2nd UPDATE: Pound Plunges As BOE Expands Asset Purchases

2nd UPDATE: Pound Plunges As BOE Expands Asset Purchases

(Adds further comments.)

LONDON (Dow Jones)--The pound has fallen sharply after the Bank of England announced Thursday that it intends to expand its bond-buying program by GBP50 billion.

Sterling has dipped by over 0.8% to hit a low of $1.6833 against the dollar, while the euro jumped by nearly 1% against the pound to hit GBP0.8547.

Economists had been split in their predictions on what the BOE was likely to decide at its policy meeting this month. However, a run of surprisingly positive U.K. data Wednesday had encouraged some economists to expect that the BOE might suspend or trim back its bond purchases.

Now it appears that growing optimism about the U.K.'s economic outlook may have been misplaced.

"The U.K. still has a long way to go, and that's what the bank is reacting to," said Geoffrey Kendrick, a currencies analyst at UBS in London.

Kendrick said that the U.K.'s unexpectedly weak reading of gross domestic product for the second quarter should have been a reminder that the economic outlook was precarious. GDP shrank by 0.8% in the second quarter and dropped 5.6% on the year, the largest annual decline since quarterly records began in 1955.

"The market got ahead of itself back in June, with the pound supported by its correlation with global banking stocks," he said.

It remains to be seen whether the pound's shift lower Thursday will prove to be a knee-jerk reaction or the start of a sustained move lower.

Some sterling bulls remained unfazed. French bank Calyon, which has long predicted that the pound will end the year at $1.75, said the slip in the pound should be viewed as a neat opportunity to buy.

"The central bank has again shown a willingness to act to ensure the recovery can gain traction and get inflation back on target in the medium term. This, in turn, should make the market more, not less, confident about recovery and ultimately drive sterling higher," said Daragh Maher, a senior currencies analyst at Calyon in London.

"The BOE has simply provided a better level to start buying sterling afresh," he added.

At 1215 GMT, the pound had regained a little stability. It was trading at $1.6852. The euro was at GBP0.8528.

-By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=lwy%2FldcGHKHpqaunEKCa2g%3D%3D. You can use this link on the day this article is published and the following day.

CURRENCIES: Euro And Pound Fall After Policy Announcements

CURRENCIES: Euro And Pound Fall After Policy Announcements

By William L. Watts

The euro and the British pound fell versus the U.S. dollar on Thursday after both the Bank of England and the European Central Bank kept interest rates unchanged.

The British currency dropped after the BoE boosted its quantitative-easing program by an unexpectedly large 50 billion pounds ($84 billion) Thursday, signaling that worries about the fragility of the economic outlook continue to dominate the monetary-policy-making process.

Policy makers "surprised the market by extending its asset-purchase plan' by that much and for three months, said analysts at Brown Brothers Harriman. "This drove sterling sharply lower."

The BOE also left its key rate unchanged at 0.5%.

The British pound fell to $1.6868, from $1.6968 before the announcement and from $1.7020 in late North American trading on Wednesday.

Also Thursday, the European Central Bank left its key lending rate unchanged at a historic low of 1%, as expected. ECB President Jean-Claude Trichet's monthly news conference is scheduled to begin at 8:30 a.m. Eastern.

The euro bought $1.4373, down from $1.4432 Wednesday.

Many analysts had pointed to signs that the British economy could pull out of recession by year's end to justify expectations that the central bank would put its 125-billion-pound ($211 billion) asset-purchase program on hold

The dollar index (DXY), which tracks the U.S. unit against a trade-weighted basket of six major currencies, rose to 77.881, from 77.515 late Wednesday.

One dollar bought 95.61 Japanese yen, up from 94.99 yen late Wednesday.

Looking further ahead, investors were awaiting the U.S. government's monthly report on nonfarm payrolls for July, due out Friday. Economists surveyed by MarketWatch expect a loss of 275,000 jobs, which would be the fewest jobs lost since August.

"Investors should stay cautious" ahead of Friday's U.S. non-farm payrolls report for July, wrote strategists at UniCredit MIB in Milan.

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(END) Dow Jones Newswires

August 06, 2009 08:26 ET (12:26 GMT)

UPDATE: Sterling Plunges As BOE Expands Asset Purchase Scheme

UPDATE: Sterling Plunges As BOE Expands Asset Purchase Scheme

(Adds detail, comments.)

LONDON (Dow Jones)--The pound has fallen sharply after the Bank of England announced Thursday that it intends to expand its bond-buying program by GBP50 billion.

Sterling has dipped by over 0.8% to hit a low of $1.6833 against the dollar, while the euro jumped by nearly 1% against the pound to hit GBP0.8547.

Economists had been split in their predictions on what the BOE was likely to decide at its policy meeting this month. However, a run of surprisingly positive U.K. data Wednesday had encouraged some economists to expect that the BOE might suspend or trim back its bond purchases.

Now it appears that growing optimism about the U.K.'s economic outlook may have been misplaced.

"The U.K. still has a long way to go, and that's what the bank is reacting to," said Geoffrey Kendrick, a currencies analyst at UBS in London.

Kendrick said that the U.K.'s unexpectedly weak reading of gross domestic product for the second quarter should have been a reminder that the economic outlook was precarious. GDP shrank by 0.8% in the second quarter and dropped 5.6% on the year, the largest annual decline since quarterly records began in 1955.

"The market got ahead of itself back in June, with the pound supported by its correlation with global banking stocks," he said.

It remains to be seen whether the pound's shift lower Thursday will prove to be a knee-jerk reaction or the start of a sustained move lower.

At 1150 GMT, the pound was at $1.6843. The euro was at GBP0.8533.

-By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com

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(END) Dow Jones Newswires

August 06, 2009 07:58 ET (11:58 GMT)

2nd UPDATE:Romania Ctrl Bk Revises Dn 09 CPI Forecast-Mediafax

2nd UPDATE:Romania Ctrl Bk Revises Dn 09 CPI Forecast-Mediafax

(Adds further comment referring to 2009 GDP contraction)

BUCHAREST (Dow Jones)--Romania's central bank has revised down its forecast on the country's inflation rate for 2009 to 4.3%, from 4.4% estimated in May, Central Bank Governor Mugur Isarescu said Thursday, news agency Mediafax reported.

The central bank also revised its projection on 2010 annual inflation to 2.6%, from 2.8% seen three months ago.

Although the 2009 inflation forecast is not significantly changed, the central bank is more optimistic about next year's annual rate, Isarescu told a news conference at which he presented the quarterly inflation report.

The governor added that there are "potential" reasons for deviations from the main forecast, with the main uncertainty being the development of the international crisis.

"We try to be realistic and say there are so many factors that can alter our forecasts. The main risk factor is that we don't know with enough certainty how the global economic crisis will evolve, as we are seeing very different projections," Isarescu said.

The central bank's revised inflation forecast is based on an 8% economic contraction in 2009, similar to the figure discussed with the International Monetary Fund, central bank's deputy governor Cristian Popa said in his turn.

Also, the central bank estimates a current account deficit of 5%-6% of the gross domestic product by year-end, Popa added.

The country's annual inflation rate was 6.3% at the end of 2008.

Romanian annual inflation slowed down to 5.86% in June, on lower fuel and food prices and a stable Romanian leu exchange rate.

The central bank Tuesday cut its key monetary rate by 50 basis points to 8.5% on the year and lowered the minimum reserve requirements on foreign currency-denominated liabilities to 30%, from 35%.

For 2009, Romania's central bank targets a 3.5% inflation rate, with a one percentage point variation band around the target. The same objective was set for 2010.

Agency Web site: www.mediafax.ro

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August 06, 2009 08:11 ET (12:11 GMT)

Romania Ctrl Bker: IMF Financing Might Boost Econ - MediaFax

Romania Ctrl Bker: IMF Financing Might Boost Econ - MediaFax

BUCHAREST (Dow Jones)--Using a EUR1.9 billion second tranche from an International Monetary Fund loan to finance Romania's budget deficit could help revive the economy, Romanian Central Bank Governor Mugur Isarescu said Thursday, news agency Mediafax reported.

The governor said the central bank would discuss using the IMF funds to finance the budget and not for foreign currency reserves consolidation.

"Eventually, the IMF funds will end up at the central bank. If the Finance Ministry spends this tranche locally, then it will sell foreign currency to the central bank and it will buy lei and the foreign currency will go to the reserves. Likewise, if the ministry uses the money abroad, then the central bank's reserves will be spared from certain external payments," Isarescu told a news conference.

Romanian President Traian Basescu said late Wednesday he would talk to IMF representatives on using the second tranche of the IMF loan to finance the budget, instead of raising central bank's foreign currency reserves.

Romania agreed a EUR12.95 billion two-year stand-by loan with the IMF in March as part of a EUR19.95 billion financial rescue package which also includes funds from the European Commission and other international institutions.

The first tranche of EUR5 billion, was released in May and entered the central bank's reserve. The second tranche of around EUR1.9 billion, should be released Sept. 15, based on the results an IMF evaluation of the use of the first tranche, first evaluation and the economic performance in the first six months.

An IMF mission arrived last week in Bucharest for the first evaluation report.

Agency Web site: www.mediafax.ro

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Bank of England Rate Decision Statement

Bank of England Rate Decision Statement

The verbatim statement which accompanied the Bank of England's rate decision Thursday follows:

The Bank of England's Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.

The Committee also voted to continue with its programme of asset purchases financed by the issuance of central bank reserves and to increase its size by GBP50 billion to GBP175 billion.

The world economy remains in recession, though there have been increasing signs that output in the U.K.'s main export markets is stabilising.

Financial market strains have eased and banks' funding conditions have improved a little, although financial conditions remain fragile.

Household and business confidence has picked up, albeit from the very low levels experienced in the wake of the financial crisis last autumn.

In the U.K., the recession appears to have been deeper than previously thought.

Gross Domestic Product fell further in the second quarter of 2009. But the pace of contraction has moderated and business surveys suggest that the trough in output is close at hand.

Underlying broad money growth has picked up since the end of last year but remains weak.

And though there are signs that credit conditions may have started to ease, lending to business has fallen and spreads on bank loans remain elevated.

Consumer price inflation fell back to 1.8% in June, a little below the 2% target. The decline in recent months was mainly accounted for by lower food and energy inflation, though past falls in sterling continued to put upward pressure on inflation.

The margin of spare capacity in the economy increased further and pay growth remained weak.

The future evolution of output and inflation will be determined by the balance of two sets of forces.

On the one hand, there is a considerable stimulus still working through from the easing in monetary and fiscal policy and the past depreciation of sterling.

On the other hand, the need for banks to continue repairing their balance sheets is likely to restrict the availability of credit, and past falls in asset prices and high levels of debt may weigh on spending.

