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Feb 10, 2011

Financial & Forex Info News: Kitco: New York Market Close Report

New York Market Close Feb 10/11 05:20 PM EST

Find and claim the cash that's waiting for you: MarketWatch - Personal Finance Daily


Personal Finance Daily
FEBRUARY 10, 2011

Thursday's Personal Finance Stories

By MarketWatch

Don't miss these top stories:
There's billions in unclaimed cash and property laying around the U.S. and some of it probably is yours. Today in our special report, "Dead Money: America's lost billions," we'll show you how to search for and claim what you might be owed out of the $33 billion being held by state treasurers and other agencies.

It may be a utility refund, credit balance, dividend check, insurance settlement, wage or other type of financial instrument in more than 117 million accounts in the U.S., according to the National Association of Unclaimed Property Administrators. A MarketWatch survey of some of the funds shows a surprising number of celebrities, politicians and even Wall Street banks have left behind a trail of unclaimed funds.

Plus, read about how to defend your portfolio against currency risks, and what the January foreclosure data bodes for the rest of the year.

Anne Stanley , Managing Editor, Personal Finance


Across America, on the computer systems of state treasurers, controllers and tax officials, sits the pocket lint of the U.S. economy. Utility refunds, credit balances, custodial accounts, dividend checks, insurance payments, paychecks and financial instruments of all kinds lie abandoned and unloved. Individually the amounts range from the trivial — as little as a penny — to, in one case in New York, $1.7 million.
See special report on reclaiming your lost billions.

How to claim your cash

Here's a primer on searching out unclaimed funds and property and how you can get what might be owed to you.
Read more: How to claim your cash.

Celebs, politicians, companies leave money behind

From Angelina to Zsa Zsa, Steven Jobs to Sergey Brin, the chairman of the Fed to the CEO of Goldman Sachs, the famous and the rich share a common failing with the rest of us: they've misplaced some of their money.
Read more: Celebs, politicians, companies leave money behind.

Slideshow: The most famous stars who have lost some money.

Changing rules forcing business compliance

Fast-changing rules for unclaimed property force businesses to adapt to keep in compliance.
Read more: Changing rules forcing business compliance.


Mortgage rates jump to 10-month high

The average rate on 30-year fixed-rate mortgages hits its highest level since the last week in April 2010, after positive economic reports caused long-term bond yields to rise, Freddie Mac's chief economist said on Thursday.
Read more: Mortgage rates jump to 10-month high.

Foreclosure filings fall 17% in January

The volume of foreclosure filings fell 17% in January compared with the same month a year earlier, according to a report from RealtyTrac on Thursday. Filings rose 1% compared with December.
Read more: Foreclosure filings fall 17% in January.

RealtyTrac says we're in the eye of the foreclosure storm

Foreclosure activity continued its slower pace in January, but "unfortunately... we think it's a short-term anomaly," says Rick Sharga of RealtyTrac, "and it's very likely we're going to see another spike in foreclosure activity by the end of the quarter."
Listen to podcast: RealtyTrac says we're in the eye of the storm.


Mandated sick-leave policy appears to be working

Proponents said it would keep sick, potentially infectious workers from dragging themselves into work, plus allow parents to better care for ill children. Opponents said the extra costs would drive businesses out of the city limits and restrain job growth.
Read more: Mandated sick-leave policy appears to be working.


Pay czar's bank negotiations ‘troublesome': panel

A Treasury Department pay czar's decision not to negotiate reimbursements of executive pay before February 2009 from bailed out banks is "troublesome," a key government overseer group said Thursday in a critical report.
Read more: Pay czar's bank negotiations ‘troublesome,' panel says.

Weekly jobless claims drop below 400,000

After weeks of volatility, U.S. data show what's considered a key level in determining the extent of hiring in the jobs market.
Read more: Weekly jobless claims drop below 400,000.

Portugal yields soar, underline euro worries

Portugal finds itself in an unwelcome spotlight as bond yields soar, forcing the European Central Bank to intervene in markets and demonstrating that worries about euro-zone sovereign debt are far from over.
Read more: Portugal yields soar, underline euro worries.

