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Poland to offer bonds worth PLN 4.0-6.0 bln on Thursday

October 21, 2014 - reuters.com

WARSAW, Oct 21 (Reuters) - Poland will offer bonds maturing July 2016 and July 2019 worth between 4.0 and 6.0 billion zlotys ($1.2-1.8 billion) at a tender on Thursday, the finance ministry said on Tuesday. The quarterly debt supply plan released by the ministry in September said that the offer on Thursday would be worth between 2 and 6 billion zlotys. ID:nW8N0RJ000 (1 US dollar = 3.3077 Polish zloty) (Reporting by Wiktor Szary) ((wiktor.szary@thomsonreuters.com; +4802206539722; Reuters Messaging: wiktor.szary.reuters.com@reuters.net)) Keywords: POLAND DEBT/TENDER

New Issue- ESM prices 4.0 bln euro 2016 bond

October 21, 2014 - reuters.com

Oct 21 (Reuters) -Following are terms and conditions of a bond priced on Tuesday. Borrower European Stability Mechanism (ESM) EUPST.UL Issue Amount 4.0 billion euro Maturity Date October 28, 2016 Coupon Zero pct Reoffer price 99.92 Spread 8.5 basis points Underlying govt bond Over the OBL 161 Payment Date October 28, 2014 Lead Manager(s) Barclays, BNP Paribas & BofAML Ratings Aa1 (Moody's) & AAA (Fitch) Listing Lux Full fees Undisclosed Denoms 0.01 Security details and RIC, when available, will be on ZZ8E 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))

TABLE-NSE Currency Futures traded on Oct 21

October 21, 2014 - reuters.com

India rupee edges higher tracking share gains; broad dlr gains hurt

October 21, 2014 - reuters.com

* Rupee ends at 61.31/32 per dollar vs 61.36/37 on Monday * INR seen in 61.00 to 61.70 range rest of the week * Market to remain rangebound in holiday-shortened week By Swati Bhat MUMBAI, Oct 21 (Reuters) - The Indian rupee rose for a third consecutive session on Tuesday as expectations for more reforms continued after the government announced it would auction coal blocks, but broader gains were capped by a rising dollar globally. The government on Monday announced plans to open up the coal industry to private players, two days after it unveiled fuel reforms on Saturday, pushing domestic shares higher for their third session of gains. ID:nL3N0SF41N Still, traders expect trading in the rupee to remain muted ahead of a holiday-shortened week, with global factors remaining key for intra-day direction. Markets are closed Thursday and Friday for the Diwali holidays. "There was some dollar buying seen in the morning but otherwise it held pretty much rangebound," a senior dealer with a private bank said. The partially convertible rupee INR=D2 closed at 61.31/32 per dollar compared with 61.36/37 on Monday. The rupee was also somewhat supported after emerging Asian currencies edged up on Tuesday after China's factory output rose slightly better-than-expected in September. EMRG/FRX But the dollar regained some ground later in the day as the euro EUR= fell after several sources told Reuters the European Central Bank was considering buying corporate bonds on the secondary market. ID:nL6N0SG2BC In the offshore non-deliverable forwards PNDF , the one-month contract was at 61.58, while the three-month contract was at 62.18. FACTORS TO WATCH * Euro falls, German yields up as sources say ECB mulls corp bond buys FRX/ * Relief over China's growth supports Asia FX, rupiah near 4-week high EMRG/FRX * Asian share gains fade after China GDP; Europe could be brighter 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 (Editing by Biju Dwarakanath) ((swati.bhat@thomsonreuters.com)(+91-22-61807353)(Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net)) Keywords: MARKETS INDIA FOREX/

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

October 21, 2014 - reuters.com

STOCKS .BSESN .NSEI ----------------------- The benchmark BSE index ended up 0.55 percent and the broader NSE index 0.61 percent higher, as coal-related stocks such as Jindal Steel and Power JNSP.NS surged on the government's plans to auction coal blocks that the top court cancelled in August. .BO RUPEE INR=D2 -------------- The partially convertible rupee ended stronger at 61.31/32 per dollar against its previous close of 61.36/37, as expectations for more reforms continued after the government announced it would auction coal blocks, but broader gains were capped by a rising dollar globally. INR/ GOVERNMENT BONDS IN084024G=CC ------------------------------- The benchmark 10-year bond yield ended up 1 basis point at 8.37 percent as tighter liquidity conditions ahead of a long weekend offset the positive impact from the government's decision to auction coal blocks in the latest reforms by Prime Minister Narendra Modi. IN/ INTEREST RATE SWAPS INROIS MIOIS= ------------------------------------- The benchmark five-year swap rate ended up 7 bps at 7.52 percent while the one-year closed was steady at 8.06 percent. CALL MONEY INROND= -------------------- India's cash rate ended at 8.20/8.25 percent, lower than Monday's close of 8.85/8.90 percent. (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 weaker on importer dlr demand; cbank curbs fall

October 21, 2014 - reuters.com

COLOMBO, Oct 21 (Reuters) - Sri Lankan rupee forwards ended slightly weaker on Tuesday due to dollar demand from importers, but dealers said the central bank's intervention via moral suasion prevented a sharp fall in the local currency. Exporters were reluctant to sell dollars ahead of the budget announcement for 2015 on Friday, dealers said. The three-day forwards, trading in the absence of spot, were quoted at 130.90/131.00 per dollar, down from Monday's closing level of 130.85/95. "Exporters were very cautious ahead of the budget and there was pressure from importers," a currency dealer said on condition of anonymity. Dealers also said the central bank persuaded banks not to trade the spot-next below 130.90 after capping it at 130.85 in early trade. Central bank officials were not immediately available for comment. The spot currency LKR=LK was neither traded nor quoted for a second straight day. It ended at 130.60/80 on Friday. A top central bank official said on Monday the monetary authority would intervene to prevent short-term volatility in the rupee. "Even moral suasion or our intervention is to prevent short-term volatility," said Nandalal Weerasinghe, a deputy governor at the central bank, at a public forum late on Monday. "What we have been doing over the last 12 months is to prevent a sharp appreciation of the currency by intervening and bringing in our resources just to maintain some stability." Weerasinghe also said the central bank expects short-term interest rates to stabilise around 6 percent, though lower inflation has given it room for further monetary policy easing. ID:nL3N0SF4OK The central bank held key policy rates steady on Friday, a day after governor Ajith Nirvard Cabraal said a rise in the 364-day t-bill yield was a signal of where the authorities want rates to be amid pressure on the rupee from foreign outflows. ID:nL3N0SC1G5 (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