While some recovery in output growth is in prospect, the margin of spare capacity in the economy is likely to continue to grow for some while yet, bearing down on inflation in the medium term.

But the recession and the restricted availability of credit are also likely to impact adversely on the supply capacity of the economy, moderating the increase in economic slack.

In the light of the Committee's latest Inflation Report projections and in order to keep inflation on track to meet the 2% inflation target over the medium term, the Committee judged that maintaining Bank Rate at 0.5% was appropriate.

In the light of that outlook, the Committee also agreed that it should extend its programme of purchases of government and corporate debt to a total of GBP175 billion, financed by the issuance of central bank reserves.

The Committee expects the announced programme to take another three months to complete. The scale of the programme will be kept under review. The Committee noted that the increase in the scale of the programme would necessitate an increase in the range of maturities of government debt that the Bank was willing to purchase.

That is explained in an accompanying market notice. Following today's meeting of the MPC, the Governor and the Chancellor exchanged letters about the expansion of the Asset Purchase Facility.

The Committee's latest inflation and output projections will appear in the Inflation Report to be published at 9:30am on Wednesday 12 August.

The minutes of the meeting will be published at 9.30am on Wednesday 19 August.

Web Site: www.bankofengland.co.uk

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(END) Dow Jones Newswires

August 06, 2009 07:28 ET (11:28 GMT)

BOE Raises Bond-Buying Program To GBP175B, Rates On Hold

LONDON (Dow Jones)--The Bank of England's Monetary Policy Committee Thursday voted to boost its bond-buying program by GBP50 billion to GBP175 billion, suggesting it still harbors concerns about the sustainability of recent signs of economic improvement.

But it kept its main interest rate on hold at a record low of 0.5%.

All eyes will now turn to the bank's quarterly Inflation Report and press conference Wednesday, when it will unveil its latest forecasts for inflation and output, for a clearer indication of the policy outlook.

Economists had been highly divided over the likely outcome of the meeting. Sluggish M4 money supply growth and a larger than expected contraction in U.K. output in the second quarter had persuaded a majority of economists polled by Dow Jones Newswires that the MPC would extend its quantitative easing program, under which it has already bought GBP125 billion of mostly government bonds.

But a large minority had tipped the MPC's nine members to stay on hold Thursday, with many of those saying that more action at a later date remained a distinct possibility. Figures Wednesday supported that view, showing that the dominant U.K. services sector expanded for a second straight month in July.

All those polled thought the BOE would keep its benchmark interest rate at the current record low of 0.5%.

-By Natasha Brereton, Dow Jones Newswires; +44 20 7842 9254; natasha.brereton@dowjones.com

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(END) Dow Jones Newswires

August 06, 2009 07:06 ET (11:06 GMT)

Sterling Plunges As BOE Expands Asset Purchase Scheme

Sterling Plunges As BOE Expands Asset Purchase Scheme

LONDON (Dow Jones)--The pound has fallen sharply after the Bank of England announced that it intends to expand its bond-buying program by GBP50 billion.

Sterling has dipped by over 0.8% to hit a low of $1.6833 against the dollar, while the euro jumped by nearly 1% against the pound to hit GBP0.8547.

Economists had been split in their predictions on what the BOE was likely to decide at its policy meeting this month.

-By Katie Martin, Dow Jones Newswires; +44 (0) 207 842 9346; katie.martin@dowjones.com

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(END) Dow Jones Newswires

August 06, 2009 07:11 ET (11:11 GMT)

CME Lumber Review: Quiet Session Leaves Prices Mixed

CME Lumber Review: Quiet Session Leaves Prices Mixed

KANSAS CITY (Dow Jones)--Chicago Mercantile Exchange lumber futures pit trade Wednesday settled mixed, with the most active nearby contracts ending lower.

The September contract settled down $3.90, at $203.10, and November was off $6.20, at $203.20. January was down $1.30, at $220.00.

Brokers said estimated volume was only about 10% of Tuesday's level as cash market activity subsided from Tuesday's hectic pace.

Futures pressure came from speculative selling in the absence of buying interest, brokers said.

One broker said the pressure on nearby futures contracts during the daily session had little hedge pressure involved. Cash prices were near enough to nearby futures values that there was little incentive to lay off risk by selling futures.

During the pit trade, 24 September/November spreads were done in a range from even money to $0.50, premium November. The spread closed at $0.10. As of 1512 EDT, the spread had traded 185 times in the Globex market, with the CME group's listed high at even money and the listed low at $1.10, premium November. The last was given as $1.10.

An additional 22 November/January spreads were done in the Globex market. The listed high is $12.20, and the listed low is $14.50, premium January, and the last is $14.50.

Dow Jones Newswires published a price for SPF 2x4s at $204 to $210, unchanged from Tuesday.

      CLOSE     CHANGE      HIGH     LOW
  SEP 203.10   dn  3.90    206.90   202.60
  NOV 203.20   dn  6.20    209.40   202.70
  JAN 220.00   dn  1.30    221.40   215.40

-By Lester Aldrich, Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com

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(END) Dow Jones Newswires

August 05, 2009 15:20 ET (19:20 GMT)

ICE FCOJ Review: Rallies 5.1% On Speculative Buying

ICE FCOJ Review: Rallies 5.1% On Speculative Buying

KANSAS CITY (Dow Jones)--Frozen concentrated orange juice futures rallied to two-week highs Wednesday, as speculative buying lifted the market for a second consecutive session.

Nearby September FCOJ on ICE Futures U.S. rose 470 points, or 5.1%, to settle at 97.55 cents a pound.

Some of the buying was attributed to strengthening technicals and prices running into buy stops, while others positioned themselves ahead of key private crop forecasts scheduled to be released in the next several days.

September orange juice has rallied 775 points, or 7 3/4 cents, since Monday's settlement, as speculative funds jumped back into the market.

Others simply attributed the rally to the fact that prices had fallen to low enough levels to spark buying interest.

"If the specs decide they want to buy orange juice, then it goes up," said a Florida-based FCOJ broker of the gains.

Prices fell below a key 50% Fibonacci retracement zone drawn off the July 17 $1.0485 high to the June 29 75.65 low, which encouraged technical buying. The bullish move pushed orange juice futures into buy stop areas, which attracted additional interest, the broker said.

Traders are anticipating key 2009-10 Florida orange estimates from influential analyst Elizabeth Steger and processing giant Louis Dreyfus within the next week or two. These private projections will be the first of the new crop year, with the U.S. Agriculture Department not scheduled to issue its official estimate until Oct. 9.

Traders also are paying more attention to activity in the Atlantic Basin for potential tropical storm development, though conditions now are clear with no tropical cyclone formation expected in the next 48 hours, the U.S. National Hurricane Center said.

Open interest edged down 90 to total 30,071 contracts, ICE data showed. Traders continue to move positions out of nearby September and into the November contract.

Futures volume was estimated at 4,504 contracts traded, with 657 calls and 238 put options traded.

ICE         Settle     Change    Range (At time of settlement)
Sep         $0.9755    up 470    $0.9310-$0.9855
Nov         $1.0090    up 460    $0.9640-$1.0180

-By Tom Sellen, Dow Jones Newswires; 913-322-5177; tom.sellen@dowjones.com

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(END) Dow Jones Newswires

August 05, 2009 15:20 ET (19:20 GMT)

ICE Canada Grain/Oilseed Review: Canola Lifted By US Soy Rally

ICE Canada Grain/Oilseed Review: Canola Lifted By US Soy Rally

WINNIPEG (Dow Jones)--Grain and oilseed futures at ICE Futures Canada closed Wednesday's session mixed as canola was lifted by a late rally in the Chicago Board of Trade soy complex futures, brokers said.

Canola saw a moderate trade with intermonth spread activity enhancing volumes.

The total canola volume was estimated at 7,767 contracts, down from 15,180 contracts on Tuesday, including an estimated 2,876 contracts involved in the spread trade.

Canola was narrowly mixed in the overnight trade and turned lower just ahead of the opening of the North American trading session. Canola's extended its losses as the North American session got underway and the CBOT soyoil market posted losses. Canola fell to its lows late in the session when the CBOT soybean market dropped in response to the Informa Economic's crop forecast. Canola climbed back to just modest gains in most contracts by the close as the CBOT soy complex rallied.

Canola was pressured down by the early weakness in CBOT soyoil. However profit taking was evident throughout the session, said traders, who noted that canola has rallied almost C$50 per metric ton since Friday. "This market is due for a correction lower...it's gained over 10% in 3 trading sessions," said a trader.

Also weighing on the market was the lack of confirmed fresh export demand and the firm Canadian dollar.

However, pulling canola off its lows was the slow farmer selling and the continued concerns about cold conditions in western Canada as temperatures dropped to as low as 4 degrees Celsius once again in Saskatchewan. A firming in CBOT soy complex in the last half hour of trade took canola to modest gains in most contracts in the last 15 minutes of the session.

Routine exporter, crusher and Japanese buying met commission house profit taking, light elevator company selling and exporter liquidation selling.

Western barley futures ended lower in light commercial trade. The market was undermined by the weakness in CBOT corn and sluggish end user demand. Traders are indicating that many feed lots have covered needs as far out as January.

The total barley volume was estimated at 35 contracts, down from Tuesday's 89 contracts, including an estimated 10 contracts involved in the spread trade.

Prices are in Canadian dollars per metric ton:

        Price       Change
Canola
Nov     435.50      up 0.20
Jan     440.00      unch
Mar     443.00      dn 1.00
Western Barley
Oct     148.20      dn 4.70
Nov     168.20      dn 3.80 

Spread trade prices are in Canadian dollars and the volume represents the number of spreads

Months         Prices         Volume
Canola
Nov/Jan        4.25-5.30      974
Nov/Mar        3.80-9.20      29
Nov/May        unavailable    200
Nov/July       15.80-18.20    80
Jan/Mar        2.20-4.20      13
Mar/May        3.60-4.30      57
May/July       3.80-6.00      85
Western Barley
Oct/Nov        unavailable    10 

-By Don Bousquet; contributing to Dow Jones Newswires; 204-947-1700 resnews@shawbiz.ca

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(END) Dow Jones Newswires

August 05, 2009 15:19 ET (19:19 GMT)

US Factory Orders-STATS-Historical, Shpmts, Unfill, Invty

US Factory Orders-STATS-Historical, Shpmts, Unfill, Invty

(NOTE: See New Orders historical data in story no. 84733)

  Seasonally adjusted data in millions of dollars. R denotes revised.
Source: U.S. Commerce Department.