Bank of England leaves rates on hold

The central bank keeps its key lending rate at a record low 0.5% and makes no other changes to monetary policy, but economists say the decision may have been a close call.
Read more: Bank of England leaves rates on hold.


In muni bonds, danger and hope

"State and Municipal Debt: The Coming Crisis?" is the provocative topic of a congressional hearing Wednesday, which among other things will consider whether states should be allowed to file for bankruptcy protection.
Read more: In muni bonds, danger and hope.

SEC probes insider trades with ETFs: report

Regulators are investigating whether traders with inside information on a company are using exchange-traded funds to conceal their activities.
Read more: SEC probes insider trades with ETFs.

How to protect yourself against currency risk

Combining assets with low correlations against one another may help boost the risk-adjusted returns of an overall portfolio.
Read more: How to protect yourself against currency risk.

Investors needn't bail at first whiff of risk

Political instability heightens risks for investors, who should remember that not all change is bad or unprofitable, writes Rex Nutting.
Read more: Investors needn't bail at first whiff of risk.

End of the low-interest-rate era?

Bonds rebounded Wednesday after the 10-year auction and Fed Chairman Bernanke's soothing statement about inflation's non-appearance. But, reports Peter Brimelow, top letters say the end is nigh.
Read more: End of the low-interest-rate era?

The bull market is here to stay

Here are 11 recent facts and figures that appear to be pointing toward sustained economic growth and a bull market that is here to stay.
Read more: The bull market is here to stay.

Investors shouldn't fret about the yield rise

Wall Street investors shouldn't worry so much about the 10-year Treasury yield rising to nine-month highs.
Read more: Investors shouldn't fret about the yield rise.

Emerging markets rewards are worth the risk

Flare-ups of antigovernment protests, political shake-ups, food riots and other violence have soured investor interest in emerging markets, smothering investing prospects for countries that were already struggling with rising inflation and interest rates.
Read more: Emerging markets rewards are worth the risks.


Real Madrid, Barcelona top soccer's revenues list

Spanish soccer's two powerhouse clubs, Real Madrid and Barcelona, are also dominating the off-field rankings, leading the world in money in the past year.
Read more: Real Madrid, Barcelona top soccer's revenue list.

Evening Market Wrap

Evening Market Wrap
Thursday, February 10, 2011, 17:01

Stocks closed on a split note on Thursday, with traders looking to a speech by Egyptian President Hosni Mubarak in which he indicated that he would be passing some authority on to Vice President Omar Suleiman, although he himself would remain in office until September. Full Article
Economic News
First-time claims for unemployment benefits in the U.S. showed a substantial decrease in the week ended February 5th, according to a report released by the Labor Department on Thursday, with claims once again pulling back below the key 400,000 level. However, the Labor Department indicated that the data was once again impacted by severe winter weather, which has contributed to significant volatility in the data in recent weeks. Full Article
Corporate News
French telecommunications equipment maker Alcatel-Lucent (ALU) Thursday reported a surge in its fourth-quarter profits, driven by strong revenue growth in all geographic regions, as well as business segments. On an adjusted basis, earnings per ADS topped Wall Street analysts' estimate. The company also said it expects strong profit and market improvement in 2011 but lowered its adjusted operating margin outlook for the year. Full Article
Telecommunication services provider Sprint Nextel Corp. (S) on Thursday reported a narrower loss for the fourth quarter, reflecting a 6 percent increase in revenues as it witnessed "the best" net postpaid subscriber additions in nearly five years. The company's net loss for the fourth quarter narrowed to $929 million or $0.31 per share from $980 million or $0.34 per share in the year-ago period. Full Article
Food and beverage giant PepsiCo, Inc. (PEP) fourth-quarter profit was down from last year, and the company issued disappointing guidance for 2011 amid concerns about soaring input costs. Looking ahead to fiscal 2011, PepsiCo is targeting earnings growth of around 7 percent, short of analyst expectations for 11 percent growth. Full Article
Financial news and information provider Thomson Reuters Corp. (TRI, TRI_PB.TO) reported Thursday a higher profit for its fourth quarter, mainly reflecting the absence of prior year's finance costs. Adjusted earnings per share declined from last year and missed market projections. Looking ahead to fiscal 2011, Thomson Reuters expects its revenues to grow mid-single digits. Full Article
Political News
While recent national polls suggest that Americans want the government to focus on creating jobs, the results of a Quinnipiac University poll released on Thursday suggest that the sentiment does not extend to state workers in New Jersey. The poll showed that 56 percent of New Jersey voters support layoffs of state employees to balance the state budget compared to 38 percent that are opposed. Full Article
Federal Reserve Governor Kevin Warsh has submitted a letter of resignation to President Barack Obama, the Federal Reserve said on Thursday, with his resignation creating a second vacancy on the seven-member Board of Governors. Warsh, who has been a member of the Board of Governors since February 2006, said that he intends to resign on or around March 31, 2011. Full Article
Arizona Senator Jon Kyl, R-Ariz., announced Thursday that he will not seek re-election in 2012, becoming the fifth senator to announce plans to retire at the end of their current term. Kyl, who is currently in his third term in the Senate after having served four terms in the House, is the second ranking Republican member of the Senate behind Minority Leader Mitch McConnell, R-Ky. "Simply put, it is time – time to do something new," Kyl said in a letter to supporters. Full Article

