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UPDATE 1-Russian central bank sharply raises key rate by 150 bps

October 31, 2014 - reuters.com

(Adds detail, comments from statement) MOSCOW, Oct 31 (Reuters) - Russia's central bank raised its main lending rate by 150 basis points at a board meeting on Friday, citing concerns about above-target inflation, weak oil prices and a toughening of Western sanctions. The move brings the bank's main lending rate, the one-week minimum auction repo rate, to 9.5 percent, and brings the cumulative increase this year to 400 basis points. The central bank has been under pressure to raise rates to defend the sliding rouble, which has shed around 20 percent against the dollar since mid-year as a result of falling oil prices and Western sanctions imposed over Russia's actions in Ukraine The increase was above analysts' expectations, according to a Reuters poll this week which predicted a half-point increase. ID:nL5N0SP3GY "If external conditions improve, and a persistent trend for lowering inflation and inflation expectations emerges, the Bank of Russia will be ready to start to ease its monetary policy," the central bank said in a statement. The bank said it is concerned about inflation, which is rising as a result of the weaker rouble and a ban on most Western food imports introduced in retaliation for sanctions. The bank said that inflation reached 8.4 percent as of Oct. 27 and would remain above 8 percent until the end of the first quarter of 2015. The bank also said it expected economic growth to be close to zero in the fourth quarter of this year and in the first quarter of next year. The rouble briefly firmed after the bank's decision, trimming losses from earlier in the session, before falling back into negative territory. (Reporting by Alexander Winning and Jason Bush) ((alexander.winning@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: alexander.winning.thomsonreuters.com@reuters.net)) Keywords: RUSSIA CENBANK/RATES

PRECIOUS-Gold, silver tumble to 4-year lows on dollar, shares

October 31, 2014 - reuters.com

* Gold drops over 2 pct, silver down 3 pct * Dollar at near four-week high * SPDR holdings drop to six-year low (Updates throughout, changes dateline from SINGAPORE) By Clara Denina LONDON, Oct 31 (Reuters) - Gold and silver slumped to their lowest since 2010 on Friday as the dollar and stock markets soared following a new round of quantitative easing by the Bank of Japan and U.S. data showing a robust economy. Spot gold XAU= slid 2.5 percent to its lowest since July 2010 at $1,168.66 an ounce in earlier trade and was down 2.2 percent at $1,172.50 by 1046 GMT. The metal breached important support levels at $1,200 and $1,180, where stop losses - automatic sale orders - were placed and was on track for a 4.7 percent drop this week, the biggest weekly decline since June 2013. U.S. gold futures GCcv1 were down $26.70 an ounce at $1,171.90. "Spot gold is at its lowest for four years ... and it could fall further towards the $1,120 level if the dollar strengthened even more significantly," ActivTrades analyst Carlo Alberto De Casa said. "More stop losses could be triggered if we consistently broke below $1,170, but the downside seems limited by the fact that we are close to cost of production above $1,000." Spot silver XAG= fell nearly 3 percent to its lowest since February 2010 at $15.94 an ounce and was poised for a fourth monthly drop in a row. It was down 2.4 percent at $16.00. Both gold and silver were already facing some heat after the U.S. Federal Reserve earlier in the week largely dismissed financial market volatility, a slowdown in Europe and a weak inflation outlook as factors that might undercut progress towards its unemployment and inflation goals. The hawkish comments and the strong U.S. gross domestic product data on Thursday dulled gold's appeal as a hedge against risk. ID:nL1N0SN2BN The dollar rose to a four-week high against a basket of main currencies, boosted as well by the Bank of Japan's surprise move to expand its massive monetary easing, which weakened the yen to near seven-year lows. FRX/ A stronger U.S. currency makes dollar-denominated assets such as gold more expensive for other currency holders. "We hold a bearish view on gold, considering a recovering U.S. economy and expectations of higher rates," said Chen Min, a precious metals analyst at Jinrui Futures in Shenzhen. "In the long term, we believe gold is likely to break closer to $1,000." Reflecting bearish investment sentiment, holdings in the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.16 percent to 741.20 tonnes on Thursday, a six-year low. GOL/ETF NO SUPPORT FROM PHYSICAL MARKETS Gold failed to get any support from the Asian physical markets, a factor that could push it to further lows. Physical demand usually provides a floor to dropping prices. Buyers in top consumer China failed to emerge even after the drop below $1,200. Premiums on the Shanghai Gold Exchange, the main platform for physical trades in the country, slipped on Friday to less than $1 an ounce, occasionally dropping to a discount against the global benchmark represented by the London spot price. Premiums had ranged between $1 and $2 on Thursday. The lower premiums underscore the soft appetite for gold in China after record consumption last year. China's gold consumption tumbled 21.4 percent year-on-year in the first nine months of 2014 to 754.8 tonnes, the China Gold Association said in the statement on Friday. Among the other precious metals, platinum XPT= fell 0.7 percent to $1,228.75 an ounce, while palladium XPD= rose 0.6 percent to $779.10 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore; editing by Jane Baird) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

RPT-Russian central bank raises key rate by 150 bps

October 31, 2014 - reuters.com

(Repeats without changes to additional subscribers) MOSCOW, Oct 31 (Reuters) - Russia's central bank raised its main lending rate by 150 basis points at a board meeting on Friday, citing concerns about high inflation. The increase was above analysts' expectations, according to a Reuters poll this week which predicted a half-point increase. ID:nL5N0SP3GY (Reporting by Alexander Winning and Jason Bush) ((alexander.winning@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: alexander.winning.thomsonreuters.com@reuters.net)) Keywords: RUSSIA CENBANK/RATES

London platinum/palladium 0945 fix - Oct 31

October 31, 2014 - reuters.com

Downside risk to Norway rate path has increased since Sept - c.bank

October 31, 2014 - reuters.com

HAMAR, Norway, Oct 31 (Reuters) - The downside risk to the Norwegian central bank's interest rate path has increased somewhat since its last policy report in September, Governor Oeystein Olsen told Reuters on Friday. "Some of the information we have received since September has come on the downside, and the macro picture is a bit weaker now," Olsen said. "On the other hand, the crown currency has depreciated quite sharply, which has the opposite effect on the interest rate path, in isolation." "In sum, there is probably a little bigger downside risk to our interest rate path than earlier," Olsen added. (Reporting by Joachim Dagenborg; Editing by Balazs Koranyi) ((Balazs.Koranyi@thomsonreuters.com; +47 2331 6596; Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) Keywords: NORWAY ECONOMY/RATES

London gold 1030 fix - Oct 31 - 1173.25 dlrs

October 31, 2014 - reuters.com

India fwd/annualised dlr premia-Oct 31

October 31, 2014 - reuters.com

ЦБР резко повысил ключевую ставку сразу на 150 б.п.

October 31, 2014 - reuters.com

МОСКВА, 31 окт (Рейтер) - Банк России повысил ключевую ставку на 150 базисных пунктов до 9,50 процента, что стало неожиданностью для большинства аналитиков, но позволило рублю резко укрепиться. Большинство экономистов, опрошенных Рейтер, полагали, что октябрьское повышение ограничится 50 пунктами, один инвестбанк ждал повышения на 75 пунктов и два - на 100. При этом в устных беседах некоторые экономисты, ожидавшие шага на 50 пунктов, уточняли - "минимум на 50" urn:newsml:reuters.com:*:nL5N0SQ2GB. Только Commerzbank ожидал повышения ключевой ставки на 200 базисных пунктов. Регулятор объяснил повышение ставки ускорением роста потребительских цен на фоне ослабления рубля из-за падения цен на нефть и санкций Запада. "По оценкам Банка России, до конца первого квартала 2015 года инфляция останется на уровне выше 8 процентов. Сохранение высоких темпов роста потребительских цен продолжительное время ведет к повышению инфляционных ожиданий, что создает дополнительные инфляционные риски", - пишет ЦБР. Первый зампред Банка России Сергей Швецов говорил в середине октября, что регулятор вынужден серьезно рассматривать вопрос дальнейшего повышения ключевой ставки в текущих условиях ID:nL6N0SH2O6 . "Банк России продолжит принимать меры, направленные на замедление роста потребительских цен до целевого уровня 4 процента в среднесрочной перспективе. В случае улучшения внешних условий, формирования устойчивой тенденции к снижению инфляции и инфляционных ожиданий Банк России будет готов начать смягчение денежно-кредитной политики", - говорится в пресс-релизе. По оценкам Банка России, в четвертом квартале 2014 года и первом квартале 2015 года темпы экономического роста будут близкими к нулю. Следующее заседание совета директоров Банка России, на котором будет рассматриваться вопрос об уровне ключевой ставки, запланировано на 11 декабря 2014 года. (Елена Фабричная, Оксана Кобзева. Редактор Дмитрий Антонов) ((elena.fabrichnaya@thomsonreuters.com; +7)(495)(775-12-42))