              -SHIPMENTS-           -UNFILLED ORDERS-       -INVENTORIES-
                Mo Ago  Yr Ago         Mo Ago  Yr Ago         Mo Ago  Yr Ago
Month      Level   % chg % chg:   Level  % chg % chg :   Level   % chg  % chg
Jun 09    358,307    1.4 -21.4:  740,239  -0.9  -9.5 :  508,339   -0.8   -8.5
May 09    353,425   -0.8 -21.0:  746,744  -0.3  -7.8 :  512,515   -0.8   -6.6
Apr 09    356,430   -0.5 -20.1:  749,081  -1.1  -6.7 :  516,545   -1.2   -5.3
Mar 09    358,073   -1.8 -17.6:  757,692  -1.7  -4.9 :  522,662   -1.2   -4.2
Feb 09    364,479   -0.5 -15.1:  770,939  -1.7  -2.0 :  528,920   -1.3   -2.2
Jan 09    366,366   -2.6 -16.3:  783,955  -2.0   0.8 :  535,850   -1.1   -0.3
Dec 08    375,980   -3.3 -13.2:  800,360  -1.5   3.5 :  541,986   -1.9    2.1
Nov 08    388,928   -6.5 -10.7:  812,879  -0.9   7.6 :  552,253   -0.5    4.9
Oct 08    415,900   -3.6  -2.7:  820,672  -0.9   9.7 :  554,990   -0.6    6.2
Sep 08    431,492   -3.1   2.2:  828,225   0.2  11.8 :  558,296   -0.8    7.0
Aug 08    445,455   -3.7   5.2:  826,529   0.3  12.8 :  562,781    0.7    8.6
Jul 08    462,379    1.4   7.1:  824,232   0.8  13.7 :  559,070    0.6    7.8
Jun 08    455,873    1.9   7.8:  818,023   1.0  15.4 :  555,627    1.2    7.3
May 08    447,411    0.3   4.9:  810,293   0.9  15.8 :  548,825    0.6    6.2
Apr 08    446,031    2.7   5.5:  802,972   0.7  15.8 :  545,633    0.0    6.0
Mar 08    434,378    1.1   4.0:  797,114   1.3  17.1 :  545,791    0.9    6.4
Feb 08    429,531   -1.9   4.4:  786,860   1.2  17.3 :  540,675    0.6    5.5
Jan 08    437,643    1.1   7.1:  777,859   0.6  17.1 :  537,497    1.3    4.9
Dec 07    433,063   -0.6   3.2:  773,297   2.3  17.1 :  530,664    0.8    3.7
Nov 07    435,555    1.9   6.0:  755,712   1.0  15.6 :  526,439    0.7    2.9
Oct 07    427,623    1.3   4.6:  748,304   1.0  16.3 :  522,777    0.1    2.5
Sep 07    422,225   -0.3   2.8:  740,534   1.0  16.2 :  521,995    0.8    2.8
Aug 07    423,435   -1.9  -0.7:  732,889   1.1  19.5 :  518,057   -0.1    2.8
Jul 07    431,756    2.1   2.2:  724,733   2.2  18.0 :  518,644    0.1    3.5
Jun 07    422,938   -0.8  -0.8:  708,841   1.3  16.8 :  517,956    0.2    4.4
May 07    426,330    0.9   0.0:  699,668   0.9  17.0 :  516,996    0.4    5.2
Apr 07    422,726    1.2   1.3:  693,329   1.9  16.5 :  514,686    0.3    5.6
Mar 07    417,629    1.5  -0.4:  680,483   1.4  15.8 :  512,988    0.1    6.2
Feb 07    411,584    0.7  -0.8:  670,877   1.0  16.8 :  512,706    0.1    7.1
Jan 07    408,610   -2.6  -2.4:  664,272   0.6  16.9 :  512,189    0.1    7.0
Dec 06    419,663    2.2   0.7:  660,406   1.0  15.3 :  511,487    0.0    8.2
Nov 06    410,829    0.5   0.3:  653,650   1.6  16.0 :  511,609    0.3    9.0
Oct 06    408,628   -0.5   0.4:  643,221   1.0  17.6 :  510,028    0.5    9.3
Sep 06    410,821   -3.6   1.5:  637,063   3.9  18.2 :  507,632    0.7    9.8
Aug 06    426,221    0.8   6.9:  613,391  -0.1  14.8 :  504,079    0.6    9.2
Jul 06    422,650   -0.9   8.1:  614,072   1.1  16.6 :  500,974    0.9    8.5
Jun 06    426,294    0.0   9.0:  607,100   1.5  16.4 :  496,334    1.0    8.4
May 06    426,125    2.1   9.8:  598,148   0.5  18.0 :  491,256    0.7    7.6
Apr 06    417,258   -0.5   7.6:  595,079   1.2  20.2 :  487,600    1.0    6.7
Mar 06    419,491    1.1   8.3:  587,745   2.3  18.6 :  482,900    0.9    6.0
Feb 06    415,090   -0.8   9.2:  574,322   1.1  15.3 :  478,575    0.0    5.9
Jan 06    418,485    0.4   9.9:  568,234  -0.8  14.9 :  478,608    1.2    7.0
Dec 05    416,683    1.7  11.0:  572,835   1.6  15.4 :  472,860    0.8    7.3
Nov 05    409,711    0.7   9.8:  563,554   3.0  13.4 :  469,304    0.5    6.6
Oct 05    406,903    0.5  10.3:  546,980   1.5  11.2 :  466,827    1.0    7.4
Sep 05    404,787    1.5  11.4:  539,073   0.9   9.3 :  462,324    0.2    7.4
Aug 05    398,861    2.0  10.1:  534,449   1.5   8.7 :  461,411    0.0    7.4
Jul 05    391,130    0.0   9.5:  526,765   1.0   6.9 :  461,583    0.8    8.3
Jun 05    391,171    0.8   9.7:  521,648   2.9   7.0 :  457,820    0.2    8.3
May 05    388,071    0.1  10.1:  506,868   2.4   4.3 :  456,706    0.0    9.1
Apr 05    387,625    0.1  10.0:  494,901  -0.1   2.3 :  456,878    0.3   10.1
Mar 05    387,240    1.9   9.3:  495,425  -0.5   2.7 :  455,665    0.8   10.3
Feb 05    379,951   -0.2  12.0:  497,952   0.6   4.3 :  451,939    1.0    9.9
Jan 05    380,836    1.4  12.2:  494,758  -0.3   4.0 :  447,366    1.5    9.6
Dec 04    375,496    0.6  10.0:  496,343  -0.1   3.9 :  440,697    0.1    7.9
Nov 04    373,078    1.1   9.8:  496,962   1.0   4.8 :  440,048    1.2    7.6
Oct 04    368,982    1.6   8.1:  492,038  -0.2   4.7 :  434,635    1.0    6.0
Sep 04    363,220    0.3   6.9:  493,244   0.3   6.2 :  430,452    0.2    4.9
Aug 04    362,297    1.4   9.2:  491,893  -0.2   6.0 :  429,747    0.8    4.1
Jul 04    357,137    0.2   5.8:  492,742   1.1   6.8 :  426,216    0.9    2.9
Jun 04    356,599    1.2   7.4:  487,465   0.3   5.3 :  422,564    1.0    1.2
May 04    352,370    0.0   7.4:  485,770   0.4   5.2 :  418,482    0.8   -0.4
Apr 04    352,424   -0.5   7.7:  483,837   0.3   4.9 :  414,991    0.4   -1.7
Mar 04    354,351    4.5   5.5:  482,462   1.1   4.7 :  413,188    0.5   -2.3
Feb 04    339,254   -0.1   2.0:  477,280   0.3   3.6 :  411,076    0.7   -3.3
Jan 04    339,559   -0.5   3.0:  475,897  -0.4   3.7 :  408,249    0.0   -3.1
Dec 03    341,265    0.4   5.0:  477,608   0.8   3.4 :  408,304   -0.2   -3.5
Nov 03    339,743   -0.4   3.1:  474,027   0.8   1.5 :  408,942   -0.3   -2.6
Oct 03    341,230    0.4   3.1:  470,141   1.3  -0.3 :  410,125    0.0   -2.4
Sep 03    339,779    2.4   2.9:  464,236   0.1  -2.8 :  410,318   -0.6   -2.3
Aug 03    331,713   -1.8   0.7:  463,833   0.5  -4.3 :  412,857   -0.3   -1.4
Jul 03    337,663    1.7   3.6:  461,536  -0.3  -4.6 :  414,168   -0.8   -0.8
Jun 03    332,100    1.2   1.4:  462,950   0.2  -4.4 :  417,365   -0.7    0.1
May 03    328,149    0.3  -0.2:  461,881   0.1  -6.4 :  420,236   -0.4    1.0
Apr 03    327,316   -2.5   0.7:  461,257   0.1  -7.2 :  422,041   -0.2    1.1
Mar 03    335,788    1.0   3.8:  460,615   0.0  -8.2 :  422,929   -0.5    1.2
Feb 03    332,602    0.9   3.9:  460,642   0.4  -8.7 :  425,169    0.9    1.2
Jan 03    329,672    1.4   2.6:  458,965  -0.7  -9.0 :  421,282   -0.4   -0.9
Dec 02    324,964   -1.4   0.8:  462,122  -1.0 -10.2 :  423,133    0.8   -1.2
Nov 02    329,487   -0.4   3.1:  466,839  -1.0 -10.1 :  419,927   -0.1   -3.3
Oct 02    330,948    0.2   3.2:  471,373  -1.3 -10.1 :  420,403    0.1   -4.5
Sep 02    330,331    0.3   3.0:  477,547  -1.5  -8.4 :  420,077    0.4   -5.6
Aug 02    329,305    1.1  -0.4:  484,740   0.2  -8.0 :  418,554    0.3   -6.9
Jul 02    325,855   -0.5  -0.6:  483,995  -0.1  -8.9 :  417,505    0.1   -8.1
Jun 02    327,525   -0.4  -0.9:  484,452  -1.8  -9.5 :  417,107    0.2   -9.3
May 02    328,827    1.2  -3.2:  493,400  -0.7  -8.1 :  416,209   -0.3  -10.6
Apr 02    325,085    0.5  -1.9:  496,790  -0.9  -7.9 :  417,622    0.0  -11.2
Mar 02    323,526    1.1  -4.8:  501,523  -0.6  -7.5 :  417,737   -0.6  -11.6
Feb 02    320,138   -0.4  -7.6:  504,319  -0.1  -6.9 :  420,193   -1.2  -12.0
Jan 02    321,264   -0.3  -6.4:  504,633  -1.9  -7.6 :  425,219   -0.7  -12.0
Dec 01    322,274    0.9  -7.9:  514,349  -0.9  -6.4 :  428,113   -1.4  -11.1
Nov 01    319,550   -0.3  -7.9:  519,174  -1.0  -5.3 :  434,143   -1.3  -10.0
Oct 01    320,664    0.0  -8.1:  524,522   0.6  -3.6 :  440,017   -1.1   -8.3
Sep 01    320,662   -3.0  -9.6:  521,595  -1.0  -4.4 :  444,788   -1.1   -6.9
Aug 01    330,554    0.8  -5.0:  526,959  -0.8  -2.4 :  449,772   -1.0   -5.8
Jul 01    327,846   -0.8  -6.6:  531,190  -0.7  -1.3 :  454,507   -1.2   -4.5
Jun 01    330,442   -2.7  -6.9:  535,029  -0.4  -0.5 :  459,925   -1.2   -2.9
May 01    339,654    2.5  -3.0:  536,957  -0.4   5.3 :  465,528   -1.0   -0.9
Apr 01    331,244   -2.5  -6.7:  539,206  -0.5   5.4 :  470,031   -0.5    0.1
Mar 01    339,752   -1.9  -2.4:  542,185   0.1   6.0 :  472,451   -1.1    1.3
Feb 01    346,329    0.9   1.5:  541,701  -0.8   6.3 :  477,694   -1.1    2.4
Jan 01    343,214   -1.9  -2.6:  546,064  -0.6   6.9 :  483,251    0.3    4.2
Dec 00    349,908    0.9   1.6:  549,445   0.2   8.7 :  481,673   -0.2    3.9
Nov 00    346,824   -0.6   0.8:  548,222   0.8  10.1 :  482,452    0.5    4.8
Oct 00    348,822   -1.7   2.1:  543,945  -0.4   8.9 :  480,005    0.5    5.2
Sep 00    354,838    2.0   4.7:  545,860   1.1  10.2 :  477,656    0.0    5.1
Aug 00    347,893   -0.9   2.2:  539,927   0.3   9.5 :  477,596    0.3    5.6
Jul 00    350,966   -1.2   4.9:  538,130   0.1   9.0 :  476,004    0.5    5.4
Jun 00    355,102    1.4   6.3:  537,691   5.5   9.6 :  473,759    0.8    5.4
May 00    350,320   -1.3   4.8:  509,821  -0.3   3.3 :  469,808    0.0    4.4
Apr 00    355,110    2.0   7.6:  511,526   0.0   3.2 :  469,712    0.7    4.8
Mar 00    348,281    2.1   5.7:  511,341   0.3   2.7 :  466,570    0.0    4.0
Feb 00    341,127   -3.2   2.4:  509,605  -0.2   2.5 :  466,400    0.5    4.4
Jan 00    352,341    2.3   7.4:  510,755   1.0   2.6 :  463,859    0.1    3.8
  -By Rodney Christian; Dow Jones Newswires; (202) 646-1880;
   csstat@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=py6XKysBWxRFQBX8LswcYA%3D%3D. You can use this link on the day this article is published and the following day.