PRECIOUS-Gold hits one-month high on slowing China growth

October 21, 2014 - reuters.com

* Falling U.S. Treasury yields undermine dollar * China economic growth slows in Q3 * Indian festival buying supports; drop in SPDR holdings may weigh (Updates prices) By Clara Denina LONDON, Oct 21 (Reuters) - Gold rose to a one-month high on Tuesday on worries over a slowdown in the global economy after China's growth eased in the third quarter to its weakest since the 2008/09 financial crisis. Data showed China's gross domestic product (GDP) grew 7.3 percent between July and September from a year earlier, down from a 7.5 percent in the second quarter, although slightly above the 7.2 percent forecast by analysts. ID:nL3N0SF3SV Spot gold XAU= hit its highest since Sept. 10 at $1,253.70 an ounce in earlier trade, when was also helped by a lower dollar. It was up 0.2 percent at $1,248.56 by 1127 GMT. U.S. gold futures GCcv1 were up $4.20 an ounce at $1,248.70. "The retreat of the U.S. dollar from multi-year highs removed the main obstacle for gold," Commerzbank analyst Carsten Fritsch said. "Weak economic data in the eurozone and China led to concerns that the U.S. economy will not be immune against a slowdown in economic growth, causing a turmoil in wider markets over the past few days." The dollar rebounded slightly versus a basket of leading currencies, but remained under pressure from a dip in U.S. government bond yields. FRX/ The U.S. currency has lost ground in recent weeks as concerns about slowing global growth prompted investors to trim bets that the U.S. Federal Reserve will raise interest rates soon after an expected end in its stimulus later this month. A delay in raising rates would be seen as positive for gold, a non-interest-bearing asset, and negative for the dollar. In wider markets, European shares rose on Tuesday, trimming the previous day's losses. .EU "Despite the recent rebound in equities, there are still some worries out there that could attract bids for gold. Weakness in the dollar is a major factor for gold," said a trader in Hong Kong. With the Chinese data now out, the market's focus will now turn to Wednesday's U.S. inflation figures and Thursday's European manufacturing reports, traders said. Gold was also bolstered by buying interest in the physical markets from Asia -- the top consuming region. India, the second-biggest gold buyer, celebrates the festivals of Dhanteras on Tuesday and Diwali later in the week. Both are considered auspicious for buying gold, and retail sales and imports could get a boost. News that India's central bank will not tighten gold import rules further could also lend some support. ID:nL3N0SF4OT But overall sentiment towards gold remained wary. Holdings in the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 1.18 percent to 751.97 tonnes on Monday -- the biggest daily percentage drop in a year. GOL/ETF Among the other precious metals, spot silver XAG= was up 0.1 percent at $17.38 an ounce. Platinum XPT= was up 0.5 percent at $1,265.00 an ounce, while palladium XPD= rose 0.1 percent to $760.75 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by David Evans) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

UPDATE 2-Dollar/Saudi riyal forwards jump as spot market pressured

October 21, 2014 - reuters.com

* 1-year dollar/riyal forwards highest since March 2011 * Heavy dollar demand pushes spot riyal rate unusually far * Trader cites options activity by U.S. hedge funds * But Saudi currency peg, economy not under serious pressure * Reserves, growth remain strong; CDS move little (Adds Standard Chartered analysis, background on reserves) By Archana Narayanan and Martin Dokoupil DUBAI, Oct 21 (Reuters) - The Saudi riyal fell sharply against the U.S. dollar in the forwards market on Tuesday to its lowest level since March 2011, when the Arab Spring uprisings briefly shook confidence in the political and economic stability of the Gulf. Traders said the riyal's peg of 3.75 to the dollar was not under serious pressure, and that the currency's drop did not indicate major concern about Saudi Arabia's economy. Nevertheless, the move suggested that after a long period of strength, financial markets in the Gulf are becoming more volatile in response to the plunge of oil prices to four-year lows in the last few weeks. Oil provides most state revenues and export earnings for Saudi Arabia and other Gulf nations. One-year dollar/Saudi riyal forwards SAR1Y= jumped to 90.0 points, their highest level since a peak of 91.50 points hit in March 2011. The forwards had closed Monday at 69.0 points and ended last Friday at 36.33 points. They are used by some international investors as a proxy for risk in the Gulf, and to hedge against market movements. The United Arab Emirates dirham also fell in the forwards market AED1Y= on Tuesday, although to a lesser extent. Saudi riyal forwards moved in response to a surge of demand for dollars in the spot foreign exchange market, which may be linked to the plunge of oil prices as well as a sharp fall of the Saudi stock market in the past two weeks, traders said. They said banks were not panicking, but some were buying forwards because the dollar demand had pushed the riyal's spot rate SAR= unusually far beyond its peg of 3.75 against the dollar. The spot rate, which has been creeping up in the last few weeks, was trading at 3.7518 on Tuesday; over the previous several years, it had never risen above 3.7510. The Saudi central bank supplies dollars as necessary to keep the riyal close to its peg. "The last time SAR spot traded this high for this long was at the unwind of the revaluation speculation trades back in 2008. Before that, it was probably in the early 90s," said Ehsan Ahmed, head of foreign exchange, rates and credit trading for the region at Standard Chartered Bank. "It seems likely that we have seen a large outflow of capital from the kingdom. This outflow of SAR into USD has exceeded the amount of USD which has been supplied by the Saudi central bank facility, and the interbank market has not been able to absorb this." OPTIONS TRADE One trader at a regional bank in the Gulf, declining to be named under briefing rules, said the markets were reacting to trade in two- and three-year riyal options by U.S. hedge funds. "It is important to watch out for this evening because we do not know if the order is finished or not," the trader said, referring to New York trading hours on Tuesday. He said the forward market's move had been magnified by its lack of liquidity. "My personal feeling is, you might see for a couple of days spreads going to the right, but then it will all come back." With Brent crude oil LCOc1 now at about $85 a barrel, Saudi Arabia's state finances may fall into deficit next year, economists believe. The International Monetary Fund has estimated the government will have a break-even oil price of $90.70 in its budget for 2015. But given Saudi Arabia's huge fiscal reserves which could be used to keep state spending high for years, low debt that would make borrowing from the markets easy, and strong growth in its private non-oil sector, analysts do not think the oil price drop is a major threat to the Saudi economy. The Saudi Arabian central bank's net foreign assets rose to a record $737 billion in August, according to the latest data, so it does not risk running out of dollars. Five-year Saudi Arabian credit default swaps SAGV5YUSAC=MG , used to insure against any sovereign debt default, have risen only marginally in the last few weeks and are well below levels hit in 2011 and 2012. The Saudi stock index .TASI was up 2.4 percent on Tuesday afternoon, rebounding for a third day from this month's low. (Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net)) Keywords: SAUDI FOREX