EMERGING MARKETS-Emerging stocks lifted by Japan stimulus jolt

October 31, 2014 - reuters.com

By Karin Strohecker LONDON, Oct 31 (Reuters) - Emerging stocks were on track for their biggest weekly gains in six months on Friday, buoyed by Japan's surprise move to ramp up its stimulus programme and strong United States growth data. The Russian rouble weakened ahead of a central bank meeting that could see either a significant rate rise or a move to a more freely floating currency. MSCI's emerging equities index .MSCIEF rose 0.8 percent on the day, bringing gains to 1.17 percent since the start of the year after Japan delivered a jolt to markets, admitting growth and inflation had not picked up as expected. ID:nL4N0SQ041 The MSCI Asia Pacific ex-Japan benchmark .MIAPJ0000PUS gained 0.9 percent on the day, driven by Chinese shares with the Shanghai composite .SSEC chalking up the best weekly performance since February and India stocks .BSESN .NSEI powering to a record high on the second consecutive day. "When we have one of the major central banks of the world implementing easing like that, it is helpful for risk sentiment in emerging markets," said Danske Bank Analyst Lars Christensen. The Bank of Japan's move had made up for the more hawkish tone from the Federal Reserve earlier in the week, he added. "Overall we are through this uncertainty we have seen two weeks ago," Christensen said. The upbeat mood was supported by U.S. GDP data on Thursday showing a surge in third quarter economic growth ID:nL1N0SN2BN and Ukraine, Russia and the EU clinching a deal that will see Moscow resume vital gas deliveries to its neighbour in return for payments funded in part by Kiev's Western creditors. ID:nL5N0SP084 In Russia, where investors nervously awaited the outcome of a central bank meeting, the dollar-based RTS .IRTS index traded flat while the rouble-denominated MICEX index .MCX powered up 1.2 percent with both were on track for large weekly gains after ending the previous seven days in the red. Following a roller-coaster ride on Thursday, which saw the rouble gain as much as 5 percent, the currency RUB= weakened 1.5 percent against the dollar in early trading. Russia's central bank, which has burnt at least $25 billion in reserves on heavy intervention this month, is expected to hike its key interest rate by 50 basis points to 8.5 percent, according to a Reuters poll. ID:nL5N0SP3GY Though markets are wary that the bank may have something else apart from an interest rate change in store, said RBS analyst Tatyana Orlova, referring to possible shifts in the foreign exchange parameters. "The central bank has surprised the markets consistently since the start of the year," Orlova said. "The only thing that is guaranteed is extreme volatility." Mexico's central bank is also meeting on Friday. Analysts forecast it to hold its benchmark interest rate steady amid expectations that a recent spike in inflation will fade next year. ID:nL1N0SP1Y2 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 )

Keywords: MARKETS EMERGING/

Freeport Indonesia union cancels planned one-month strike

October 31, 2014 - reuters.com

JAKARTA, Oct 31 (Reuters) - Workers at Freeport-McMoRan Inc's FCX.N Indonesian copper mine have cancelled a planned one-month strike due to start next week, a union official said on Friday, after reaching an agreement with the company's management following two days of talks. Three Freeport unions representing almost 11,000 workers had agreed to take strike action from Nov.6 until Dec. 6, demanding changes to the local management following the death of four workers in a Sept. 27 accident. ID:nL4N0SM2NV "Strike cancelled," a union spokesman Juli Parorrongan told Reuters. "Through intensive, informative and constructive dialogue, we successfully reached a win-win solution for everyone," senior union official Sudiro said in a statement. "Our goal is to create a safe and productive work place at Freeport Indonesia for all workers." Freeport Indonesia, which employs around 24,000 workers, did not immediately respond to a request for comment. (Reporting by Michael Taylor and Fransiska Nangoy; Editing by Jane Merriman) ((michael.taylor@thomsonreuters.com; +62)(0)(21 2992-7602; Reuters Messaging: michael.taylor.thomsonreuters.com@reuters.net)) Keywords: INDONESIA FREEPORT/STRIKE

Euro hits six-week high vs yen after in-line inflation reading

October 31, 2014 - reuters.com

LONDON, Oct 31 (Reuters) - The euro pared losses against the dollar and hit a six-week high against the yen on Friday after data showed euro zone prices rising in October, offering some relief to those who had geared up for a softer reading after German inflation numbers. Eurostat said consumer prices in the euro zone rose by 0.4 percent in October, in line with market expectations, the day after inflation in Germany, Europe's largest economy, slowed in October to 0.7 percent, its lowest reading since May. ID:nL5N0SP5KK The euro rose to $1.2583 EUR= after the data, from around $1.2565 beforehand. Against the yen, the single currency climbed to 140.485 yen per euro EURJPY= , the highest since mid-September. That left the euro up 2 percent on the day against the yen, with most of that move coming after the Bank of Japan surprised markets by expanding its already massive monetary stimulus programme. (Reporting by Jemima Kelly, editing by Anirban Nag) ((jemima.kelly@thomsonreuters.com; +44 (0) 20 7542 7508; Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: MARKETS FOREX/EURO

Hong Kong Exchange Fund assets HK$3.21 trln end-September - HKMA

October 31, 2014 - reuters.com

Oct 31 (Reuters) - Assets at the Exchange Fund, which is used to back the Hong Kong dollar, totalled HK$3,214.6 billion ($414.52 billion) at the end of September, the Hong Kong Monetary Authority (HKMA) said on Friday. The figure was HK$107.6 billion higher than the total at the end of August, with foreign currency assets and Hong Kong dollar assets rising HK$76 billion and HK$31.6 billion respectively, the city's de facto central bank said in a statement. The HKMA said the rise in foreign currency assets was mainly due to increased holding of foreign currency deposits, an increase in unsettled purchases of securities and the issuance of Certificates of Indebtedness. These increases were partly offset by valuation losses on foreign currency investments. The rise in Hong Kong dollar assets was mainly due to an increase in Exchange Fund Bills and Notes issued but not yet settled, which was partly offset by valuation losses on Hong Kong equities. (1 US dollar = 7.7550 Hong Kong dollar) (Reporting by Twinnie Siu in HONG KONG; Editing by Simon Cameron-Moore) ((twinnie.siu@thomsonreuters.com)(+852 2841 5763)(Reuters Messaging: twinnie.siu.reuters.com@reuters.net)) Keywords: HONGKONG ECONOMY EXCHANGEFUNDASSETS

Sterling hits two-week high against euro ahead of inflation data

October 31, 2014 - reuters.com

By Liisa Tuhkanen LONDON, Oct 31 (Reuters) - Sterling hit a fresh two-week high against the euro on Friday, ahead of crucial euro zone inflation data which could put more pressure on the European Central Bank to ease policy further. Preliminary data from Germany, released on Thursday, showed inflation slowing to 0.7 percent in October, undershooting forecasts. The figure, the weakest since May, suggested the risk of deflation in the euro zone has not yet abated. ID:nL5N0SP3F6 Adding to the worries about Europe's largest economy, German retail sales posted their biggest monthly fall in more than seven years on Friday. ID:nL5N0SQ126 Economists polled by Reuters were expecting a 0.4 inflation reading for October, up from 0.3 percent the previous month. ECONEZ "If the euro zone inflation data comes out at 0.4, that could cause a spike in euro/sterling. If euro/sterling rose back to that 78.80 pence level, I think investors should sell," said Adam Myers, European head of FX strategy at Credit Agricole. The pound was up 0.3 percent against the single currency, which was trading at 78.57 pence per euro EURGBP= . Sterling also strengthened to a five-week high against the yen GBPJPY= . It rose 2 percent after the Bank of Japan surprised markets with a decision to embark on more quantitative easing, sending the Japanese currency plummeting. ID:nL4N0SQ041 Against the dollar, sterling was down 0.1 percent at $1.5997 GBP=D4 . That left it heading for a fourth consecutive month of losses against the dollar - its weakest run since 2009. But its losses against the dollar were relatively small compared with the greenback's gains against other currencies on Friday. "The pound has held up very very well compared with some of the other developed currencies, and that suggests to me that markets are starting to reassess the Bank of England pricing, and sterling/dollar could fall next week because of that," Myers said. Sterling had reached a six-year high against the dollar in mid-July on expectations that the BoE would start hiking interest rates by the end of this year. But those bets have since been pushed well back, with many now not expecting rates to rise until the second half of 2015. GBPOIS=ICAP BoE policymakers have this week emphasised that the central bank would leave rates near their record low level for longer. ID:nL5N0SN562 ID:nL5N0SM5AU (Additional reporting by Jemima Kelly; Editing by Sonya Hepinstall) ((liisa.tuhkanen@thomsonreuters.com)) Keywords: MARKETS STERLING/OPEN