NYT: Afternoon Business News: Panel Finds Banks Were in Danger


Panel Finds Banks Were in Danger

Documents released recently by the Financial Crisis Inquiry Commission provide fresh detail on just how close to collapse two big banks were.

Search for Low Air Fares Gets More Competitive

Google is looking to enter air travel search, and American Airlines wants to bypass online agents like Expedia.

Kevin Warsh Plans to Resign From Fed's Board of Governors

Mr. Warsh helped manage the Federal Reserve's response to the financial crisis and served as Ben S. Bernanke's liaison to Wall Street and conservative Republicans.

What's Next for Exchange Mergers?

The consensus among analysts is that operators like the Nasdaq OMX Group and the CME Group need to find their own partners to better compete against increasingly international rivals.

Old Mines Reopen in a Revival of California's Gold Rush

With gold prices soaring, several mining companies are looking to reignite a long-dormant industry, in some cases using the same mines as 1848 prospectors.

Financial And Forex Info News | Wall St mixed as Egypt, Cisco weigh | The Australian Business Briefing


Wall St mixed as Egypt, Cisco weigh
Wall St Brendan Conway US stocks finished mixed today as Egyptian President Hosni Mubarak delegated some powers to his deputy, easing some worries, and Cisco slumped.
Hong Kong exchange catches merger bug
Hong Kong stock exchange Helen Power THE world's biggest stock exchange, Hong Kong, has opened the door to a mega-merger.
Rio to return $5bn to shareholders
Tom Albanese Matt Chambers RIO Tinto has almost tripled its full-year net profit to a record $US14.32 billion and unveiled a $US5 billion share buyback.
G20 likely to move on capital controls
Timothy Geithner, US Treasury Secretary Nathalie Boschat, Sebastian Moffett and Ian Talley THE world's economic leaders are expected to agree next week on the need for a new system to oversee international capital flows.
Price war risk for home lending
Ralph Norris Scott Murdoch COMMONWEALTH Bank's plan to rebuild its domestic mortgage business could start a home loan price war.
Mullen plans to integrate Asciano
John Mullen Tracy Lee JOHN Mullen has lived and worked on every continent and spent years running one of the world's largest logistics groups.
Global takeover wave propels ASX bid
Stock exchange Scott Murdoch THE consolidation of global stock exchanges could increase the likelihood of political and regulatory approval for Singapore's ASX bid.
Telstra banks on boost to revenue
David Thodey Mitchell Bingemann TELSTRA is banking on a big revenue boost in the next 18 months after spending more than $500 million to lure customers back to its network.
Financial Markets
Wall St mixed as Egypt, Cisco weigh
Wall St Brendan Conway US stocks finished mixed today as Egyptian President Hosni Mubarak delegated some powers to his deputy, easing some worries, and Cisco slumped.
Oil wobbles on Egyptian uncertainty
Gold flat as investors eye Egypt
Financial Markets Coverage

Financial & Forex Info News: The world watches as Egypt waits: | The Australian Capital Circle


Capital Circle Newsletter

The world watches as Egypt waits
Egyptian President Hosni Mubarak has refused to step down.