FOREX-Euro sinks on hint ECB will buy corporate bonds

October 21, 2014 - reuters.com

* Euro sinks after sources say ECB looking at more bond-buying * Report helps soothe worries over growth, boosts stocks * Market in two minds over Chinese growth figures (Recasts after story on ECB bond-buying hurts euro) By Patrick Graham LONDON, Oct 21 (Reuters) - The euro fell more than half a cent against the dollar on Tuesday after Reuters reported the European Central Bank was looking at buying corporate bonds as soon as December in its efforts to revive the euro zone economy. The move, if realised, would widen out the private-sector asset-buying programme the ECB began on Monday, adding to the number of new euros the bank can put into circulation without politically controversial purchases of government bonds. ID:nL6N0SG1Z0 It should also suppress yields on bonds held in euros in general, although German government bond yields rose after the story was published, reflecting a repricing of expectations for inflation and a declining appetite for low-risk assets. "It increases the potential scale of the purchases the ECB will be able to make if they extend out into the corporate bond market," said Lee Hardman, a strategist with Bank of Tokyo-Mitsubishi in London. "That reinforces market confidence in (ECB chief) Mr Draghi's pledge to increase the bank's balance sheet by a significant amount. The ECB is still under pressure to do more." The diverging directions of monetary policy between mainland Europe and the United States has been the central argument supporting a run higher for the dollar since May. Most major banks have lined themselves up behind a radical shift in the dollar's value over the next year or two that should take it at least another 10 percent higher and potentially close to parity with the single currency. But that move has stalled amid broader doubts about the strength of global growth and likelihood that U.S. policymakers will push ahead with rises in interest rates next year. The euro, earlier up on the day against the dollar, fell to a day's low of $1.27575 after publication of the story. It then settled to trade at $1.2767, down a quarter of a percentage point on the day. CONFLICTING SIGNS Asian and early European trade in the major currencies was dominated by data from China, the Australian dollar rising as much as half a percent after growth figures from the world's second-largest economy slightly exceeded expectations. The Aussie, often seen as a liquid proxy of Chinese growth prospects given Australia's large trade exposure to China, rose 0.2 percent on the day to $0.8804 AUD=D4 . Chinese industrial output figures also beat forecasts but did little to settle the broader concerns over global growth that have dominated markets this month. The ECB story had more effect, driving European shares more than 1 percent higher on the day and putting Wall Street on course for a higher open. The improved appetite for risk also pulled the yen back, after the Japanese currency, a traditional destination for capital in times of global stress, had gained half a percent against the dollar overnight. JPY=EBS "The market looks to be just chopping around a bit at the moment," said Graham Davidson, a spot currency trader with National Australia Bank in London. "Until we get some more data that make clear whether these concerns about growth are just a blip or a sign of a more concerted slowdown, that's going to be the pattern." He said the Aussie and South African rand ZAR= had both benefited from the Chinese numbers, which showed the economy slowing to 7.3 percent annual growth. That was its slowest pace since the global financial crisis but narrowly more than a consensus forecast of 7.2 percent. ID:nL3N0SF3SV (Editing by Catherine Evans) ((patrick.graham@thomsonreuters.com)(+44207 542 9429)(patrick.graham.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/

Ugandan shilling seen stronger on tight liquidity and charity inflows

October 21, 2014 - reuters.com

KAMPALA, Oct 21 (Reuters) - The Ugandan shilling UGX= was flat on Tuesday in quiet trade but was seen stronger, supported by a shortage of local currency and expected inflows from non-governmental organisations (NGOs). At 1000 GMT commercial banks quoted the shilling at 2,675/2,685, unchanged from Monday's close. "Shillings are scarce in the market so players don't have much liquidity to chase dollars," said Sage Daniel Muganza, trader at Centenary Bank. "It's possible we could see the shilling (strengthen) because some players might be forced to cut back their (dollar) positions for shillings." The central bank or Bank of Uganda has been conducting frequent mop-ups of excess liquidity in the money market to keep a lid on liquidity and limit pressure on the local currency, which had been buidling up earlier this month. By mopping up liquidity, the bank makes it relatively costlier to hold onto long dollar positions, which in turn helps strengthen the shilling. On Monday, the bank took out 255 billion shillings ($95.43 million) from the money market via a seven-day repo. Hard currency donations to NGOs are also seen buoying the shilling, traders said. NGOs convert some of the money they receive at the end of the month to meet local expenses, including salaries, traders said. "We're also banking on some inflows from NGOs in the last days of the month to give the shilling some support," said Ali Abbas, trader at Crane Bank. The shilling is 5.8 percent down against the greenback in the year to date. 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 = 2,672.0000 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/

BOJ's Kuroda: yen recently being bought on risk aversion, will monitor mkt moves

October 21, 2014 - reuters.com

TOKYO, Oct 21 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Tuesday that investors have been buying the yen recently due to risk aversion and worries about the global economic outlook, according to a government official. Kuroda, who spoke at a meeting of the government's top advisory panel on economics and fiscal policy, also said the BOJ will monitor how market moves impact Japan's economy and prices, according to the official. (Reporting by Stanley White) ((stanley.white@thomsonreuters.com; +81 3 6441 1984 twitter.com/stanleywhite1; Reuters Messaging: stanley.white.reuters.com@reuters.net)) Keywords: JAPAN ECONOMY/KURODA

BRIEF-Almaden to spin-out mineral exploration assets

October 21, 2014 - reuters.com

Oct 21 (Reuters) - Almaden Minerals Ltd AMM.TO : * Announces spin-out of mineral exploration assets and royalties * Almaden's early stage exploration projects, royalty interests, certain non-core assets will be transferred to a newly incorporated co * Says is undertaking the reorganization in order to focus on the development of its ixtaca gold-silver deposit * Says shareholders of the company will receive shares in spinco in proportion to their shareholdings in Almaden. * Says there will be no change to shareholders' existing interests in the company * Source text for Eikon ID:nMKWtNKTda * Further company coverage AMM.TO ((Bangalore Newsroom; +1 646 223 8780))

Sterling steady as traders wait for BoE minutes, data

October 21, 2014 - reuters.com

By Jemima Kelly LONDON, Oct 21 (Reuters) - Sterling stayed steady on Tuesday as traders looked beyond worse-than-expected public borrowing numbers to Bank of England minutes, due during the following session, keeping their focus on when interest rates might rise. Trading volumes were well below the past month's average. Third-quarter gross domestic product numbers on Friday could provide some support for the currency, traders said, as doubts grow about the solidity of Britain's economic recovery in the face of a worsening outlook in Europe. Last week poor inflation and wage growth data -- both of which the Bank of England (BoE) has said are crucial in deciding when to raise interest rates -- drove investors to push back bets on when rates would rise into the second half of next year. GBPFRA GBPOIS=ICAP 0#FSS: That repricing of rate expectations saw sterling lose more last week against the euro than it has for eight months, and the uncertain monetary policy outlook has seen the pound shed almost 6 percent against the dollar over the last three months. "We've had a situation where BoE rate hikes are now being priced out into the second half of next year, and that's definitely been very negative for sterling," Societe Generale currency strategist, Alvin Tan, said. Data showing that British government borrowing was more than 10 percent higher over the last 6 months than over the same period last year had little immediate impact but underlined one of Britain's big long-term economic weaknesses. ID:nL9N0PR02N Sterling was flat against the dollar at $1.6156 GBP=D4 , and up 0.1 percent against the euro, which traded at 79.075 pence. EURGBP= Citi's head of European G10 FX strategy, Valentin Marinov, said any dips in the pound could provide a buying opportunity ahead of the BoE minutes and data later in the week. UNCERTAINTIES BoE Chief Economist Andrew Haldane said on Friday that markets may be right to bet the first rate hike since 2007 would come in the middle of 2015. He also said he was in favour of keeping rates low for longer, given the uncertainties surrounding UK and global growth. ID:nL6N0SC0ZB The minutes from the central bank's rate-setting Monetary Policy Committee's (MPC) Oct. 9 meeting will be watched for more of that dovish tone on Wednesday. Talk among analysts that another member of the nine-strong MPC might have swung to vote for higher rates has largely evaporated. Two members had backed a rate rise at the September meeting but now there is speculation they might switch votes. Investors are also becoming increasingly wary about political risks in Britain, which they say could have a bearing on investment flows and sterling. The latest polling has showed growing support for anti-EU party UKIP, whose leader said he would demand an immediate referendum on European Union membership as his price for supporting any coalition government after a parliamentary election due in May. "As we get closer to the election next year, and as the Fed (U.S. Federal Reserve) readies to hike interest rates, sterling could trade in the low $1.50s range," said Tan. A report on Monday by economic forecasting firm EY ITEM Club said business investors are getting more worried about political risks in Britain, and predicted growth in business investment next year would slow to 5.8 percent from 9 percent in 2014. ID:nL6N0SC2FE (Editing by Louise Ireland) ((jemima.kelly@thomsonreuters.com)(+44)(20 7542 7508)(Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: MARKETS STERLING/OPEN