UPDATE 1-Uganda's October inflation up as non-food prices rise

October 31, 2014 - reuters.com

(Adds non-food prices, analysts) KAMPALA, Oct 31 (Reuters) - A rise in non-food prices lifted Uganda's headline inflation rate UGCPIY=ECI to 1.8 percent in the year to October from 1.4 percent in the year to September, the Uganda Bureau of Statistics said on Friday. The Ugandan central bank has forecast that over the next three months annual core inflation will range from 2 to 4 percent and this fiscal year the economy will grow 6 percent. "We had anticipated this rise because the pressure on the shilling was bound to spill over into prices," Isaac Iga, the chief dealer at Orient Bank. "We think the fears that led the central bank to hold its rate are being confirmed, and policy is unlikely to change if the depreciation pressure remains." The local currency has been under pressure, largely from demand for dollars by importers making payments for their monthly imports and others shipping in goods in advance for year-end holiday shoppers. The government agency said core inflation, which excludes the prices of food, fuel and utilities, rose to 2.4 percent in October, down from 2.0 percent in September. Non-food inflation increased to 4.1 percent for the year to October from 3.5 percent in the previous month, the bureau said. The statistics agency said the monthly headline inflation for October rose by 0.4 percent from the 0.3 percent rise recorded in September, due to a monthly rise in non-food prices. (Reporting by Elias Biryabarema; Editing by James Macharia, Larry King) ((james.macharia@thomsonreuters.com; Tel: +254 204 991 232 ; Reuters Messaging: james.macharia.thomsonreuters@reuters.net)) Keywords: UGANDA INFLATION/

UPDATE 1-Protesters in Burkina Faso call for Compaore to step down

October 31, 2014 - reuters.com

(Adds quote, detail, context) OUAGADOUGOU, Oct 31 (Reuters) - Hundreds of protesters marched in the capital of Burkina Faso on Friday demanding that President Blaise Compaore step down, a day after the military dissolved parliament and announced a transitional government in the face of violent mass protests. "We don't want him. We want him out of power. He is not our president," demonstrator Ouedrago Yakubo told Reuters. The demonstrators gathered at the main Place de la Nation and in front of the army headquarters. Compaore, a close ally of former colonial power France who seized power in a coup in 1987, said late on Thursday he would stay in office at the head of a transitional government until after elections. He also scrapped an unpopular plan to amend the constitution to allow him to seek election next year. His announcement came after the head of the armed forces, General Honore Traore, said he would hold talks with all political parties to create an interim government to take the West African country to democratic elections within a year. Benewende Sankara, a prominent opposition member, said Troare's statement amounted to a military coup. "The departure of Compaore is a condition and non negotiable. For 27 years, Compaore has tricked us. Even now he is trying to fool us and trick the people," he told RFI radio At least three protesters were shot dead and scores wounded in clashes with security forces on Thursday as demonstrators attacked symbols of Compaore's long rule, looted and set fire to parliament and ransacked state television. Events in Ouagadougou are being closely watched by a generation of long-ruling leaders across West and Central Africa who are also butting up against constitutional term limits. (Reporting by Joe Penney in Ouagadougou and John Irish in Paris; Writing by Matthew Mpoke Bigg; Editing by Emma Farge and Alison Williams) ((matt.bigg@thomsonreuters.com; +233)(0)(209 607-203; Reuters Messaging: matt.bigg.thomsonreuters.com@reuters.net)) Keywords: BURKINA POLITICS

Turkish cenbank says inflation would fall with 2 pct real interest rate

October 31, 2014 - reuters.com

ISTANBUL, Oct 31 (Reuters) - Turkish central bank governor Erdem Basci said on Friday a real interest rate of 2 percent would help lower inflation, a move which could be achieved with support from macro-prudential measures. (Reporting by Asli Kandemir/Seda Sezer; Editing by Nick Tattersall) ((nicholas.tattersall@thomsonreuters.com; Reuters Messaging: nicholas.tattersall.thomsonreuters.com@reuters.net)) Keywords: TURKEY CENBANK/RATES REAL

UPDATE 1-Turkish central bank raises inflation forecasts for 2014, 2015

October 31, 2014 - reuters.com

(Adds market reaction) ISTANBUL, Oct 31 (Reuters) - Turkey's central bank increased its inflation forecasts for this year and next on Friday and said monetary policy would remain tight until the outlook for prices improves, although it said the core inflation trend had started to fall. Announcing the bank's quarterly inflation report, governor Erdem Basci said inflation at the end of this year was now expected to be around 8.9 percent, up from a mid-point forecast of 7.6 percent in its previous report. The inflation forecast for 2015 was increased to 6.1 percent from 5 percent previously, while the bank's medium-term inflation forecast remained at 5 percent, Basci said. The bank has been struggling to rein in inflation, which has remained stubbornly high despite interest rates being considerably above their levels of a year ago. It left its key rates unchanged at its latest policy meeting last week. The lira TRYTOM=D3 firmed slightly to 2.1967 against the dollar by 0847 GMT as Basci spoke, from 2.2020 on Thursday. The main share index .XU100 was up 1.15 percent at 80,815 points. The 10-year benchmark bond yield tTR240724T0=IS fell to 8.61 percent from 8.75 percent on Thursday. (Reporting by Asli Kandemir, writing by Dasha Afanasieva; Editing by Nick Tattersall) ((dasha.afanasieva@thomsonreuters.com; +90 212 350 7051)) Keywords: TURKEY CENBANK/FORECAST

MOVES-BGC appoints James Cawley CEO of swap execution facility unit

October 31, 2014 - reuters.com

Oct 31 (Reuters) - Interdealer broker BGC Partners Inc BGCP.O said it appointed James Cawley as chief executive officer of its swap execution facility subsidiary, BGC Derivative Markets, L.P. The company also said Angelo Toglia, interim CEO of BGC Derivative Markets, will assume the role of chief operating officer. ID:nPn8jz1HN Cawley will be based in New York and will report to Philip Norton, global head of eCommerce. Cawley was previously CEO of Javelin Capital Markets, which he founded in 2009. (Reporting by Shivam Srivastava in Bangalore) ((Bangalore newsroom: moves@thomsonreuters.com)) Keywords: BGC PARTNERS MOVES/JAMESCAWLEY

Norway to sell fx worth NOK 250 mln per day in Nov

October 31, 2014 - reuters.com

OSLO, Oct 31 (Reuters) - Norway's central bank will sell foreign exchange equivalent of 250 million crowns ($37.20 million) per day in November after selling 250 million crowns a day in October, it said in a statement on Friday. The bank made its first purchase of crowns in October to cover the government's non-oil-related budget deficit, a practice the central bank governor said currency markets should get used to. ID:nL6N0RV1MT The bank usually sells crowns to buy currency so that Norway's sovereign wealth fund, the world's largest, can invest in stocks, bonds and real estate abroad. (1 US dollar = 6.7208 Norwegian krone) (Reporting by Balazs Koranyi) ((Balazs.Koranyi@thomsonreuters.com; +47 2331 6596; Reuters Messaging: balazs.koranyi.thomsonreuters.com@reuters.net)) Keywords: NORWAY FOREX/

FOREX-Yen hits 7-year low after BOJ expands stimulus

October 31, 2014 - reuters.com

* BOJ's surprise easing hits yen * Euro also lower against dollar, awaits inflation * Dollar index near four-year highs, strong Q3 GDP growth helps By Anirban Nag LONDON, Oct 31 (Reuters) - The yen tumbled to its lowest level in nearly seven years against the dollar on Friday, putting it on track for its biggest losses in more than a year, after the Bank of Japan shocked markets by unexpectedly easing policy further. In a pre-emptive move to combat risks of deflation, the BoJ launched another round of quantitative easing. It raised its monetary base target to an annual increase of 80 trillion yen ($724.5 billion) from 60-70 trillion yen and tripled its purchase of risk assets such as exchange traded funds (ETFs) and real estate investment trusts (REITs). While some in the market had expected some easing, most had thought any additional easing was months away as Governor Haruhiko Kuroda had voiced optimism over the Japanese economic outlook even after soft data. As a result, the dollar surged past its Oct. 1 high of 110.09 yen, rising as far as 111.53 yen JPY= , its highest level since January 2008. It has gained 2 percent on the day, on course for its biggest gain since April last year. "It is a bit of a Halloween shocker for the markets," said Jeremy Stretch, head of currency strategy at CIBC World Markets. "Along with the reallocation by the pension fund, it is a double whammy for the yen." A Japanese government panel overseeing the Government Pension Investment Fund (GPIF) approved plans for the fund to raise its holding of foreign stocks to 25 percent of its portfolio from 12 percent, sources said on Friday. ID:nT9N0SN005 Gareth Berry, a currency analyst with UBS, said both these measures are likely to propel dollar/yen higher, taking the pair closer to their three-month forecast of 115 yen. "We doubt it would escape investor attention that, with the BoJ buying at a faster pace with near-immediate effect, an early start to GPIF diversification could be more likely," he wrote in a note. PRESSURE ON THE ECB TO ACT Analysts said the surprise move by the BoJ is likely to put more pressure on the European Central Bank to ease policy as well. Both central banks want to boost inflation, and cheapening their currencies by flooding markets through massive asset purchases is one of the ways to encourage growth and bolster prices. Data on Thursday showed annual inflation in Germany unexpectedly slowed in October, while Spanish consumer prices fell, suggesting the risk of deflation in the euro zone has not yet abated. ID:nL5N0SP3F6 Euro zone inflation data is due at 1000 GMT, and forecasts are for an annual 0.4 percent reading, up from 0.3 percent in September. ECONEZ The ECB has been grappling with low inflation for much of this year and has lowered rates to near zero and talked the euro lower to ward off disinflation. "With oil prices falling, there is always a risk of an undershoot. And with the Federal Reserve closing the liquidity tap, the onus is now on the other major central banks like the ECB to keep it open," said CIBC's Stretch. While the euro jumped to a one-month high against the yen EURJPY=R , it fell against the dollar towards recent two-year lows. It was last trading 0.4 percent lower at $1.2565 EUR= , with bears targeting the Oct. 3 low of $1.2500. That drop came as German retail sales posted their biggest monthly decline in more than seven years in September, data showed on Friday. ECONDE The dollar index .DXY climbed as far as 86.736 - a high last seen on Oct. 6, approaching a four-year high - as the greenback also benefited from upbeat U.S. growth figures published on Thursday. U.S. gross domestic product grew at an annual pace of 3.5 percent in the third quarter, beating a forecast of 3.0 percent. ID:nL1N0SN2BN (Additional reporting by Shinichi Saoshiro and Hideyuki Sano; Editing by Sonya Hepinstall) ((anirban.nag@thomsonreuters.com; +44 20 7542 8399; RM: anirban.nag.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/

