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GLOBAL MARKETS-Europe drags on factory data; Ebola stirs U.S. caution

October 01, 2014 - reuters.com

* Manufacturing data weighs on stocks * News of Ebola case hits travel, leisure stocks; drugmakers rally * Dollar holds steady after recent run (Adds close of European markets) By Chuck Mikolajczak NEW YORK, Oct 1 (Reuters) - Stock markets worldwide launched the fourth quarter on a negative note on Wednesday, as tepid manufacturing data weighed on European markets and the first confirmed case of Ebola in the United States added to growing volatility in U.S. equities. Weak economic data, ongoing conflicts in Iraq and Russia, and growing unrest in Hong Kong have contributed to overall expectations that markets will get increasingly rocky in coming months. "If you spent the entire summer wishing there was more volatility in the market, your dream has come true," said Art Hogan, chief market strategist at Wunderlich Securities in New York. "You have multiple global macro concerns, a new Ebola scare, beginning of a new quarter and on the very short horizon, earnings season starting." Bond markets drew safe-haven bidding, with the benchmark U.S. 10-year Treasury's US10YT=RR yield falling to 2.412 percent, the lowest in nearly a month. The yield on Germany's 10-year Bund declined to 0.906 percent, not far from record lows reached about a month ago. US/ The Dow Jones industrial average .DJI was down 246.83 points, or 1.45 percent, at 16,796.07. The Standard & Poor's 500 Index .SPX was down 24.32 points, or 1.23 percent, at 1,947.97. The Nasdaq Composite Index .IXIC was down 70.59 points, or 1.57 percent, at 4,422.80. MSCI's global index of equities .MIWD00000PUS was down 0.9 percent after a 3 percent drop in September. The pan-European FTSEurofirst 300 .FTEU3 equity index closed down 0.9 percent after final September purchasing managers numbers from France, Germany and the euro zone as a whole highlighted the instability of the European recovery. U.S. purchasing managers' data was also weaker than expected, though still showed growth in factory activity. ID:nL9N0Q300Q ID:nL2N0RW0UP Wall Street was lower, continuing its recent weakness. Airline and hotel stocks dropped in a knee-jerk reaction to the first confirmed U.S. case of Ebola, a development that also resulted in sharp rallies in drugmakers with treatments for the disease. An airline index .XAL was on track for its worst day since January. The dollar .DXY was little changed near a four-year high, helping commodity prices bounce from a sell-off in the prior session. Brent crude oil LCOc1 last traded at $95.24, up 0.6 percent on the day. U.S. crude CLc1 was at $92.02, up 0.9 percent. The euro zone data, along with a report on slowing euro zone inflation on Tuesday, underscored the contrasting monetary policy outlooks of the U.S. Federal Reserve and the European Central Bank. The ECB meets Thursday, and its accommodative stance has had investors favoring the dollar over the euro. The euro EUR= , down 0.2 percent at $1.2609, continued to inch lower, but managed to pare declines to climb back above the $1.26 mark, a level it had held for two years until Tuesday. Oil prices were helped by Chinese PMI data, which stayed at 51.1, modestly above the 50 level that separates growth from contraction and just above the 51 forecast. O/R ID:nL3N0RW0TH (Additional reporting by Yasmeen Abutaleb; Editing by Meredith Mazzilli) ((charles.mikolajczak@thomsonreuters.com; @ChuckMik; +1 646 223 5234; Reuters Messaging: charles.mikolajczak.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

Amara Mining's Ivory Coast gold mine to start production in 2017

October 01, 2014 - reuters.com

* Company to invest $400 mln over next two years * Resources evaluated at 6.3 mln oz * Average annual production forecast at 325,000 oz By Loucoumane Coulibaly ANGOVIA, Ivory Coast, Oct 1 (Reuters) - Amara Mining AMARA.L will invest $400 million over the next two years to build one of Africa's largest gold mines at its Yaoure property in Ivory Coast with production due to start in 2017, the London-listed company's CEO said on Wednesday. Resources have been evaluated at 6.3 million ounces, John McGloin said during a visit to the site in the centre of the West African nation. "We expect to produce an average of 325,000 ounces per year. With this level of output we'll be in the top 10 of the largest mines in Africa and the largest in Ivory Coast," he said. Construction, which will be financed by the company, private investors, banks and through market fundraising, will begin in 2016 and last 18 months. The mine has a projected lifespan of 12 years. McGloin said the company, which has already spent around $24 million on exploration at the site, hopes that further drilling will lead to discoveries that could prolong the mine's life to around 20 years. "It's a mine that will have a low cost of production. Even if the price per ounce falls to around $1,000, the project will still be profitable for us," he said, highlighting the proximity to the Kossou hydroelectric dam, some 5 km (3 miles) away. Spot gold XAU= is trading around $1,217 an ounce. Amara placed its Baomahun project in Sierra Leone on hold earlier this year due to the Ebola outbreak in the country. "We're working with the government of Sierra Leone, giving them vehicles to transport the sick," McGloin said. The company also owns three early-stage exploration licences in Liberia. Ivory Coast, long a world leader in agricultural commodities, is seeking to grow its long-neglected mining sector as part of efforts to diversify the economy following a decade of political turmoil that ended in a brief 2011 civil war. After producing 15.5 tonnes of gold last year, the government expects output to increase to 17 tonnes this year and 22 tonnes in 2016. Canada's Endeavour Mining EDV.TO opened its Agbaou gold mine earlier this year, with annual production expected to reach three tonnes. London-listed Randgold RRS.L and Australia's Newcrest NCM.AX are the other large operators in Ivory Coast's gold-dominated mining sector. (Editing by Joe Bavier and David Evans) ((joe.bavier@thomsonreuters.com; +225 07074101; Reuters Messaging: joe.bavier.thomsonreuters.com@reuters.net)) Keywords: GOLD IVORYCOAST/AMARA MING

South Africa's rand firms in temporary reprieve from heavy selling

October 01, 2014 - reuters.com

JOHANNESBURG, Oct 1 (Reuters) - The rand firmed against the dollar in late afternoon trade on Wednesday, momentarily shrugging off domestic pressures to mirror moves on the euro after weaker than expected U.S. data. South Africa's currency has been dragged to eight-month lows in the past week as poor domestic economic data compounded an emerging market rout prompted by expectations that the U.S. Federal Reserve will begin raising interest rates before long. But on Wednesday, the dollar hit a session low against the euro after the United States reported weaker-than-expected manufacturing data, giving the rand a reprieve. ID:nL2N0RW0UP The rand traded as firm as 11.2365 to the dollar, coming off 11.3560 hit earlier. ZAR=D3 Dealers said the breather was not likely to last, however. "We got up to 11.35 and from there its moved lower. The bigger picture for the rand is a weakening but we've seen some good selling through there, and with the combination of weaker U.S. data it's testing some stop losses," a Johannesburg-based currency trader said. Yields on government bonds came back from eight-week highs hit in the morning to trade at 8.325 percent, 1.5 basis points higher than its previous close. ZAR186= Official data showed sales of new cars in South Africa were up 11.5 percent in September compared with the same month last year. ZAVEHY=ECI But the industry body said it expected 2014 sales to decline 4-5 percent compared with last year as rising interest rates, lower economic growth and above-inflation car price hikes would hit demand. (Reporting by Xola Potelwa; Editing by Hugh Lawson) ((xola.potelwa@thomsonreuters.com; +27 11 775 3098; Reuters Messaging: xola.potelwa.thomsonreuters.com@reuters.net)) Keywords: MARKETS SAFRICA/CURRENCY

New Issue- MACIF prices 124.4 mln euro perp bond

October 01, 2014 - reuters.com

Oct 1(Reuters) -Following are terms and conditions of a perp bond priced on Wednesday. Borrower MACIF MACIF.UL Issue Amount 124.4 million euro Maturity Date Perpetual Coupon 3.916 pct Reoffer price Par Yield 3.916 pct Spread 280 basis points Underlying govt bond Over Mid-swaps Payment Date October 6, 2014 Lead Manager(s) BNP Paribas & Natixis Ratings A2 (Moody's) Listing Lux Full fees Undisclosed Denoms (K) 100 Governing Law French ISIN FR0012206217 Security details and RIC, when available, will be on ZNQD Customers can right-click on the code for performance analysis of this new issue For ratings information, double click on RRS0001 For all bonds data, double click on BONDS For Top international bonds news TOP/DBT For news about this issuer, double click on the issuer RIC, where assigned, and hit the newskey (F9 on Reuters terminals) ((EMEA Fixed Income Desk Bangalore; jenifer.prabhaker@thomsonreuters.com; Reuters Messaging jenifer.prabhaker.reuters.com@reuters.net; +91 80 6677 2510, fax +44 20 7542 5285))

UPDATE 5-Eyeing 2015 vote, British PM Cameron pledges 7 billion pounds in tax cuts

