a sharp economic slowdown would cut global demand for oil
have pressured crude futures for months.
At 1300 GMT, the U.S. July manufacturing activity data will be
published, and the numbers could move oil prices significantly as the
U.S. is the world's largest oil consumer, Mr. Kjus said.
Market participants will also focus on a weekly U.S. oil inventories
survey published by the American Petroleum Institute, an industry
body, at 2030 GMT.
"If Brent can hold to $102.50 a barrel, then it can still hope at
another attempt on $105 a barrel," Petromatrix said in a note.
But if the $102.50-a-barrel level can't hold, then Brent will have to
move back to $100.75 a barrel for a strong line of support, before the
$100-a-barrel level, it said.
At 1103 GMT, the ICE's gasoil contract for August delivery was down
$7.50, or 0.9%, at $887.25 per metric ton, while Nymex gasoline for
August delivery was 299 points, or 1%, lower at $2.8530 per gallon.
Write to Konstantin Rozhnov at konstantin.rozhnov@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 24, 2012 03:05 ET (07:05 GMT)
2012.07.24 11:10:43 MARKET TALK: USD/PHP Tad Lower; 41.90-42.20 Band Tipped
0910 GMT [Dow Jones] The USD/PHP is a tad lower, tracking the USD's
weakness against some Asian currencies such as the KRW and THB. Stocks
in the Philippines, Korea and Thailand advanced amid mixed regional
equity performance. The currency pair is at 42.045 vs 42.06 late
Monday in Manila; it hit the day's high at 42.10 and low at 41.995.
"We expect the dollar to be a bit biddish ahead of the central bank's
meeting (on Thursday). There is a possibility of a rate cut," says a
local bank trader. Volume is heavy mainly on interbank trade. Traders
expect the USD/PHP to stay in a 41.90-42.20 range.
(cris.larano@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 24, 2012 05:10 ET (09:10 GMT)
weakness against some Asian currencies such as the KRW and THB. Stocks
in the Philippines, Korea and Thailand advanced amid mixed regional
equity performance. The currency pair is at 42.045 vs 42.06 late
Monday in Manila; it hit the day's high at 42.10 and low at 41.995.
"We expect the dollar to be a bit biddish ahead of the central bank's
meeting (on Thursday). There is a possibility of a rate cut," says a
local bank trader. Volume is heavy mainly on interbank trade. Traders
expect the USD/PHP to stay in a 41.90-42.20 range.
(cris.larano@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 24, 2012 05:10 ET (09:10 GMT)
2012.07.24 10:54:47 MARKET TALK: Rate Cut In Hungary Wouldn't Hit HUF -Raiffeisen
0854 GMT [Dow Jones] HUF wouldn't be pressured by a rate cut says
Raiffeisen, ahead of the central bank's rate decision due at 1200 GMT.
Raiffeisen notes that central banks around the world are in a an
easing trend and Hungary would fit into the pattern if it followed
suit. Despite the uncertainty about the balance of votes in the
rate-setting council, Raiffeisen doesn't expect a cut of the 7% base
rate this month. Raiffeisen traders see EUR/HUF in a range of 287.05
to 288.95 Tuesday. EUR/HUF is now at 287.35 vs 288.21 late Monday.
(gergo.racz@dowjones.com)
Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com
(END) Dow Jones Newswires
July 24, 2012 04:54 ET (08:54 GMT)
Raiffeisen, ahead of the central bank's rate decision due at 1200 GMT.
Raiffeisen notes that central banks around the world are in a an
easing trend and Hungary would fit into the pattern if it followed
suit. Despite the uncertainty about the balance of votes in the
rate-setting council, Raiffeisen doesn't expect a cut of the 7% base
rate this month. Raiffeisen traders see EUR/HUF in a range of 287.05
to 288.95 Tuesday. EUR/HUF is now at 287.35 vs 288.21 late Monday.
(gergo.racz@dowjones.com)
Contact us in London. +44-20-7842-9464
Markettalk.eu@dowjones.com
(END) Dow Jones Newswires
July 24, 2012 04:54 ET (08:54 GMT)
2012.07.24 07:40:13 *Lonking Holdings Raised To Neutral From Underweight - HSBC
2012.07.24 07:40:13 *Lonking Holdings Raised To Neutral From Underweight - HSBC
2012.07.24 05:09:41 MARKET TALK: China's Economy Needs More Policy Support - StanChart
0309 GMT [Dow Jones] A stronger reading in HSBC's initial
manufacturing PMI for July shows that recent stimulus measures have
had some effect, though the economy still needs more policy support
measures, Standard Chartered economist Li Wei says. "Economic growth
is still slowing down but the pace is moderating," Mr. Li says. He
expects an interest rate cut in the third quarter and several cuts in
the bank reserve requirement ratio by the end of the year. The
euro-zone sovereign debt crisis remains the biggest risk for the
Chinese economy, he adds. The preliminary HSBC China Manufacturing
PMI, a gauge of nationwide manufacturing activity, rose to 49.5 in
July compared with a final reading of 48.2 in June. It was still below
the 50 level, however, signaling a contraction in economic activity.
(liyan.qi@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 23, 2012 23:09 ET (03:09 GMT)
manufacturing PMI for July shows that recent stimulus measures have
had some effect, though the economy still needs more policy support
measures, Standard Chartered economist Li Wei says. "Economic growth
is still slowing down but the pace is moderating," Mr. Li says. He
expects an interest rate cut in the third quarter and several cuts in
the bank reserve requirement ratio by the end of the year. The
euro-zone sovereign debt crisis remains the biggest risk for the
Chinese economy, he adds. The preliminary HSBC China Manufacturing
PMI, a gauge of nationwide manufacturing activity, rose to 49.5 in
July compared with a final reading of 48.2 in June. It was still below
the 50 level, however, signaling a contraction in economic activity.