FOREX-Yen hits 7-year low after BOJ expands stimulus

October 31, 2014 - reuters.com

* BOJ's surprise easing hits yen * Euro also lower against dollar, awaits inflation * Dollar index near four-year highs, strong Q3 GDP growth helps By Anirban Nag LONDON, Oct 31 (Reuters) - The yen tumbled to its lowest level in nearly seven years against the dollar on Friday, putting it on track for its biggest losses in more than a year, after the Bank of Japan shocked markets by unexpectedly easing policy further. In a pre-emptive move to combat risks of deflation, the BoJ launched another round of quantitative easing. It raised its monetary base target to an annual increase of 80 trillion yen ($724.5 billion) from 60-70 trillion yen and tripled its purchase of risk assets such as exchange traded funds (ETFs) and real estate investment trusts (REITs). While some in the market had expected some easing, most had thought any additional easing was months away as Governor Haruhiko Kuroda had voiced optimism over the Japanese economic outlook even after soft data. As a result, the dollar surged past its Oct. 1 high of 110.09 yen, rising as far as 111.53 yen JPY= , its highest level since January 2008. It has gained 2 percent on the day, on course for its biggest gain since April last year. "It is a bit of a Halloween shocker for the markets," said Jeremy Stretch, head of currency strategy at CIBC World Markets. "Along with the reallocation by the pension fund, it is a double whammy for the yen." A Japanese government panel overseeing the Government Pension Investment Fund (GPIF) approved plans for the fund to raise its holding of foreign stocks to 25 percent of its portfolio from 12 percent, sources said on Friday. ID:nT9N0SN005 Gareth Berry, a currency analyst with UBS, said both these measures are likely to propel dollar/yen higher, taking the pair closer to their three-month forecast of 115 yen. "We doubt it would escape investor attention that, with the BoJ buying at a faster pace with near-immediate effect, an early start to GPIF diversification could be more likely," he wrote in a note. PRESSURE ON THE ECB TO ACT Analysts said the surprise move by the BoJ is likely to put more pressure on the European Central Bank to ease policy as well. Both central banks want to boost inflation, and cheapening their currencies by flooding markets through massive asset purchases is one of the ways to encourage growth and bolster prices. Data on Thursday showed annual inflation in Germany unexpectedly slowed in October, while Spanish consumer prices fell, suggesting the risk of deflation in the euro zone has not yet abated. ID:nL5N0SP3F6 Euro zone inflation data is due at 1000 GMT, and forecasts are for an annual 0.4 percent reading, up from 0.3 percent in September. ECONEZ The ECB has been grappling with low inflation for much of this year and has lowered rates to near zero and talked the euro lower to ward off disinflation. "With oil prices falling, there is always a risk of an undershoot. And with the Federal Reserve closing the liquidity tap, the onus is now on the other major central banks like the ECB to keep it open," said CIBC's Stretch. While the euro jumped to a one-month high against the yen EURJPY=R , it fell against the dollar towards recent two-year lows. It was last trading 0.4 percent lower at $1.2565 EUR= , with bears targeting the Oct. 3 low of $1.2500. That drop came as German retail sales posted their biggest monthly decline in more than seven years in September, data showed on Friday. ECONDE The dollar index .DXY climbed as far as 86.736 - a high last seen on Oct. 6, approaching a four-year high - as the greenback also benefited from upbeat U.S. growth figures published on Thursday. U.S. gross domestic product grew at an annual pace of 3.5 percent in the third quarter, beating a forecast of 3.0 percent. ID:nL1N0SN2BN (Additional reporting by Shinichi Saoshiro and Hideyuki Sano; Editing by Sonya Hepinstall) ((anirban.nag@thomsonreuters.com; +44 20 7542 8399; RM: anirban.nag.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/

Turkish cenbank governor says lira not overvalued

October 31, 2014 - reuters.com

ISTANBUL, Oct 31 (Reuters) - Turkey's central bank governor Erdem Basci said on Friday he does not believe the lira TRYTOM=D3 is overvalued at current levels, after the currency's real effective exchange rate rose in September. The rate measures the weighted average of domestic prices relative to those of Turkey's trading partners. ID:nI7N0RC026 (Reporting by Asli Kandemir; Writing by Seda Sezer; Editing by Nick Tattersall) ((nicholas.tattersall@thomsonreuters.com; Reuters Messaging: nicholas.tattersall.thomsonreuters.com@reuters.net)) Keywords: TURKEY CENBANK/LIRA

30-year JGB yield falls to 1-1/2-year low after BOJ's action

October 31, 2014 - reuters.com

TOKYO, Oct 31 (Reuters) - The yield on 30-year Japanese government bonds fell to 1.520 percent on Friday after the BOJ said it may increase buying in long maturities following its surprise monetary easing. The 30-year yield JP30YTN=JBTC fell 13 basis points to 1.520 percent, its lowest level since April 2013. (Reporting by Hideyuki Sano; Editing by Jacqueline Wong) ((hideyuki.sano@thomsonreuters.com; +81 3 6441 1827; Reuters Messaging: hideyuki.sano.thomsonreuters.com@reuters.net)) Keywords: MARKETS JAPAN JGBS/30YEAR

Protestors in Burkina Faso call for Campaore to step down

October 31, 2014 - reuters.com

OUAGADOUGOU, Oct 31 (Reuters) - Hundreds of protesters marched in the capital of Burkina Faso on Friday demanding that President Blaise Compaore step down, a day after the military dissolved parliament and announced a transitional government in the face of mass protests and violence. "We don't want him. We want him out of power. He is not our president," demonstrator Ouedrago Yakubo told Reuters. The demonstrators gathered at the main Place de la Nation and before the army headquarters. (Reporting by Joe Penney; Writing by Matthew Mpoke Bigg; Editing by Emma Farge) ((matt.bigg@thomsonreuters.com; +233)(0)(209 607-203; Reuters Messaging: matt.bigg.thomsonreuters.com@reuters.net)) Keywords: BURKINA POLITICS

Turkish central bank raises inflation forecasts for 2014, 2015

October 31, 2014 - reuters.com

ISTANBUL, Oct 31 (Reuters) - Turkey's central bank increased its 2014 year-end inflation forecast to 8.9 percent from 7.6 percent in its previous quarterly report, governor Erdem Basci said on Friday. The inflation forecast for 2015 was increased to a midpoint of 6.1 percent from 5 percent in the previous report. The bank's medium term inflation forecast remained at 6 percent, Basci said. (Reporting by Asli Kandemir, writing by Dasha Afanasieva; Editing by Nick Tattersall) ((dasha.afanasieva@thomsonreuters.com; +90 212 350 7051)) Keywords: TURKEY CENBANK/FORECAST

Turkish central bank says agriculture a risk to Q3 growth

October 31, 2014 - reuters.com

ISTANBUL, Oct 31 (Reuters) - Agricultural output poses a downside risk to Turkish economic growth in the third quarter, Central Bank Governor Erdem Basci said on Friday. Finance Minister Mehmet Simsek said last month that drought, which hit agricultural output earlier in the year, could hit growth in the full year. (Reporting by Asli Kandemir; Writing by Nick Tattersall) ((nicholas.tattersall@thomsonreuters.com; Reuters Messaging: nicholas.tattersall.thomsonreuters.com@reuters.net)) Keywords: TURKEY CENBANK/GROWTH AGRICULTURE

Uganda's inflation rises to 1.8 pct in year to October

October 31, 2014 - reuters.com

KAMPALA, Oct 31 (Reuters) - Uganda's headline inflation UGCPIY=ECI increased to 1.8 percent in the year to October from 1.4 percent in the year to September, the Uganda Bureau of Statistics said on Friday, citing a rise in non-food prices. Core inflation stood at 2.4 percent in October, down from 2.0 percent in September, the bureau said. (Reporting by Elias Biryabarema; Editing by James Macharia) ((james.macharia@thomsonreuters.com; Tel: +254 204 991 232 ; Reuters Messaging: james.macharia.thomsonreuters@reuters.net)) Keywords: UGANDA INFLATION/