October 01, 2014 - reuters.com

* PM Cameron promises income tax cuts * Britain to hold national election in May * Cameron's party behind in polls * Anti-EU UKIP party wooing Conservatives (Adds details on human rights proposal) By Andrew Osborn and William James BIRMINGHAM, England, Oct 1 (Reuters) - Prime Minister David Cameron promised to hand almost half the British population a tax cut if re-elected next year, a pledge he hopes will win over millions of voters and refocus debate away from a schism inside his party over Europe. The promise, which will cost over 7 billion pounds (11.35 billion US dollar) to fund, was a calculated gambit to try to shift the narrative from one which has focused on the damage the anti-EU UK Independence Party (UKIP) is doing to Cameron's re-election hopes by siphoning off voters and lawmakers. It was also an attempt to kick-start his Conservative party's moribund rating in opinion polls, where it has been trailing the opposition Labour party for months, by holding out the prospect of a sweetener to balance a less enticing promise to freeze most welfare pay cheques and to slash state spending. "So Britain: what's it going to be?" Cameron, 47, asked supporters packed inside a concert hall at his party's annual conference in the central English city of Birmingham. "I say: let's not go back to square one. Let's finish what we have begun." In a speech which touched on Scotland's decision to remain in the UK, the threat posed by Islamic State, and Britain's Second World War role, Cameron told activists he wanted and needed to be re-elected with an overall majority so he could govern alone and not in a coalition as is now the case. "Believe me: coalition was not what I wanted to do; it's what I had to do," he said. "And I know what I want next. To be back here in October 2015 delivering Conservative policies." Cameron has endured a tumultuous month taking Britain into battle with Islamist militants in Iraq, pondering his own demise if Scotland had voted to leave the United Kingdom, and watching as two of his lawmakers quit to join the anti-EU UKIP party. In his speech he tried to strike a calm statesman-like posture as he sought to shore up his leadership, steady his party, and dangle some eye-catching promises before voters. The centrepiece was a promise to lift 1 million workers out of tax if re-elected by allowing them to earn more before they pay any income tax, a pledge he said would also mean reduced tax bills for 30 million more people, or just under half the country's total population. He also pledged to ease the burden on the middle class by raising the threshold for the country's 40 percent rate of income tax. ID:nS8N0R500X "With the Conservatives, if you work hard and do the right thing we say you should keep more of your own money to spend as you choose," Cameron told delegates to applause. In another pledge aimed at reassuring voters, Cameron said he'd increase spending on the country's National Health Service, an issue which voters list as a priority and perceive Labour to be ahead on. ID:nL6N0RV4SX EUROPE SCHISM Hours before Cameron delivered his keynote speech, Arron Banks, a businessman who electoral records show has given tens of thousands of pounds to Cameron's party, said he was switching his support to UKIP. ID:nL6N0RW0TS His move followed that of two Conservative lawmakers to UKIP, which wants an immediate British EU exit and sharp curbs on immigration, and ratcheted up fears in Cameron's party that UKIP will split the centre-right vote and allow the opposition Labour party to win. Nigel Farage, UKIP's leader, hailed the latest defection as a sign his insurgent party was attracting big financial backers to bankroll what he has described as an earthquake in British politics. "The other parties are losing Councillors, MPs and backers to UKIP, not only voters, and they are all playing their part in changing the course of politics in the UK for good," he said. Cameron's party played down the defection and Cameron used his speech to hammer home what has become his party's main rallying cry not to vote UKIP, presenting the 2015 election as a straight choice between Cameron and Ed Miliband, the leader of the Labour party. He and his aides have repeatedly argued that a vote for UKIP will weaken his own party - the traditional standard bearer of the centre-right - and make it easier for Miliband to win. "It doesn't matter whether parliament is hung, drawn or quartered, there is only one real choice. The Conservatives or Labour," said Cameron. "Me in Downing Street, or Ed Miliband in Downing Street. If you vote UKIP that's really a vote for Labour. On 7th May (election day) you could go to bed with Nigel Farage, and wake up with Ed Miliband." Trailing the opposition Labour party in most opinion polls, Cameron is straining to pacify the Eurosceptic wing of his own party which wants him to offer firmer commitments on changing Britain's relationship with Europe. He has promised to renegotiate Britain's EU ties if re-elected before holding an EU membership referendum in 2017, but has been coy about spelling out what he wants to change with some Conservatives sceptical about the strength of his resolve. Cameron used his speech to try to calm those jitters, saying he was steadfastly committed to overhauling Britain's EU ties and would seek to alter the bloc's freedom of movement rules to curb intra-EU immigration. "Britain, I know you want this sorted so I will go to Brussels, I will not take no for an answer and when it comes to free movement - I will get what Britain needs," he said. "Anyone who thinks I can't or won't deliver this - judge me by my record." Cameron also sought to appease the right wing of his party with a promise to scrap the Human Rights Act - domestic legislation which enshrines the international principles of the European Convention on Human Rights (ECHR) into British law. Senior Conservatives have been frustrated by rulings under the act which they say allow criminals to unfairly escape or delay punishment and often cite the deportation of radical Muslim cleric Abu Qatada to Jordan which was stalled for years. Cameron said he would introduce a new rights bill in its place - a move that would give the Conservatives freedom to pick and choose which principles from the ECHR were directly enforceable through British law. Increasingly Eurosceptic rhetoric has stoked concerns among some big business leaders who largely support Britain's EU membership. The Institute of Directors, a lobby group for British business, praised Cameron's tax cut proposals but said the attempt to hinder the free movement of people in the European Union was disappointing. "On Europe, it is disappointing that the Prime Minister intends to put toughening up the rules around the free movement of people at the core of his impending renegotiation strategy," said Simon Walker, its director general. (1 US dollar = 0.6168 British pound) (Editing by Guy Faulconbridge) ((william.james@thomsonreuters.com; +44 207 542 3374; Reuters Messaging: william.james.thomsonreuters.com@reuters.net)) Keywords: BRITAIN POLITICS/

Sterling near two-year high vs euro ahead of ECB meeting

October 01, 2014 - reuters.com

By Jemima Kelly LONDON, Oct 1 (Reuters) - Sterling hovered near a two-year high against the euro on Wednesday, a day before European Central Bank chief Mario Draghi is expected to shed more light on new asset purchase programmes announced last month. Draghi is due to give details of ECB plans to buy asset-backed securities (ABS) and covered bonds - stimulus measures designed to boost the flagging euro zone economy - when the bank's Governing Council meets in Naples, Italy, on Thursday. The latest numbers showed more signs of economic weakness in the 18-nation currency bloc, with manufacturing growth slowing further in September as new orders fell for the first time in a year. ID:nL9N0Q300Q That followed data on Tuesday showing inflation teetering even closer to negative territory, at 0.3 percent, well below the ECB's target of close to 2 percent. The euro was trading down 0.2 percent against the pound at 77.76 pence per euro EURGBP= , not far from a two-year low of 77.665 pence hit on Tuesday. The pound's rise against the euro came despite data showing British manufacturing growing at its slowest pace in 17 years in September, casting doubt on the UK's recovery and on the timings of future interest rate rises. ID:nL9N0Q300R Jane Foley, a senior currency strategist at Rabobank in London, said sterling's resilience to the weak data was partly a result of positioning, with the market now short of sterling. Foley added that the euro was likely to stay weak against sterling, irrespective of what Draghi says on Thursday. "I think everyone accepts that a hike from the Bank of England will come before the ECB, and given that information, I think that any rallies in euro/sterling are likely to be shortlived and a downtrend is likely to be obvious in that currency pair," she said. A Reuters poll released on Wednesday showed just six out of the 60 economists surveyed expected a rise in UK interest rates by the end of the year, but 48 expected one in the first quarter of 2015. ID:nL3N0RW3OU Chris Turner, head of currency strategy at ING, said that despite the disappointing UK manufacturing data, the outlook for the British economy was not all bad. He pointed to Tuesday's revision of GDP growth in the second quarter to 0.9 percent, and growing business investment. Against the dollar, though, sterling was down 0.1 percent at $1.6201 GBP= . GILTS British government bonds surged on the back of rallying German Bunds and tumbling share prices to hit their highest level in a month, despite weak demand at the sale of 4 billion pounds ($6.49 billion) of five-year gilts GBT220= . ID:nL6N0RW2KJ Ten-year gilt yields GB10YT=RR fell more than 6 basis points on the day - the biggest drop since Aug. 28 - to 2.36 percent, the lowest level since Sept. 1. Domestic factors bolstering gilt prices included the fall in manufacturing numbers and the Bank of England's purchase of 1.6 billion pounds of 7-15 year gilts as it reinvests the proceeds of bonds maturing from its 375 billion pound quantitative easing programme. ID:nZYN19A200 (Additional reporting by David Milliken, editing by Mark Heinrich) ((jemima.kelly@thomsonreuters.com; +44)(0)(20 7542 7508; Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: MARKETS STERLING/CLOSE

UPDATE 3-Russian central bank prepares strategy for sharp oil price drop

October 01, 2014 - reuters.com

* Central bank mulls possibility of oil price falling to $60 * Price fall would undermine budget and rouble * Analysts say scenario unlikely but warn of risks * IMF halves 2015 growth forecast to 0.5 pct (Changes sourcing, adds comment) By Lidia Kelly and Darya Korsunskaya MOSCOW, Oct 1 (Reuters) - Russia's central bank said on Wednesday it is working on measures to support the economy should oil prices fall by as much as a third or more, showing growing concern as the rouble slides and Western sanctions take a toll. Punitive measures by the West over Moscow's role in the Ukrainian crisis have pushed the economy of President Vladimir Putin's Russia towards stagnation. The International Monetary Fund halved its growth forecast for 2015 to just 0.5 percent. The World Bank estimates the economy will expand next year by only 0.3 percent. ID:nL6N0RW2KT ID:nL6N0RP1S5 The Central Bank told Reuters it is developing a "stress scenario" that envisages a drop in the oil price down to $60 per barrel. This would be added to three existing scenarios for the central bank's policy outlook for the next three years, and compares with a $100 assumption in the 2015-17 state budget adopted last week. "The Bank of Russia is developing a stress scenario with a significant deterioration in the external economic environment compared to its (current most pessimistic scenario)," the bank said in an email statement. "In the stress scenario, it is proposed to assume even a more pronounced deterioration in the price of oil, up to the level of $60 per barrel." The bank's current most sober outlook envisages oil falling to $86.5 per barrel by 2017. Its base scenario assumes the oil price will be above $100 per barrel for the next three years. Even then, it predicts only modest economic growth. ID:nL6N0RH3ET Oil and gas produce about a half of Russia's federal government revenues. Already the price of Urals URL-E , Russia's chief crude blend, has fallen to around $92, while companies are struggling to raise capital due to Western sanctions imposed over Russia's actions in Ukraine. The IMF's mission head to Russia, Antonio Spilimbergo, said the uncertainty about international tensions present downside risks to the IMF's already lowered growth forecast. "There are considerable risks and the risks are related to the continuation or worsening of the geopolitical situation," he said. "Uncertainty makes investors very reluctant to invest in Russia." Commenting on the bank's new stress scenario, Finance Minister Anton Siluanov said that his ministry didn't plan to adjust its own projections used for budget planning, which he said factored in a possible oil price as low as $80 per barrel. "The forecast of the central bank somewhat differs from that of the government. There is nothing terrible about the fact that they consider a wider range of possible changes in price parameters," he said. "I consider ($60 oil) unlikely." While playing down the likelihood that oil would fall so sharply, Siluanov has also warned repeatedly that a lower oil price is one of the biggest risks that the economy faces, requiring budgetary prudence. ID:nL6N0RQ05P The central bank told Reuters that there is an "ongoing discussion" about its draft, but the scenario will be included in the bank's final version of its 2015-2017 monetary policy. Timothy Ash, head emerging markets strategist at Standard Bank in London, said the Russian economy would be in serious trouble if crude fell to $60. This would lead to "deep recession, large current account and fiscal deficits, huge levels of capital flight, and significant stress on banks", he said. BUDGET HOLE Alexei Kudrin, a former finance minister and influential figure in the Russian political elite, said recently that he foresees crude prices continuing to decline over the years ahead because of new oil production technologies. In three to four years, he predicted, declining revenues from oil taxes would create a $30-40 billion hole in Russia's government finances. ID:nL6N0RN2HF Some other analysts are also worried that the official economic projections take too little account of the risk that oil prices could fall significantly. "It's prudent policy making. I think it's sensible to consider a sharp fall in oil prices," said Neil Shearing, chief emerging markets economist at Capital Economics in London. Were prices to fall to $60 per barrel next year and stay there, the budget deficit would widen to 4.5 pct of gross domestic product, he calculated - a huge burden given Russia's limited access to international capital markets. That contrasts with official projections, based on oil around $100 per barrel, that see the deficit at 0.5-0.6 percent of GDP in 2015-17. An added headache for Russia would be the negative shock to its balance of payments. "One thing that would happen is the rouble would fall sharply," Shearing said. "We would start to see the central bank consider more of the non-standard measures to try to defend the currency. Capital controls may well come into place... The bigger the dislocation in markets, the more chance there is of more draconian and drastic responses from the central bank." Macro-Advisory analyst Chris Weafer said in a note that the talk of emergency measures such as capital controls did not indicate any fundamental shift in policies. Such contingency planning was normal good business practice and "does not indicate that the central bank, or the Kremlin, has changed its position", he said. Were oil to fall below $75 per barrel, the central bank could be inclined to back-track on its plans to float the rouble next year, he said, but added that this scenario was unlikely. "The main OPEC countries would experience budget difficulties long before that and would have to take action to cut supply," he said. A sharp drop in oil prices may, however, complicate Putin's plans. "I am not forecasting a collapse in the government in the next 12-18 months and it's more likely than not that (Putin) will get reelected in four years time," Shearing, of Capital Economic said. "But nothing is forever and a period of much lower oil prices and the economic pain they would afflict would have big political consequences in the end." (Additional reporting by Jason Bush; Writing by Lidia Kelly and Jason Bush; Editing by David Stamp and Peter Graff) ((lidia.kelly@thomsonreuters.com)(+7 495 775 1242)(Reuters Messaging: lidia.kelly.reuters.com@reuters.net)) Keywords: RUSSIA CENBANK/OIL

POLONIA Rate falls 0.03 pp.

