quinta-feira, 28 de outubro de 2010
(NS1) CNBC: Brazil's Vale reports record 3Q profits� 40
CNBC: Brazil's Vale reports record 3Q profits� 40 mins ago
2010-10-28 06:04:54.570 GMT
http://c.moreover.com/click/here.pl?z3512748538&z=950243446
PageExcerpt:
SAO PAULO - Brazil's Vale mining company is reporting record profits for the third quarter on strong global demand for iron ore. The company says in a Wednesday statement that its net earnings were $6 billion in the July through September period. ...
2010-10-28 06:04:54.570 GMT
http://c.moreover.com/click/here.pl?z3512748538&z=950243446
PageExcerpt:
SAO PAULO - Brazil's Vale mining company is reporting record profits for the third quarter on strong global demand for iron ore. The company says in a Wednesday statement that its net earnings were $6 billion in the July through September period. ...
segunda-feira, 25 de outubro de 2010
(BN) Treasury Draws Negative Yield for First Time During
Treasury Draws Negative Yield for First Time During TIPS Sale
2010-10-25 17:07:08.164 GMT
By Daniel Kruger and Cordell Eddings
Oct. 25 (Bloomberg) -- The Treasury sold $10 billion of
five-year Treasury Inflation Protected Securities at a negative
yield for the first time in the history of U.S. debt.
The securities drew a yield of negative 0.55 percent, the
same as the average forecast in a Bloomberg News survey of 7 of
the Federal Reserve's 18 primary dealers. The bid-to-cover
ratio, which gauges demand by comparing total bids with the
amount of securities offered, was 2.84. The average at the last
120 auctions was 2.38. The sale was a reopening of an $11
billion offering in April.
"These negative yields are being driven by the Federal
Reserve and their push to increase inflation expectations,"
Michael Pond, co-head of U.S. rates strategy in New York at
Barclays Plc, said before the sale. The firm is one of 18
primary dealers required to bid at Treasury auctions.
The U.S. can only sell debt at a negative yield on
inflation-linked debt, according to McKayla Barden, a
spokeswoman at the Bureau of the Public Debt. Conventional
fixed-coupon Treasuries of a given maturity could be sold at
price above face value with a zero percent coupon if yields in
the market on that maturity were negative. The government began
selling inflation-protected debt in 1997.
Other Auctions
The sale was the first of four this week totaling $109
billion.
The last TIPS auction, on April 26, drew a yield of 0.550
percent, which was the lowest on record. The bid-to-cover ratio
was 3.15.
Treasury 30-year bonds rose for a second day, leading a
rally in Treasuries, amid speculation on how much debt the
Federal Reserve may buy to spur the economy and before data that
may show economic growth was below average.
Ten-year note yields fell for the first time in four days,
shrinking the difference between 2- and 10-year yields before
the Fed meets next week. Treasuries gained even as data showed
sales of existing homes rose. The U.S. is scheduled to sell $10
billion of five-year inflation-linked securities today, the
first of four note auctions this week totaling $109 billion.
"Whenever we see a bit of a selloff in the Treasury market
it is getting met, and will continue to get met, by renewed
buying until we get clarification with regards to the size and
frequency of the Fed's asset purchases," said Christian Cooper,
senior rates trader in New York at primary dealer Jefferies &
Co.
For Related News and Information:
Bond yield forecasts: BYFC <GO>
Top bond market news: TOP BON <GO>
World bond markets: WB <GO>
Credit market watch: CMW <GO>
Sovereign debt monitor: SOVR <GO>
Short-term liquidity SLIQ <GO>
Bonds for sale: PREL <GO>
--With assistance from Daniel Kruger in New York. Editors: Greg
Storey, Paul Cox
To contact the reporters on this story:
Cordell Eddings in New York at +1-212-617-7344 or
ceddings@bloomberg.net;
Matthew Brown in London at +44-20-3216-4059 or
mbrown42@bloomberg.net
To contact the editor responsible for this story:
Dave Liedtka at +1-212-617-8988 or dliedtka@bloomberg.net
2010-10-25 17:07:08.164 GMT
By Daniel Kruger and Cordell Eddings
Oct. 25 (Bloomberg) -- The Treasury sold $10 billion of
five-year Treasury Inflation Protected Securities at a negative
yield for the first time in the history of U.S. debt.