Speculation reached fever pitch today that President Mubarak would step aside. US President Barack Obama declared the world was watching history unfold in Egypt. But President Mubarak has refused to step down.
Directly addressing the youth of the country moments ago, he said he was proud of them for pushing for reform but insisted that a power transition would happen through a fair dialogue. The President said all political parties had agreed to a dialogue and that a clear road map would be established, with work on that road map to start today and constitutional reform a priority.
"I intend to fulfil what I already promised faithfully,'' President Mubarak said, adding that he knew how dangerous the situation is at present, and acknowledging Egypt was passing through a very tough time. The question no one can answer yet is how the military, and the protesters, will respond.
The PM's day, per the press office: Prime Minister Julia Gillard will begin her day in Canberra. She will hold a press conference in Canberra about the situation in Egypt this morning. Later today she will travel to Sydney to deliver the Mick Young scholarship trust speech.
Tony Abbott is in Canberra and will attend a forum at the Menzies Research Centre today.
The confidential review of the ALP's 2010 campaign will be handed to the party's national secretariat today. The 24 members of the national executive, the party's ruling body, will then receive it - and a lengthy briefing - from the review's three authors, John Faulkner, Steve Bracks and Bob Carr, next Friday. It's understood all  recommendations contained in the review are likely to be unanimously adopted by the executive, while a formal response from the ALP has been pencilled in for June. Donations - particularly the efficacy of the party's online fund raising mechanisms - figure in the review.
Professor Ross Garnaut's third paper on global warming will be released this morning in Melbourne.
Read more

Ron Paul's economic Rx: a Southern secessionist(2): The Washington Post Afternoon Edition - Today's 10 Most read Opinion Columns

Washington Post

1) Why 33 rounds makes sense in a defensive weapon

Sleek, its lines rakishly tilted to boost the ergonomics that index grip placement to barrel, this automatic pistol has but one function: to eliminate human beings easily. That sinister intent is expressed most eloquently in the extended magazine that reaches far beneath the pistol grip, easily...

2) Ron Paul's economic Rx: a Southern secessionist

Ron Paul used his first day as subcommittee chairman to usher in an unusual witness.

3) How the Affordable Care Act empowers states

Critics of the health law should realize it puts states in the driver's seat.

4) In the Middle East, a Catch-22 for the CIA

The agency's caught in a jam that's emblematic of America's Mideast problem.

5) Obama's next act: Recapturing the magic of 2008

The president has ditched Pontiac-style politics for the fresher look of the Chevy Volt.

6) Democracy supporters should not fear the Muslim Brotherhood

Democracy supporters shouldn't fear our Islamic movement.

7) What Israel fears in Egypt

If peace with Egypt dissolves, the risks to the Jewish state cannot be overstated.

8) Editorial: Virginia's Sen. Jim Webb bows out

SEN. JIM WEBB of Virginia announced Wednesday, on his 65th birthday, that he would not seek reelection next year to the U.S. Senate . Mr. Webb, a Democrat, had originally given himself until April to make a decision on his future, but it's easy to imagine him moving up the date as a sort of birthday...

9) Arianna Huffington's ideological transformation

Did she just sell out her fellow progressives?

10) Andrew Cuomo and the liberal case for Social Security cuts

If the N.Y. governor can cut entitlement spending, can't Obama reign in social security?

The Economist : Politics this week

Politics this week
Feb 10th 2011
From The Economist print edition

Tunisia’s interim president assumed the power to rule by decree, as the interior ministry suspended the former ruling party, the Constitutional Democratic Rally. Its officials will no longer be allowed to meet and its offices are to be closed down. See article
Kuwait’s interior minister resigned from the government following revelations about torture in prisons. The Kuwaiti emir accepted the resignation after critics called for political reforms in the wake of demonstrations in Egypt and Tunisia.
The head of the Sudanese government, Omar al-Bashir, accepted the result of the secessionist referendum in ten southern provinces that is expected to lead to the formation in July of an independent state, which will probably be called South Sudan. According to the final count, 98.8% of the almost 3.9m registered voters approved the split.