October 01, 2014 - reuters.com

WARSAW, Oct 1 (Reuters) - POLONIA the reference rate for Overnight deposits amounted to 2.48 percent. The volume of transactions concluded till 16:30 by banks participating in POLONIA fixing amounted to 4,280 mln PLN. Note: Description of reference rate at: http://www.acipolska.pl/ ((warsaw.newsroom@reuters.com))

UPDATE 1-Broker ICAP enters race to replace century-old gold fix

October 01, 2014 - reuters.com

* LBMA and gold fix administrators requested proposals last month * At least 15 companies interested in replacing fix -sources (Adds detail, background) By Clara Denina LONDON, Oct 1 (Reuters) - ICAP IAP.L , the world's biggest interdealer broker, will submit a proposal to the bullion market to replace the century-old global price benchmark for gold known as the "fix", the company told Reuters on Wednesday. Representatives from a handful of banks have been running the current version of the gold fix, set twice a day by telephone, since 1919. Producers, consumers and investors use the benchmark to trade the metal and value their holdings. Regulators have focused on precious metal benchmarks since the Libor interest rate-rigging scandal broke in 2012, leading the London Bullion Market Association (LBMA) and the four banks currently administering the gold fix to launch a request-for-proposals (RFP) process last month. Sources told Reuters that at least 15 companies had expressed interest in replacing the London gold benchmark. ID:nL6N0RJ3MS The new benchmark will need to comply with the 19 principles on financial benchmarks outlined in July 2013 by the International Organization of Securities Commissions (IOSCO), an umbrella group of market regulators. ICAP voluntarily adopted the IOSCO Principles for Financial Benchmarks in July, said Kevin Taylor, managing director of ICAP Information Services, adding that it would continue building its business on those principles. "Our joint solution for the administration of the London Gold Fixing will be rooted in transparent methodology and data processes, while making use of our market-leading industry expertise," Taylor said on Wednesday. The LBMA will hold a seminar this month for short-listed proposals. In a shift driven by the increased regulatory scrutiny after scandals over manipulation of benchmark prices in other financial markets, a similar process to find a new administrator took place in the silver market this year. That search yielded an electronic auction mechanism run by the Chicago Mercantile Exchange (CME) CME.O and Thomson Reuters TRI.TO . ID:nL6N0PL4ZL CME was the first to confirm its interest in bidding to operate the gold process in July. ID:nL6N0PS3QG The London Metal Exchange, data provider Platts, part of McGraw Hill Group MHFI.N , and bullion broker Autilla also said they were in talks with the bullion market but declined to comment on whether they had submitted a formal proposal. A third source said that U.S. derivatives bourse Intercontinental Exchange ICE.N is likely to have put in a proposal. The exchange declined to comment. These companies had all bid to replace the 117-year-old silver benchmark, alongside U.S. news agency Bloomberg and British-based exchange-traded funds provider ETF Securities. (Additional reporting by Jan Harvey in London; Editing by Veronica Brown and David Goodman) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: GOLD FIX/ICAP

PRECIOUS-Gold languishes, platinum hits 5-year low as dollar extends gains

October 01, 2014 - reuters.com

* Dollar pulls back from highs after U.S. jobs data * Chinese markets close for Golden Week holiday * Platinum slides to lowest since Sept. 2009 (Updates prices, adds comment) By Jan Harvey LONDON, Oct 1 (Reuters) - Gold rebounded from the previous session's nine-month lows on Wednesday as the dollar index pulled back from early highs in the wake of U.S. jobs data, taking pressure off precious metals. Strength in the U.S. currency on expectations the Federal Reserve is set to tighten monetary policy before other major central banks helped knock gold down 9 percent in the third quarter, and earlier sent platinum prices to a five-year low. Spot gold XAU= had recovered to $1,215.95 an ounce at 1358 GMT, up 0.6 percent, after earlier slipping to within 10 cents of the previous day's nine-month low at $1,204.40. U.S. December gold futures GCv1 were up $4.90 an ounce at $1,216.50. "We've seen the ADP numbers coming in a litle bit less than hoped, and that has helped give gold some support today. The dollar has dropped back slightly on the back of that," Mitsubishi analyst Jonathan Butler said. The dollar slipped 6-year highs against the yen JPY= in the wake of the ADP National Employment Report, which showed U.S. private employers added 213,000 jobs in September, as U.S yields fell. The 10-year yield dropping to its lowest since Sept. 8. FRX/ "We're very much in oversold territory from a technical point of view, and there is definitely upside risk from here as short covering takes place, but we may not have seen the washout on those price levels being taken out to the downside just yet," Butler added. "It will very much depend on the data that comes out over then next few days, particularly the non-farm payrolls." Earlier the U.S. unit rose above 110 yen for the first time in six years and held near a two-year peak against the euro on Wednesday, as investors added to bets that U.S. data will drive the Federal Reserve to tighten policy. FRX/ A stronger dollar typically pressures assets priced in the U.S. currency, such as commodities. Tightening monetary policy and the prospect of higher interest rates also raise the opportunity cost of holding non-yielding precious metals. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-2014 commod returns: http://link.reuters.com/reb25t GRAPHIC-Gold/USD correlation: http://r.reuters.com/ryx52s GRAPHIC-Gold/platinum ratio: http://link.reuters.com/xez92s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> CHINESE MARKETS CLOSE FOR GOLDEN WEEK Reflecting waning investor sentiment, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Shares GLD , fell 2.39 tonnes on Tuesday to 769.86 tonnes, the lowest since December 2008. GOL/ETF Markets in top bullion buyer China are closed for a week from Wednesday for the National Day holiday, weakening support for gold during Asian trading hours and potentially accelerating a fall below $1,200. Investors were also watching the political unrest in Hong Kong for its impact on equities and safe-haven bids for gold. Silver XAG= was up 2.1 percent at $17.26 an ounce, while spot palladium XPD= was down 0.1 percent at $769.60 an ounce. Spot platinum XPT= was down 1.3 percent at $1,277.99 an ounce, having earlier slid to its lowest since September 2009 at $1,256.30. It tumbled 12.7 percent in the last quarter, taking little support from a five-month strike in major producer South Africa earlier this year. "Our analysis of above-ground platinum and palladium inventory published in June last year indicates that this inventory is indeed high," Standard Bank said in a note on Wednesday. "While some of this inventory would have reduced due to the large deficits anticipated this year, levels remain high. As a result, on balance, the bias may lie towards having to wait longer before PGM prices move higher on a sustainable basis." (Additional reporting by A. Ananthalakshmi in Singapore, editing by William Hardy) ((jan.harvey@thomsonreuters.com)(+44)(0)(207 542 7744)(Reuters Messaging: jan.harvey.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

London gold 1500 fix - Oct 1 - 1216.50 dlrs

October 01, 2014 - reuters.com

FOREX-Dollar falls from 6-year high vs yen as U.S. yields slide

October 01, 2014 - reuters.com

* Dollar/yen pokes above 110 threshold, first since 2008 * Investors position for good U.S. data * Markets take profits on dollar longs (Recasts, updates prices, adds comment, U.S. data, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Oct 1 (Reuters) - The dollar pulled back from six-year highs against the yen to trade little changed on Wednesday, weighed down by a drop in U.S. Treasury debt yields amid weakness in global stocks. Investors also booked profits on long U.S. dollar positions ahead of key event risks - the European Central Bank's monetary policy meeting on Thursday and Friday's U.S. non-farm payrolls report. Still, the dollar is expected to sustain its strength for the rest of the year as investors bet that robust U.S. economic data will lead the Federal Reserve to tighten monetary policy. A private sector employment report showing the U.S. economy added more than 200,000 jobs last month reinforced bullish bets on the dollar. ID:nZON1YA200 "The dollar is pulling back a little bit, as yields fell, with the FX market at least consistent with the rates market," said Vassili Serebriakov, currency strategist, at BNP Paribas in New York. "Obviously, there has been some profit-taking on long dollar positions. Beyond that, I don't think anybody has changed their mind on the bullish dollar trend. In mid-morning New York trading, the dollar was down 0.1 percent at 109.48 yen JPY= , having risen past 110 yen during Asian trade. The market barely reacted to a comment by a Japanese government spokesman who said the weak yen needed to be monitored, but traders remained on guard in case authorities' warnings becomes louder. ID:nL3N0RW1BB The euro, meanwhile, was down 0.2 percent at $1.2606 EUR= , holding near two-year lows hit on Tuesday. Europe's common currency was hit by fresh evidence of a slowdown in euro zone inflation. Data showed euro zone annual inflation cooled to 0.3 percent in September from 0.4 percent, intensifying the case for the ECB to offer more stimulus, including quantitative easing. That stoked the view that monetary policies in Europe and the United States are on diverging paths. While the Fed is expected to tighten at some point, there is a growing view that the European Central Bank will need to implement a full-blown policy of government bond-buying to fend off the threat of deflation. The dollar index .DXY was up 0.1 percent at 86.019. The index has gained 7.5 percent so far this year, and is on track for its best yearly gain in nine years. (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Anirban Nag in London; Editing by Meredith Mazzilli) ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net)) Keywords: MARKETS FOREX

Soccer-Serbia manager Advocaat axes misfits Subotic and Ljajic

October 01, 2014 - reuters.com

By Zoran Milosavljevic BELGRADE, Oct 1 (Reuters) - Serbia's Borussia Dortmund defender Neven Subotic and AS Roma midfielder Adem Ljajic will take no part in the Euro 2016 qualifiers under Dutchman Dick Advocaat, the Balkan nation's coach said on Wednesday. Subotic has not played for Serbia since last October while Ljajic, who was axed by Sinisa Mihajlovic before the Euro 2012 qualifiers, made a cameo appearance in a 1-1 draw with France in last month's friendly. "My exchange of mails and text messages with Subotic has left no doubt that he doesn't like playing for the national team," Advocaat, who took over from caretaker Ljubinko Drulovic in July, told a news conference. "That being the case, I think it's best to keep players with such an attitude away from the squad to prevent them from disrupting the good atmosphere we have. "Ljajic is a good player but he has a different mentality and I am looking for players with the right mentality. "So far I've seen that almost everyone is happy to be in the squad and I have no need for players who don't have a good feeling about the national team." SURPRISE INCLUSION Partizan Belgrade striker Danko Lazovic was the surprise inclusion in Advocaat's 24-man squad for Serbia's first two qualifiers away to Armenia on Oct. 11 and at home to Albania three days later. The 67-year old Dutchman cited Lazovic as an example of the attitude he wanted and said he was confident Liverpool winger Lazar Markovic would deliver despite his poor club form. "I saw Lazovic in Partizan's Europa League game against Tottenham last week and the passion and commitment he showed are exactly the traits I am looking for. "As for Markovic, I am delighted that he is getting more minutes on the pitch and one must bear in mind that playing in the Premier League is much tougher than plying your trade in places like Belgium or Netherlands." Advocaat conceded he might have to tinker with his squad as many of Serbia's key players are usually on the bench for their clubs, particularly defenders such as Manchester City centre back Matija Nastasic. "Unfortunately, about 50 percent of our squad are down the pecking order at their teams so we will have to use the upcoming training sessions to seek alternative solutions if necessary," he said. "Nastasic and (Freiburg) defender Stefan Mitrovic have to improve but, if neither of them meet the standards, I might use (Chelsea's) Branislav Ivanovic in the centre of defence although I would prefer to keep him in the right back slot." (Writing by Zoran Milosavljevic; Editing by Ken Ferris) ((zoran.milosavljevic@thomsonreuters.com)(+38163341194)(Reuters Messaging: zoran.milosavljevic.thomsonreuters.com@reuters.net)) Keywords: SOCCER EURO/SERBIA ADVOCAAT