Vietnam domestic market commodity prices-Oct 31

October 31, 2014 - reuters.com

Oct 31 (Reuters) - Following are domestic prices of Vietnam's key commodities. Unit: million dong VND= per tonne. Item Oct 27-31 Oct 20-24 Location Robusta beans 38.6-40.1 38.3-41.2 Central Highlands Black pepper 182.0-183.0 182.0-186.0 Southern region Refined sugar 13.0-15.5 13.0-15.5 Southern region Summer-autumn paddy 5.50-6.40 5.90-6.30 Mekong Delta ___________________ SJC gold 3.541-3.573 3.570-3.590 Hanoi, HCM City NOTES: Gold prices are low/high selling prices quoted in million dong during the week by top manufacturer SJC per 3.75-gram ingot. Coffee export prices COFFEE/ASIA1 Rice export prices RICE/ASIA1 Historical data VNCOMM01 Central bank's gold auction SBVGOLD2013 ($1=21,220 dong) (Compiled by Hanoi Newsroom) ((ho.minh@thomsonreuters.com; +844 3825 9623)) Keywords: VIETNAM COMMODITIES/PRICES

Turkish cenbank to keep policy tight until inflation improves

October 31, 2014 - reuters.com

ISTANBUL, Oct 31 (Reuters) - Turkey's central bank will keep monetary policy tight until there is a clear improvement in inflation, central bank governor Erdem Basci said on Friday. At the bank's quarterly inflation report news conference, Basci said he expects a significant fall in inflation in 2015. (Reporting by Asli Kandemir, writing by Dasha Afanasieva; Editing by Nick Tattersall) ((dasha.afanasieva@thomsonreuters.com; +90 212 350 7051)) Keywords: TURKEY CENBANK/INFLATION

SNAPSHOT-India stocks, bonds, rupee, swap, call at 0805 GMT

October 31, 2014 - reuters.com

STOCKS .BSESN .NSEI ----------------------- The benchmark BSE index up 1.35 percent and the broader NSE index 1.35 percent higher, as Asian shares soared after the Bank of Japan surprised markets with fresh easing steps it called a pre-emptive move to stoke inflation. .BO RUPEE INR=D2 -------------- The partially convertible rupee trades stronger at 61.41/42 per dollar against its previous close of 61.45/46, on continued foreign inflows into local debt. However, the dollar's gain after the Bank of Japan's moves limits the rise in rupee. INR/ GOVERNMENT BONDS IN084024G=CC ------------------------------- The benchmark 10-year bond yield down 2 basis points at 8.27 percent, after falling to 8.25 percent despite a 150-billion-rupee debt auction. IN/ INTEREST RATE SWAPS INROIS MIOIS= ------------------------------------- The benchmark five-year swap rate falls 3 basis points to 7.47 percent, while the one-year rate drops 3 basis points to 8.07 percent. CALL MONEY INROND= -------------------- India's cash rate at 7.75/7.80 percent, against Thursday's close of 8.10/8.15 percent. (Reporting By Dipika Lalwani) ((Dipika.Lalwani@thomsonreuters.com; 022-61807098; Reuters Messaging: dipika.lalwani@thomsonreuters.com)) Keywords: INDIA SNAPSHOT/

UPDATE 1-Credit Suisse adds 390 mln Sfr to litigation provisions

October 31, 2014 - reuters.com

(Adds more detail) ZURICH, Oct 31 (Reuters) - Credit Suisse CSGN.VX said on Friday it added a net 390 million Swiss francs ($406 million) to its litigation provisions in the third quarter. The Zurich-based bank made the declaration in its full third-quarter report, published on Friday, after reporting financial results last week. ID:nL6N0SI0BW The bank did not say what the provision was for. JPMorgan JPM.N , UBS UBSN.VX and Deutsche Bank DBKGn.DE each set aside more than $1 billion in the third quarter for legal costs. Royal Bank of Scotland RBS.L on Friday earmarked 400 million pounds ($639.08 million) to cover potential fines from manipulating currency markets. ID:nL5N0SQ0T2 British bank Barclays BARC.L also set aside 500 million pounds in the third quarter to cover potential fines for rigging currency markets. ID:nL5N0SP18X Credit Suisse Chief Executive Brady Dougan said last week the bank did not see material issues related to the global probe into the $5 trillion-a-day foreign exchange market. ID:nFWN0SI013 Chief Financial Officer David Mathers signalled in September that the U.S. government's examination of financial crisis-era mortgage abuses was now Credit Suisse's biggest legal worry. ID:nL5N0RA3NK The Swiss bank is also one of several major European financial institutions caught up in an investigation into alternative trading venues known as dark pools, though it gave no update on this in its third-quarter report. ID:nL6N0Q6181 In the second quarter, Credit Suisse made a 1.8 billion franc net litigation provision, largely due to a fine from U.S. authorities for helping clients evade taxes. ID:nL1N0O50RO (1 US dollar = 0.9600 Swiss franc) (1 US dollar = 0.6259 British pound) (Reporting by Joshua Franklin. Editing by Jane Merriman) ((joshua.franklin@thomsonreuters.com; +41583067007; Reuters Messaging: joshua.franklin.thomsonreuters.com@reuters.net)) Keywords: CREDT SUISSE GRP LITIGATION

BHP offers little hope of revisiting giant copper mine expansion

October 31, 2014 - reuters.com

By James Regan SYDNEY, Oct 31 (Reuters) - Expansion by BHP Billiton's BHP.AX BLT.L giant Olympic Dam mine in Australia, once considered among its prized growth assets, is off the agenda due to low metals prices and productivity inefficiencies, the company said on Friday. BHP shelved plans for a multi-billion-dollar expansion of the copper, gold and uranium mine in 2012 after a year-long study, citing a need to reign in spending as the Australian mining boom started to fade. Since then business leaders and politicians, including Australian Prime Minister Tony Abbott, have implored BHP to reconsider its decision, hoping to alleviate job losses caused by the exit of car manufacturing in Australia. But BHP has stood firm and on Friday reiterated its mothballing of expansion plans for Olympic Dam. "Our immediate challenge is how we self-fund the required investment by being prudent and creative with our capital and engaging our workforce to not only reduce costs but also accelerate the initiatives that will reduce our costs," Darryl Cuzzubbo, Olympic Dam asset president, said in a business speech emailed to Reuters. The mine was originally designed to yield 200,000 tonnes of copper annually but consistently runs under that level due to maintenance issues, such as smelting and equipment repairs. "Once we are able to run our existing operation at full capacity, we then - and only then - earn the right to grow," Cuzzubbo said. Prices for copper, uranium and gold from Olympic Dam have dropped 33, 50 and 35 percent respectively from 2011 highs, according to Cuzzubbo, creating a "very tough situation." BHP's blueprint to quadruple output from Olympic Dam - the fourth-largest known copper deposit and largest uranium source in the world - was part of a now defunct five-year programme to spend $80 billion digging new mines and solidifying the Anglo-Australian company as the world's biggest resources company. Analysts estimated at the time it would cost BHP $30 billion to complete the expansion and require development of a separate open pit mine adjacent to an existing underground lode. The company has a licence to mine Olympic Dam until 2036 and it is extendable for 50 more years thereafter. As it stands, BHP expects production at Olympic Dam this year to remain broadly unchanged from the prior year. Olympic Dam was the driving force in a $7 billion takeover of WMC Resources by BHP in 2008 that also brought with it Australian nickel assets. Those assets have since been put up for sale, thus far unsuccessfully. (Editing by Michael Perry) ((jim.regan@thomsonreuters.com; +612 9373-1814; Reuters Messaging: jim.regan.reuters.com@reuters.net)) Keywords: BHP BILLITON AUSTRALIA/OLYMPIC DAM