Cuba charged Alan Gross, whom the United States describes as an aid worker, with plotting against the state, a crime that carries a 20-year prison sentence. Mr Gross was arrested in December 2009 while working for the Cuba Democracy Project, an American government programme aimed at promoting political change. Cuban officials said he was distributing satellite dishes, which are illegal on the island, to Jewish groups.
Haiti’s outgoing government issued a diplomatic passport to Jean-Bertrand Aristide, a former president who has lived in exile in South Africa since being ousted seven years ago. His American lawyer said that Mr Aristide, a popular but divisive figure, wants to return home “as soon as he can”.
Brazil’s new government announced cuts of 50 billion reais ($30 billion) in budgeted spending for 2011, as it seeks to cool an overheated economy. Inflation for January was 0.8%, taking the annual figure to 6%.

Cambodia’s prime minister said that skirmishes with Thailand around a disputed site on their border had escalated into “a real war”. Both sides engaged in artillery and heavy-machinegun fire. The area under contention is tiny but surrounds an 11th-century Khmer temple complex designated as a World Heritage site. Cambodian troops apparently fortified the temple. See article
A Taliban suicide-bomber attacked an army recruiting camp in Mardan in north-west Pakistan, killing and injuring dozens of people.
The UN issued a special alert about the drought afflicting China this winter. China’s official media called it the worst drought in 60 years. The state media also claimed that Shandong province, the most important centre for wheat, has had its worst season in 200 years. China has been self-sufficient in grains, though demand is huge. If it starts to import wheat, world prices are likely to rocket.
Taiwan said it had arrested one of its generals as a spy for China. General Lo Hsien-che is thought to have been working for the mainland for at least five years. Relations between Taiwan and China have improved under Taiwan’s Kuomintang government.
North Korea and South Korea sent military delegations to meet in the demilitarised zone, their first such encounter since the North shelled the island of Yeonpyeong in November, killing three civilians. The South’s cheek-turning was for naught: the North Korean colonel and his attaché stormed out of the meeting, leaving the talks in a state of “collapse”—and perhaps angling for further concessions.
Indonesians were shocked by two attacks against religious minorities. Four members of the Ahmadi sect were beaten to death by a mob of orthodox Muslims in western Java while police stood by, doing little to protect the victims. In central Java, meanwhile, a mob burned down Christian churches.

Two more moderate Democrats in Congress decided to call it a day. Jim Webb said he would not seek re-election as senator for Virginia next year, and Jane Harman said she was stepping down from her Los Angeles congressional seat to head a foreign-policy think-tank.
Congressional Republicans aligned to the tea-party movement helped to defeat a measure in the House that would extend provisions in the Patriot Act related to government surveillance and access to library records. The measure will be voted on again soon.
Florida’s governor unveiled a budget that proposes spending cuts of $4.6 billion in programmes such as Medicaid, but also lowers property and corporate taxes by $4 billion.

Prosecutors in Italy asked a judge to put Silvio Berlusconi on a fast track to a trial on charges of paying for sex with an underage prostitute and abusing his office to cover it up. Mr Berlusconi called the charges “disgusting”. But the judge is expected to give her approval, and the trial could begin within months. See article
France’s president, Nicolas Sarkozy, told his cabinet to take their holidays at home. This came after scandals revealed that the prime minister, François Fillon, accepted free boat and plane trips from Egypt’s president, Hosni Mubarak, and the foreign minister, Michèle Alliot-Marie, had taken flights paid for by a friend of the former Tunisian president. See article
Doku Umarov, a notorious Chechen terrorist leader, said that he had ordered last month’s suicide-bombing at Moscow’s Domodedovo airport, which killed 36 people. The Russian police arrested the siblings of the man they claim was the suicide-bomber.
In a speech in Munich, David Cameron claimed that “state multiculturalism” had failed and had led many Britons to live segregated lives. The British prime minister wants to foster a stronger sense of national identity. He made his speech on the day that the English Defence League, a far-right group, marched through Luton, a town with a large Muslim population. See article