London platinum/palladium 1400 fix - Oct 1

October 01, 2014 - reuters.com

TABLE-MCX-SX Currency Futures traded on Oct 1

October 01, 2014 - reuters.com

Malaysia to cut fuel subsidies ahead of 2015 budget presentation

October 01, 2014 - reuters.com

KUALA LUMPUR, Oct 1 (Reuters) - Malaysia said on Wednesday will implement a round of subsidy cuts on fuel this month, its second since September 2013, as it looks to strengthen public finances. Prices for the widely used RON 95 grade will rise by 20 sen to 2.30 ringgit ($0.7031) per litre from Oct. 2 and diesel fuel will cost an extra 20 sen at 2.20 ringgit, the Domestic Trade, Cooperatives and Consumerism Ministry said in a statement. The government will still need to spend over 21 billion ringgit ($6.42 billion) this year on fuel and gas subsidies despite making these cuts, it said. Subsidies will be reduced in stages to limit the impact on lower-income earners who will also receive cash aid as part of the 2015 budget to be tabled next week, the ministry said. "We understand that fuel price increases will affect the economy and the people. Therefore, we will continue to provide incentives to the lower income group to alleviate their burden," it said. Prime Minister Najib Razak will table the annual budget on Oct. 10. (1 U.S. dollar = 3.2710 Malaysian ringgit) (Reporting by Al-Zaquan Amer Hamzah; editing by Jason Neely) ((alzaquan.amerhamzah@thomsonreuters.com; +60323338039; Reuters Messaging: alzaquan.amerhamzah.thomsonreuters.com@reuters.net)) Keywords: MALAYSIA ECONOMY/

Ugandan shilling flat, seen stronger on inflows from offshore investors

October 01, 2014 - reuters.com

KAMPALA, Oct 1 (Reuters) - The Ugandan shilling UGX= was stable on Wednesday after a decline in dollar demand, but traders said the local currency could benefit from offshore investors attracted by a rise in debt yields. At 1053 GMT commercial banks quoted the shilling at 2,645/2,655, little changed from Tuesday's close of 2,647/2,657. Yields rose across all tenors at a Treasury bill auction on Wednesday where a total of 145 billion shillings ($54.78 million) worth of debt was up for sale. ID:nL6N0RW2HM "The yields' upward movement will generate confidence in the shilling. Some firming (for shilling) is possible but it will be gradual," said Ali Abbas, trader at Crane Bank. Traders say rates on Ugandan debt have remained relatively attractive to foreign investors in recent months, helping support the shilling which is down 4.7 percent against the dollar so far this year. David Bagambe, trader at Diamond Trust Bank said dollar demand is normally low at the start of the month, potentially offering support for the local currency. Some traders said that the shilling could come under pressure later this month if the central bank takes cue from the downward inflationary trend and cuts interest rates. Falling food prices helped reduce Uganda's annual inflation rate in September, increasing the likelihood that the central bank could cut its benchmark interest rate when it meets next at a date to be announced in October. ID:nL6N0RV1J5 UGX Spot Rate..... UGX= Ugandan Shilling Money Guide.... UGX/1 Calculated Cross Rates.......... UGXX= Deposits..................... UGXDEPO= Deposits & Forwards............. UGXF= Uganda Equities Guide....... UG/EQUITY Uganda All Share Index........ .ALSIUG Shilling background ..... UGX/BKGDINFO Ugandan Debt Guide............ UG/DEBT All Uganda Bonds............. 0#UGTSY= Uganda T-Bills.............. 0#UGTSYS= Uganda Benchmark............. 0#UGBMK= Central Bank ................ BOUGINDEX Ugandan Contributor Index.... UG/CONT1 Uganda Coffee Prices....... COFFEE/UG01 (1 US dollar = 2,644.0000 Ugandan shilling) (Reporting by Elias Biryabarema; Editing by James Macharia) ((elias.biryabarema@thomsonreuters.com; Tel. +256772887571; Reuters Messaging: elias.biryabarema.thomsonreuters.com@reuters.net)) Keywords: UGANDA CURRENCY/

TABLE-NSE Currency Futures traded on Oct 1

October 01, 2014 - reuters.com

SNAPSHOT-India stocks, bonds, rupee, swap, call at close

October 01, 2014 - reuters.com

STOCKS .BSESN .NSEI ---------------------- The benchmark BSE index ended down 0.23 percent and the broader NSE index 0.24 percent lower, with blue chips retreating as traders refrained from building positions ahead of an extended holiday, while foreign investor sales also weighed on sentiment. .BO RUPEE INR=D2 -------------- The partially convertible rupee ended stronger at 61.61/62 per dollar against Tuesday's close of 61.7450/7550, rebounding from a seven-month low earlier in the session as investors saw recent losses as overdone, even as caution prevailed ahead of an extended holiday. INR/ GOVERNMENT BONDS IN084024G=CC ------------------------------- The benchmark 10-year bond yield ended down 3 basis points at 8.48 percent, as investors were attracted to debt after markets had been battered over the previous two sessions, but caution prevailed ahead of a long weekend. IN/ INTEREST RATE SWAPS INROIS MIOIS= ------------------------------------- The benchmark five-year swap rate closed down 1 basis point at 7.86 percent while the one-year rate also ended 1 bp lower at 8.44 percent. CALL MONEY INROND= -------------------- India's six-day cash rates ended at 7.40/7.50 percent, versus 8.05/8.15 percent for one-day funds on Tuesday. Traders say month-end government spending aiding liquidity. (Compiled by Dipika Lalwani) ((dipika.lalwani@thomsonreuters.com; +91-22-6180-7098; Reuters Messaging: dipika.lalwani.thomsonreuters.com@reuters.net)) Keywords: INDIA SNAPSHOT/

Sri Lanka rupee forwards end up on exporter dollar sales

October 01, 2014 - reuters.com

COLOMBO, Oct 1 (Reuters) - Sri Lankan rupee forwards recovered on Wednesday due to exporter dollar sales after falling in early trade due to equity-related outflows and importer dollar demand, dealers said. Moral suasion by the central bank capped any sharp fall in the local currency below 130.50, dealers said. The spot currency LKR=LK was not quoted on Wednesday. It was quoted at 130.80 per dollar at the close on Tuesday. "Exporter dollar conversions came in and the rupee ended firmer," a currency dealer said, adding that the rupee forwards picked up in the absence of effective spot trade. Three-day rupee forwards or spot next touched a low of 131.05 per dollar before recovering to close at 130.60/70, higher from Tuesday's 130.75/95, dealers said. Dealers said the spot next was also capped at 130.90 through moral suasion after it fell below 131.00. Equity-related outflows weighed on the currency after Sri Lanka's stock market saw foreign selling worth 4.4 billion rupees ($33.7 million) in the last three sessions through Tuesday. Currency dealers expect the rupee to weaken on the back of sustained foreign selling in government securities and higher imports in a low interest rates regime. Dealers said concerns over lower returns following the central bank's decision to limit bank deposits under its repo window have prompted some foreign investors to gradually pare their stakes in government securities. They cited lower optimism for the currency's outlook after the central bank's decision last week to limit commercial banks' access to the standing deposit facility. ID:nL3N0RO26L ($1 = 130.6000 Sri Lankan rupee) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee) ((ranga.sirilal@thomsonreuters.com; +94-11-232-5540; Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net ; www.twitter.com/rangaba)) Keywords: MARKETS SRI LANKA/FOREX

FOREX-Dollar scales 6-year peak versus yen, euro's woes deepen

October 01, 2014 - reuters.com

* Dollar stays firm, euro under $1.26 * Dollar/yen pokes above 110 threshold, first since 2008 * Investors position for good U.S. data (Adds details) By Anirban Nag LONDON, Oct 1 (Reuters) - The dollar rose above 110 yen for the first time in six years and held near a two-year peak against the euro on Wednesday as investors added to bets that U.S. economic data will lead the Federal Reserve to tighten monetary policy. Commodity currencies such as the Australian AUD=D4 and New Zealand dollars NZD=D4 suffered as oil and copper prices remained under pressure, with the Aussie hit particularly hard after weaker-than-expected retail sales data. The dollar was up 0.25 percent at 109.90 JPY= , having risen past 110 yen during Asian trade. It eased from a high of 110.09 yen on profit taking, but most traders said the outlook for the dollar remained bullish. "The yen remains under pressure," said Esther Reichelt, currency strategist at Commerzbank. "Good U.S. data might lead to a serious test of the technically important resistance at 110.67 yen, which was the August 2008 high." Better-than-expected U.S. data, especially labour market numbers and manufacturing activity, could fan speculation of an early interest rate rise by the Fed. ECONUS "Friday's non-farm payrolls will be key, as it could raise rate hike expectations another notch," said Shinichiro Kadota, chief Japan FX strategist at Barclays Bank in Tokyo. The market barely reacted to a comment by a Japanese government spokesman who said the weak yen needed to be monitored, but traders remained on guard in case authorities' warnings becomes louder. ID:nL3N0RW1BB The dollar also rose against the euro, given fresh evidence of a slowdown in euro zone inflation. That fed the view that monetary policies in Europe and the United States are on diverging paths. While the Fed is expected to tighten at some point, there is a growing view that the European Central Bank will need to implement a full-blown policy of government bond-buying to fend off the threat of deflation. Many believe the U.S. economy is on a recovery path that will allow the Fed to raise interest rates well before the ECB and Bank of Japan. The euro languished near a fresh two-year trough, having come under pressure after data showed euro zone annual inflation cooled to 0.3 percent in September from 0.4 percent, intensifying the case for the ECB to offer more stimulus, including quantitative easing. The common currency fell as far as $1.2571 EUR= on Tuesday and was last trading at $1.2595, down 0.3 percent. The euro lost nearly 4 percent in September - its biggest decline in over two years - and the latest manufacturing activity reports from the euro zone did little to offer the euro any support. ECONEZ Analysts said the soft inflation data and subdued manufacturing activity from the euro zone would keep pressure on the ECB to address the risk of deflation. The ECB meets on Thursday to discuss monetary policy. "With euro zone inflation hitting a cycle low and the core reading at 0.7 percent, the risks of entering deflation in the euro zone are building. Inflation expectations in Europe have collapsed to levels previously seen in 2010 when euro/dollar was trading around $1.20," Morgan Stanley said in a note. "The breach of the $1.26 level will certainly bring the 1.20 lows, last seen in 2012, back into focus." Despite overall bearishness, the euro managed to gain against the Swiss franc EURCHF= , rebounding from a low of 1.2054 on worries that the Swiss National Bank could intervene to weaken the franc. The euro was last trading at 1.2072 francs, up 0.1 percent on the day. (Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Hugh Lawson) ((anirban.nag@thomsonreuters.com; +44 20 7542 8399; RM:anirban.nag.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/