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August 05, 2009 15:18 ET (19:18 GMT)

US Personal Income-STATS-Historical

US Personal Income-STATS-Historical

   Seasonally adjusted in billions of dollars at annual rates. PCE in
current dollars. Source: U.S. Commerce Department.

         -PERSONAL INCOME-            -PCE-             -WAGES/SALARIES-
               Mo Ago Yr Ago         Mo Ago Yr Ago         Mo Ago Yr Ago
        Level  % chg% chg :    Level % chg% chg :   Level % chg% chg
Jun 09  11,934.9 -1.3 -3.4 :  10,019.6  0.4 -2.2 :  6,238.6 -0.4 -4.7
May 09  12,094.7  1.3 -2.2 :   9,978.2  0.1 -2.0 :  6,264.4 -0.1 -4.2
Apr 09  11,939.6  0.2 -1.8 :   9,969.2 -0.1 -1.9 :  6,271.3 -0.3 -4.0
Mar 09  11,911.2 -0.5 -2.0 :   9,978.9 -0.3 -1.5 :  6,290.7 -0.7 -3.8
Feb 09  11,966.2 -0.8 -1.4 :  10,011.3  0.4 -0.7 :  6,332.0 -1.0 -3.0
Jan 09  12,068.0 -1.1 -0.6 :   9,972.7  0.8 -1.1 :  6,394.0 -1.8 -2.1
Dec 08  12,196.6 -0.3  0.4 :   9,897.0 -1.2 -1.6 :  6,514.0 -0.6 -0.3
Nov 08  12,235.6 -0.3  1.1 :  10,013.7 -1.0 -0.3 :  6,550.2 -0.2  0.5
Oct 08  12,268.2 -0.3  1.8 :  10,118.7 -0.8  1.7 :  6,566.3  0.0  1.5
Sep 08  12,306.6  0.1  2.5 :  10,196.7 -0.3  2.9 :  6,565.1 -0.2  1.8
Aug 08  12,298.4  0.4  3.0 :  10,232.1  0.0  3.7 :  6,580.0  0.3  2.8
Jul 08  12,254.8 -0.8  3.1 :  10,231.4 -0.1  4.2 :  6,557.8  0.2  2.6
Jun 08  12,354.2 -0.1  4.2 :  10,240.2  0.6  4.7 :  6,544.7  0.0  2.5
May 08  12,361.9  1.6  4.6 :  10,183.7  0.2  4.2 :  6,541.9  0.2  2.8
Apr 08  12,162.6  0.1  3.2 :  10,160.2  0.3  4.3 :  6,531.1 -0.2  2.6
Mar 08  12,152.0  0.1  3.1 :  10,128.2  0.5  4.3 :  6,541.2  0.2  2.6
Feb 08  12,134.4  0.0  3.6 :  10,077.4  0.0  4.4 :  6,528.4  0.0  2.9
Jan 08  12,140.2  0.0  4.4 :  10,079.6  0.2  4.8 :  6,529.4  0.0  3.5
Dec 07  12,142.5  0.3  4.8 :  10,061.4  0.2  5.3 :  6,532.5  0.2  4.3
Nov 07  12,105.2  0.4  5.4 :  10,042.3  0.9  6.1 :  6,517.0  0.7  5.2
Oct 07  12,053.2  0.4  5.4 :   9,954.0  0.4  5.4 :  6,472.3  0.4  5.2
Sep 07  12,008.4  0.6  5.5 :   9,913.3  0.5  5.3 :  6,448.9  0.8  5.6
Aug 07  11,937.3  0.4  5.3 :   9,866.7  0.5  5.1 :  6,399.4  0.2  5.5
Jul 07  11,891.3  0.3  5.4 :   9,816.7  0.4  4.7 :  6,389.3  0.1  5.6
Jun 07  11,858.9  0.3  5.3 :   9,782.0  0.1  5.2 :  6,385.8  0.3  6.0
May 07  11,821.3  0.3  5.6 :   9,768.6  0.3  5.4 :  6,366.3  0.0  6.1
Apr 07  11,790.0  0.1  5.6 :   9,737.0  0.3  5.4 :  6,364.4 -0.2  5.5
Mar 07  11,782.7  0.6  6.3 :   9,707.8  0.6  5.7 :  6,376.8  0.5  6.1
Feb 07  11,709.4  0.7  6.1 :   9,653.6  0.4  5.6 :  6,343.3  0.5  5.9
Jan 07  11,628.5  6.1  6.1 :   9,613.9  5.5  5.5 :  6,310.6  6.3  6.3
  -By Rodney Christian; Dow Jones Newswires; (202) 646-1880;
   csstat@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=py6XKysBWxRFQBX8LswcYA%3D%3D. You can use this link on the day this article is published and the following day.

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August 05, 2009 14:25 ET (18:25 GMT)

PRECIOUS METALS: Comex Gold Declines On Profit-Taking

Gold futures gave back some of their recent gains on profit-taking Wednesday, falling in concert with outside markets.

December gold fell $3.30 to $964.20 an ounce on the Comex division of the New York Mercantile Exchange.

"Everything got pushed down this morning," said Jimmy Tintle, analyst at Transworld Futures.

As gold closed, the Dow Jones Industrial Average was around 55 points lower and Nymex September crude oil was down 11 cents to $71.31 but had been as soft as $69.71.

The precious metal's pullback came one day after the December futures hit a two-month high of $972.70.

"When you get a strong four-day up move, you're going to have some kind of profit-taking at some point," Tintle said.

The pullback in gold and a number of other commodities is slightly surprising since there also was a downtick in the dollar, said Dave Meger, senior metals analyst with Alaron Trading.

"It looks like you're going through some profit-taking," he said. "After extending higher across the board in the commodities markets earlier in the day, everything is retracing."

The December futures held nearby support that Tintle put around a breakout area of $960. Technically, he said, traders will be watching Thursday to see whether the market can close above the prior day's peak. Above this, traders also will be keeping tab on a trendline through the February and June highs, which currently passes through the $980 area.

Meger put his support for December gold around $954 to $950, with resistance initially around $970, then $982-$984.

Silver continued its recent trend of outperforming gold. Silver for September delivery gained 6.5 cents to $14.76 a pound.

Silver - like platinum - has tended to outperform gold lately due to its industrial applications and ideas that the gains in equities in recent weeks may signal an improving economy, Meger said.

Meger put support for September silver around $14.45 to $14.40. Initial resistance lies around $14.80, then $15.25.

Meanwhile, October platinum rose $16.30 to $1,293.10 an ounce, while September palladium declined $1.70 to $279.20 an ounce.

Platinum posted a gain due to a combination of supply/demand factors, said a trader.

Demand appears to have picked up lately, particularly due to the popularity of the "cash for clunkers" program that has helped U.S. car sales, he said. The car industry uses platinum in catalytic converters. Meanwhile, there is a supply threat in South Africa, which provides some 70% of the world's mined platinum. Thousands of workers at the country's state-owned power company Eskom could strike early next week after rejecting a wage offer, thereby threatening electricity supplies and as a result output from the country's mining industry.

October platinum hit a $1,296.30 high that was its strongest level since June 5. And while sister metal palladium finished slightly lower, the September futures nevertheless remain technically strong, with a high of $283 that was its most muscular level since September.

Settlements (includes open-outcry and electronic trading):
London PM Gold Fix: $964.50 versus $960.50 on Tuesday
Spot gold at 1:30 p.m. ET: $964.45, down $3.30 from previous day; Range: $958.55-$967.90
August gold:  $964.20, down $3.30; Range $961.10-$970.30
September silver:  $14.76, up 6.5 cents; Range $14.545-$14.850
October platinum:  $1,293.10, up $16.30; Range $1,261.50-$1,296.30
September palladium:  $279.20, down $1.70; Range $275.30-$283

-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com

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August 05, 2009 14:20 ET (18:20 GMT)

BASE METALS: Comex Copper Extends Rally On Technical Momentum

NEW YORK (Dow Jones)--Copper futures extended their 10-month high for the fourth consecutive session Wednesday on a weakening U.S. dollar, continuing economic optimism and technical buying amid the metal's strong recent advances.

September copper rose 1.65 cents to settle at $2.8120 a pound on the Comex division of the New York Mercantile Exchange. The contract extended its highest point since Oct. 1 to $2.8385.