Gold , Silver Bars, Silver & Gold Swaps: GATA - THE GATA DISPATCHES

Dutch govt. orders pension fund to sell gold, Zero Hedge says

12:02p ET Thursday, February 11, 2011
Dear Friend of GATA and Gold:
Zero Hedge today reports that the Netherlands government has ordered a pension fund to sell most of its gold holdings on the grounds that the gold price fluctuates too much for gold to qualify as a proper investment. The Zero Hedge report can be found here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Perth Mint, Scotia out of hundred-ounce silver bars, KWN says

11:36a ET Thursday, February 10, 2011
Dear Friend of GATA and Gold (and Silver):
King World News reports today that the Perth Mint has no inventory of hundred-ounce silver bars and expects none until the end of March and that such bars remain unavailable at Scotia Mocatta as well. The King World News report can be found here:
Or try this abbreviated link:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Warsh, who confirmed gold swaps, to leave Fed next month


Kevin Warsh Plans to Resign From Fed's Board of Governors
By Sewell Chan
The New York Times
Thursday, February 10, 2011
WASHINGTON -- Kevin M. Warsh, who helped manage the Federal Reserve’s response to the financial crisis and was Chairman Ben S. Bernanke's liaison to Wall Street and conservative Republicans, plans to leave the bank's board of governors around March 31.
The departure of Mr. Warsh, 40, gives President Obama another opportunity to leave his stamp on the Fed. In addition to naming Mr. Bernanke to another four-year term last year, Mr. Obama has named three others to the seven-member board; a fourth nominee is awaiting Senate confirmation.
Mr. Warsh, a former investment banker at Morgan Stanley, was had pivotal role in the Fed's response to the financial crisis in 2008: arranging the sale of Bear Stearns to JPMorgan Chase, allowing Lehman Brothers to go into bankruptcy (the Fed maintains there was no other option), and then bailing out the American International Group, the insurance giant.
In a statement, Mr. Bernanke praised Mr. Warsh for "exemplary service" and said "his intimate knowledge of financial markets and institutions proved invaluable during the recent crisis."
"I deeply appreciate his insights and wise counsel and, most especially, his fortitude and friendship during the difficult days, nights and weekends of the crisis," Mr. Bernanke said in the statement.
In recent months, Mr. Warsh has at times distanced himself from Mr. Bernanke, who has pushed the Fed to take extraordinary measures to speed the recovery. Five days after the Fed's policy-marking arm voted on Nov. 3 to buy $600 billion in Treasury securities -- the second round of a strategy intended to lower long-term interest rates -- The Wall Street Journal published an op-ed article by Mr. Warsh expressing considerable doubt.
Though Mr. Warsh voted for the bond-buying plan -- by Fed tradition, members of the board almost never vote against the chairman -- he said he considered the strategy a "necessarily limited, circumscribed, and subject to regular review," and added that "policies should be altered if certain objectives are satisfied, purported benefits disappoint, or potential risks threaten to materialize."
In his resignation letter to Mr. Obama on Thursday, Mr. Warsh wrote, "I am honored to have served at a time of great consequence."

Ted Butler: Silver soon may be the rarest earth

11:36a ET Thursday, February 10, 2011
Dear Friend of GATA and Gold (and Silver):
While "rare earths" are a sensation in the investment world, silver market analyst Ted Butler writes this week that circumstances are developing to make silver much rarer than the metals claiming that title. Butler's commentary is headlined "The Rarest Earth" and you can find it at GoldSeek's companion Internet site, SilverSeek, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Join GATA here:

Phoenix Investment Conference and Silver Summit
Renaissance Glendale Hotel and Spa
Friday-Saturday, February 18-19, 2011
Glendale, Arizona

Support GATA by purchasing a colorful GATA T-shirt:

British Pound Rises Versus Euro on Interest-Rate Expectations as BOE Holds

The pound strengthened against all of its major peers on speculation the Bank of England will be forced to raise its benchmark interest rate before year-end, even after it left the rate unchanged at 0.5 percent today.
Sterling advanced most versus the Norwegian krone and also climbed against the euro. The bank’s nine-member Monetary Policy Committee, led by Governor Mervyn King, left its main rate at a record low to boost the economy, even as inflation remains at almost twice the pace of its 2 percent limit. The move was predicted by all 62 economists surveyed by Bloomberg.
“Despite that the bank hasn’t acted, the market is pricing in a hike by the third quarter, which is supportive of sterling,” said Mike Berg, a foreign exchange strategist at 4Cast Ltd. in London. “The bank is going to tighten sooner rather than later, but the expectations for a hike at this meeting were unrealistic.”
The pound was 0.9 percent stronger at 84.47 pence per euro at 4:41 p.m. in London. Britain’s currency added 0.1 percent to $1.6121, for a second day of gains.
Short-sterling futures fell, lifting the implied yield on the contract expiring in December by two basis points to 1.74 percent. A higher yield indicates investors are adding to bets that policy makers will increase borrowing costs.
The Bank of England is under mounting pressure to raise borrowing costs for the first time since July 2007 to help curb inflation, which has exceeded its target level for more than a year. Inflation accelerated to 3.7 percent in December, equaling an April reading that was the highest since November 2008.
‘Losing Credibility’
Former rate setter DeAnne Julius said yesterday the bank needs to tighten policy “sooner rather than later” or risk losing credibility. Policy committee member Martin Weale joined colleague Andrew Sentance in voting for a rate increase at the group’s Jan. 13 meeting on concern that inflation may become entrenched.
Today’s rate deliberations were based on new quarterly economic forecasts, which King will present at a press conference on Feb. 16. The central bank governor has said inflation may accelerate to more than 4 percent before easing as government spending cuts and slower-than-estimated economic growth curb price pressures.
U.K. two-year notes fell, with the yield on the 4.5 percent security due March 2013 little changed at 1.56 percent. The note fell 0.015, or 15 pence per 1,000 pound ($1,612) face amount to 105.975. Ten-year yields increased one basis point to 3.88 percent.
‘Complacent’ Market
Gilts will probably underperform Treasuries and European bonds as the Bank of England begins to focus more on inflation, Michael Amey, executive vice president for U.K. fixed income at Pacific Investment Management Co, said today in an interview with Bloomberg Television.
“If anything the market’s being a little bit complacent” about interest-rate increases, said Amey.
The U.K. 10-year breakeven rate, an indication of investors’ inflation expectations over the life of the securities, derived from the yield gap between conventional and index-linked bonds, was little changed at 3.27 percent. The rate climbed as high 3.33 percent on Feb. 7, the highest level since September 2008.
To contact the reporter on this story: Garth Theunissen in London
To contact the editor responsible for this story: Daniel Tilles at


London Fix Thu Feb 10 00:00:00 EST 2011
USD 1358.75 1353.25   29.80 1834.00
818.00 822.00
UK 844.89 843.94   18.57 1141.95
509.35 512.30
EURO 995.35 996.21   21.85 1345.05
599.95 603.95

Egypt's Mubarak may step down: reports. MarketWatch - Market Pulse

By Sue Chang 
SAN FRANCISCO (MarketWatch) -- President Hosni Mubarak of Egypt may bow to pressure and step down Thursday evening with Vice President Omar Suleiman taking over, according to media reports Thursday. The Egyptian military's supreme council has been meeting for several hours and will shortly issue a communique that they say will meet the protesters' demands, the Wall Street Journal reported on its website. Hossan Badrawi, secretary general of the ruling National Democratic Party, told the BBC that Mubarak is likely to speak to the nation later.

Wholesales inventories and sales Up Dec. /N ov., and year

Economics and Statistics Administration Logo

Wholesale inventories in December 2010 were $430.5 billion, up 1.0 percent from November and up 10.5 percent from one year ago.  Sales were $371.5 billion, up 0.4 percent from the prior month and up 11.6 percent from the prior year.