UPDATE 1-Japan's Amari warns excessive yen moves undesirable for economy

October 01, 2014 - reuters.com

(Adds detail, background) By Leika Kihara TOKYO, Oct 1 (Reuters) - Japanese Economics Minister Akira Amari on Wednesday warned that excessive yen moves were undesirable for the economy, after the currency hit a six-year low against the dollar. "When I say excessive currency moves, I mean moves that don't reflect the real state of the economy," Amari told a news conference after a meeting of an economic panel that he chairs. "Excessive yen rises or yen declines, and excessively rapid exchange rate moves, aren't good for the economy. That's true not just for Japan but for any other country." He also said there were positive and negative factors for the economy from a weak yen, as exporters would see their overseas profits increase on a yen basis while rising import costs hurt consumers and small firms. Amari declined to comment on what he saw as a desirable range for the dollar/yen. The remarks by Amari contrast with those of Bank of Japan Governor Haruhiko Kuroda, who has said he saw no major problem with yen declines as they were beneficial for the economy. Amari was also more direct than Finance Minister Taro Aso, who is in charge of currency policy and has largely declined to comment on recent yen declines. Sharp yen rises and weak exports were among topics of debate at Wednesday's economic panel, chaired by Amari and including main economic ministers, the BOJ governor and academics. Chief Cabinet Secretary Yoshihide Suga questioned Kuroda on why exports and capital expenditure had not strengthened despite the weak yen, according to Amari. Kuroda said companies that had shifted production overseas when the yen was strong could not easily shift output back home, but capital expenditure was starting to increase as a trend. (Reporting by Leika Kihara; Editing by Edmund Klamann and Robert Birsel) ((edmund.klamann@thomsonreuters.com; +813 6441 1841; Reuters Messaging: Reuters Messaging: edmund.klamann.thomsonreuters@reuters.net)) Keywords: JAPAN ECONOMY/AMARI

Indian rupee rebounds from 7-mth low ahead of holidays

October 01, 2014 - reuters.com

* Rupee ends at 61.61/62 per dlr vs 61.7450/61.7550 on Tuesday * Dollar continues to trade stronger against yen, euro and Asia FX * Markets closed from Thursday to Monday MUMBAI, Oct 1 (Reuters) - The Indian rupee rose on Wednesday, rebounding from a seven-month low touched earlier in the session as investors saw recent losses as overdone, even as caution prevailed ahead of an extended holiday. The rupee opened weaker at 61.95, a level last seen on March 4, but steadily regained some ground. The unit fell in both the previous sessions, dragged down by a global rally in the dollar due to worries about earlier-than-expected U.S. rate hikes. Still, the rupee fell 0.75 percent for the week, its biggest loss since the trading week ended on Aug. 1, which was also marked by gains in the dollar. It was also the rupee's fourth consecutive weekly fall. Markets will be shut from Thursday to Monday and re-open on Tuesday at a time of caution in emerging markets, with the civil unrest in Hong Kong also weighing on sentiment. EMRG/FRX "It's more of a dollar-strong story than a rupee-weak one," said Harihar Krishnamoorthy, treasurer at First Rand Bank in Mumbai. "Having said that, it is clear that as the rupee approaches the 62 level, we are seeing increased dollar selling from traders. The rupee has lost much less than its emerging market peers in recent sessions." The partially convertible rupee INR=D2 ended at 61.61/62 per dollar compared with Tuesday's close of 61.7450/7550. Besides global factors, traders said the rupee could be impacted by the start of corporate earnings late next week, which could lead to volatility in share markets. In the offshore non-deliverable forwards PNDF , the one-month contract was at 61.99/62.09, while the three-month was at 62.60/70. FACTORS TO WATCH * Dollar/yen pokes above 110 threshold, first since 2008 FRX/ * South Korean won slumps to a six-month low vs dollar EMRG/FRX * Hong Kong unrest saps risk appetite MKTS/GLOB * Foreign institutional investor flows INFII INFII01 * For data on currency futures INRFUTURES DIARIES & DATA: Indian Data Watch ECONIN European diary WEU/EQTY2 Indian diary IN/DIARY US Diary US/DIARY (Reporting by Mumbai Treasury Team; Editing by Prateek Chatterjee) ((gaurav.pai@thomsonreuters.com; Reuters Messaging: gaurav.pai.thomsonreuters.com@reuters.net)) Keywords: MARKETS INDIA FOREX/

India fwd/annualised dlr premia-(close)-Oct 1

October 01, 2014 - reuters.com

REFILE-UK's Cameron promises more tax relief to voters if re-elected

October 01, 2014 - reuters.com

(Changes dateline to Birmingham) BIRMINGHAM, England, Oct 1 (Reuters) - British Prime Minister David Cameron said a re-elected Conservative government would raise the threshold for the country's 40 percent rate of income tax and allow people to earn more before they start paying income tax. "I want to take action that's long overdue and bring back some fairness to tax," Cameron said to cheers from members of his Conservative Party at its last annual conference before May's national election. The threshold for the 40 percent rate would be raised to 50,000 pounds ($80,905) from its current level of 41,900 pounds, he said. Cameron also said the tax-free allowance for personal income tax would be raised to 12,500 pounds from its current level of 10,500 under a future Conservative government. (1 US dollar = 0.6180 British pound) (Reporting by William James; writing by William Schomberg; editing by Kate Holton) ((kate.holton@thomsonreuters.com; 0044 207 542 8560; Reuters Messaging: kate.holton.thomsonreuters.com@reuters.net)) Keywords: BRITAIN POLITICS/CAMERON TAX

SocGen CEO sees no sign of discrimination by Russian authorities

October 01, 2014 - reuters.com

* SocGen remains committed to Russia * CEO Oudea says bank to easily manage even an extreme scenario * Sees demand from international clients for rouble financing By Maya Nikolaeva PARIS, Oct 1 (Reuters) - Societe Generale SOGN.PA said it remained committed to its business in sanctions-hit Russia and that France's second-biggest listed lender would easily cope even with an extreme situation of expropriation. Banks in Russia are having to adapt their business to sanctions imposed by Western countries that froze international deals by firing staff and reshuffling roles to keep costs down. ID:nL6N0RP1JX Asked if Societe Generale had a contingency plan for its business in Russia, Chief Executive Frederic Oudea said there was no easy solution. "Even if you have an extreme scenario in mind, a kind of expropriation... for us it will have a relatively limited impact in terms of capital, I think it is something we can easily manage," he said. Societe Generale has 3 billion euros ($3.78 billion) of capital invested in Russia and 1.3 billion euros of external financing as of the end of July 2014, Oudea said. It booked a 525 million euro writedown this year on the value of its Russian unit, Rosbank, after months of political crisis in Ukraine. Nevertheless, Societe Generale affirmed its commitment to the Russian market and said it saw no sign of authorities imposing capital controls. "It is a view, shared with my banking colleagues in the banking sector in Russia, it is in no interest of Russia to block the flow of financing from the banking market in the current situation," Oudea told an investor conference in London. "We see no sign of discrimination by the authorities," he said in comments broadcast over the Internet. Russia's central bank denied a media report on Tuesday that Russia was weighing the introduction of temporary capital controls, which had sent the rouble tumbling. ID:nL6N0RW0OW SocGen, which bought into Rosbank in 2006, spent billions of dollars to fix the underperforming Russian bank. Many rivals have quit a country where they could not compete with large state-controlled banks like Sberbank SBER.MM and VTB Capital VTBR.MM . "The outlook is less positive than it was 12 months ago, but we are adjusting our business," Oudea said. "Cost of risk is under control, it will remain more or less stable compared to the second quarter." Economic growth in Russia had slowed due to sanctions, but the country was showing overall resilience thanks to low public debt and the central bank's reserves, Oudea added. Russia would function more with rouble financing, as international markets were virtually blocked for many Russian companies. "I also see this adjustment by our international clients. They want us to finance more in roubles," Oudea said. (1 US dollar = 0.7933 euro) (Reporting by Maya Nikolaeva; Editing by Brian Love) ((maya.nikolaeva@thomsonreuters.com; +33 1 49 49 53 39; Reuters Messaging: maya.dyakina.thomsonreuters.com@reuters.com)) Keywords: SOCIETE GENERALE OUTLOOK/RUSSIA

UPDATE 2-New Polish PM signals cautious approach on euro accession

October 01, 2014 - reuters.com

* Kopacz sticks with outgoing PM's stance on single currency * Euro zone must be strong for Poland to join: Kopacz * Pledges to focus on helping Polish families * New government faces election in about 12 months (Adds more details, quotes) By Marcin Goettig and Pawel Sobczak WARSAW, Oct 1 (Reuters) - Poland's new Prime Minister Ewa Kopacz said on Wednesday she would largely stick to the policies of her predecessor Donald Tusk, including a cautious approach to the question of when eastern Europe's biggest economy will join the euro. In her first major policy speech as prime minister, Kopacz tried to appeal to voters before a parliamentary election next year, casting her government as caring and focused on the interests of ordinary Polish families. President Bronislaw Komorowski, Kopacz's party ally, had said it was time for Poland to start a debate about accession to the European single currency, raising expectations the new prime minister might announce a deadline for Poland's entry. But Kopacz, echoing the stance of the previous government, said that besides Poland needing to meet the technical criteria for euro entry, the euro zone needed to show it was stable. "We must remember that the euro zone only recently experienced the biggest crisis in its history," Kopacz told parliament. "Both Poland and the countries of the euro zone have some homework to do." "A strengthened euro zone and a stable economy; these are the two criteria which will define the best moment for adopting the single currency." One of the advisors who helped Kopacz draft her speech was former finance minister Jacek Rostowski. Born in Britain, he is close to Britain's eurosceptic finance minister George Osborne and was the architect of Poland's cautious approach to the euro under Tusk. On foreign policy, Kopacz promised more continuity. She said her government would not stand for a break-up of neighbouring Ukraine and would push for a greater U.S. military presence in Poland as a deterrent to possible Russian aggression. MOTHER POLAND Kopacz, a protege of Tusk, was hand-picked to replace him after he was appointed president of the European Council, a job that involves chairing summits of EU heads of state and trying to win consensus among the 28 member states. Markets see the ruling Civic Platform party as a guarantee of pragmatic policies and fiscal prudence and they are now watching to see if, with Tusk gone, the party can keep power at the parliamentary election, scheduled for late next year. Kopacz, a 57-year-old former pediatrician, has said that being a woman and a mother will inform the way she governs. Asked last month about how she will handle national security challenges, the former parliamentary speaker said: "Poland should behave like reasonable Polish women," by protecting its home and family. On Wednesday she used her speech, and a handful of new policies, to try to create in voters' minds an image of a protective, nurturing government. "All of my and my government's decisions will be taken not based on political calculation, but will have one aim -- the security, in the broad sense, of Polish families," Kopacz said. She promised her government would double funding for childcare for pre-kindergarten children, and allocate about $600 million to create more nursery places in workplaces. Kopacz pledged to ban junk food in schools, to provide free textbooks for primary schools, and to create day care centres for the elderly. She also ordered her government to remove some of the red tape around paying taxes. The initiatives are not likely to affect Poland's spending and deficit-reduction targets. Kopacz held out an olive branch to Jaroslaw Kaczynski, leader of the conservative opposition. Kaczynski has accused Tusk of covering up a 2010 plane crash in Russia in which Kaczynski's brother, who was Polish president, died. Tusk denies the allegations on the issue that has poisoned Polish politics. Addressing Kaczynski, who was in parliament, Kopacz said: "It's high time to break this personal animosity... Let us remove this curse of hate from Poland." After the speech, Kaczynski, who usually snubs Tusk, approached him on the floor of parliament, shook his hand and wished him good luck in his new job. ($1 = 3.3125 Polish zloty) (Additional reporting by Wiktor Szary and Marcin Goclowski; Writing by Christian Lowe; Editing by Crispian Balmer) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND PRIMEMINISTER/PLANS EUROZONE