Euro falls, German yields up as sources say ECB mulls corp bond buys

October 21, 2014 - reuters.com

LONDON, Oct 21 (Reuters) - The euro fell and German Bund yields rose on Tuesday after several sources told Reuters the European Central Bank was considering buying corporate bonds on the secondary market. The ECB may decide on the matter as soon as December with a view to starting purchases early next year, the sources said. ID:nL6N0SG1Z0 The euro sank half a percent to the day's low of $1.27645 after publication of the story, which dealers read as a sign the ECB was ready to do more to flood the market with euros and get inflation and growth going. It then settled to trade at $1.2774, down 0.2 percent on the day. Bund yields DE10YT=TWEB rose 2.5 basis points to 0.876 percent, having traded as low as 0.824 percent. (Reporting by London markets team; Writing by Marius Zaharia, editing by Nigel Stephenson) ((marius.zaharia@thomsonreuters.com; +44)(207 542 0950; Reuters Messaging: marius.zaharia.thomsonreuters.com@reuters.net)) Keywords: MARKETS BONDS/EURO

London gold 1030 fix - Oct 21 - 1251.75 dlrs

October 21, 2014 - reuters.com

EMERGING MARKETS-Emerging stocks hold ground after mixed China data

October 21, 2014 - reuters.com

By Chris Vellacott LONDON, Oct 21 (Reuters) - Emerging market stocks held their ground on Tuesday, taking their lead from firmer trading in Europe and on Wall Street and shrugging off China's weakest economic growth data in six years. China's economy expanded 7.3 percent in the third quarter official data from Beijing showed, though with a pick-up in factory output. ID:nL3N0SF3SV Chinese shares .SSEC ended 0.7 percent lower after the data as worries about its loss of momentum were compounded by uncertainty about upcoming talks between the Hong Kong government and pro-democracy protesters ID:nL3N0SF00Y . "The industrial production number was a bit stronger, which probably reflects improvement in export sector," ING Investment Management emerging markets equity strategist, Maarten-Jan Bakkum, said. MSCI's emerging equities index .MSCIEF was flat at 981.74 points and about 1.6 percent above last week's seven-month low with many emerging market currencies also higher. Russia's share markets .MCX .IRTS edged up as the price of oil -- Russia's main revenue earner -- clawed back more of ground lost in the past few months. The death of Total TOTF.PA boss Christophe de Margerie in a plane crash at a Moscow airport crimped gains, however. ID:nL2N0SG00D The rouble was down a touch at 40.97 against the dollar and at 46.1583 on the dollar-euro basket RUS=MCX the central bank uses to gauge the rouble's nominal exchange rate, though they were within ranges seen in the past few days. Bond investors are keen to see whether Russia's Finance Ministry will go ahead with a weekly Treasury auction on Wednesday, after cancelling last week's one. The Chinese data also helped reassure investors of continued demand for South African commodity exports, helping the rand ZAR= edge up 0.3 percent. South African government debt was bid higher, pushing the yield for the 2026 bond ZAR186= nearly 5 basis points lower to 8.03 percent. Meanwhile, Turkey's lira .TRY held firm as hopes the U.S. Federal Reserve will keep interest rates low enough to prop up demand for higher yielding emerging market assets offset worries about the war in neighbouring Syria. The main share index .XU100 rose 0.48 percent to 76,698.37, while the 10-year benchmark bond yield tTR240724T0=IS eased to 8.91 percent from Monday's 8.95 percent. In Central Europe, bourses edged up, taking their lead from a rally in Germany, with Warsaw .WIG and Budapest .BUX stocks both 0.2 percent higher. For GRAPHIC on emerging market FX performance 2014, see http://link.reuters.com/jus35t For GRAPHIC on MSCI emerging index performance 2014, see http://link.reuters.com/weh36s For GRAPHIC on MSCI emerging Europe performance 2014, see http://link.reuters.com/jun28s For GRAPHIC on MSCI frontier index performance 2014, see http://link.reuters.com/zyh97s For CENTRAL EUROPE market report, see CEE/ For TURKISH market report, see .IS For RUSSIAN market report, see RU/RUB ) (Editing by Louise Ireland) ((follow me on twitter @ReutersChrisV. chris.vellacott@thomsonreuters.com; +44)(20 75423987; Reuters Messaging: chris.vellacott.thomsonreuters.com@reuters.net))