The securities drew a yield of negative 0.55 percent, the
same as the average forecast in a Bloomberg News survey of 7 of
the Federal Reserve's 18 primary dealers. The bid-to-cover
ratio, which gauges demand by comparing total bids with the
amount of securities offered, was 2.84. The average at the last
120 auctions was 2.38. The sale was a reopening of an $11
billion offering in April.
"These negative yields are being driven by the Federal
Reserve and their push to increase inflation expectations,"
Michael Pond, co-head of U.S. rates strategy in New York at
Barclays Plc, said before the sale. The firm is one of 18
primary dealers required to bid at Treasury auctions.
The U.S. can only sell debt at a negative yield on
inflation-linked debt, according to McKayla Barden, a
spokeswoman at the Bureau of the Public Debt. Conventional
fixed-coupon Treasuries of a given maturity could be sold at
price above face value with a zero percent coupon if yields in
the market on that maturity were negative. The government began
selling inflation-protected debt in 1997.
Other Auctions
The sale was the first of four this week totaling $109
billion.
The last TIPS auction, on April 26, drew a yield of 0.550
percent, which was the lowest on record. The bid-to-cover ratio
was 3.15.
Treasury 30-year bonds rose for a second day, leading a
rally in Treasuries, amid speculation on how much debt the
Federal Reserve may buy to spur the economy and before data that
may show economic growth was below average.
Ten-year note yields fell for the first time in four days,
shrinking the difference between 2- and 10-year yields before
the Fed meets next week. Treasuries gained even as data showed
sales of existing homes rose. The U.S. is scheduled to sell $10
billion of five-year inflation-linked securities today, the
first of four note auctions this week totaling $109 billion.
"Whenever we see a bit of a selloff in the Treasury market
it is getting met, and will continue to get met, by renewed
buying until we get clarification with regards to the size and
frequency of the Fed's asset purchases," said Christian Cooper,
senior rates trader in New York at primary dealer Jefferies &
Co.
For Related News and Information:
Bond yield forecasts: BYFC <GO>
Top bond market news: TOP BON <GO>
World bond markets: WB <GO>
Credit market watch: CMW <GO>
Sovereign debt monitor: SOVR <GO>
Short-term liquidity SLIQ <GO>
Bonds for sale: PREL <GO>
--With assistance from Daniel Kruger in New York. Editors: Greg
Storey, Paul Cox
To contact the reporters on this story:
Cordell Eddings in New York at +1-212-617-7344 or
ceddings@bloomberg.net;
Matthew Brown in London at +44-20-3216-4059 or
mbrown42@bloomberg.net
To contact the editor responsible for this story:
Dave Liedtka at +1-212-617-8988 or dliedtka@bloomberg.net
(BN) G-20 to Avoid ‘Competitive Devaluation’ of Currencies
G-20 to Avoid 'Competitive Devaluation' of Currencies (Update3)
2010-10-25 07:21:44.311 GMT
(Updates currencies in sixth paragraph. See {GMEET <GO>}
for more on the G-20 meeting.)
By Simon Kennedy and Shamim Adam
Oct. 25 (Bloomberg) -- Group of 20 finance chiefs vowed to
avoid weakening currencies to lift exports and left it to a
leaders' meeting next month to flesh out how to further pressure
member China to allow faster gains in the yuan.
Finance ministers and central bankers ended talks in South
Korea Oct. 23 foreswearing "competitive devaluation" to calm
fears of a trade war stemming from using cheaper currencies to
spur growth. They called for reduced trade imbalances while
stopping short of a U.S. proposal for targets that was aimed at
making a yuan advance more palatable to China. Leaders will take
up the debate at the Seoul summit on Nov. 11-12.
The decisions taken in Gyeongju are unlikely to mark an end
to the dollar's recent slide or trigger a quicker rise in the
yuan, according to strategists at banks from UBS AG to Westpac
Banking Corp. Investors may now look for direction from the
Federal Reserve's meeting next week to decide whether to buy
more assets, a step that may undermine the dollar.