Carryover fund buying boosted the metal, with the purchases most likely technical in nature, said Patrick Donnelly, a broker with Peak Trading Group.

Copper rose in large part on continuing technical strength, said Ralph Preston, senior market analyst with Heritage West Financial.

"This market is being guided by the momentum at the moment," Preston said. "It's acting as a forward-looking indicator for optimism on the economy."

That includes optimism about a "Cash for Clunkers" extension and hopes the Chinese economy may be stronger than previously thought, said Sterling Smith, market analyst with Country Hedging.

A lower dollar also supported the metal Wednesday, Smith said, adding that price charts also look strong.

"We have a very good technical picture," he said.

The metal has been underpinned by U.S. dollar weakness and constructive U.S. and Chinese economic data in recent days, a trader said.

Shortly after copper closed, the ICE Futures U.S. dollar index was down more than 0.27%.

New investment-type money has entered the market lately, the trader said.

"I'm not sure if we can stay at this level. We might see a correction," he said. "But the sentiment is certainly bullish at the moment."

Inventories of copper stored in London Metal Exchange warehouses fell 800 metric tons Wednesday, leaving them at 285,100. The most recent Comex inventory data, released late Tuesday afternoon, were down 166 short tons at 54,580 short tons.

Copper settlements (ranges include electronic and pit trading):
Aug $2.8065; up 1.75 cents; Range $2.7900-$2.8300
Sep $2.8120; up 1.65 cents; Range $2.7490-$2.8385

-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com

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August 05, 2009 13:46 ET (17:46 GMT)

CME Live Cattle Turn Flat-Firm On Shorts, Spreads

CME Live Cattle Turn Flat-Firm On Shorts, Spreads

1320 EDT [Dow Jones] - CME live cattle are flat to firm on short-covering, and Aug/Oct bull spreads. Spreaders also buy Dec and Feb and sell Oct. Aug and Oct also return above previously lost technical levels which triggered buy stops. Aug is up 2 points at 84.10 cents a pound, and Oct is down 12 points at 89.60 cents. Feeder cattle are firm on live cattle's rebound from morning lows and buy stops. Aug is up 25 points at 101.20 cents, Sep is up 37 points at 101.45 cents. (TWA)

Contact us in Chicago at 312-750-4075; theopolis.waters@dowjones.com

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August 05, 2009 13:21 ET (17:21 GMT)


Expanding Crop Estimates Weigh On CBOT Soy

1332 EDT [Dow Jones] - Expanding crop expectations are weighing on CBOT soybean futures after Informa issued bearish production and yield forecasts, a floor analyst says. The firm's forecasts put the final estimate for soybean production at 3.322 billion, with an average yield of 43.5 bushels, traders say. It estimated the USDA next week will peg production at 3.177 billion, with an average yield of 41.6 bushels, they say. The market continues to keep an eye on forecasts for hotter weather expected to hit the Midwest this weekend because the soybean crop is made in August, an analyst says. Old-crop soybeans are down harder, while the new crop is recovering, traders say. Commodity funds sold an estimated 2,000 contracts. Sep soybeans are 13 1/2 cents lower at $10.70 a bushel, and Nov soybeans are 1 1/2 cents higher at $10.33. (TGP)

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August 05, 2009 13:32 ET (17:32 GMT)

US Cash Hogs Midday: Weak To $2 Lower; Too Many Hogs Available

KANSAS CITY (Dow Jones)-- The Midwest direct hog markets at midweek are trading weak to as much as $2 per hundredweight lower, pressured by slaughter-ready supplies that are too large for packers to absorb at the current processing rates.

Analysts and livestock dealers said all plants appear to be full for this week and into the first half of next week. Some plants are said to be nearly full for all of next week. Larger supplies of contracted hogs, along with excellent growing conditions for the animals during July, have resulted in more animals available for slaughter.

"Weekly slaughter figures will have to move up to in excess of 2.1 million head on a consistent basis for packers to catch up with the supplies, but that will mean more downward pressure on prices," said a veteran livestock trader.

Livestock dealers and market managers said the arrival of warmer temperatures this weekend and into next week may slow daily weight gains some and allow producers to become more current on marketings. That could relieve some of the supply pressure but not for long, they said, because cooler nighttime temperatures normally arrive in the upper Midwest by the second half of August, so the hogs will eat more then and gain weight.

Opinions for prices Thursday are mostly lower.

Projections for Saturday's slaughter remain mostly from 70,000 to 75,000 head. The week's total is on pace to be around 2.075 million head.

The terminal markets are trading steady to lower with top prices ranging from $33 to $36 on a live basis.

-By Curt Thacker, Dow Jones Newswires; 913-322-5178; curt.thacker@dowjones.com

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August 05, 2009 13:09 ET (17:09 GMT)

CBOT Corn Stumbles On Bearish Crop Projection

CBOT Corn Stumbles On Bearish Crop Projection

1305 EDT [Dow Jones] - CBOT corn futures have stumbled following bearish production estimates from Informa, traders and analysts say. Informa projects a final crop of 12.991 billion bushels, with a yield of 164 bushels per acre, according to traders. The report prompted a slide that was accelerated by technical selling, a trader says. John Kleist, broker/analyst for Allendale, adds that the threat from hot weather entering the U.S. corn belt has been overblown. "It's August. It's going to get hot," Kleist says. He adds that Tuesday's rally came amid a drop in open interest of about 10,000 contracts, which "doesn't look like index funds coming in." Funds have sold an estimated 6,000 contracts. Sep corn is down 12 1/4 cents to $3.42 1/4 per bushel and Dec corn is down 13 1/4 cents $3.52 1/2. (IPB)

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August 05, 2009 13:06 ET (17:06 GMT)

Most CME Hogs Still Down But Up From Lows

Most CME Hogs Still Down But Up From Lows

1259 EDT [Dow Jones] - CME hogs remain in primarily bearish territory amid cash hog price pressure. Also, funds and commercials continue to pound deferred contracts. However, short covering and speculative buying separate front months from new contract lows. And, Oct surfaced above positive territory due to bull spreads. Aug is down 47 points at 53.50 cents a pound, and Oct is up 27 points at 50.40 cents. Pork bellies turn mostly higher on short covering and buy stops. Also, Tuesday's CME weekly belly storage results were considered bullish for futures. Aug is unquoted. Feb is 100 points higher at 81.00 cents, and March is 80 points higher at 80.30 cents. (TWA)

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August 05, 2009 13:01 ET (17:01 GMT)

US Wheat Falls On Corn, Soy Spillover Selling

1303 EDT [Dow Jones] - U.S. wheat futures are sharply lower and near session lows on pressure from weak CBOT corn and soybeans, traders say. "I still think as the corn goes, so will the wheat," a broker says. Corn and soybeans dropped after private analytical firm Informa Economics issued big final production and yield estimates, traders say. The forecasts topped another set of numbers Informa issued as estimates for the USDA's Aug. 12 crop report, they say. Wheat has been a follower of the neighboring markets lately and selling spilled over from the row crops, traders say. Large global wheat supplies and lackluster export demand continue to hang over the markets, an analyst says. CBOT Sep wheat is down 17 1/4 cents at $5.25 a bushel, KCBT Sep wheat is down 20 cents at $5.53, and MGE Sep wheat is down 19 1/4 cents at $6.00 3/4. (TGP)

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August 05, 2009 13:03 ET (17:03 GMT)


Copyright 2009 Dow Jones & Company, Inc.

US Cash Cattle Midday: Scattered Trades Emerging

KANSAS CITY (Dow Jones)--A few small fed cattle trades were reported in the Plains and western Midwest Wednesday morning, but rumors of more action continued to circulate.

The U.S. Department of Agriculture reported cattle trading on a packer's grid in Iowa on Tuesday at $131 per hundredweight for choice on a dressed basis, but there were reports of some trading at $129 dressed Tuesday as well. However, some packers were bidding $130 in this same area Wednesday morning, analysts and brokers said.

Fewer than 1,000 head of Texas cattle likely went to a major firm Wednesday morning at $81 on a live basis, traders said. There are rumors of larger numbers being traded, but they could not be confirmed.

Bids generally ranged from $80 to $81 live and $130 dressed. Asking levels range from $84 to $85 live.

Cattle sold last week at $82 on a live basis and at $131 to $132 on a dressed basis.

The USDA at midday reported its choice boxed beef cutout price at $140.99 per hundredweight, down $1.65, while select beef was off $0.42 at $135.28. The volume of fabricated loads was 205 and there were 72 loads of trimmings and coarse grind product reported.

Urner Barry's Yellow Sheet at midday said discounts for quick-shipping orders appeared to be common. Middle meats remained the foremost issue for beef processors, with select ribs and choice and select loin meat seen at reduced prices. End cuts were steady to slightly lower, although there was some export interest for end cuts. Slight discounts for ground beef emerged Wednesday.

-By Lester Aldrich, Dow Jones Newswires; 913-322-5179; lester.aldrich@dowjones.com

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August 05, 2009 12:47 ET (16:47 GMT)

Soybean Basis Firms On US Gulf Export Market

Soybean Basis Firms On US Gulf Export Market

1232 EDT [Dow Jones]-Export markets were quiet at the Louisiana Gulf Wednesday, with cash basis holding completely steady for all commodities except soybeans, where CIF bids at some ports rose by up to 2 cents a bushel. "Chinese demand keeps growing, with heavy purchases again last week. It's anybody's guess right now just tight old-crop [soybean] supplies are," said Bryce Knorr of Farm Futures. US grain futures were weaker Wednesday, recording cash-contract declines of around 10 cents for corn, soybeans and wheat at midsession. "Weather on net is beneficial - hot weather is on the way, but we need some heat to catch up on deficit growing degree days," said MF Global's Rich Feltes. "Yesterday's rains exceeded expectations in eastern Midwest, while the entire Midwest is slated for 85% coverage through Sunday." (GLW)

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August 05, 2009 12:33 ET (16:33 GMT)

ICE Canola Down On Profit-Taking/CBOT Soyoil Losses

ICE Canola Down On Profit-Taking/CBOT Soyoil Losses

WINNIPEG (Dow Jones)--Canola contracts on the ICE Futures Canada platform were trading at lower price levels with profit-taking after strong gains on Tuesday and the downturn in CBOT soyoil linked to the declines, market watchers said.

Activity remained on the light side with volumes confined to the nearby November, January and March contracts.

Sentiment that the advances seen Tuesday were overdone and in need of a downward correction helped to weigh on canola, brokers said.

A drop off in exporter demand also resulted in canola values experiencing some weakness. There were indications China had been seeking quantities of Canadian canola earlier in the week, but no confirmation of any sales was available, brokers said.

The upside in canola was also tempered by the mainly favorable growing conditions for North American crops.

The losses in canola were being limited by the uncertain growing conditions in western Canada and the possibility of an early frost. The reluctance of producers to deliver canola into the cash pipeline was also helping to slow the price drop, brokers said.