Keywords: MARKETS EMERGING/

UPDATE 1-Rouble pressure eases as tax period prompts buying

October 21, 2014 - reuters.com

(Recasts to focus on rouble, adds comments) MOSCOW, Oct 21 (Reuters) - Pressure on the rouble eased slightly on Tuesday as Russian firms sold foreign currency to pay taxes falling due in roubles, but stock market sentiment was soured by the death of French oil major Total's chief executive in a plane crash in Moscow. At 0915 GMT the Russian currency was 0.17 percent stronger against the dollar at 40.96 RUBUTSTN=MCX and gained 0.17 percent to trade at 52.50 versus the euro EURRUBTN=MCX . That left the currency 0.17 percent stronger at 46.16 against the dollar-euro basket RUS=MCX the central bank uses to gauge the rouble's nominal exchange rate. "There's a solid foreign currency offer on the market, while demand for dollars is less than in recent days," a currency dealer based in Moscow said. The Russian currency has been pressured by falling oil prices, Western sanctions restricting Russian firms' access to international capital markets, and a stronger dollar, prompting the central bank to spend more than $13 billion to defend the rouble since the start of the month. The rouble weakened at market opening on Tuesday, briefly touching the upper limits of its trading band against the dollar-euro basket, before paring losses as Russian exporters offered foreign currency to the market. Also providing support, prices for global crude benchmark Brent LCOc1 rose to over $86 a barrel. Oil is one of Russia's chief exports, and sales of oil and gas account for up to half of Russia's federal budget revenues. The central bank currently steps in to defend the currency once it weakens beyond 46.30 roubles per basket. Russian shares were mixed on Tuesday after the death of Total's TOTF.PA CEO Christophe de Margerie in an overnight plane crash and as trading on European stock markets was choppy. ID:nL6N0SG1GZ The dollar-denominated RTS index .IRTS was 0.4 percent higher at 1,061 points by 0915 GMT, reversing early losses, while its rouble-based peer MICEX .MCX traded 0.3 percent higher at 1,380 points. Total's de Margerie was killed when his private jet collided with a snow plough during takeoff at Moscow's Vnukovo International Airport overnight, the company and airport officials said. ID:nL2N0SG00D "Reactions to the tragic death of Total CEO Christophe de Margerie in Moscow late last night may dominate news flow," analysts at Sberbank Investment Research wrote in a note. Novatek NVTK.MM , in which Total is a shareholder and key partner in the Yamal liquefied natural gas project in the Arctic, was down 0.4 percent, while top bank Sberbank SBER.MM was up 0.6 percent. The Finance Ministry on Tuesday cancelled its weekly auction of treasury bonds for the second week in a row, citing unfavourable market conditions. ID:nL6N0SG1T0 For rouble poll data see FXRUB FXEURRUB FXRUS For Russian equities guide see RU/EQUITY For Russian treasury bonds see 0#RUTSY=MM Russia in graphics: http://link.reuters.com/dun63s (Reporting by Alexander Winning, Vladimir Abramov, Lidia Kelly and Vladimir Soldatkin; Editing by Mark Trevelyan) ((alexander.winning@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: alexander.winning.thomsonreuters.com@reuters.net)) Keywords: RUSSIA MARKETS/

UPDATE 1-Nippon Life eyes more foreign bonds if domestic yields are too low

October 21, 2014 - reuters.com

* Says yen bonds 'not conducive' for investment if yields stay low * Retains dollar/yen forecast range of 105-110 for FY2014/15 (Adds details, background) By Shinichi Saoshiro and Hiroyasu Hoshi TOKYO, Oct 21 (Reuters) - Japan's Nippon Life Insurance will "have no choice" but to invest more in foreign bonds if yields on domestic ones remain too low, a company official said on Tuesday. Nippon Life NPNLI.UL , Japan's largest private insurer with total assets of about 58 trillion yen ($544 billion), said at the start of the 2014/15 financial year in April that it wanted to increase yen bond holdings, following a well-worn path, expecting domestic yields to eventually rise. However, Japanese yields have declined under the Bank of Japan's extensive monetary easing, with the benchmark 10-year Japan Government Bond (JGB) yield JP10YTN=JBTC dropping from around 0.60 percent in April to an 18-month low of 0.465 percent this month. "Frankly, domestic yields are very low and the environment is not conducive for domestic bond investment," Kazuo Sato, general manager at Nippon Life's finance and investment planning department, told a news conference. "We will have no choice but to invest in foreign bonds if yields stay low or do not rise according to our forecasts," he said. Nippon Life forecasts that the 10-year JGB will yield around 0.8 percent at the end of March 2015. The insurer will invest roughly 800 billion yen across a variety of assets between this month and the end of March, Sato said. Nippon Life increased its yen bond holdings by 450 billion yen to 25.77 trillion yen, or 44 percent of its total assets, during the first six months of the 2014/15 financial year. It increased its unhedged foreign bond holdings by 220 billion yen to 3.21 trillion yen, or 6 percent of its total assets during the same period. As for hedged foreign bonds - which offer higher returns than domestic bonds but entail costs to hedge against currency fluctuations - the insurer increased its investment by 260 billion yen to 6.58 trillion yen, or 11 percent of total assets. Nippon Life retained its dollar/yen forecast range of 105-110 for the 2014/15 financial year. The dollar was trading around 106.60 yen JPY= on Tuesday after touching a six-year high above 110 yen earlier this month when anticipated divergence in monetary policies of the United States and Japan boosted the greenback. (1 US dollar = 106.60 Japanese yen) (Editing by Richard Borsuk) ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging: shinichi.saoshiro.reuters.com@reuters.net)) Keywords: JAPAN INSURERS/NIPPON LIFE

London platinum/palladium 0945 fix - Oct 21

October 21, 2014 - reuters.com

Dollar/Saudi riyal forwards jump as spot market pressured

October 21, 2014 - reuters.com

DUBAI, Oct 21 (Reuters) - The Saudi riyal fell sharply against the U.S. dollar in the forwards market on Tuesday because of a surge of demand for dollars in the spot foreign exchange market, where the riyal is pegged to the U.S. currency, traders said. One-year dollar/Saudi riyal forwards SAR1Y= jumped to 90.0 points, their highest level since a peak of 91.50 points hit in March 2011, when the Arab Spring uprisings elsewhere in the Middle East briefly raised concern about political and economic stability in the Gulf. The forwards closed Monday at 69.0 points and ended last Friday at 36.33 points. They are used by some international investors as a proxy for risk in the Gulf, and to hedge against market movements. The surge of demand for dollars in the Saudi Arabian foreign exchange market may be linked to the recent plunge of global oil prices as well as a sharp fall of the Saudi stock market over the past two weeks, the traders said. They said banks were not panicking, but some were buying forwards because the dollar demand had pushed the riyal's spot rate SAR= unusually far beyond its peg of 3.75 against the dollar. The spot rate, which has been creeping up in the last few weeks, was trading at 3.7518 on Tuesday morning; over the previous several years it had never risen above 3.7510. (Reporting by Archana Narayanan; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net)) Keywords: SAUDI FOREX

BRIEF-Euromax Resources announces US$175 million gold streaming agreement with Royal Gold

October 21, 2014 - reuters.com

Oct 21 (Reuters) - Euromax Resources Ltd EOX.V : * Announces US$175 million gold streaming agreement with royal gold * To deliver physical gold in an amount equal to 25% of payable gold produced from project until 525,000 ounces are delivered to royal gold * Source text for Eikon ID:nMKWKrxlwa * Further company coverage EOX.V ((Bangalore Newsroom; +1 646 223 8780))