"Tensions may be reduced in the short term, but in the
longer term there are still imbalances," said Mansoor Mohi-
uddin, the Singapore-based head of global currency strategy at
UBS. The second-biggest currency trader expects the yuan to
reach 6.55 per dollar by year-end, an appreciation of less than
2 percent. "The focus will shift to the Fed's quantitative
easing for the dollar. The yuan will continue a modest
appreciation."
Dollar Retreats
The dollar slid today after the meetings omitted any
American pledge to refrain from further so-called quantitative
easing. Fed Chairman Ben S. Bernanke received "criticism" in
Gyeongju after his move toward easier monetary policy pushed the
dollar down, German Economy Minister Rainer Bruederle said.
The dollar dropped to a 15-year low against the yen,
sinking as low as 80.66 yen. Against the euro, the dollar
dropped 0.8 percent to $1.4070 as of 8:08 a.m. in London.
"It's the wrong way to try to prevent or solve problems by
adding more liquidity," Bruederle said. "Excessive, permanent
money creation in my opinion is an indirect manipulation of an
exchange rate."
Canadian Finance Minister Jim Flaherty said at a conference
in Seoul today that "I agree that there's suggestion that
aggressive quantitative easing in the United States would create
devaluation pressure on the U.S. currency."
China Drop-by
U.S. Treasury Secretary Timothy F. Geithner, who stopped in
Qingdao, China, yesterday for a meeting with Vice Premier Wang
Qishan, said in an interview he's optimistic that China will
"continue to move" on the yuan.
The G-20 called the economic recovery "fragile and
uneven." To increase the say of developing nations in the
International Monetary Fund's decisions, the G-20 endorsed what
IMF Managing Director Dominique Strauss-Kahn called the
"biggest reform ever" of its governance with European
authorities agreeing to cut their role.
It was the first time the economic policy makers took a
joint stance on exchange rates having previously resisted doing
so for fear of alienating China. The G-20 statement still
recycles language used at previous leaders' summits in London
and Toronto and falls short of the currency accords of the
1980s.
"I don't see anything that's going to discourage people
from resuming selling dollars and buying currencies that look to
be undervalued," said Sean Callow, a senior currency strategist
at Westpac in Sydney.
Export Concern
The officials met as China's restraint of the yuan and the
U.S. dollar's recent drop force trading partners including South
Korea and Brazil to temper gains in their own floating
currencies to remain competitive.
Geithner predicted China will allow the yuan to appreciate
more because officials there understand it's in the long-term
interest of domestic growth and global economic stability.
"They recognize it's important to the world," he said in
an interview on Oct. 23 with Bloomberg Television. As China's
currency stance affects more countries, "China recognizes that,
and I think we're going to see them continue to move."
David Bloom, global head of currency strategy at HSBC
Holdings Plc in London, nevertheless predicted "the 'currency
war' will persist at least through" to the Seoul meeting. That
may spark a dollar rally because ongoing frictions and the
threat they prompt greater capital controls and protectionism
may deter investors from riskier exchange rates, he said.
Japan's Stance
Japanese Finance Minister Yoshihiko Noda reiterated that
the G-20 meeting didn't prompt any change in Japan's currency
policy, saying it stands ready to counter a rise in the yen if
needed.
To dilute the focus of such gatherings on currencies and
help rebalance the world economy away from excess U.S. demand
and Chinese savings, Geithner suggested goals for current-
account deficits or surpluses. While South Korea and Canada back
the strategy, it was challenged by major exporters Germany and
Japan.
The group will adopt "the full range of policies conducive
to reducing excessive imbalances" and making them sustainable,
the statement said. The IMF will deepen its monitoring of
currencies and continuously wide trade deficits.
The G-20 members will expand details by the Seoul forum, a
U.S. official said. Although Noda said Geithner wanted a 4
percent cap on trade imbalances, the official said the U.S.
doesn't expect a fixed target and may instead push for a range
aimed at delivering sustainable trade positions by 2015.