INDICATORS - Kazakhstan - Oct 31

October 31, 2014 - reuters.com

India Morning Call-Global Markets

October 31, 2014 - reuters.com

EQUITIES NEW YORK - U.S. stocks rose on Thursday, boosted by a strong reading on quarterly economic growth and by another round of upbeat earnings reports including Visa, which accounted for nearly 140 points in the Dow industrials. Despite the bullish data and the Federal Reserve's Wednesday statement indicating the economy is strengthening, gains on the S&P 500 were led by healthcare and utilities, traditionally defensive sectors. For a full report, click on .N - - - - LONDON - Britain's top equity index staged a late rally on Thursday to recover from losses earlier in the day, with wealth management group St James's Place SJP.L outperforming after strong results. The blue-chip FTSE 100 index .FTSE had been in negative territory for much of the day. For a full report, click on .L - - - - TOKYO - Japan's Nikkei share average jumped on Friday as the government prepared to approve new allocation targets for the world's largest pension fund that are expected to sharply increase its purchases of domestic stocks. Tokyo will approve on Friday targets for the $1.2 trillion Government Pension Investment Fund (GPIF) which aim to increase the ratio of Japanese shares in its holdings to 25 percent form the current 12 percent, sources told Reuters. For a full report, click on .T - - - - HONG KONG - Hang Seng Index .HSI is trading 0.8 percent higher. For a full report, click on .HK - - - - FOREIGN EXCHANGE SYDNEY - The dollar held at four-week highs against a basket of major currencies early on Friday, getting another boost from encouraging growth data a day after the Federal Reserve gave an upbeat assessment on the economy. The dollar index .DXY climbed as far as 86.491 - a high last seen on Oct. 6 - after U.S. gross domestic product grew at an annual pace of 3.5 percent in the third quarter, beating forecasts for 3.0 percent. For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasury debt prices edged higher on Thursday but were off the session's peak as global risk appetite took off amid reports Japanese pension funds are going to buy more domestic equities. A lackluster U.S. seven-year note auction which sold at a yield that was higher than market expectations before the bid deadline also helped trim gains in Treasuries. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold was struggling near $1,200 an ounce on Friday and looked likely to post its worst week in seven, while silver was stuck near its lowest in 4-1/2 years, as strong U.S. economic data and fears of an early rate hike curbed the metals' appeal. Gold was also headed for its second monthly decline and silver looked set for a fourth monthly drop in a row. Spot gold XAU= was little changed at $1,200.12 an ounce by 0038 GMT. The metal fell 1 percent on Thursday, when it also touched its lowest since Oct. 6 at $1,195.70. For a full report, click on GOL/ - - - - BASE METALS SYDNEY - London copper drifted on Friday as a dollar-rally threatened to extinguish its modest monthly gains, and as traders said further strength in the greenback may erode prices going into November. Three-month copper on the London Metal Exchange CMCU3 had edged down 0.1 percent to $6,731.50 a tonne by 0145 GMT, after dropping 1.2 percent the session before. For a full report, click on MET/L - - - - OIL NEW YORK - Brent crude futures fell below $86 a barrel on Friday as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Unless the Organization of the Petroleum Exporting Countries moves to cut oil output at its meeting next month, traders say oil prices, which have dropped by a quarter since June, are likely to extend their rout. 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-Banks Island Gold provides update

October 31, 2014 - reuters.com

Oct 30 (Reuters) - Banks Island Gold Ltd BOZ.V : * Provides update and releases second quarter financial statements * Dms plant was shut down on June 11,2014 in order to complete tie-in between the plant and the grinding,flotation sections * No production from the property occurred in the period from June 11 to August 7, 2014 * Source text for Eikon ID:nMKW5v6VFa * Further company coverage BOZ.V ((Bangalore Newsroom; +1 646 223 8780))

UPDATE 6-Burkina president rejects opposition calls to step down after violence

October 31, 2014 - reuters.com

* Tens of thousands protest against bid to extend Compaore's rule * Military says government, national assembly has been dissolved * President says willing to open talks on transitional government * Emergency services say at least three protesters shot dead (Adds President Compaore's statement) By Mathieu Bonkoungou and Joe Penney OUAGADOUGOU, Oct 30 (Reuters) - Burkina Faso's President Blaise Compaore said on Thursday he would stay in power at the head of a transitional government until after elections, rejecting opposition calls for him to step down immediately following a day of violent protests. The head of the armed forces, General Honore Traore, had earlier dissolved parliament and announced talks with all political parties to create an interim government to take the West African country to democratic elections within a year. The move came after at least three protesters were shot dead and scores wounded in clashes with security forces as demonstrators attacked the homes of senior members of the ruling party and symbols of Compaore's long rule. Hundreds of people had earlier stormed parliament, looting the building and setting it on fire, while others ransacked state television, forcing it off the air. Protests also gripped Bobo Dioulasso, Burkina's second-largest city, and other towns across the gold and cotton-producing country. "I have heard the message, understood it and taken note of strong desire for change," Compaore said in a statement broadcast on BF1 TV. "I am available to open talks on a transitional period at the end of which I will hand over power to the democratically elected president." Compaore, who seized power in a military coup in 1987, said he had dissolved his government and was lifting martial law that was announced earlier in the day. He also scrapped plans for an unpopular constitutional amendment that would have allowed him to seek reelection next year, a prospect that had sparked Thursday's protests. Regional West African bloc ECOWAS had said earlier on Thursday that it would not accept any party seizing power through non-constitutional means - suggesting diplomatic pressure to leave Compaore in place. A delegation from the African Union, the United Nations and ECOWAS was due in Burkina Faso on Friday to hold talks with all parties involved. "BLAISE LEAVE" Protesters had faced off with security forces for several hours outside the presidential palace as opposition leaders held talks with senior military officials in an attempt to ease Compaore from power. Both opposition politicians and ordinary demonstrators made it plain they did not want any role for Compaore in a transition. "We want Blaise Compaore to leave. We want change," said George Sawadogo, a 23-year-old student. The fate of Compaore, a close military ally of the United States and former colonial power France, will be closely watched by other governments across West and Central Africa, where a number of long-serving leaders are reaching the end of their constitutional terms. Burkina Faso is one of the world's poorest nations but has positioned itself as a mediator in regional crises. It is also a key ally in Western operations against al Qaeda-linked groups in West Africa. White House spokeswoman Bernadette Meehan had earlier said in a statement that the United States was deeply concerned by the deteriorating situation in Burkina Faso and called on all parties to end the violence and respect democratic norms. France, which has a special forces base there that conducts operations across the Sahel, also appealed for restraint by all sides. Its ambassador had held talks with opposition leaders on Thursday. CONCERN ABOUT PROSECUTION Compaore has ruled the nation with a firm grip but has faced increasing criticism in recent years, including defections by members of his party. He weathered a military and popular uprising in 2011 thanks to the support of his elite presidential guard. Diplomatic pressure had mounted over the past year for Compaore to step down in 2015, amid calls from his own entourage for him to seek re-election, diplomats said. A letter from French President Francois Hollande to Compaore earlier this month, seen by Reuters, offered France's support in finding him a job with an international organisation. Diplomats, however, say Compaore has been concerned about the possibility of losing his immunity from prosecution, particularly in the wake of the trial of former Liberian leader Charles Taylor in the Hague. Burkina Faso's former president Thomas Sankara, a leftist leader dubbed Africa's Che Guevara, was killed in the coup that swept Compaore to power. Protesters in the streets of Ouagadougou waved photographs of Sankara and signs reading, "Sankara look at your sons. We are fighting your fight." At the headquarters of state television, which was forced off the air after the building was taken, jubilant protesters posed on the set of the evening news programme. Burkina Faso, the fourth-largest gold producer in Africa, is home to several international mining firms including TrueGold TGV.M , IamGold IMG.TO and Randgold Resources RRS.L . "There's been no impact on our operations whatsoever," said Doug Reddy, senior vice president for business development at Endeavour Mining EDV.TO , which has a mine near the southern border with Ghana. "Obviously, we're monitoring the situation and we're keeping in touch with our people in the mine." (Additional reporting by Daniel Flynn, David Lewis and Bate Felix in Dakar, Joe Bavier and Ange Aboa in Abidjan, John Irish in Paris; Writing by Daniel Flynn; Editing by Tom Heneghan and Ken Wills) ((david.lewis2@thomsonreuters.com)(Dakar Newsroom +221 338645076)(Reuters Messaging: david.lewis2.thomsonreuters.com@reuters.com)) Keywords: BURKINA POLITICS/

UPDATE 1-Buenaventura reports 20 pct jump in third-quarter net profit

October 31, 2014 - reuters.com

(Adds details of reported results, comments from company executive) LIMA, Oct 30 (Reuters) - Peruvian precious metals miner Buenaventura BVN.N BUEv.LM said on Thursday that its net profit jumped 20 percent in the third quarter because of a recent acquisition, beating market forecasts. The company's reported income of $78.3 million, or 31 cents a share, came in slightly above the estimate of a single analyst of $69 million, according to Thomson Reuters I/B/E/S. Two local analysts polled by Reuters last week said they expected Buenaventura to post a third-quarter loss. The miner's acquisition of Gold Field's GFIJ.J 51-percent stake in the Chucapaca gold project helped it boost its results, Buenaventura's Vice President and Financial Manager Carlos Galvez said by telephone. The purchase forced the company to put the estimated value of the proposed mine on its balance sheets as an asset, Galvez added. The strong results followed a similar rise in year-on-year net profit in the second quarter, helping the company recover from two previous straight quarterly losses. In the first nine months of the year, Buenaventura's net income fell 55 percent on the year to $85.3 million, the company said in a statement. Buenaventura's chief executive told Reuters last week that he expects end-of-the-year net profit to come in positive after last year's $288.4 million loss. ID:nL2N0SF2ML In the third quarter, the company's earnings before interest, taxes, depreciation and amortization fell 15 percent to $200.8 million, the company said. Third-quarter net sales fell 8 percent on the year on lower metal prices and a 5 percent slide in gold production, the company said. Silver output was up 6 percent. The company is Peru's biggest publicly-traded precious metals miner. (Reporting By Teresa Cespedes and Patricia Velez; Editing by Chris Reese and Cynthia Osterman) ((mitra.taj@thomsonreuters.com; +51 1-221-2130; Reuters Messaging: mitra.taj.thomsonreuters.com@reuters.net)) Keywords: PERU BUENAVENTURA/