RPT-GLOBAL MARKETS-Lacklustre factory data hits world stocks, dollar strong

October 01, 2014 - reuters.com

(Repeats with tag) * Manufacturing data weighs on stocks at Q4 start * Hong Kong unrest saps risk appetite * Dollar tops 110 yen for first time in six years By Nigel Stephenson LONDON, Oct 1 (Reuters) - Stocks worldwide began the fourth quarter on a negative note on Wednesday, as lacklustre economic data and civil unrest in Hong Kong kept investors cautious before a European Central Bank meeting later this week. The dollar held close to a four-year high, helped by the weak factory activity data, pushing commodity prices lower. The pan-European FTSEurofirst 300 .FTEU3 equity index was down 0.2 percent after final September purchasing manager numbers from France, Germany and the euro zone as a whole underlined the fragility of the European recovery. ID:nL9N0Q300Q The numbers, along with slowing euro zone inflation data on Tuesday, highlighted the divergent monetary policy outlook between the U.S. Federal Reserve on the one hand and the European Central Bank and Bank of Japan on the other. "Since the Fed meeting on Sept. 17, we've seen a 'risk-off' trade, with the fixed income market playing its role of 'safe-haven' while equities and commodities have been slipping in negative territory," said Ycap Asset Management's head of quantitative strategies in Paris, Gregory Raccah. The European Central Bank meets on Thursday. "Once again, the central bank will have to convince investors that it has the firepower to stave off deflation risks. We'll wait for Thursday's ECB meeting before buying the market," said Barclays France director Franklin Pichard. Manufacturing stumbled across most of Asia in September. The closely watched Chinese PMI stayed stuck at 51.1, only modestly above the 50 level that separates growth from contraction. MSCI's main index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent. In Tokyo, the Nikkei stock index closed 0.6 percent lower. Big Japanese manufacturers were slightly more optimistic in the third quarter, but service-sector sentiment worsened, a central bank survey showed. ID:nL3N0RU2AD Chinese stock markets were closed for a national holiday but investors warily monitored thousands of pro-democracy protesters in Hong Kong, where demonstrations spread. ID:nL6N0RV5F9 U.S. shares closed the third quarter on a downbeat note, dragged lower by energy and materials shares as consumer confidence fell in September for the first time in five months and home prices rose less than expected in July. .N The dollar, riding high in recent weeks, topped 110 yen for the first time in six years. The Japanese currency was last down 0.1 percent at 109.77 yen JPY= . The euro, which plumbed a two-year low under $1.26 on Tuesday after the euro zone inflation data was seen making ECB monetary stimulus more likely, was down 0.2 percent at $1.2612 EUR= . PAYROLLS Analysts said U.S. jobs data due on Friday would be crucial for the dollar's near-term prospects. "Friday's non-farm payrolls will be key, as it could raise rate hike expectations another notch," said Barclays Bank chief Japan FX strategist in Tokyo, Shinichiro Kadota. Dollar strength and concern over growing supply have weighed heavily on Brent crude oil LCOc1 lately. The Chinese PMI data lifted it towards $95 a barrel on Wednesday. It last traded at $94.90, up 0.2 percent on the day. "The Chinese data is slightly supportive, but Brent is solidly in a downtrend and that could continue," said Tony Machacek, an oil broker at Jefferies Bache in London. Falling oil prices have hit Russia's rouble. The currency RUS=MCX slipped to 44.43 against a dollar-euro basket at Wednesday's opening, moving beyond the level of 44.40 at which the central bank automatically starts unlimited interventions to defend the currency. The strong dollar also took its toll on gold. The metal XAU= traded at $1,208.40 an ounce, having hit a none-month low on Tuesday. (Additional reporting by Lisa Twaronite in Tokyo and Blaise Robinson in Paris; Editing by Louise Ireland and Crispian Balmer) ((nigel.stephenson@thomsonreuters.com; +44 20 7542 8682; Reuters Messaging: nigel.stephenson.reuters.com@reuters.net)) Keywords: MARKETS GLOBAL/ ,REPEAT)

RPT-PRECIOUS-Gold languishes, platinum hits 5-year low as dollar extends gains

October 01, 2014 - reuters.com

(Repeats with no changes to text) * Precious metals languish as dollar hits multi-year highs * Chinese markets close for Golden Week holiday * Platinum slides to lowest since Sept. 2009 By Jan Harvey LONDON, Oct 1 (Reuters) - Gold held near 9-month lows on Wednesday, weighed down by broad-based strength in the dollar on growing expectations that the U.S. Federal Reserve is set to tighten monetary policy before other major central banks. Other precious metals also languished, with platinum the biggest faller, sliding to a five-year low at $1,256.30 an ounce early in the session. Spot gold XAU= was at $1,209.20 an ounce at 0927 GMT, little changed from late Tuesday, after earlier slipping to within 10 cents of the previous day's 9-month low at $1,204.40. U.S. gold futures GCv1 for December delivery were down $1.90 an ounce at $1,290.70. "The weight of selling is such that I still see lower prices," Societe Generale analyst Robin Bhar said. "We have the stronger dollar and investor disinterest, and if we drop below $1,200 or $1,180, you'll get the short sellers moving in because momentum will be accelerating. "It's difficult to see how things are going to reverse - there's an old market saying, don't catch a falling knife." The dollar rose above 110 yen for the first time in six years and held near a two-year peak against the euro on Wednesday, as investors added to bets that U.S. data will drive the Federal Reserve to tighten policy. FRX/ A stronger dollar typically pressures assets priced in the U.S. currency, such as commodities. Tightening monetary policy and the prospect of higher interest rates also raise the opportunity cost of holding non-yielding precious metals. Traders are awaiting Thursday's European Central Bank meeting and key U.S. payrolls data on Friday for further clues on the direction of monetary policy. Wednesday's U.S. ADP jobs data will be closely eyed ahead of that, analysts say. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-2014 commod returns: http://link.reuters.com/reb25t GRAPHIC-Gold/USD correlation: http://r.reuters.com/ryx52s GRAPHIC-Gold/platinum ratio: http://link.reuters.com/xez92s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> CHINESE MARKETS CLOSE FOR GOLDEN WEEK Reflecting waning investor sentiment, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Shares GLD , fell 2.39 tonnes on Tuesday to 769.86 tonnes, the lowest since December 2008. GOL/ETF Markets in top bullion buyer China are closed for a week from Wednesday for the National Day holiday, weakening support for gold during Asian trading hours and potentially accelerating a fall below $1,200. Investors were also watching the political unrest in Hong Kong for its impact on equities and possible safe-haven bids for gold. Thousands of pro-democracy protesters thronged the streets of Hong Kong on Wednesday, ratcheting up pressure on the pro-Beijing government. ID:nL6N0RV5F9 Among other precious metals, silver XAG= was up 0.5 percent at $17.02 an ounce, while spot palladium XPD= was down 0.9 percent at $761.72 an ounce. Spot platinum XPT= was down 2.1 percent at $1,267.74 an ounce by 0927 GMT. It tumbled 12.7 percent in the last quarter, taking little support from a five-month strike in major producer South Africa earlier this year. "Our analysis of above-ground platinum and palladium inventory published in June last year indicates that this inventory is indeed high," Standard Bank said in a note on Wednesday. "While some of this inventory would have reduced due to the large deficits anticipated this year, levels remain high. As a result, on balance, the bias may lie towards having to wait longer before PGM prices move higher on a sustainable basis." (Additional reporting by A. Ananthalakshmi in Singapore; editing by Keiron Henderson) ((jan.harvey@thomsonreuters.com)(+44)(0)(207 542 7744)(Reuters Messaging: jan.harvey.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

London gold 1030 fix - Oct 1 - 1208.50 dlrs

October 01, 2014 - reuters.com

London platinum/palladium 0945 fix - Oct 1

October 01, 2014 - reuters.com

GLOBAL MARKETS-Lacklustre factory data hits world stocks, dollar up

October 01, 2014 - reuters.com

* Manufacturing data weighs on stocks at Q4 start * Hong Kong unrest saps risk appetite * Dollar tops 110 yen for first time in six years By Nigel Stephenson LONDON, Oct 1 (Reuters) - Stocks worldwide began the fourth quarter on a negative note on Wednesday, with investors wary of lacklustre economic data and keeping a cautious eye on civil unrest in Hong Kong. The dollar held close to a four-year high against a currency basket .DXY , helped by the weak factory activity data, and pushed commodity prices lower. The pan-European FTSEurofirst 300 .FTEU3 equity index was down 0.1 percent after final September purchasing manager numbers from France and Germany underlined the fragility of the European recovery. Sales warnings from British retailer J Sainsbury SBRY.L and French cable maker Nexans NEXS.PA added to the gloom. "Since the Fed meeting on Sept. 17, we've seen a 'risk-off' trade, with the fixed income market playing its role of 'safe-haven' while equities and commodities have been slipping in negative territory," Ycap Asset Management's head of quantitative strategies in Paris, Gregory Raccah, said. Manufacturing stumbled across most of Asia in September. The closely watched Chinese PMI stayed stuck at 51.1, only modestly above the 50 level that separates growth from contraction. "The political unrest in Hong Kong is dragging down market sentiment, while Japanese (mixed Tankan survey) and Chinese (unchanged manufacturing PMI) data were unconvincing," Rabobank analysts said in a note. MSCI's main index of Asia-Pacifc shares outside Japan .MIAPJ0000PUS fell 0.3 percent. In Tokyo, the Nikkei stock index closed 0.6 percent lower. Big Japanese manufacturers were slightly more optimistic in the third quarter but service-sector sentiment worsened, a central bank survey showed. Chinese stock markets were closed for a national holiday but investors warily monitored thousands of pro-democracy protesters in Hong Kong, where demonstrations spread. ID:nL6N0RV5F9 U.S. shares closed the third quarter on a downbeat note, dragged lower by energy and materials shares as consumer confidence fell in September for the first time in five months and home prices rose less than expected in July. .N The dollar, riding high in recent days on the divergent monetary policy outlooks of the Federal Reserve on the one hand and the European Central Bank and the Bank of Japan on the other, topped 110 yen for the first time in six years. The Japanese currency was last down 0.1 percent at 109.77 yen JPY= . The euro, which plumbed a two-year low under $1.26 on Tuesday after subdued euro zone inflation data was seen making ECB monetary stimulus more likely, was down 0.1 percent at $1.2620 EUR= . PAYROLLS Analysts said U.S. jobs data due on Friday would be crucial for the dollar's near-term prospects. "Friday's non-farm payrolls will be key, as it could raise rate hike expectations another notch," Barclays Bank chief Japan FX strategist in Tokyo, Shinichiro Kadota, said. Dollar strength and concern over growing supply have weighed heavily on Brent crude oil LCOc1 lately. The Chinese PMI data lifted it towards $95 a barrel on Wednesday, although it last traded down slightly on the day at $94.67. "It's a tiny bit better than the market expected, but the China bears have been beating their chest very loudly in the past few weeks so we should see some relief rally," OptionsXpress market analyst in Sydney, Ben Le Brun, said. Falling oil prices have hit Russia's rouble. The currency RUS=MCX declined to 44.43 against a dollar-euro basket at Wednesday's opening, moving beyond the level of 44.40 at which the central bank automatically starts unlimited interventions to defend the currency. The strong dollar also took its toll on gold. The metal XAU= traded near a nine-month low at $1,206 an ounce. (Additional reporting by Lisa Twaronite in Tokyo and Blaise Robinson in Paris; Editing by Louise Ireland) ((nigel.stephenson@thomsonreuters.com; +44 20 7542 8682; Reuters Messaging: nigel.stephenson.reuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