Trade Imbalances
"We're going to make it easier to sustain support in all
countries for more open trade by making sure that we address the
risk of persistently large trade imbalances," Geithner said.
Bundesbank President Axel Weber, who also attended the G-20
talks, said Germany shouldn't be blamed for having a current-
account surplus. Germany is four times more reliant on exports
than the U.S.
A current account is the broadest measure of trade because
it includes investment and transfer income, and it would be hard
to achieve any correction in one without a currency shifting.
Saudi Arabia, Germany, Russia and China all have surpluses
larger than 4 percent, while Turkey and South Africa have
deficits bigger than that, according to the IMF.
Even as it runs a trade surplus and builds currency
reserves, China has curbed the yuan's rise to about 2 percent
since a June pledge to introduce more flexibility, arguing
anything other than a gradual appreciation would cause social
and economic disruption. At the same time, the Fed has sent the
dollar tumbling by leaning toward buying more assets to tackle
unemployment near a 26-year high and weak inflation.
Emerging Markets
Caught in the middle, emerging markets are embracing
capital controls or intervening themselves to stay competitive
with China and slow the inflow of speculative cash. South Korea
is discussing several measures including a bank tax or levy on
financial transactions, and Brazil last week raised taxes on
foreign capital for the second time this month.
To appease critics, advanced economies agreed to be
"vigilant against excess volatility and disorderly movements in
exchange rates," the G-20 said. Geithner said the U.S. backs a
"strong dollar" and recognizes its global responsibility.
At the IMF, Europe will surrender two seats on the 24-
member executive board and more than 6 percent of so-called
quotas will pass to under-represented countries. Quotas
determine an IMF member's voting rights, financial commitment
and access to loans. As part of this process, G-20 officials
also agreed to double the IMF's permanent resources.
Yuan's Rise
For all the complaints it faces, China let the yuan gain the
most versus the dollar since 2005 in September and by more than
20 percent in the last five years. The Bloomberg-JPMorgan Chase
& Co. Asia Currency Index is up about 3 percent since August.
Such advances are likely to continue because "many key
interests seem to be aligned," Thomas Stolper, an economist at
Goldman Sachs Group Inc. in London, said in an Oct. 22 report.
The U.S. needs a lower currency to help create jobs and the
alternative is even more Fed stimulus, which will end up
propelling more capital into Asia, he said.
U.S. companies from Costco Wholesale Corp. to Deere & Co.
have credited the weaker dollar for boosting earnings. Standard
& Poor's 500 Index firms that get more than half of their
revenue internationally have returned about 5.5 percentage
points more than those whose sales comes mostly from the U.S.
since the start of September, according to data compiled by
Bloomberg.
"Once the fact has been accepted that the dollar has to
weaken because there are no real alternatives it is all about
managing the process on a global scale," Stolper said.
Related News and Information: Top currency-market articles {TOP
FRX <GO>} Bond yield forecasts: {BYFC <GO>} Global economy
watch: {GEW <GO>} Central Bank Monetary Policy Rates {CBRT <GO>}
--With assistance from Eunkyung Seo, Rebecca Christie, Mark
Deen, Rainer Buergin, Keiko Ujikane, Frances Yoon, Peter Cook
and Paul Badertscher in Gyeongju, Sunil Jagtiani and Liz Capo
McCormick in New York. Editors: Brendan Murray, Chris Anstey
To contact the reporter on this story:
Simon Kennedy in Gyeongju, South Korea, at
skennedy4@bloomberg.net
To contact the editor responsible for this story:
John Fraher at +44-20-7673-2058 or jfraher@bloomberg.net
2010-10-25 07:21:44.311 GMT
(Updates currencies in sixth paragraph. See {GMEET <GO>}
for more on the G-20 meeting.)
By Simon Kennedy and Shamim Adam
Oct. 25 (Bloomberg) -- Group of 20 finance chiefs vowed to
avoid weakening currencies to lift exports and left it to a
leaders' meeting next month to flesh out how to further pressure
member China to allow faster gains in the yuan.