UPDATE 2-Newmont earnings beat forecasts, gold miner cuts cost outlook

October 31, 2014 - reuters.com

(Recasts with market beat, lower cost forecast) Oct 30 (Reuters) - Newmont Mining Corp NEM.N reported lower third-quarter earnings on Thursday but the largest U.S.-based gold miner beat market expectations and also reduced its forecast for gold production costs this year. Newmont said it now expected 2014 all-in sustaining costs for producing an ounce of gold to be $1,020 to $1,080. In late September, Newmont forecast its all-in sustaining costs, the gold industry cost benchmark, for this year at $1,050 to $1,120 an ounce. "For 2014, we expect costs at the low end of our cost guidance and we remain on track to meet our production outlook," Gary Goldberg, Newmont's President and Chief Executive Officer said in a statement. Its Sept. 23 outlook forecast 2014 production of 4.7 million to 5 million ounces of gold and 80,000 to 90,000 tonnes of copper. With the gold price down a third in three years, Newmont and other miners have been cutting costs to boost profitability. Production at some big gold miners is falling as they sell off high-cost operations. Newmont, which has mines in North and South America, Africa, and Asia, said attributable net income from continuing operations was $210 million, or 42 cents a share, in the three months ended in September, down from $419 million, or 84 cents a share, a year earlier. Net income, adjusted for items including asset sales and staff reductions, was $249 million, or 50 cents per basic share. That was higher than the $217 million, or 44 cents per basic share, a year earlier and well ahead of the 16 cents a share analysts had expected, according to Thomson Reuters I/B/E/S. In the third quarter, Newmont produced 1.15 million ounces of gold, down from 1.28 million ounces in the same period of 2013. It produced 13,700 tonnes of copper versus 19,200 tonnes in the year-prior period. The company said its all-sustaining costs for producing an ounce of gold were $995 an ounce in the quarter, down from $1,018 per ounce in the same quarter of 2013. But copper costs jumped to $6.61 a pound from $3.24 a year earlier due to costs associated with the ramp down and ramp up of operations in Indonesia. Newmont resumed copper concentrate shipments from Indonesia in late September, ending a nine-month suspension from its Batu Hijau mine after the government imposed hefty export taxes that the company said violated its mining contract. Production was halted in June but has since restarted. ID:nL3N0RV1VI The price Newmont received for its gold dropped to $1,270 an ounce from $1,322 an ounce in the third quarter last year. (Reporting by Susan Taylor in Toronto and Nicole Mordant in Vancouver; Editing by David Gregorio; editing by Gunna Dickson) ((susan.taylor1@thomsonreuters.com; +1 416 941 8083; Reuters Messaging: susan.taylor1.thomsonreuters.com@reuters.net)) Keywords: NEWMONT MINING RESULTS/

Buenaventura reports 20 pct jump in net profit in third quarter

October 30, 2014 - reuters.com

LIMA, Oct 30 (Reuters) - Peruvian precious metals miner Buenaventura BVN.N BUEv.LM said on Thursday that its net profit jumped 20 percent to $78.3 million in the third quarter from the same period a year ago. (Reporting By Patricia Velez; Editing by Chris Reese) ((mitra.taj@thomsonreuters.com; +51 1-221-2130; Reuters Messaging: mitra.taj.thomsonreuters.com@reuters.net)) Keywords: PERU BUENAVENTURA/

Newmont third-quarter profit falls on lower metals prices, output

October 30, 2014 - reuters.com

Oct 30 (Reuters) - Newmont Mining Corp NEM.N reported a smaller third-quarter profit on Thursday as gold and copper prices and production fell. The largest U.S.-based gold miner said attributable net income from continuing operations was $210 million, or 42 cents a share, in the quarter, down from a profit of $419 million, or 84 cents a share, in the same period last year. (Reporting by Susan Taylor in Toronto and Nicole Mordant in Vancouver) ((susan.taylor1@thomsonreuters.com; +1 416 941 8083; Reuters Messaging: susan.taylor1.thomsonreuters.com@reuters.net)) Keywords: NEWMONT MINING RESULTS/

UPDATE 1-Canada's First Quantum's earnings hurt by lower copper output

October 30, 2014 - reuters.com

(Adds analyst forecasts, production details) Oct 30 (Reuters) - Canadian base metal miner First Quantum Minerals Ltd FM.TO reported a bigger-than-expected drop in third-quarter earnings on Thursday due in part to lower copper and nickel production. The company, which primarily mines copper but also produces nickel and gold, said earnings fell to $121.2 million, or 21 cents a share, in the three months through September, from $143 million, or 24 cents, a year earlier. Analysts, on average, expected First Quantum to report earnings of 26 cents a share, according to Thomson Reuters I/B/E/S. The company, which took over rival Inmet Mining last year, gaining control of the huge Cobre Panama project in Panama, is poised to become one of the world's largest copper producers over the next five years, with a number of projects, including Cobre Panama in Central America, set to begin production. The Vancouver-based miner produced 101,553 tonnes of copper in the quarter, down 11 percent from the same period a year ago. Nickel output fell 5 percent and gold production fell by 21 percent. An ongoing lack of smelting availability in Zambia continued to hamper First Quantum's Kansanshi copper production in the southern African country, First Quantum's Chief Executive and Chairman Philip Pascall said on Thursday. "These constraints will ease substantially when our new smelter is in operation beginning in 2015," he said. Cash costs per pound of copper rose to $1.44 from $1.16 a year ago, while the average copper price the company received rose 1 cent to $3.11 a pound. (Reporting by Nicole Mordant in Vancouver; Editing by Chris Reese and Diane Craft) ((nicole.mordant@thomsonreuters.com; +1-604-664-7315; Reuters Messaging: nicole.mordant.thomsonreuters.com@reuters.net)) Keywords: FIRSTQUANTUM RESULTS/

BRIEF-Newmont Q3 adjusted earnings per share $0.50

October 30, 2014 - reuters.com

Oct 30 (Reuters) - Newmont Mining Corp NEM.N : * Announces third quarter operating and financial results * Q3 adjusted earnings per share $0.50 * Q3 earnings per share view $0.16 -- Thomson Reuters I/B/E/S * Says on track to meet full year production outlook(3)of 4.7 to 5.0 million attributable ounces of gold * Qtrly gold and copper aisc was $995 per ounce,$6.61 per pound, versus $1,018 per ounce and $3.24 per pound, in the prior year quarter * Delivered 1.15 million ounces of gold in Q3, down 10 percent * Delivered 13,700 tonnes of copper in Q3, down 29 percent * -q3 gold all-in sustaining costs were $995 per ounce versus $1,018 per ounce * Says 2014 capital has been reduced to between $1,150 and $1,220 million based on spending year-to-date * Says guidance for 2014 through 2016 has been adjusted to exclude la herradura * -q3 copper all-in sustaining costs $6.61 per pound versus $3.24 per pound * Copper volumes were lower in Q3 due to the shut-down at batu hijau effective June 5, 2014 through September 23, 2014 * Sees 2015 attributable gold production 4.5 million oz - 4.7 million oz * Sees 2016 attributable gold production 4.8 million oz - 5.1 million oz * Q3 sales $1.75 billion versus $2.02 billion last year * Q3 revenue view $1.70 billion -- Thomson Reuters I/B/E/S * Source text for Eikon ID:nBw5gJ2gBa * Further company coverage NEM.N ((Bangalore Newsroom; +1 646 223 8780))

First Quantum Minerals Q3 earnings drop along with output

October 30, 2014 - reuters.com

Oct 30 (Reuters) - Canadian base metal miner First Quantum Minerals Ltd FM.TO reported lower third-quarter earnings on Thursday due in part to lower copper and nickel production. The company, which primarily mines copper but also produces nickel and gold, said earnings fell to $121.2 million, or 21 cents a share, in the three months through September, from $143 million, or 24 cents, a year earlier. (Reporting by Nicole Mordant in Vancouver; Editing by Chris Reese) ((nicole.mordant@thomsonreuters.com; +1-604-664-7315; Reuters Messaging: nicole.mordant.thomsonreuters.com@reuters.net)) Keywords: FIRSTQUANTUM RESULTS/