INDICATORS - Kazakhstan - Oct 21

October 21, 2014 - reuters.com

India Morning Call-Global Markets

October 21, 2014 - reuters.com

EQUITIES NEW YORK - U.S. stocks ended higher on Monday on investor hopes for a strong earnings season, but IBM's disappointing results limited gains. Earnings reports from Halliburton HAL.N , Gannett Co GCI.N , and others, helped ease the worries over global growth and falling commodity prices that last week helped drive stocks close to correction territory. For a full report, click on .N - - - - LONDON - Britain's top equity index resumed its fall on Monday, giving back half the gains made in the previous session, as investors reckoned with reduced earnings expectations for oil companies after a slump in oil prices. The blue-chip FTSE 100 index .FTSE closed down 43.22 points, or 0.7 percent, at 6,267.07 points, after rising 114 points on Friday. For a full report, click on .L - - - - TOKYO - Japanese stocks skidded on Tuesday as investors took a step back after the heavy buying seen on Monday and nervously waited for data on the Chinese economy. The Nikkei .N225 share index fell 0.5 percent by 0127 GMT to 15,026.47. For a full report, click on .T - - - - HONG KONG - Hang Seng Index .HSI is trading 0.4 percent higher. For a full report, click on .HK - - - - FOREIGN EXCHANGE TOKYO - The U.S. dollar started on a steady footing on Tuesday, as foreign exchange markets braced for a batch of Chinese economic indicators amid lingering investor worries over signs of a slowdown in Asia's economic powerhouse and global growth. The China data could influence investors' perception on the U.S. Federal Reserve's monetary policy track, and by extension, the fate of the U.S. dollar. For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasuries prices rose on Monday on worries about Europe's drag on the U.S. economy and more bets the Federal Reserve might not raise interest rates until late 2015. Safe-haven demand stemming from anxiety over the spreading of the Ebola virus and fighting in the Middle East have persisted to keep benchmark yields not far above 2 percent. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold retained overnight gains on Tuesday to trade near a one-month high as Asian equities and the dollar marked time, with markets awaiting China and U.S. data to gauge the strength of the global economy. Spot gold XAU= was little changed at $1,245.50 an ounce by 0034 GMT, after gaining 0.7 percent in the previous session. For a full report, click on GOL/ - - - - BASE METALS SYDNEY - London copper edged up on Tuesday but stayed near six-month lows, with focus on data expected to show struggling economic growth in China that could boost a drive for stimulus, bolstering metals prices. Three-month copper on the London Metal Exchange CMCU3 had climbed 0.7 percent to $6,609 a tonne by 0105 GMT, paring losses of 1.2 percent from the previous session. Copper prices hit a six-month trough of $6,530 a tonne on Friday, having dropped 10 percent this year. For a full report, click on MET/L - - - - OIL CALGARY, Alberta - Brent crude LCOc1 fell on Monday, dropping below $86 a barrel as worries about booming supply and sluggish demand pushed the global oil benchmark back toward last week's four-year low. U.S. crude hovered below $83 a barrel. Brent tumbled more than a dollar in early U.S. trade, but bounced off session lows as global equities markets gained 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/

BRIEF-Newcrest Mining says full year guidance remains unchanged

October 21, 2014 - reuters.com

Oct 21 (Reuters) - Newcrest Mining Ltd NCM.AX : * September quarterly report NCM.AX * Says full year guidance remains unchanged * Source text for Eikon ID:nASX6xRJ6p ((For more news, please click here NCM.AX )) ((Bangalore Newsroom; +91 80 6749 1130))

Buenaventura scales back plans for Chucapaca gold project

October 21, 2014 - reuters.com

LIMA, Oct 20 (Reuters) - Peruvian miner Buenaventura BVN.N BUEv.LM has scaled back plans for its Chucapaca gold project since taking full control of the deposit from Gold Fields GFIJ.J earlier this year, the company told Reuters on Monday. Buenaventura will now invest $700 million in the project instead of an earlier estimate of $2 billion, and expects annual output of between 200,000 and 300,000 ounces of gold per year, down from an earlier projection of some 500,000 ounces, chief executive Roque Benavides said in an interview. Buenaventura bought former partner Gold Fields' 51 percent stake in Chucapaca in August, and now plans to develop it as an underground mine instead of open pit. The precious metals miner, Peru's biggest, expects to post a net profit this year after registering a $102 million loss in 2013, Benavides said. (Reporting by Teresa Cespedes and Mitra Taj) ((mitra.taj@thomsonreuters.com; +51-1-221-2130; Reuters Messaging: mitra.taj.thomsonreuters.com@reuters.net)) Keywords: PERU BUENAVENTURA/

GLOBAL MARKETS-Japanese stocks lead shares worldwide, IBM weighs on Dow

October 20, 2014 - reuters.com

* IBM quarterly results miss hits Dow * Japanese shares surge on Japan pension fund move * U.S. Treasuries prices, dollar steady (Adds U.S. market open, byline, dateline; previous LONDON) By Sam Forgione NEW YORK, Oct 20 (Reuters) - Equity markets worldwide edged higher on Monday, lifted by gains in Japanese shares, while mixed performance in U.S. stocks after IBM's quarterly results disappointed helped keep safe-haven U.S. Treasuries prices steady. While European technology shares sagged and the IBM results weighed on the Dow, Japan's Nikkei average .N225 surged 4 percent, underpinned by news that Japan's $1.2 trillion public pension would likely more than double its allocation to domestic stocks to about 25 percent. ID:nL3N0SC664 IBM's weakness also helped spur speculation the Federal Reserve may be reluctant to end its massive bond-buying stimulus program this month. The S&P 500 and Nasdaq posted modest gains, however. IBM IBM.N shares were last down about 7.1 percent at $169.187. The decline helped support Treasuries prices, which had also risen earlier on views the Fed could delay possible plans to raise interest rates in 2015. ID:nL2N0SF0UX "On a number like that, with the forecast they gave you would expect the broader market would come under more pressure, and maybe it will," said Ken Polcari, Director of the NYSE floor division at O'Neil Securities in New York, on the IBM results. The gains in Japanese shares led a rally in Asia and buoyed a measure of worldwide stock market performance. The Nikkei's gain on Monday marked its biggest daily rise since June 2013. In addition to the move by Japan's public pension fund, the index gained on Friday's strong U.S. consumer sentiment data and a weaker yen. "This sends a really strong psychological message that the smartest money in Japan, at the pension fund, is willing to take a much more aggressive bet that Japanese equities are moving higher in the future," said Chris Konstantinos, head of international portfolio management at RiverFront Investment Group in Richmond, Virginia. MSCI's all-country world index .MIWD00000PUS rose 0.46 percent, while the FTSEurofirst 300 index .FTEU3 of top European shares dropped 0.51 percent at 1,273.64. On Wall Street, the Dow Jones industrial average .DJI was last down 36.99 points, or 0.23 percent, to 16,343.42, while the S&P 500 .SPX was last up 6.45 points, or 0.34 percent, to 1,893.21. The Nasdaq Composite .IXIC was up 27.39 points, or 0.64 percent, to 4,285.83. Benchmark 10-year U.S. Treasury notes US10YT=RR were last up 2/32 in price to yield 2.19 percent. The U.S. dollar index .DXY , which tracks the greenback versus a basket of six currencies, rose 0.04 percent to 85.142. Brent LCOc1 was last down $1.41, or 1.64 percent, at $84.75 a barrel. U.S. crude CLc1 was last down $0.94, or 1.14 percent, at $81.81 per barrel. (Additional reporting by Atul Prakash in London, Alistair Smout in Edinburgh, and Chuck Mikolajczak and Richard Leong in New York; Editing by Meredith Mazzilli) ((Sam.Forgione@thomsonreuters.com; 646-223-6189; Reuters Messaging: sam.forgione.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