UPDATE 1-Gem Diamonds sells white diamond for $10.6 mln

October 01, 2014 - reuters.com

(Adds analyst comment, other diamond sales)) By Karen Rebelo Oct. 1 (Reuters) - London-listed Gem Diamonds Ltd GEMD.L said it had sold a 198-carat white diamond recovered from its Lesotho mine in August for $10.6 million. 2014 has been a bonanza year for diamond miners such as Gem and larger competitor Petra Diamonds Ltd PDL.L , with the discovery and sale of several high-value stones lifting profits and cash flows. "This is a good result for Gem Diamonds, but the value comes in slightly below the recent type II 160 carat diamond which the company sold for $11.1 million in March," analysts at Numis Securities said in a note. The diamond was sold at Letseng's September tender, the company, which also mines in Botswana, the company said in a statement on Wednesday. ID:nRSA0194Ta At a tender in February, Gem Diamonds sold a 162.02-carat diamond for $11.1 million and a 161.31-carat stone for $2.4 million. Both diamonds were recovered from Letseng in January. ID:nRSE5029Ba The Letseng mine, located in the Maluti mountains of Lesotho, is known for its large white diamonds. Since Gem Diamonds acquired a 70 percent stake in 2006, the mine has unearthed four of the 20 largest white gem-quality diamonds ever recorded. "Diamonds providing some much needed excitement in the mining industry at the moment, a nice counter to miserable gold and iron ore prices at present," Numis said. (Reporting by Karen Rebelo in Bangalore; Editing by Sunil Nair and Louise Heavens) ((karen.rebelo@thomsonreuters.com; within UK +44 20 7542 1810; outside UK +91 80 6749 1136; Reuters Messaging: karen.rebelo.thomsonreuters.com@reuters.net)) Keywords: GEM DIAMONDS SALE/

INDICATORS - Kazakhstan - Oct 1

October 01, 2014 - reuters.com

Freeport Indonesia workers blockade mine after deadly accident

October 01, 2014 - reuters.com

JAKARTA, Oct 1 (Reuters) - Workers at Freeport-McMoRan Inc's FCX.N Indonesian unit are blocking access to the mine site, union and company officials said on Wednesday, to protest against the number of fatal accidents at one of the world's biggest copper mines. Open-pit mining at the Grasberg mine in Indonesia's Papua had been temporarily suspended since Saturday, after four workers were killed in a collision involving a truck. Following the accident, workers began a "spontaneous" blockade early on Wednesday, Juli Parorrongan, a union spokesman said. He could not know how many staff were involved, but workers told Reuters around 500 took part in the demonstration. There were at least three deadly accidents at the Papua complex last year, including a tunnel collapse in May that killed 28 people. ID:nL4N0JH0Q9 Freeport Indonesia spokeswoman Daisy Primayanti said management were holding a dialogue with the protesters to find a solution. Freeport only resumed Indonesian exports in early August after a seven-month tax dispute with the government halted shipments. In mid-August, the company said it had built up a 140,000-tonne stockpile and expected total copper concentrate production of 1.8 million tonnes this year, down from an earlier forecast of 2.2 million tonnes, with exports of about 700,000 tonnes. ID:nL4N0QJ373 According to union spokesman Parorrongan, protesters had made banners with the names of victims of previous accidents. "They want the head of the company to be responsible, but I do not have clear information how many workers are involved and what their specific demands are," he said. Indonesia's mining ministry expects the investigation into last week's accident to take a week, and open-pit mining would not resume until its conclusion. ID:nL3N0RU4SV (Reporting by Dennys Kapa and Michael Taylor in Jakarta and Muhammad Yamim in Timika; Editing by Ed Davies) ((michael.taylor@thomsonreuters.com; +62)(0)(21 2992-7602; Reuters Messaging: michael.taylor.thomsonreuters.com@reuters.net)) Keywords: INDONESIA FREEPORT/DEMONSTRATION

MIDEAST STOCKS - Factors to watch - October 1

October 01, 2014 - reuters.com

DUBAI, Oct 1 (Reuters) - Here are some factors that may affect Middle East stock markets on Wednesday. Reuters has not verified the press reports and does not vouch of their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Asian shares slip, dollar near highs; HK unrest eyed MKTS/GLOB * Brent edges above $95 on relief over China's PMI O/R * Gold struggles near 9-month low on stronger dollar GOL-RTRS * MIDEAST STOCKS-Most markets rise; Qatar slips ahead of index change MEAST-STX * MIDEAST DEBT-Gulf loan pricing bites bank margins; correction hoped for in 2015 MEAST-DBT * Middle East Crude-DME Oman slips back in discount MEAST-CRU * Luxembourg launches 200 mln euro debut sukuk at 2 bps under M/S - leads LU-SUK * Some win, some lose in Gulf's sukuk mutual fund market SUK-FUND * Kurds seize Iraq/Syria border post; Sunni tribe joins fight against Islamic State IQ-SECUR * Tunisia approves 27 candidates for presidential race TN-VOTE * EMEA syndicated loans reach $813 bln in first nine months-data EMRG-LOA * OPEC oil output hits highest since 2012 on Libya, Saudi-Reuters Survey OPEC-RTRS * Protesters in eastern Libya close second oilfield, seize company plane ENI.MI LY-OILG * Syria raids show Saudi, UAE ambition to extend regional authority SA-AE-DIP * Wheat warfare: Islamic State uses grain to tighten grip in Iraq IQ-SY-SECUR * Algeria awards four of 31 oil, gas fields in auction -officials DZ-OILG * Iran to give military grant to Lebanese army - official IR-LB-DEF TURKEY * Hesitant Turkey seeks mandate for military action against Islamic State TR-SECUR * RHI drops plan to buy Turkish raw materials plant RHIV.VI * Turkish treasury borrows 1.84 bln lira in sukuk issue TR-SUK * Turkey hikes energy prices, pushing 2014 inflation forecasts above 9 pct TR-INFL * Turkey's net external debt stock $237.8 bln at end-H1 TR-GVD EGYPT * Egypt's GASC seeks wheat for Nov. 1-10 shipment EG-WHT * Egypt's Sisi delivers economic reforms but hurdles remain EG-POL * Egypt aims to pay $2 bln to $3 bln of debt to oil firms by end of 2014 -minister BP.L EG-GVD * Orascom Telecom shares rise 4 percent after trading resumes OTMT.CA * Egyptian court jails 68 Muslim Brotherhood supporters EG-JUDIC * Egypt's M2 money supply up 17.14 pct on year in August -central bank EG-MONS SAUDI ARABIA * Saudi Electricity signs 2.56 bln riyals deals for Riyadh metro 5110.SE * Saudi focus on Asia may result in cheaper crude: Russell SA-CRU * Virgin Mobile launches services in Saudi Arabia 7010.SE 7020.SE 7030.SE * Funds to slow Saudi stock buying, bullish on UAE -survey SA-AE-STX UNITED ARAB EMIRATES * Germany examines Etihad, Air Berlin codeshare plans AB1.DE AE-AIRL * UAE firm signs deal to build Egypt's first coal-fired power plant AE-EG-PWR * Dana Gas signs deal to recover $280 mln owed by Egypt DANA.AD * Etihad Rail set to launch next phase of UAE railway network AE-TRAN * UAE's Amanat Holdings to launch $374 mln Dubai flotation in Oct IPO-ITCA.DU * TABLE-UAE Aug bank lending growth up at 7.2 pct y/y, M3 slows AE-ECI QATAR * TABLE-Qatar Aug credit growth rebounds to 9.0 pct y/y, M2 up QA-ECI * TABLE-Qatar C/A surplus narrows to $14.9 bln in Q2 QA-TRACC * Qatar's economic growth edges up to 5.7 y/y pct in Q2 QA-GDP * Qatar's Ahli Bank signs $200 mln debut syndicated loan -statement AABQ.QA KUWAIT * Kuwait investment firm Global says management withdraws resignations GIHB.BH * Kuwait starting to cut subsidies, IMF report says KW-SDS OMAN * Omani lender NBO prices cheap $500 mln bond on high investor demand NBO.OM * Oman crude OSP fall to $97.26/bbl for November OM-CRU (Compiled by Dubai newsroom) ((dubai.newsroom@reuters.com)) Keywords: MIDEAST FACTORS

India Morning Call-Global Markets

October 01, 2014 - reuters.com

EQUITIES NEW YORK - U.S. stocks slipped on Tuesday, dragged down by energy and materials shares as economic data disappointed. Major indexes also posted losses for the month, but ended the quarter with gains. The S&P energy index .SPNY was down 1.2 percent on Tuesday following a more than 3 percent drop in U.S. oil prices. The S&P materials index .SPLRMA also fell 1.2 percent. Shares of Chevron CVX.N, down 1 percent at $119.32, were the biggest drag on the S&P 500. For a full report, click on .N - - - - LONDON - Britain's top share index dropped on Tuesday, with retailers falling after Next NXT.L said it would have to lower its full-year profit forecast if the unusually warm weather continued. The UK benchmark showed little reaction to data showing Britain's economy is bigger than previously estimated. For a full report, click on .L - - - - TOKYO - Japan's Nikkei share average was little changed in choppy trade on Wednesday, with a weak yen supporting sentiment despite mixed data from the Bank Of Japan's tankan survey. Business confidence among Japanese manufacturers improved for the first time in two quarters in the three months to September, a central bank survey showed, an encouraging sign that parts of the economy are stabilising. For a full report, click on .T - - - - HONG KONG - Financial markets in Hong Kong are closed on Wednesday, Oct. 1, for China's National Day holiday and on Thursday, Oct. 2, for the Chung Yeung Festival, and will resume trading on Friday. For a full report, click on .HK - - - - FOREIGN EXCHANGE Dollar rises above 110 yen for the first time since August 2008. For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasury prices fell on Tuesday, although month-end buying was seen as stemming weakness as the market stayed within its recent range before Friday's highly anticipated September jobs report. Treasuries have oscillated from weakness on Friday to gains on Monday amid concerns that asset manager Pimco may need to liquidate positions if investor redemptions increase after the departure of co-founder Bill Gross. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold extended losses on Wednesday to trade near a nine-month low and looked likely to break below the key $1,200-an-ounce level as the dollar gained in strength. The absence of top buyer China, which begins a week long holiday from Wednesday, is also likely to add pressure. Spot gold XAU= slipped 0.2 percent to $1,206.90 an ounce by 0038 GMT, its fourth straight session of losses. The metal had fallen to $1,204.40 in the previous session - its lowest since early January. For a full report, click on GOL/ - - - - BASE METALS SYDNEY - London copper slipped to its lowest in more than three months on Wednesday, pummelled by a stronger dollar and concerns swelling supply could overwhelm fragile demand growth in top consumer China. Three-month copper on the London Metal Exchange CMCU3 had slipped 0.3 percent to $6,648.50 a tonne by 0114 GMT, after earlier hitting its weakest since June 13 at $6,645.50 a tonne. It lost 1.1 percent in the previous session. For a full report, click on MET/L - - - - OIL NEW YORK - World oil prices tumbled to their lowest in more than two years on Tuesday, with U.S. crude posting its biggest daily decline since 2012, as a drop in gasoline prices and end-of-quarter selling capped three months of steep losses. Oil prices in the United States and Europe have plummeted since the end of June as output from the Middle East, Africa and the United States swamped the market and outweighed fears of supply disruptions from war-torn oil-producing regions. For a full report, click on O/R (Compiled by Abhishek Vishnoi) ((abhishek.vishnoi@thomsonreuters.com; +91 22 61807225; Reuters Messaging: abhishek.vishnoi.thomsonreuters.com@reuters.net)) Keywords: MORNINGCALL INDIA/