UPDATE 3-Goldcorp sees rebound from weak 3rd qtr, stock slumps

October 30, 2014 - reuters.com

(Recasts with comments from conference call, updates stock price) By Nicole Mordant and Susan Taylor TORONTO, Oct 30 (Reuters) - Goldcorp Inc G.TO said on Thursday it expected "very strong" fourth-quarter production after its third-quarter earnings and output fell short of market expectations, pushing its stock down to a six-year low. Goldcorp, the world's biggest gold company by market value, repeated that its 2014 production will come in at the low end of its forecast of 2.95 million to 3 million ounces. "The production is delayed rather than lost. So, as has been the case for us in prior years, because we are growing production. We expect a very strong fourth-quarter finish," Goldcorp Chief Executive Officer Chuck Jeannes said on a conference call. Part of the reason for lower third-quarter output was the planned processing of low-grade stockpiled ore at Goldcorp's Penasquito mine in Mexico, Jeannes said. But that was just a temporary blip as the company got back to higher-grade material, he added. Goldcorp in January unveiled a rejigged mine plan for Penasquito to focus on higher-grade ore. Investors are demanding that miners focus on profits over production in the face of a gold price that has fallen by a third in three years. While Goldcorp's total production rose to 651,700 ounces of gold in the third quarter, from 637,100 ounces a year earlier, lagging market expectations. TD Securities analyst Greg Barnes said production missed his estimate of 761,000 ounces and that Goldcorp's 2014 forecast "looks like a stretch." Production in 2014 will be pinched by lower-than-expected production at its El Sauzal mine in Mexico, Goldcorp said, and a second-quarter work stoppage at Los Filos, also in Mexico. Mining at El Sauzal was halted last month as a safety precaution due to pit wall instability. Los Filos operations were suspended for about a month in April due to a dispute with a group of local landowners. ID:nL1N0R32FV ID:nL1N0MU15G The Vancouver-based company has suspended all development work at its El Morro gold and copper mine in Chile after the Supreme Court in the South American country ruled this that local indigenous groups who oppose the $3.9 billion project need to be better consulted, said Russell Ball, Goldcorp's vice-president of capital management. ID:nL2N0S21J4 Goldcorp said third-quarter adjusted earnings fell to $70 million, or 9 cents a share, from $190 million, or 23 cents a share, in the same period last year, below analysts' expectations of 18 cents. Goldcorp shares closed at C$20.84 on the Toronto Stock Exchange, a 13 percent decline. The stock was also weighed down by a slide in the price of gold to below $1,200 an ounce, which hit gold stocks across the board. The Goldcorp results included a writedown of $36 million, or 4 cents per share, on the value of low-grade Penasquito stockpiles. All-in sustaining costs per ounce of gold climbed to $1,066, compared to $995 last year, as the average realized gold price fell to $1,266 an ounce, from $1,339. Goldcorp said it sees 2014 all-in sustaining costs at the low end of its forecast range of $950 to $1,000 per ounce. (Reporting by Susan Taylor; Editing by W Simon and Alan Crosby) ((susan.taylor1@thomsonreuters.com; +1 416 941 8083; Reuters Messaging: susan.taylor1.thomsonreuters.com@reuters.net)) Keywords: GOLDCORP RESULTS/

BRIEF-Eldorado Gold Q3 earnings per share $0.03

October 30, 2014 - reuters.com

Oct 30 (Reuters) - Eldorado Gold Corp ELD.TO : * 2014 third quarter financial and operating results * Q3 adjusted earnings per share $0.05 * Q3 earnings per share $0.03 * Q3 earnings per share view $0.05 -- Thomson Reuters I/B/E/S * Q3 revenue $263.5 million versus I/B/E/S view $284 million * Q3 gold sold 189,321 (ounces) versus 199,117 (ounces) * Gold -qtrly gold revenues were $241.2 million on sales of 189,321 ounces of gold at an average realized gold price of $1,274 per ounce * Mill foundations were completed and the sag and ball mill installations are now underway at skouries * Source text for Eikon ID:nCCN27x3kS * Further company coverage ELD.TO ((Bangalore Newsroom; +1 646 223 8780))

PRECIOUS-Gold, silver tumble on strong U.S. growth data, Fed outlook

October 30, 2014 - reuters.com

* Silver sinks about 4 percent to more than 4-1/2-year low * U.S. reports robust economic growth in third quarter * Holdings of largest gold ETF fall to six-year low (Updates market activities) By Frank Tang and Jan Harvey NEW YORK/LONDON, Oct 30 (Reuters) - Gold fell 1 percent to $1,200 an ounce and silver plunged to its lowest level in more than four-and-a-half years on Thursday, hit by strong third-quarter U.S. economic growth and worries the Federal Reserve might raise interest rates sooner than expected. A smaller trade deficit and a surge in defense spending buoyed U.S. growth in the third quarter, but domestic demand slipped, hinting at some loss of momentum, Commerce Department data showed. ID:nLNNULEA31 Follow-through selling continued in the gold market a day after the U.S. central bank gave upbeat comments about U.S. economic growth and ended its year-long, bond-buying stimulus program. Analysts said expectations the Fed could hike interest rates sooner than forecast, further strengthening the dollar, could increase the pressure on gold prices. "Our sense is that there are still obviously more adjustments still to come in terms of (higher) real rates and the dollar, and we do feel that gold will be breaking those lows," said Michael Lewis, head of commodity research at Deutsche Bank. Spot gold XAU= fell as low as $1,195.70 an ounce, which marked a three-week low, and was down 1.1 percent to $1,198.70 an ounce at 3:16 p.m. (1916 GMT). U.S. COMEX December gold futures GCZ4 settled down $26.30 at $1,198.60, with volume on track to close above its 30-day average, preliminary Reuters data shows. U.S. interest rate futures shifted to show better-than-even chances of a rate rise next September. Previously, they had indicated a rise in October. That dented interest in gold, which as a non-yielding asset tends to benefit from ultra-low rates. On Wednesday, the U.S. central bank largely dismissed financial market volatility, a slowdown in Europe and a weak inflation outlook as factors that might limit progress towards its unemployment and inflation goals. ID:nL1N0SO24I The dollar's gains and data showing weak price pressures in Germany and Spain also weighed on precious metals. ID:nL5N0SP4BA FRX/ In a reflection of investor sentiment, the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , said its holdings fell 1.2 tonnes to 742.40 tonnes on Wednesday, a six-year low. GOL/ETF Last week, the fund reported its biggest weekly outflow this year, undermining any possible rally in gold. Silver XAG= was down 3.7 percent at $16.41 an ounce on Thursday, having earlier hit its lowest level since March 2010 at $16.30 an ounce. COMEX options floor trader Jonathan Jossen said investors sold silver on heavy losses in copper and technical selling after it broke below key support near $16.80 an ounce, close to its recent low from earlier this month. Spot platinum XPT= fell 1.2 percent to $1,239 an ounce, while spot palladium XPD= dropped 1.6 percent to $777.25 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by William Hardy, David Clarke, Marguerita Choy and Paul Simao) ((Frank.Tang@thomsonreuters.com)(+1 646 223 6126)(Reuters Messaging: frank.tang.thomsonreuters@reuters.net)(Twitter @FrankTangTweets)) Keywords: MARKETS PRECIOUS/

BRIEF-IAMGOLD continues to operate without interruption in Burkina Faso

October 30, 2014 - reuters.com

Oct 30 (Reuters) - IAMGOLD Corp IMG.TO : * Continues to operate without interruption in Burkina Faso * Says operations continue in burkina faso uninterrupted * Says essakane mine in burkina faso continues to operate without interruption despite civil unrest in the capital of ouagadougou * IAMGOLD continues to operate without interruption in burkina faso * Source text for Eikon ID:nPn35y8QV * Further company coverage IMG.TO ((Bangalore Newsroom; +1 646 223 8780))

Burkina army chief announces creation of transitional government

October 30, 2014 - reuters.com

OUAGADOUGOU, Oct 30 (Reuters) - The head of Burkina Faso's armed forces announced on Thursday the dissolution of the national assemably and the creation of a national transitional government to last a maximum of 12 months, though he did not say who would lead it. "A transitional body will be put in place in consultation with all parties. A return to the constitutional order is expected in no more than 12 months," General Honore Traore told a news conference after a day of violent protests in the capital. (Reporting by Mathieu Bonkougou in Ouagadougou and Bate Felix in Dakar; Editing by Daniel Flynn) ((daniel.flynn@thomsonreuters.com; +221 33 864 5076; Reuters Messaging: daniel.flynn.thomsonreuters.com@reuters.net)) Keywords: BURKINA POLITICS/MILITARY

Burkina opposition rejects state of emergency, calls for show of strength

October 30, 2014 - reuters.com

DAKAR, Oct 30 (Reuters) - Burkina Faso opposition leader Zephirin Diabre rejected a state of emergency ordered by President Blaise Compaore and said the West African leader's resignation was the only solution to the country's crisis. Diabre called on supporters to show that they were against the state of emergency announced after thousands of protesters stormed parliament and state television, forcing the government to abandon plans to change the constitution to allow Compaore to stand for relection next year. "The state of emergency is unacceptable. We are calling on the people to show that they are against it," he told Radio Omega, a local broadcaster. "The resignation of President Blaise Compaore is the only thing that can bring peace to the country." (Reporting by Bate Felix; Writing by David Lewis; Editing by Daniel Flynn) ((david.lewis2@thomsonreuters.com; Dakar Newsroom +221 338645076; Reuters Messaging: david.lewis2.thomsonreuters.com@reuters.com)) Keywords: BURKINA POLITICS/OPPOSITION

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