Norilsk to sell African nickel stakes to Botswana's BCL for $337 mln

October 20, 2014 - reuters.com

Gaborone, Oct 20 (Reuters) - Russia's Norilsk Nickel GMKN.MM , the world's top nickel and palladium producer, said it had agreed to sell stakes in two African nickel mines for $337 million to BCL, a Botswana-based copper mining firm looking to expand. Norilsk will transfer to BCL its 50 percent interest in the Nkomati nickel and chrome mine, in South Africa, and its 85 percent stake in the Tati Nickel Mining Company, in Botswana, the two companies said on Monday. BCL will also assume all attributable outstanding debt and environmental and rehabilitation liabilities associated with the assets. Norilsk embarked on a new strategy last year that includes pulling out of international assets that it has identified as non Tier-1 mining operations. Tier-1 is an industry designation for what are typically the biggest and lowest-cost mines. "The sale of the African operations marks a major milestone in our commitment to deliver the new corporate strategy. The transaction is part of the management's roadmap to release capital from non-core assets and will have a positive impact on the company's return on invested capital", Pavel Fedorov, Norilsk Nickel First Deputy CEO said in a statement. The deal marks Norilsk Nickel's full exit from its African holdings and follows earlier disposals of its Australian assets. It still holds assets in Finland. As part of the deal, BCL will take over from Norilsk Nickel subsidiary Metal Trade Overseas AG (MTO) a commitment to buy the concentrate from the Nkomati operation. At the same time Norilsk's MTO will enter into an agreement to buy nickel matte from BCL, which the Russian company will process at its Harjavalta refinery in Finland. Citi analysts said they viewed the deal as a positive for Norilsk, "mainly due to the cash inflow and boost to the dividend that the transaction will have". The acquisition is BCL's first significant investment in South Africa. Once the deal is concluded, BCL will treat concentrate from both Tati Nickel and Nkomati at its smelter in Botswana, which is expected to optimize the company's operations and deliver economic and social benefits to the region. "BCL is now evolved as a regional player, with high quality mining assets, supported by a strong metallurgical complex," Akolang Tombale, chairman of the board of directors, said in a statement. Completion of the sale is subject to regulatory approvals and customary closing conditions. It is not subject to any financing conditions and is expected to occur within the next six months. Barclays acted as exclusive financial adviser for Norilsk Nickel and AFI for BCL. (With reporting by Silvia Antonioli; editing by Jane Baird) ((silvia.antonioli@thomsonreuters.com; +44)(0)(20 7542 1755; Reuters Messaging: silvia.antonioli.reuters.com@reuters.net)) Keywords: NORILSKAFRICA M&A/BCL

BRIEF-Gold Fields says remains on track to meet FY output forecast

October 20, 2014 - reuters.com

Oct 20 (Reuters) - Gold Fields Ltd GFIJ.J * Gold Fields Q3 2014 guidance update GFIJ.J * Attributable gold equivalent production for quarter is expected to be approximately 559,000 ounces * Gold Fields remains on track to achieve its production guidance for full-year 2014 * Costs for full year, however, is expected to be lower than guidance published on 13 february 2014 Source text for Eikon: ID:nJseT0035a Further company coverage: GFIJ.J ((Bangalore Newsroom: +91 80 6749 1136)) Keywords: GOLDFIELDS/BRIEF

London gold 1500 fix - Oct 20 - 1244.50 dlrs

October 20, 2014 - reuters.com

London platinum/palladium 1400 fix - Oct 20

October 20, 2014 - reuters.com

Kyrgyzstan may seek Centerra's delisting after Canadian court order

October 20, 2014 - reuters.com

By Olga Dzyubenko BISHKEK, Oct 20 (Reuters) - Kyrgyzstan's President Almazbek Atambayev said on Monday he could seek to delist Centerra Gold CG.TO in Toronto after a Canadian court effectively suspended its Kyrgyz-held shares. The former Soviet republic owns a third of Centerra which is developing the vast Kumtor gold field near China's border. The government and the company are engaged in uneasy talks on restructuring of the project, which Kyrgyzstan hopes will boost its budget revenues. On Oct. 14, Canadian miner Stans Energy HRE.V obtained an order from an Ontario court which prohibits the Kyrgyz Republic and its state gold company Kyrgyzaltyn from making any move to sell, pledge or exchange 47 million shares in Centerra. ID:nWNAB04WM1 Stans Energy has sought payment from the government of $118 million in damages and losses after losing its licence for the Kutessay II rare-earth mine in Kyrgyzstan. Kyrgyz leader Atambayev said that legal actions taken by Canadian courts against Kyrgyzstan were discriminatory. "In particular, a question could be raised about possible delisting of Centerra Gold shares on the Toronto Stock Exchange," he said in a written statement published by his press service. "Or we could take more decisive steps to protect Kyrgyzstan's national interests which would exclude deciding Kumtor's fate in the courts of Canada, whose companies have already withdrawn by different means the bigger part of profits from one of the world's largest gold deposits." He did not elaborate. Centerra Gold could not immediately be reached for comment. Centerra, which employs more than 3,000 workers in Kyrgyzstan, accounted for 7.7 percent of Kyrgyzstan's gross domestic product and 24 percent of industrial output in 2013, while its gold made up 36.5 percent of all Kyrgyz exports, official data show. Under a non-binding draft agreement with Centerra, Kyrgyzstan would swap its 32.7 percent Centerra stake for half of a joint venture controlling the Kumtor mine, the company's main asset. But this deal has not been finalised. Earlier this year international arbitration upheld a claim filed by Stans Energy against Kyrgyzstan. Stans Energy said the government had effectively expropriated its 20-year Kutessay II licence which it acquired in December 2009. A court in the Kyrgyz capital Bishkek cancelled the licence last year after local prosecutors filed a suit against Stans Energy, claiming it had violated a number of licence terms. For over 30 years, Kutessay II produced 80 percent of the rare earth metals for the former Soviet Union. (Writing by Dmitry Solovyov; Editing by Ruth Pitchford) ((dmitry.solovyov@thomsonreuters.com)(+7 727 3300 787 x 705)(Reuters Messaging: dmitry.solovyov.thomsonreuters.com@reuters.net)) Keywords: KYRGYZSTAN CENTERRAGOLD/STOCKS

India's finance minister says favours opening up state-run coal industry

October 20, 2014 - reuters.com

NEW DELHI, Oct 20 (Reuters) - India's finance minister said on Monday he personally believes the time is right to dilute nationalisation of the country's state-run coal industry, adding it is easier to carry out economic reforms in the first year of a government. Arun Jaitley's comments to a television news channel came days after New Delhi lifted diesel price controls and raised the cost of natural gas. ID:nL3N0SD0D9 (Reporting by Frank Jack Daniel; editing by Malini Menon) ((rajeshkumar.singh@thomsonreuters.com; +91-11-4178-1056; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) Keywords: INDIA ECONOMY/FINMIN

BRIEF-Guyana Goldfields achieves first drawdown of $185 mln project finance facility

October 20, 2014 - reuters.com

Oct 20 (Reuters) - Guyana Goldfields Inc GUY.TO : * Achieves financial close and first drawdown of the US$185 million project finance facility * Guyana goldfields -financial close achieved, first drawdown obtained for $185 million finance facility to fund construction of Aurora gold project, Guyana * First drawdown has been obtained in the amount of US$42.6M with subsequent payments expected to be received on a monthly basis * Source text for Eikon ID:nCNWNRxj6a * Further company coverage GUY.TO ((Bangalore Newsroom; +1 646 223 8780))