Finance ministers and central bankers ended talks in South
Korea Oct. 23 foreswearing "competitive devaluation" to calm
fears of a trade war stemming from using cheaper currencies to
spur growth. They called for reduced trade imbalances while
stopping short of a U.S. proposal for targets that was aimed at
making a yuan advance more palatable to China. Leaders will take
up the debate at the Seoul summit on Nov. 11-12.
The decisions taken in Gyeongju are unlikely to mark an end
to the dollar's recent slide or trigger a quicker rise in the
yuan, according to strategists at banks from UBS AG to Westpac
Banking Corp. Investors may now look for direction from the
Federal Reserve's meeting next week to decide whether to buy
more assets, a step that may undermine the dollar.
"Tensions may be reduced in the short term, but in the
longer term there are still imbalances," said Mansoor Mohi-
uddin, the Singapore-based head of global currency strategy at
UBS. The second-biggest currency trader expects the yuan to
reach 6.55 per dollar by year-end, an appreciation of less than
2 percent. "The focus will shift to the Fed's quantitative
easing for the dollar. The yuan will continue a modest
appreciation."
Dollar Retreats
The dollar slid today after the meetings omitted any
American pledge to refrain from further so-called quantitative
easing. Fed Chairman Ben S. Bernanke received "criticism" in
Gyeongju after his move toward easier monetary policy pushed the
dollar down, German Economy Minister Rainer Bruederle said.
The dollar dropped to a 15-year low against the yen,
sinking as low as 80.66 yen. Against the euro, the dollar
dropped 0.8 percent to $1.4070 as of 8:08 a.m. in London.
"It's the wrong way to try to prevent or solve problems by
adding more liquidity," Bruederle said. "Excessive, permanent
money creation in my opinion is an indirect manipulation of an
exchange rate."
Canadian Finance Minister Jim Flaherty said at a conference
in Seoul today that "I agree that there's suggestion that
aggressive quantitative easing in the United States would create
devaluation pressure on the U.S. currency."
China Drop-by
U.S. Treasury Secretary Timothy F. Geithner, who stopped in
Qingdao, China, yesterday for a meeting with Vice Premier Wang
Qishan, said in an interview he's optimistic that China will
"continue to move" on the yuan.
The G-20 called the economic recovery "fragile and
uneven." To increase the say of developing nations in the
International Monetary Fund's decisions, the G-20 endorsed what
IMF Managing Director Dominique Strauss-Kahn called the
"biggest reform ever" of its governance with European
authorities agreeing to cut their role.
It was the first time the economic policy makers took a
joint stance on exchange rates having previously resisted doing
so for fear of alienating China. The G-20 statement still
recycles language used at previous leaders' summits in London
and Toronto and falls short of the currency accords of the
1980s.
"I don't see anything that's going to discourage people
from resuming selling dollars and buying currencies that look to
be undervalued," said Sean Callow, a senior currency strategist
at Westpac in Sydney.
Export Concern
The officials met as China's restraint of the yuan and the
U.S. dollar's recent drop force trading partners including South
Korea and Brazil to temper gains in their own floating
currencies to remain competitive.
Geithner predicted China will allow the yuan to appreciate
more because officials there understand it's in the long-term
interest of domestic growth and global economic stability.
"They recognize it's important to the world," he said in
an interview on Oct. 23 with Bloomberg Television. As China's
currency stance affects more countries, "China recognizes that,
and I think we're going to see them continue to move."
David Bloom, global head of currency strategy at HSBC
Holdings Plc in London, nevertheless predicted "the 'currency
war' will persist at least through" to the Seoul meeting. That
may spark a dollar rally because ongoing frictions and the
threat they prompt greater capital controls and protectionism
may deter investors from riskier exchange rates, he said.
Japan's Stance
Japanese Finance Minister Yoshihiko Noda reiterated that
the G-20 meeting didn't prompt any change in Japan's currency
policy, saying it stands ready to counter a rise in the yen if
needed.
To dilute the focus of such gatherings on currencies and
help rebalance the world economy away from excess U.S. demand
and Chinese savings, Geithner suggested goals for current-
account deficits or surpluses. While South Korea and Canada back
the strategy, it was challenged by major exporters Germany and
Japan.