COMMODITIES-Oil, metals, crops drag index to biggest quarterly loss in 3 yrs

September 30, 2014 - reuters.com

By Barani Krishnan NEW YORK, Sept 30 (Reuters) - Commodities posted their biggest quarterly drop in three years on Tuesday as plummeting oil prices and lower markets from gold to copper to soybeans brought the third straight monthly decline to a sector pressured by a surging U.S. dollar. Oil's benchmark Brent crude fell to its lowest in more than two years. U.S. crude slid nearly 4 percent, its biggest daily decline since 2012. Gold futures hit a 2014 low, the sharpest monthly slide since June 2013. Copper had its biggest monthly loss since March. Soybeans fell their most in a quarter since 2008. Traders said commodities fell under pressure from the U.S. dollar's rally to a four-year high, which gave the currency its biggest quarterly gain in six years. Other factors included pressure on oil from a slide in the expiring front-month contract in U.S. gasoline, concerns about China's growth and the record harvest in U.S. soybeans. "With end-of-quarter rebalancing, we've seen more selling triggered as investors change their allocations, and with the dollar's strength, commodities are getting sold across the board," said Amrita Sen at Energy Aspects in London. The 19-commodity Thomson Reuters/Core Commodity CRB Index .TRJCRBTR fell nearly 2 percent on the day, 5 percent on the month and 10 percent on the quarter. It was the CRB's biggest quarterly loss since September 2011. The index has fallen every month since the end of June. In energy markets, U.S. crude CLc1 closed down $3.41 at $91.16 barrel. New York gasoline for October RBc1 slid 4 percent, or almost 11 cents, to finish below $2.60 a gallon, giving back half its gains from a two-week rally. Brent crude LCOc1 lost more than $2.50 to trade under $95, after setting a two-year low at $94.24. O/R U.S. gold futures GCcv1 settled down 0.6 percent at $1,218.80 an ounce, after a 2014 low of $1,204.30. "The bottom line is that the dollar will continue to appreciate against the euro quite significantly in the next couple of months until the end of next year and this will see gold prices fall," Commerzbank analyst Daniel Briesemann said. GOL/ Three-month copper on the London Metal Exchange CMCU3 ended down 1.1 percent at $6,667 a tonne, down 4.5 percent in September, its biggest monthly slump since March. MET/L "There's not a whole lot of positive near-term indicators to get the copper market to rebound," Nomura metals and mining analyst Patrick Jones said. "We're getting to the point now where we have meaningful new supply starting to hit the market," he said, anticipating a "worrisome" property market in top metals consumer China. Soybean futures Sc1 settled at $9.13-1/4 a bushel, a quarterly decline of nearly 35 percent, the biggest since 2008, as traders bet that record U.S. harvest will replenish supplies depleted by huge exports to China. GRA/ (Reporting By Barani Krishnan; Editing by David Gregorio) ((barani.krishnan@thomsonreuters.com; +1 646 223 6192; Reuters Messaging: barani.krishnan.thomsonreuters.com@reuters.net)) Keywords: MARKETS COMMODITIES/

PRECIOUS-Gold posts first quarterly loss this year as dollar soars

September 30, 2014 - reuters.com

* Gold notches 6 pct drop in Sept, biggest in 15 months * Dollar hits 4-year high * Unrest in Hong Kong could hit physical demand from China (Adds comment, NEW YORK to dateline, second byline, updates market activities) By Frank Tang and Clara Denina NEW YORK/LONDON, Sept 30 (Reuters) - Gold fell to a nine-month low on Tuesday as the dollar surged and commodities led by crude oil tumbled on expectations of further gains in the U.S. currency. Spot gold prices touched their lowest since Jan. 1 at $1,204.40 an ounce. Though gold managed to recoup earlier losses, the metal is still down about 6 percent for the month with a quarterly drop of around 9 percent, marking the sharpest monthly loss since June 2013 and first quarterly loss this year. The dollar surged to a four-year high against a basket of currencies and a two-year high against the euro on Tuesday after euro zone inflation fell in September. FRX/ ID:nL6N0RV1PJ Earlier this month, the U.S. Federal Reserve indicated it could raise borrowing costs faster than expected when it starts moving. A strengthening U.S. economic outlook and the dollar surge also weighed heavily on bullion's investment appeal. "The dollar has been the overwhelming pressure on gold in the past month, which outweighs any safe-haven concerns in the Middle East and inflation fears," said Frances Hudson, investment director and global thematic strategist at Standard Life Investments, which manages $333.6 billion in client assets. Spot gold XAU= was down 0.5 percent at $1,209.30 an ounce by 2:41 p.m. EDT (1841 GMT). Bullion prices partially erased losses after disappointing U.S. consumer confidence and home prices data. ID:nL2N0RV15Y U.S. COMEX gold futures for December delivery GCZ4 settled down $7.20 at $1,211.60 an ounce in heavy trading. The U.S. currency has posted a record-breaking 11 weeks of successive gains, and is set for its biggest quarterly gain in six years, on expectations the Federal Reserve will raise interest rates well ahead of its counterparts in Japan and the euro zone. A stronger U.S. currency makes dollar-denominated precious metals more expensive for holders of other currencies. Investors tend to withdraw from non-interest-bearing assets to seek higher yields elsewhere when the dollar gains. Investors also monitor pro-democracy protests in Hong Kong, which could hit retail sales in the region, a hot spot for tourists from mainland China, especially during the one-week National Day holiday that begins on Wednesday. Lower gold prices dragged other precious metals down, with silver XAG= fell 2.8 percent to $16.98, having earlier hit $16.83, its lowest since March 2010. It also notched its biggest quarterly loss since mid-2013. Platinum XPT= was down 0.1 percent at $1,298.50 an ounce and set for a 12 percent quarterly drop. Palladium XPD= fell 2.3 percent to $768.10 an ounce, having touched a five-month low earlier and posted a 14 percent monthly loss, its biggest since September 2011. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by Keiron Henderson, David Evans and Andrew Hay) ((Frank.Tang@thomsonreuters.com; +1 646 223 6126; Reuters Messaging: frank.tang.thomsonreuters@reuters.net)) Keywords: MARKETS PRECIOUS/

S.Africa stocks end down but charts point to possible rebound

September 30, 2014 - reuters.com

* Top-40 slips 0.11 percent * All-share down 0.07 percent JOHANNESBURG, Sept 30 (Reuters) - South African bullion producers such as Harmony Gold HARJ.J remained under pressure on Tuesday, weighing on the wider market which ended in the red, after the precious metal fell to a nine-month low in the face of relentless dollar gains. The benchmark Top-40 index .JTOPI slipped 0.11 percent on the day and has lost almost 4 percent this quarter, the biggest fall since the same period in 2011 when it fell more than 7 percent, pushing it further back from record peaks hit in July. But the market could be in for a technical bounce as the Top-40's 14-day RSI - a momentum indicator tracked by chartists - has strayed into oversold territory. This helped the index pull back from deeper losses earlier in the session. Africa's top gold producer AngloGold Ashanti ANGJ.J lost 0.37 percent but came off troughs reached earlier in the day. Rival Harmony Gold HARJ.J shed 2.33 percent to 24.70 rand while Gold Fields GFIJ.J ended 2.35 percent lower. Sibanye Gold SGLJ.J bucked the trend, adding 4.75 percent, after it said Van Eck Associates Corporation, an asset manager, had raised its stake in the company to over 5 percent. This is a sign of confidence in a gold producer which has positioned itself as a dividend play because it is mining mature assets that generate cash. But the overall picture for bullion is gloomy. Spot gold XAU= touched its lowest since Jan. 1 at $1,204.40 an ounce and is on track for a quarterly loss of 9 percent, hit by expectations that the dollar will rise in tandem with U.S. interest rates. "Gold bulls' worst nightmares involve a rampant dollar and surging real interest rates," Macquarie analyst Matthew Turner said. The benchmark Top-40 index .JTOPI lost 0.11 percent to 44,160 while the wider All-share index .JALSH shed 0.07 percent to 49,336. (Reporting by Ed Stoddard; Editing by Crispian Balmer) ((Edward.Stoddard@thomsonreuters.com; +27 11 775 3160; Reuters Messaging: edward.stoddard.thomsonreuters.com@reuters.net)) Keywords: MARKETS SAFRICA/STOCKS

PRECIOUS-Gold set for first quarterly loss this year on dollar strength

September 30, 2014 - reuters.com

* Gold on track for 5.5 pct drop in September * Quarterly drop of 8 percent in prospect (Updates prices, adds comment) By Clara Denina LONDON, Sept 30 (Reuters) - Gold fell to a nine-month low on Tuesday as the dollar climbed, with the metal set to post its sharpest monthly loss since June 2013 and the first quarterly loss this year on expectations of further gains in the U.S. currency. Cash prices touched their lowest since Jan. 1 at $1,204.40 an ounce and although managing to recoup earlier losses, the metal is still down about 5.5 percent for the month and heading for a quarterly drop of 8 percent. Spot gold XAU= was trading unchanged at $1,215.80 an ounce at 1429 GMT, erasing losses after lower-than-expected U.S. data. U.S. gold futures GCcv1 lost $2.40 to $1,216.20 an ounce. "The bottom line is that the dollar will continue to appreciate against the euro quite significantly in the next couple of months until the end of next year and this will see gold prices fall," Commerzbank analyst Daniel Briesemann said. "Pressure is clearly there and I would be very surprised to see gold show more upside." The dollar climbed to a four-year peak against a basket of major currencies, before paring some gains as data showed the pace of business activity growth in the U.S. Midwest decelerated slightly in September. ID:nN9N0Q300D The U.S. currency has posted a record-breaking 11 weeks of successive gains on expectations the Federal Reserve will raise interest rates well ahead of its counterparts in Japan and the euro zone. The U.S. central bank indicated this month that it could raise borrowing costs faster than expected when it starts moving. ID:nW1N0Q400M The next market focus will be the release of September non-farm payrolls data on Friday. ECONUS The strength in the dollar has been driving gold's declines over the past few weeks. A stronger U.S. currency makes dollar-denominated precious metals more expensive for holders of other currencies. Investors tend to withdraw from non-interest-bearing assets to seek higher yields elsewhere when the dollar gains. "The pressure is definitely on for gold to end the year in the red," said Howie Lee, investment analyst at Phillip Futures. "We see little in the way to stop gold's downward slide, given that the Fed has made clear its intention to hike (rates) sooner (rather) than later and the Ukraine tensions have reached a fragile ceasefire." Investors were also watching political unrest in Hong Kong as any worsening of tensions there could lead to some investment demand for gold. Tens of thousands of pro-democracy protesters blocked Hong Kong's streets on Tuesday, maintaining pressure on China as it faces one of its biggest political challenges since the Tiananmen Square crackdown 25 years ago. ID:nL3N0RU5EJ The protests, however, could hit retail sales in the region, a hot spot for tourists from mainland China, especially during the one-week National Day holiday that begins on Wednesday, bullion dealers said. Lower gold prices dragged other precious metals down, with silver XAG= hitting its lowest since March 2010 at $17.07 an ounce and headed for its biggest quarterly loss since mid-2013. Platinum XPT= was down 0.1 percent at $1,298.70 an ounce and set for a 12 percent quarterly drop. Palladium XPD= fell 1.9 percent to $771.50 an ounce, having touched a five-month low earlier and was also poised for a monthly and quarterly loss. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by Keiron Henderson and David Evans) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

London gold 1500 fix - Sept 30 - 1216.50 dlrs

September 30, 2014 - reuters.com

London platinum/palladium 1400 fix - Sept 30

September 30, 2014 - reuters.com

London gold 1030 fix - Sept 30 - 1210.00 dlrs

September 30, 2014 - reuters.com

London platinum/palladium 0945 fix - Sept 30

September 30, 2014 - reuters.com

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