GLOBAL MARKETS-Solid data, earnings push world stocks higher

October 20, 2014 - reuters.com

* Global stocks gain on encouraging U.S. data * Dollar rises against the safe-haven yen * Euro zone bond yields dip By Atul Prakash LONDON, Oct 20 (Reuters) - Global stocks climbed on Monday, moving further away from eight-month lows hit last week, as strong U.S. data and encouraging third-quarter earnings eased concerns about the pace of global economic recovery. The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 countries, was up 0.3 percent by 1030 GMT, having fallen about 10 percent in four weeks to last week's lows. The dollar also rose against major currencies, supported by a surprisingly strong survey of U.S. consumer sentiment and robust housing starts figures on Friday that signalled solid growth in the world's biggest economy. ID:nL2N0SC0PJ The European Central Bank's announcement that it has started buying covered bonds as part of a new stimulus package announced in June had a modest initial impact, lifting some European bank stocks. ID:nL6N0SF1VR "Calm returns after last week's roller-coaster ride," Saxo Bank trader Andrea Tueni said, adding that although sentiment remained fragile, stocks appeared to have hit a low. "U.S. macro data is reassuring, the earnings season has been quite good so far, and we're getting positive news such as Japan's big pension fund boosting its exposure to equities." Japan's $1.2 trillion Government Pension Investment Fund is likely to raise its allocation for domestic stocks to about 25 percent, people familiar with the process said on Saturday. The world's biggest pension fund, its war chest is larger than the annual output of Mexico's economy. ID:nL3N0SC664 That news and the upbeat U.S. data fuelled a 4 percent surge in Japan's Nikkei .N225 on Monday, its biggest daily rise since June 2013, helped also by the weaker yen, which is good for the country's exporters. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.2 percent overnight. The pan-European FTSEurofirst 300 index .FTEU3 fell 0.5 percent, however, as a profit warning by technology firm SAP SAPG.DE hit the sector. "Last week's market turmoil largely reflects market technicals and positioning, rather than a fundamentally justified reassessment of global growth," UBS economist Larry Hatheway said in a note. "European data aside, global leading indicators of economic activity are not pointing to a broad-based slowdown in growth. If anything, some indicators suggest that growth will actually strengthen modestly in the period immediately ahead." Global stocks also got some support from encouraging U.S. earnings reports. Out of the 81 S&P 500 component companies that have reported third-quarter results so far, 64.2 percent have beaten expectations, a rate slightly below the average over the past four quarters but better than the past 20 years. Major U.S. companies announcing results on Monday include Apple AAPL.O and International Business Machines IBM.N . U.S. stock futures DJc1 SPc1 NDc1 were flat to 0.1 percent lower, pointing to a slow start on Wall Street after all major U.S. stock indexes jumped more than 1 percent on Friday. The dollar rose against the safe-haven yen JPY= on the encouraging economic numbers and a pushing back of expectations on when U.S. interest rates will begin to rise following comments by Federal Reserve officials last week. News that Japan's pension fund was also likely to boost its holdings of overseas assets, spurring demand for foreign currencies, helped. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.1 percent to 85.181 .DXY after dropping to a three-week low of 84.472 last week. "The market is more stable today after last week's volatility. We've seen a tentative pick-up of risk sentiment, and that's leading to a recent reversal of safe-haven driven gains," said Lee Hardman, a currency economist at Bank of Tokyo-Mitsubishi UFJ in London. Euro zone bond yields dipped as concerns about a slowdown in global growth eased. German 10-year Bund yields DE10YT=TWEB , which set the standard for euro zone borrowing costs, fell 1 basis point to 0.85 percent, while Spanish, Italian and most other yields were down 1-2 basis points on the day. In commodities, Brent crude LCOc1 steadied around $86 a barrel, holding on to a rally from near four-year lows last week on news of a cut in Saudi-Kuwait oil output. But London copper futures fell, hurt by worries over rising stocks and China's economic growth. ID:nL3N0SF216 ID:nL3N0SF1E1 (Additional reporting by Blaise Robinson in Paris, Jemima Kelly in London and Lisa Twaronite in Tokyo; Editing by Catherine Evans) ((atul.prakash@reuters.com; +44 20 7542 6189; Reuters Messaging:)(atul.prakash.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/WRAPUP 5

London gold 1030 fix - Oct 20 - 1241.00 dlrs

October 20, 2014 - reuters.com

London platinum/palladium 0945 fix - Oct 20

October 20, 2014 - reuters.com

INDICATORS - Kazakhstan - Oct 20

October 20, 2014 - reuters.com

India's finance ministry wants to reimpose curbs on gold imports -Economic Times

October 20, 2014 - reuters.com

NEW DELHI, Oct 20 (Reuters) - India's Finance Ministry has written to the central bank to consider reimposing some restrictions on gold imports after inbound shipments surged in the last few months, widening the trade deficit, the Economic Times reported on Monday. The central bank eased some gold import rules in May by allowing seven more private agencies to ship in the precious metal, driving a sharp jump in overseas buying despite a record import duty of 10 percent. A 450 percent rise in gold imports expanded the trade deficit to an 18-month high of $14.25 billion in September, creating concerns for the government, an unidentified finance ministry official told the Economic Times. Gold is India's second-biggest expense on imports after oil, and shipments of the metal tend to jump ahead of key festivals in October. The Finance Ministry and the central bank, the Reserve Bank of India, could not immediately be reached for comment. Indian gold traders and jewellers had hoped the new government of Prime Minister Narendra Modi would lower the import duty, following election campaign statements that any action on gold should take into account the interests of the public and traders. But Trade Minister Nirmala Sitharaman said in September there was no immediate plan to cut the gold import duty. ID:nL3N0RB35H (Reporting by Krishna N Das and Neha Dasgupta; Editing by Clarence Fernandez) ((Krishna.Das@thomsonreuters.com; +91-11-4178-1023, +91-98711-18314; Reuters Messaging: Krishna.Das.thomsonreuters.com@reuters.net, https://twitter.com/krishnadas56)) Keywords: INDIA GOLD/IMPORTS

BRIEF-Norilsk Nickel says to sell African operations to BCL Ltd

October 20, 2014 - reuters.com

Oct 20 (Reuters) - Gmk Noril'skiy Nikel' Oao GMKN.MM * Norilsk Nickel and BCL Ltd entered into definitive agreements for sale of African operations to BCL * Total expected consideration for assets payable by BCL to Norilsk Nickel amounts to $337 million payable in cash * In addition, BCL will assume all attributable outstanding debt and environmental and rehabilitation liabilities associated with each asset * Assets are 50 pct participation interest in Nkomati Nickel and Chrome mine and 85 pct stake in Tati Nickel mining company Source text for Eikon: ID:nHUG1MB3TQ Further company coverage: [BML.AX GMKN.MM] ((Bangalore Newsroon +918067491130)) Keywords: GMKNORIL'SKIYNIKEL'OAO/BRIEF

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