Gains overnight in Malaysian palm oil futures contributed some minor support to canola with small gains in CBOT soybean futures also an underpinning price influence.

The Canadian dollar was trading at a slightly weaker level Wednesday, but the currency's move was having little overall impact on canola's price direction.

There were an estimated 2,231 canola contracts traded at 11:32 a.m. CDT. Of the contracts traded, 508 were spread related.

Western barley futures were unchanged and untraded.

There were no western barley futures traded as of 10:32 a.m. CDT.

Prices in Canadian dollars per metric ton at 10:32 a.m. CDT:

Price       Change
Canola
Nov 431.70    dn  3.60
Jan 437.00    dn  3.00
Mar 438.20    dn  5.80
Western Barley
Oct 152.90    unchanged
Nov 172.00    unchanged

-By Dwayne Klassen, contributing to Dow Jones Newswires; (204)- 947-1700; resnews@shawbiz.ca

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August 05, 2009 12:00 ET (16:00 GMT)

Looking for Japanese Yen to recover close to 90.00 - Commerzbank

FXstreet.com (Barcelona) - After testing three times the 91.80 strong support (July 8, 10 and 11), USD/JPY rose to post 94.45 as 1-week high, thus pair started to falls to levels close to 93.30 yesterday. Currently the pair is trading around 93.74, 0.05% above today's opening price and closing the week with 1.45% gains from 92.43, Monday opening price.

The current week is the second of six positive week since the pair traded 98.90 in the early June. On the month, USD/JPY is falling 2.60% from 96.23 July the 1st opening price.

Karen Jones, Analyst at Commerzbank, comments the Yen to recover further and test 90.00 support in the following three weeks as pair is trading in a downchannel: "USD/JPY as suspected failed to make much impression beyond the 94.10/40 resistance and the intraday focus has shifted to nearby support. The market is currently being contained lower within the confines of a downchannel. This downchannel currently offers resistance at 97.16 and support at 91.40. The top of the channel is reinforced by its 100 day ma at 97.09 and our overall negative bias is entrenched while capped by 91.09/16. Loss of minor support at 93.00 will leave pressure back on the downside and we look for a breach of the 91.75/40 support to trigger a slide to 90.15 enroute to the 87.10 lows."

Jones expects a negative trend, taking pair to 90.15 level in the following three weeks: "Shorter term (1 - 3 weeks): Negative, target 90.15."

Asian Shares End Mostly Higher But Jakarta Stks Dn On Blasts

Asian Shares End Mostly Higher But Jakarta Stks Dn On Blasts

SINGAPORE (Dow Jones)--Most Asian share markets ended Friday's trading on a buoyant note to take home weekly gains, with commodity and shipping stocks broadly advancing on hopes of an economic recovery.

Indonesian stocks and currency tumbled after bomb blasts at two luxury hotels in Jakarta killed at least nine people and injured 50. But losses were pared during the course of the day as investors remained optimistic about the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Indonesia's main share index tumbled 2.7% in early trading, but recovered somewhat and closed down 0.6% at 2106.35. Shares of PT Holcim Indonesia fell 3.8%. Chief Executive Timothy Mackay was among those killed in the bomb blasts, a company official said. Among other Indonesian shares, Bakrie & Brothers shed 2.3%, Bumi Resources declined 1.1% and Bank Negara Indonesia also lost 1.1%.

In currency markets, the U.S. dollar jumped as high as 10190 rupiah, but also pared gains and was recently buying 10150 rupiah. "Fundamentals in Indonesia are very, very strong," added Craig Chan, a currency strategist with Nomura Securities.

Shares in Japan, Hong Kong, Australia, South Korea and Taiwan stretched their gains into a fourth straight session.

Japan's Nikkei 225 Average rose 0.6% to 9395.32, with trading volumes modest ahead of a three-day weekend, given Monday's national holiday.

Hong Kong's Hang Seng Index jumped 2.4% to 18805.66 and India's Sensex surged 2.8% in afternoon trading. Australia's S&P/ASX 200 inched up 0.1%, South Korea's Kospi gained 0.6%, Taiwan's Taiex rose 1%, New Zealand's NZX 50 advanced 0.2% and Singapore's Straits Times Index climbed 1.3%.

BNP Paribas analyst John Hetherington said the bullish tone in Asian markets was probably because of earnings growth expected next year.

"On average, our analysts expect earnings this year to fall 6% in Asia...Next year, however, is a completely different story, thanks to a low base after two years of falling profits. Our analysts project a remarkable 32% rebound in earnings," he added.

Dow Jones Industrial Average futures were recently down 19 points in screen trade. Investors were still watching news from U.S. lender CIT Group. Large bondholders were discussing a plan to exchange $5 billion in debt for equity in the company, which was also trying to raise emergency funds to avert a bankruptcy filing, said a person familiar with the matter.

Still, "investors are reluctant to buy (heavily) because of concerns over CIT Group's possible bankruptcy filing, which could come during Japan's long weekend," said Yumi Nishimura, market analyst at Daiwa Securities SMBC. Japanese markets will be shut Monday.

China's Shanghai Composite gained 0.2%, erasing early losses. There were some concerns of monetary tightening in the wake of strong economic data released over the last few days, but a few economists didn't see that happening anytime soon.

"China's economy is in better shape than many other countries, but it doesn't have a proper social safety net. Until Beijing feels more comfortable about job creation, we think it will avoid symbolically significant tightening measures, such as rate hikes, to avoid crushing confidence," Credit Suisse research analyst Dong Tao wrote in a report.

Energy and shipping shares were broadly higher, aided by an overnight increase in commodity prices. Woodside Petroleum gained 2.9% and BHP Billiton rose 0.8% in Sydney, Cnooc climbed 1.7% and China Cosco Holdings advanced 2.1% in Hong Kong, while Mitsui O.S.K. Lines gained 0.7% in Tokyo. Neptune Orient Lines surged 5.7% in Singapore and Cairn India rose 1.3%, while Shipping Corp. of India advanced 1.8%.

Shares of Nissan Motor rose 2.5% on a Nikkei newspaper report it was aiming to develop its own technology for hybrid vehicles and plans to launch a hybrid minivan in Japan in 2011.

NEC Corp. sank 8.9% in Tokyo after the Yomiuri Shimbun reported it was looking to raise capital. NEC said in a statement there was no truth to the report it had made such a decision, though a person familiar with the matter told Dow Jones Newswires that NEC was currently considering raising capital to strengthen its finances.

Technology stocks were leading in Korea with LG Display gaining 2.3% after reporting better-than-expected second quarter earnings and an upbeat outlook.

Currency market trade was choppy. There was a mild inclination to buy the safe-haven Japanese yen on the Jakarta explosions, though Asian currencies generally held up fairly well.

The euro was at 132.27 yen, from 132.63 yen in late New York trade, with the dollar at 93.73 yen from 93.75 yen. The euro was at $1.4108, from $1.4145.

Spot gold was bid at $935.10 a troy ounce, down $2.90 cents from late New York. August Nymex crude oil futures were at $61.72 a barrel on Globex, down 30 cents from New York.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

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July 17, 2009 05:48 ET (09:48 GMT)


Copyright 2009 Dow Jones & Company, Inc.

European stocks rises; Dollar slightly higher

FXstreet.com (Barcelona) - Stock markets in Europe are rising today's Friday session, following the green numbers in Asia, on economic recovery optimism despite speculations on CIT Group will file for bankruptcy. Exports fell more than imports in Europe in May, indicating that trade remains substantially weaker than last year after the credit crisis collapses.

DJ Eurostoxx 50 is rising 0.77% so far today, FTSE 100 advances 0.70%, CAC 40 posts 0.80% increases, DAX index climbs 0.95% today's session and the IBEX 35 is reaching 0.85% daily gains.

In Asia, Nikkei index has posted 0.55% gains, Hang Seng jumped 2.42% today and S&P/ASX 200 advanced 0.13% on Friday.

Eurozone n.s.a trade balance reduced its surplus in May to 1.9B from 2.7B posted in April. s.a trade balance posts 800 millions surplus in May from 300 millions deficit posted in April.

EUR/USD is falling 0.25% so far today from opening price to the current 1.4090/1.4500. GBP/USD has declined 0.65% on the day to the current 1.6300/10 after posting 1.6285 as intra-day low.

USD/JPY continues trading in a narrow range between 93.55 and 93.75 and USD/CHF is rising 0.35% so far today after jumping to test 1.0790, yesterday's high.

DATA SNAP: Euro-Zone Trade Surplus Shrinks In May

DATA SNAP: Euro-Zone Trade Surplus Shrinks In May

By Nicholas Winning

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The 16 countries that use the euro posted a smaller-than-expected trade surplus in May as exports fell more than imports from April, data released by the European Union's Eurostat statistics agency showed Friday.

Non-seasonally adjusted figures showed the euro zone's surplus narrowed to EUR1.9 billion in May from EUR2.7 billion in April. Economists were expecting a EUR2.7 billion surplus, according to a Dow Jones Newswires survey last week.

The figures showed euro-zone exports totaled EUR97.7 billion in May, down 24% on the year, while imports totaled EUR95.8 billion, a 27% drop compared with May 2008. In April, euro-zone exports totaled EUR102.7 billion, while imports totaled EUR99.9 billion, Eurostat said.

The data indicate that trade remains substantially weaker than last year after the credit crisis plunged the euro zone and many of its main trading partners into the deepest recession since World War II.

Trade among the 16 euro-zone member states shrank to EUR101.3 billion in May from EUR103.6 billion in April, leaving it 23% weaker on the year.

The euro zone's trade deficit for the first five months of the year shrank to EUR6.5 billion from EUR13.4 billion during the same period in 2008, but the data showed exports and imports for the January-May period were both 23% weaker on the year.

Eurostat Web site: www.europa.eu.int/en/comm/eurostat

-By Nicholas Winning, Dow Jones Newswires, +44 207 842 9498; ick.winning@dowjones.com

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July 17, 2009 05:00 ET (09:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Currency Rates Of Coffee Producing, Consuming Countries

Currency Rates Of Coffee Producing, Consuming Countries

  LONDON (Dow Jones)--U.S. dollar exchange rates as of 09:39 GMT July 17, compared with 10:36 GMT July 16.