The group will adopt "the full range of policies conducive
to reducing excessive imbalances" and making them sustainable,
the statement said. The IMF will deepen its monitoring of
currencies and continuously wide trade deficits.
The G-20 members will expand details by the Seoul forum, a
U.S. official said. Although Noda said Geithner wanted a 4
percent cap on trade imbalances, the official said the U.S.
doesn't expect a fixed target and may instead push for a range
aimed at delivering sustainable trade positions by 2015.
Trade Imbalances
"We're going to make it easier to sustain support in all
countries for more open trade by making sure that we address the
risk of persistently large trade imbalances," Geithner said.
Bundesbank President Axel Weber, who also attended the G-20
talks, said Germany shouldn't be blamed for having a current-
account surplus. Germany is four times more reliant on exports
than the U.S.
A current account is the broadest measure of trade because
it includes investment and transfer income, and it would be hard
to achieve any correction in one without a currency shifting.
Saudi Arabia, Germany, Russia and China all have surpluses
larger than 4 percent, while Turkey and South Africa have
deficits bigger than that, according to the IMF.
Even as it runs a trade surplus and builds currency
reserves, China has curbed the yuan's rise to about 2 percent
since a June pledge to introduce more flexibility, arguing
anything other than a gradual appreciation would cause social
and economic disruption. At the same time, the Fed has sent the
dollar tumbling by leaning toward buying more assets to tackle
unemployment near a 26-year high and weak inflation.
Emerging Markets
Caught in the middle, emerging markets are embracing
capital controls or intervening themselves to stay competitive
with China and slow the inflow of speculative cash. South Korea
is discussing several measures including a bank tax or levy on
financial transactions, and Brazil last week raised taxes on
foreign capital for the second time this month.
To appease critics, advanced economies agreed to be
"vigilant against excess volatility and disorderly movements in
exchange rates," the G-20 said. Geithner said the U.S. backs a
"strong dollar" and recognizes its global responsibility.
At the IMF, Europe will surrender two seats on the 24-
member executive board and more than 6 percent of so-called
quotas will pass to under-represented countries. Quotas
determine an IMF member's voting rights, financial commitment
and access to loans. As part of this process, G-20 officials
also agreed to double the IMF's permanent resources.
Yuan's Rise
For all the complaints it faces, China let the yuan gain the
most versus the dollar since 2005 in September and by more than
20 percent in the last five years. The Bloomberg-JPMorgan Chase
& Co. Asia Currency Index is up about 3 percent since August.
Such advances are likely to continue because "many key
interests seem to be aligned," Thomas Stolper, an economist at
Goldman Sachs Group Inc. in London, said in an Oct. 22 report.
The U.S. needs a lower currency to help create jobs and the
alternative is even more Fed stimulus, which will end up
propelling more capital into Asia, he said.
U.S. companies from Costco Wholesale Corp. to Deere & Co.
have credited the weaker dollar for boosting earnings. Standard
& Poor's 500 Index firms that get more than half of their
revenue internationally have returned about 5.5 percentage
points more than those whose sales comes mostly from the U.S.
since the start of September, according to data compiled by
Bloomberg.
"Once the fact has been accepted that the dollar has to
weaken because there are no real alternatives it is all about
managing the process on a global scale," Stolper said.
Related News and Information: Top currency-market articles {TOP
FRX <GO>} Bond yield forecasts: {BYFC <GO>} Global economy
watch: {GEW <GO>} Central Bank Monetary Policy Rates {CBRT <GO>}
--With assistance from Eunkyung Seo, Rebecca Christie, Mark
Deen, Rainer Buergin, Keiko Ujikane, Frances Yoon, Peter Cook
and Paul Badertscher in Gyeongju, Sunil Jagtiani and Liz Capo
McCormick in New York. Editors: Brendan Murray, Chris Anstey
To contact the reporter on this story:
Simon Kennedy in Gyeongju, South Korea, at
skennedy4@bloomberg.net
To contact the editor responsible for this story:
John Fraher at +44-20-7673-2058 or jfraher@bloomberg.net
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