(liyan.qi@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 23, 2012 23:09 ET (03:09 GMT)
2012.07.24 05:05:09 MARKET TALK: India Govt Bonds Likely Up; 10-Yr Yld Floor At 8.05%
0305 GMT [Dow Jones] Indian government bond prices are likely to open
higher, tracking Monday's gains in U.S. Treasurys amid deepening
concerns over Spain's debt crisis. A dealer with a private bank tips
the benchmark 8.15% 2022 bond yield to open at 8.06% vs 8.07% at
Monday's close and to trade in a 8.05%-8.10% band through the session.
It closed at 100.55 in price terms Monday. Bonds are unlikely to be
swayed by late Monday's news that state-oil run oil companies plan to
raise gasoline prices from Tuesday, as the increase is marginal, the
dealer says. With few triggers expected this week ahead of the RBI's
rate-setting meeting on July 31, traders are eyeing steps by the
government to cut its fiscal deficit, such as an increase in state-set
diesel prices, he adds.(sudeep.jain@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 23, 2012 23:05 ET (03:05 GMT)
higher, tracking Monday's gains in U.S. Treasurys amid deepening
concerns over Spain's debt crisis. A dealer with a private bank tips
the benchmark 8.15% 2022 bond yield to open at 8.06% vs 8.07% at
Monday's close and to trade in a 8.05%-8.10% band through the session.
It closed at 100.55 in price terms Monday. Bonds are unlikely to be
swayed by late Monday's news that state-oil run oil companies plan to
raise gasoline prices from Tuesday, as the increase is marginal, the
dealer says. With few triggers expected this week ahead of the RBI's
rate-setting meeting on July 31, traders are eyeing steps by the
government to cut its fiscal deficit, such as an increase in state-set
diesel prices, he adds.(sudeep.jain@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
July 23, 2012 23:05 ET (03:05 GMT)
2012.07.24 05:05:03 China Weighs More Property Curbs
The Chinese authorities are weighing the possibility of implementing
further property tightening measures as they pay close attention to
the risks that property loans could pose to the banking system, the
Shanghai Securities News reported Tuesday, citing unnamed people
familiar with the matter.
The State Council will send six teams to investigate the property
markets in 12 provinces, which will include inspecting property loans,
the newspaper said without elaborating further. Such inspections are
routine in China.
As changes in revenue from land transactions could affect local
government financing platforms, and any change in the financial
situation of property developers could affect real estate development
and heighten the risks of property loans, China's banking regulator is
considering further curbs on property loans and property trust
operations, the newspaper said, citing the people.
China's property market has shown signs of a turnaround in recent
months, as sales from first time home buyers and upgraders picked up
following more accommodative monetary policy and local tweaks to
property curbs. The central bank has cut interest rates twice since
June and has lowered the reserve requirement ratio of banks three
times since November 2011.
Officials have said the rebound in sales and prices in some Chinese
cities is a cause for concern, and reiterated that the property
tightening measures must be kept in place.
China's property market faces the risk of a retaliatory rebound that
could cause tightening measures to fail, the China Securities Journal
reported Tuesday, citing a report from a government think tank.
An easing in monetary policy would affect the property market and make
it more difficult to implement property tightening measures, the
newspaper cited the report, issued by the Chinese Academy of Social
Sciences, as saying.
The report recommends that China should expand property taxes, abolish
the pre-sale system currently in place for some segments of the
property market, and improve differential financial policies.
Currently, credit policies such as lower mortgage rates for first-time
home buyers and a blanket ban on mortgages for third and subsequent
home-buyers are in effect.
Newspaper website: http://www.cs.com.cn, www.cnstock.com
Write to djnews.shanghai@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 23, 2012 22:25 ET (02:25 GMT)
further property tightening measures as they pay close attention to
the risks that property loans could pose to the banking system, the
Shanghai Securities News reported Tuesday, citing unnamed people
familiar with the matter.
The State Council will send six teams to investigate the property
markets in 12 provinces, which will include inspecting property loans,
the newspaper said without elaborating further. Such inspections are
routine in China.
As changes in revenue from land transactions could affect local
government financing platforms, and any change in the financial
situation of property developers could affect real estate development
and heighten the risks of property loans, China's banking regulator is
considering further curbs on property loans and property trust
operations, the newspaper said, citing the people.
China's property market has shown signs of a turnaround in recent
months, as sales from first time home buyers and upgraders picked up
following more accommodative monetary policy and local tweaks to
property curbs. The central bank has cut interest rates twice since
June and has lowered the reserve requirement ratio of banks three
times since November 2011.
Officials have said the rebound in sales and prices in some Chinese
cities is a cause for concern, and reiterated that the property
tightening measures must be kept in place.
China's property market faces the risk of a retaliatory rebound that
could cause tightening measures to fail, the China Securities Journal
reported Tuesday, citing a report from a government think tank.
An easing in monetary policy would affect the property market and make
it more difficult to implement property tightening measures, the
newspaper cited the report, issued by the Chinese Academy of Social
Sciences, as saying.
The report recommends that China should expand property taxes, abolish
the pre-sale system currently in place for some segments of the
property market, and improve differential financial policies.
Currently, credit policies such as lower mortgage rates for first-time
home buyers and a blanket ban on mortgages for third and subsequent
home-buyers are in effect.
Newspaper website: http://www.cs.com.cn, www.cnstock.com
Write to djnews.shanghai@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 23, 2012 22:25 ET (02:25 GMT)
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