  Producers:

                            17/07/09   (16/07/09)

Angolan Kwanza         AON     77.805     (74.971)
Bolivian Boliviano     BOB       7.02       (7.02)
Brazil Real            BRL     1.9306     (1.9345)
Burundi Franc          BIF        464        (470)
*CFA Franc             XOF     2019.5     (2047.5)
Cuban Peso             CUP         36         (36)
Ecuadorean Sucre       ECS      8.748      (8.748)
El Salvador Colon      SVC     8.1315     (8.1315)
Ethiopian Birr         ETB  11.335745    (11.3405)
Guatemala Quetzal      GTQ     8.1315     (8.1315)
Guinea Franc           GNS   4843.235    (4837.75)
Indian Rupee           INR      48.67      (48.79)
Indonesian Rupiah      IDR      10135      (10100)
Kenyan Shilling        KES      76.85       (77.2)
Malawi Kwacha          MWK     140.05     (141.05)
Mexican Peso           MXN      13.58    (13.5705)
Nicaragua Cordoba      NIC  19.788565    (19.7935)
Papua New Guinea Kina  PGK     2.6059     (2.6116)
Peruvian New Sol       PES   3.017035    (3.02375)
Philippines Peso       PHP       48.1     (48.075)
Vietnam Dong           VND      17805      (17805)
Zambian Kwacha         ZMK     5175.5     (5175.5)
Zimbabwe Dollar        ZWD      445.5      (444.5)

CONSUMERS:


Danish Krone           DKK     5.2813     (5.2907)
#Euro                  EUR     1.4098     (1.4074)
Japanese Yen           JPY     93.625     (93.565)
Norwegian Krone        NOK     6.3939     (6.4091)
Swedish Krona          SEK     7.8422     (7.8286)
Swiss Franc            CHF     1.0776     (1.0774)

(Currency rates for the Colombian Peso COP, Costa Rican Colon CRC, Dominican Republic DOP, Haiti Gourde HTG, Honduras Lempira HNL and Venezuelan Bolivar VEB are unavailable due to a problem with the source.)

  * = The CFA Franc is the common currency of 14 African countries which are
members of the Franc zone:
  XOF = Benin, Burkina, Ivory Coast, Guinnea Bissau, Mali, Niger, Senegal
and Togo under the Central Bank of the West African States.
  XAF = Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea
and Gabon, under the Bank of the Central African States.

  # = Currencies that are quoted in U.S. dollars per unit of currency.
All other currencies are quoted in units of currency per U.S. dollar.

  Source: OANDA Corp and yahoo.com.

-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; michael.haddon@dowjones.com

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July 17, 2009 04:42 ET (08:42 GMT)


Copyright 2009 Dow Jones & Company, Inc.

GLOBAL MARKETS: European Stocks Up;US Earnings Lift Sentiment

GLOBAL MARKETS: European Stocks Up;US Earnings Lift Sentiment

  By Andrea Tryphonides
  Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--European stocks traded in positive territory Friday, again taking their lead from the U.S. equity markets and earnings, with the latter surprising to the upside, led by JP Morgan's.

Mike Lenhoff, chief strategist at Brewin Dolphin said: "The results coming through are very supportive of a more promising outlook and the markets have been responding to that... I think there is a greater sense of conviction than there was before that a recovery is happening."

By 0755 GMT, the pan-European Stoxx 600 index was up 0.5% at 210.8. London's FTSE 100 was up 0.6% at 4388.0, Frankfurt's DAX increased 0.5% to 4985.0 and Paris's CAC-40 was 0.6% higher to 3220.1.

Gains were widespread across sectors Friday, although volumes were not exciting. With little in the way of fundamental macroeconomic data due for release investors had their eyes on further U.S. earnings for direction. These include news from banking giants Citigroup and Bank of America, as well as industrial conglomerate General Electric.

Meanwhile in Europe, autos led the market higher. Renault was up 1.3% at EUR25.9 despite announcing a 16.5% fall in global vehicle sales in the first-half of the year. The French car maker added that it has achieved a significantly positive free cash flow in this period but its net profit will be hit by a negative operating margin.

Elsewhere, British Airways soared 3.1% to 136.3 pence after it said it was set to raise GBP600 million through a bond issue and bank facilities to increase its liquidity. Also, the trustees of the group's pension fund agreed to release some bank guarantees back to the airline, making up to $540 million available for the airline to draw in cash.

In financials, Swedbank gained 3.3% to SEK50.0 after stating that it would review all commitments in the Baltic states and Ukraine and would continue to cut jobs, mainly in Eastern Europe, as bad loans in the region pushed the bank towards a worse-than-expected second-quarter loss.

On Thursday, U.S. stocks again showed strength, as the Dow Jones Industrial Average gained 1.1% to 8711.8. The Nasdaq Composite gained 1.2% to 1885.0 and the Standard & Poor's 500 rose 0.9%, to 940.7.

Investors are "positioning themselves to raise equity exposure as the earnings season unfolds," said Fred Dickson, market strategist at D.A. Davidson.

However, Ian Horsley, index trader at Spreadex.com, said: "Despite better than expected results from the major banks it's very much been a stealth rally and investors may well be looking for a break of the recent highs of 8877 [on the DJIA] before they sense real optimism."

Elsewhere, Asian stock markets were mostly higher Friday, although gains were tentative before the weekend.

Japan's Nikkei 225 closed up 0.6%, South Korea's Kospi Composite up 0.6% and Hong Kong's Hang Seng index was 2.4% higher.

By contrast, Indonesia's share market fell 0.9% after bomb blasts at two luxury hotels in the Jakarta business district killed at least nine people and injured 50.

In the currency markets, the euro fell slightly against the yen and dollar Friday as players sold the common currency to lock in profits on its overnight rise.

But overall sentiment towards the European currency remained stable and it could resume rising if stock prices keep going up and U.S. financial institutions' earnings turn out to be robust, dealers said.

At 0810 GMT, the euro stood at $1.4088, compared with $1.4148 late Thursday in New York, and at Y131.91 versus Y132.89.

Turning to crude, the oil market edged lower Friday amid a bout of profit taking after prices topped $62 a barrel Thursday, lifted by stronger equities.

At 0810 GMT, the August crude contract on Globex stood at $61.72 per barrel, down 30 cents, having settled Thursday at $62.02 per barrel, 48 cents higher, on the New York Mercantile Exchange, the highest settlement price since July 7.

Also at 0810 GMT, spot gold stood at $936.25/oz, down from $937.35 in late New York trading.

European government bond markets were firmer, helped by some gains in U.S. Treasurys late Thursday and a degree of safe-haven buying after the blasts in Jakarta.

At 0815 GMT, the September bund contract stood at 121.71, 0.23 higher.

-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=OgBNNDYHfkY7HuExqLXI%2FA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 17, 2009 04:17 ET (08:17 GMT)


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DATA SNAP:Italy May Indus Orders In 1st Mo Rise Since Jul 08

DATA SNAP:Italy May Indus Orders In 1st Mo Rise Since Jul 08

By Liam Moloney and Giada Zampano

Of DOW JONES NEWSWIRES

ROME (Dow Jones)--Italian industrial orders rose moderately in May on the month, advancing for the first time since July of last year, as foreign and national demand climbed, statistics agency Istat said Friday.

Industrial orders fell an unadjusted 31.0% on the year in May, a drop for the eighth month in a row, after slipping 32.2% in April and 26.0% in March.

On the month, industrial orders rose a seasonally-adjusted 0.4% compared with a 3.6% fall in April.

Industrial sales were down an unadjusted 25.3% on the year in May. Sales on the month decreased 1.1% in May as national sales fell by 2.7%, while foreign industrial sales were up 3.1%.

Web site: www.istat.it

-By Liam Moloney and Giada Zampano, Dow Jones Newswires; +39 06 6976 6924; liam.moloney@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=OgBNNDYHfkY7HuExqLXI%2FA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 17, 2009 04:11 ET (08:11 GMT)


Copyright 2009 Dow Jones & Company, Inc.

5th UPDATE: Terror Strikes On Jakarta Hotels Leave 9 Dead

5th UPDATE: Terror Strikes On Jakarta Hotels Leave 9 Dead

(Recasts with quotes from Indonesian president. Minor edits, amends headline.)

   JAKARTA -(Dow Jones)- Two large bomb blasts hit the Ritz-Carlton and JW Marriott hotels in the Indonesian capital on Friday, killing nine and wounding nearly 50 in the first terror attack in the Southeast Asian nation since 2005. 

Suspicion immediately fell on regional terror network Jemaah Islamiyah and one of its master bombmakers and strategists - Noordin Mohammed Top.

President Susilo Bambang Yudhoyono meanwhile, said his government would step up security measures following the "inhuman" act of terror. He said he didn't know which group was responsible for the attacks yet.

Several foreigners were among the dead in the twin hotel explosions early Friday morning in Jakarta. Nearly 50 people were also wounded, Agence France-Presse said.

The streets outside the two hotels, which sit adjacent to each other in the Mega Kuningan business district in central Jakarta were covered in shattered glass and debris.

White smoke billowed in the aftermath of the blast. Dazed and bloodied workers and hotel guests milled outside soon after the explosions.

The facade of the Ritz-Carlton was ripped off after an explosion in the restaurant while people were having breakfast, police said.

An unexploded bomb was later found at the Marriott, the local TVOne station said. It has since been detonated.

Authorities were acting on the assumption that the bombing was carried out by Muslim extremists, said a senior counterterrorism official, the Wall Street Journal reported.

Chief security minister Widodo AS said nine people were killed and 41 wounded. He said the blasts were caused by high-level explosives.

At a news conference, President Yudhoyono alleged there was a plot to prevent his reelection, calling the attackers "spreaders of death."

"Today, bombings have been perpetrated by terrorist groups. I cannot yet say whether these groups are the same ones" that have carried out attacks in the past, Yudhoyono said in a speech broadcast on local television. "This may have a wide impact on our economy, on tourism, and the business climate."

Indonesia's share market initially slumped 2.6% after the blasts, but the index came off its lows to be down 1.5% just before midday local time, as some investors opted to focus on the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Still, Ben Sukma, chairman of Indonesia's tourism association, ASITA, admitted there'll "definitely be an impact" on tourism following the strikes.

Australia has already urged citizens to reconsider the need to travel to the archipelago, as Prime Minister Kevin Rudd described the attacks as "barbaric." Singapore meanwhile, urged citizens to be vigilant.

"We continue to receive credible information that terrorists could be planning attacks in Indonesia and that Bali remains an attractive target for terrorists," an Australian foreign ministry statement read.

Four foreigners were killed, The Associated Press and local Metro TV said. The blasts may have come from the front and the basement of the hotels, the Antara news agency said.

Among those killed was PT Holcim Indonesia's (SMCB.JK) chief executive Timothy Mackay. He was at the Marriott, a company official said, and died from his injuries in hospital.

Shares of Holcim Indonesia (SMCB.JK) were down 3.8% shortly after the news broke of Mackay's passing.

Citizens from the U.S, Netherlands, India, Canada, Australia, South Korea were among the injured, reports said.

The first explosion took place around 7:40 a.m. local time (0045 GMT) with the second occurring minutes later.

"I heard at least three explosions and now white smoke is billowing," a fund manager at a foreign securities company told Dow Jones Newswires by phone.

Indonesia, the world's most populous Muslim nation, hasn't suffered a major terrorist attack since the 2005 restaurant bombings on the resort island of Bali. The JW Marriott was the target of an earlier bombing in 2003 that killed 12.

That blast was blamed on regional terror group Jemaah Islamiyah, as was the 2002 Bali nightclub bombings that killed 202 people.

Jemaah Islamiyah is largely believed to have been weakened since it carried out a series of high-profile terror strikes that began in Bali in 2002.

Analysts believe the network is weakened after a number of its leaders were arrested and some prosecuted. Three of the 2002 Bali bombers have also been executed.

But one JI mastermind - Malaysian Noordin Mohammed Top - is still on the run and widely believed to be in Indonesia. He has been described by the U.S. government as one of the "most dangerous members" of Jemaah Islamiyah.

"He is believed to be a top recruiter, strategist, and fundraiser," Noordin's description on the U.S. "Rewards for Justice" Web site read.

"He is a charismatic leader and a recruiter, and has proven to be innovative and single-minded in his desire to implement the Al Qaeda line and target Western interests," it said.

Also Friday, English soccer team Manchester United - who were supposed to stay at the Ritz-Carlton - said they would cancel the Jakarta leg of their Asian tour. They were scheduled to arrive Sunday for a sold-out game against an Indonesian selection.

The Jakarta strikes appear to be the latest luxury hotels targeted in a series of recent attacks in Asia.

More than 50 people were killed and more than 250 injured after a suicide bomber blew up an explosive-laden truck outside the Marriott in Islamabad in September last year.

In India's commercial capital Mumbai, nearly 170 people were killed after gunmen laid siege to the landmark Taj Mahal and Oberoi hotels last November. Analysts have long warned hotels were a prime target for terrorists.

   -By Jakarta Bureau, Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com

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(END) Dow Jones Newswires

July 17, 2009 04:05 ET (08:05 GMT)


Copyright 2009 Dow Jones & Company, Inc.

CURRENCIES: Dollar Gains In Asia, Taking Cues From Stocks

CURRENCIES: Dollar Gains In Asia, Taking Cues From Stocks

By Lisa Twaronite

The dollar gained in Asian trading Friday, taking its cues from mostly firmer equities markets across the region and shrugging off earlier losses on reports of fatal blasts in Indonesia.

The yen had gained earlier, on reports that a series of blasts hit hotels in central Jakarta early Friday, claiming at least nine lives.

Foreign exchange markets "are again taking their lead from equities, with U.S. dollar and Japanese yen generally firmer," said Adam Cole, global head of FX strategy at RBC Capital Markets.

The dollar bought 93.72 yen, up from 93.28 yen in late North American trading on Thursday. Tokyo trading volume was reported to be light, ahead of a Japanese market holiday on Monday.

The dollar index (DXY), which tracks the greenback against a trade-weighted basket of six major rivals, was at 79.311, up from 79.222 late Thursday.

The euro bought $1.4129, down from $1.4146 late Thursday, while the British pound fetched $1.6404, down from $1.6440.

Currencies markets had little reaction to reports that U.S. Commerce Secretary Gary Locke said the U.S. wants China to move more quickly to a free-floating exchange rate mechanism for the yuan.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=OgBNNDYHfkY7HuExqLXI%2FA%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

July 17, 2009 03:21 ET (07:21 GMT)

4th UPDATE: Deadly Blasts Hit Jakarta Luxury Hotels; 9 Dead

4th UPDATE: Deadly Blasts Hit Jakarta Luxury Hotels; 9 Dead

(Adds details on unexploded bomb, comments from Australian PM, Manchester United canceling Jakarta leg of Asian tour.)

JAKARTA -(Dow Jones)- Two large bomb blasts hit the Ritz-Carlton and JW Marriott hotels in the Indonesian capital on Friday, killing nine.

It was the first terror attack in the Southeast Asian nation since 2005, and suspicion immediately fell on regional terror network Jemaah Islamiyah and one of its leading bombmakers and strategists - Noordin Mohammed Top.

Several foreigners were among the dead in the twin hotel explosions early Friday morning in Jakarta. Nearly 50 people were also wounded, Agence France-Presse said.

The streets outside the two hotels, which sit adjacent to each other in the Mega Kuningan business district in central Jakarta were covered in shattered glass and debris.

White smoke billowed in the aftermath of the blast. The facade of the Ritz-Carlton was ripped off after an explosion in the restaurant while people were having breakfast, police said.

An unexploded bomb was later found at the Marriott, the local TVOne station said. It has since been detonated.

Authorities were acting on the assumption that the bombing was carried out by Muslim extremists, said a senior counterterrorism official, the Wall Street Journal reported.

Chief security minister Widodo AS said nine people were killed and 41 wounded. He said the blasts were caused by high-level explosives.

Indonesia's share market initially slumped 2.6% after the blasts, but the index came off its lows to be down 1.5% just before midday local time, as some investors opted to focus on the country's economic and political prospects.

"Global factors are still in favor of Indonesia. Pessimism over the U.S. economy is receding, encouraging global investors to reenter emerging markets, including Indonesia," said Standard Chartered economist Eric Sugandi.

Still, Ben Sukma, chairman of Indonesia's tourism association, ASITA, admitted there'll "definitely be an impact" on tourism following the strikes.

Australia has already urged citizens to reconsider the need to travel to the archipelago, as Prime Minister Kevin Rudd described the attacks as "barbaric."

"We continue to receive credible information that terrorists could be planning attacks in Indonesia and that Bali remains an attractive target for terrorists," an Australian foreign ministry statement read.

Four foreigners were killed, The Associated Press and local Metro TV said. The blasts may have come from the front and the basement of the hotels, the Antara news agency said.

Among those killed was PT Holcim Indonesia's (SMCB.JK) chief executive Timothy Mackay. He was at the Marriott, a company official said, and died from his injuries in hospital.

Shares of Holcim Indonesia (SMCB.JK) were down 3.8% shortly after the news broke of Mackay's passing.

Three Dutch citizens, an Australian and a South Korean were among the injured, reports said.

The first explosion took place around 7:40 a.m. local time (0045 GMT) with the second occurring minutes later.

Police have sealed off the area near the Ritz-Carlton and the JW Marriott in the Mega Kuningan district. "I heard at least three explosions and now white smoke is billowing," a fund manager at a foreign securities company told Dow Jones Newswires by phone.

Indonesia, the world's most populous Muslim nation - hasn't suffered a major terrorist attack since the 2005 restaurant bombings on the resort island of Bali. The JW Marriott was the target of an earlier bombing in 2003, in which 12 people died.

That blast was blamed on regional terror group Jemaah Islamiyah, as was the 2002 Bali nightclub bombings that killed 202 people. Jemaah Islamiyah is largely believed to have been weakened since it carried out a series of high-profile terror strikes that began in Bali in 2002.

Analysts believe the network is weakened after a number of its leaders were arrested and some prosecuted. Three of the 2002 Bali bombers have also been executed.

But one leader - Malaysian Noordin Mohammed Top - is still on the run and widely believed to be in Indonesia. He has been described by the U.S. government as one of the "most dangerous members" of Jemaah Islamiyah.

"He is believed to be a top recruiter, strategist, and fundraiser," Noordin's description on the U.S. "Rewards for Justice" read.

"He is a charismatic leader and a recruiter, and has proven to be innovative and single-minded in his desire to implement the Al Qaeda line and target Western interests," it said. Also Friday, English soccer team Manchester United - who were supposed to stay at the Ritz-Carlton - said they would cancel the Jakarta leg of their Asian tour. They were scheduled to arrive Sunday for a sold-out game against an Indonesian selection.

The Jakarta strikes appear to be the latest luxury hotels targeted in a series of recent attacks in Asia.

More than 50 people were killed and more than 250 injured after a suicide bomber blew up an explosive-laden truck outside the Marriott in Islamabad in September last year.

In India's commercial capital Mumbai, nearly 170 people were killed after gunmen laid siege to the landmark Taj Mahal and Oberoi hotels last November. Analysts have long warned hotels were a prime target for terrorists.

   -By Jakarta Bureau, Dow Jones Newswires; 62-21 39831277; I-Made.Sentana@dowjones.com

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(END) Dow Jones Newswires

July 17, 2009 03:19 ET (07:19 GMT)


Copyright 2009 Dow Jones & Company, Inc.

France To Exit Econ Slump In 2H 2010 - Report

France To Exit Econ Slump In 2H 2010 - Report

PARIS (Dow Jones)--The French economy will pick up from the current slump in the second half of next year, Stimulus Minister Patrick Devedjian told daily Le Parisien in an interview published Friday.

Devedjian added that while France hasn't exited the downturn yet, he sees "numerous signs of improvement."

Newspaper Web site: www.leparisien.fr

-By Paris Bureau, Dow Jones Newswires; 33-1-4017 1740

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(END) Dow Jones Newswires

July 17, 2009 03:09 ET (07:09 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Forex: Pound falls quickly to break 1.6360 against Dollar

FXstreet.com (Barcelona) - GBP/USD has fallen around 90 pips in the last hour from 1.6415 to break 1.6360 level and post 1.6324 as fresh intra-day low. Pair has continued, thus, with its rejection from 1.6416, fresh 2-week high reached yesterday's session.

Currently pair is trading around 1.6330/40, 0.45% below today's opening price action.

Rajoo C, analyst at Precise Trader, comments: "The Hourly Oscillators are turning bearish and price is approaching the MA, so Cautious approach is needed for the bulls. Hourly Trend is Turning Down while 16525 level holds and Daily Trend is Sideways Down while 16625 holds, so expect the price to turn down any moment. The Patterns are suggesting the High may have already been seen on the Hourly Chart or it may test the high one more time. Conservative traders should look to Short near 16480 or strictly trade only at our levels. Aggressive traders look to Short while 16480-16525 level holds."

DATA SNAP: UK Service Sector Grows, But Slows In June

DATA SNAP: UK Service Sector Grows, But Slows In June

By Paul Hannon

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The U.K's dominant services sector expanded for the second straight month in June, but at a marginally slower pace than in May.

Research group Markit Economics Friday said the purchasing managers' index for the services sector fell to 51.6 in June from 51.7 in May.

A reading above 50.0 indicates the sector is expanding, while a reading below 50.0 indicates it is contracting.

The PMI was weaker than expected, with economists surveyed by Dow Jones last week having forecast the measure would rise to 52.5.

But policy makers will take some comfort from the fact that a key part of the economy grew, having contracted between May 2008 and April 2009.

-Paul Hannon, Dow Jones Newswires; +44 20 7842 9491; paul.hannon@dowjones.com

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(END) Dow Jones Newswires

July 03, 2009 04:39 ET (08:39 GMT)


Copyright 2009 Dow Jones & Company, Inc.