Daily Market Analysis

Daily Market Analysis
Thursday, February 10, 2011, 09:16

The major U.S. index futures are pointing to a lower opening on Thursday, with sentiment not improving markedly despite the release of a report that showed a steep decline in jobless claims. Traders may use some mixed earnings reports as reason for taking profits. Commodity prices are continuing to see weakness, with oil losing ground despite upbeat growth outlook issued by the International Energy Agency and OPEC, and the dollar is gaining ground against the euro-indications of waning risk appetite. Full Article

Forex Market Update

Forex Market Update
Thursday, February 10, 2011, 09:03

Economic News
Brazil has pledged to cut 50 billion reais ($30 billion) from its 2011 budget in a bid to rein in inflation and avert the economy overheating.Full Article
Swiss consumer confidence rose to the highest level in three years as households' assessments of future unemployment and job security improved. Separate data showed that consumer price inflation slowed unexpectedly. Full Article
Production in Italian industrial sector grew more than forecast in December, mostly bolstered by surging external demand, latest figures showed Thursday. Full Article
Price developments in the euro area needs to be monitored closely given that the currency bloc is facing short-term upward pressure on overall inflation, the European Central Bank said in its latest monthly bulletin released Thursday. Full Article
RealtyTrac, an online marketplace for foreclosure properties, Thursday said foreclosure filings in January edged up 1 percent from the previous month, while it decreased 17 percent year-over-year. Full Article
First-time claims for unemployment benefits in the U.S. showed a substantial decrease in the week ended February 5th, according to a report released by the Labor Department on Thursday, with claims once again pulling back below the key 400,000 level. Full Article
Forex Top Story
UK factory output declined in December for the first time in eight months due to adverse weather. Full Article
Despite inflation running above the 2% target, the Bank of England decided to hold its key rate at a historic low as expected and the size of quantitative easing at GBP 200 billion amid weak economic activity. Full Article
The Philippine central bank on Thursday decided to maintain its key interest rates unchanged at record lows amid muted inflationary pressures. Full Article
Core machinery orders in Japan rose a seasonally adjusted 1.7% in December compared to the previous month, the Cabinet Office said on Thursday, rising for the first time after three straight months of decline. Full Article
The unemployment rate in Australia held steady in January, the Australian Bureau of Statistics said on Thursday, remaining at a seasonally adjusted 5% - in line with expectations. Full Article
The International Energy Agency upwardly revised its global oil demand forecast on higher-than-expected submissions in non OECD Asia and improved economic prospects for OECD North America. Full Article
The price of gold moved down Thursday morning as the dollar firmed up ahead of weekly jobless claims data. Full Article
The Organization of the Petroleum Exporting Countries, or the OPEC, has revised the total world oil demand forecast for 2010 and 2011.Full Article
The price of crude oil moved down near $86 Thursday morning, a day after the government said U.S. crude inventories moved up last week. Full Article
Analyst Currency Comments
The Australian dollar that climbed immediately after the release of an encouraging domestic jobs data failed to hold on its gains and declined through the Asian session on Thursday, Westpac noted. Full Article
Currency Alerts
The Aussie that climbed in early Thursday Asian deals after the release of the Australian jobs data pared gains shortly as a slide in most Asian stocks reduced demand for higher-yielding currencies. The aussie fell to an 8-day low against the US dollar, 2-day low against the Canadian and New Zealand dollars, 3-day low against the yen and a 1-week low against the euro. Full Article
Thursday in early European deals, the U.S. dollar strengthened against other major currencies as a fall in most Asian and European stocks boosted demand for the safe-haven greenback. Full Article
The Swiss franc edged lower against its major rivals in early European trading on Thursday following a report showed that Switzerland's inflation unexpectedly eased in January. Full Article
Thursday, the pound was mixed after the Bank of England decided to leave its key interest rate unchanged at a record low and retained the size of the quantitative easing. Full Article
General News
The U.S. State Department has advised American students traveling, studying, or residing abroad to sign up online for its Smart Traveler Enrollment Program (STEP). Full Article
The trial of controversial Indonesian Muslim cleric Abu Bakar Ba'asyir was adjourned by a Jakarta court on Thursday after the presiding judge upheld a technical legality raised by the defense, reports said. Full Article
At least 27 soldiers were killed and 40 injured in a deadly suicide attack on an Army training center in Pakistan's volatile north-west on Thursday, reports said. Full Article
A global organization of oil tanker owners has called upon governments to do more to tackle the growing threat of sea piracy, reports said on Wednesday. Full Article
A former aide to terror mastermind and al-Qaeda chief Osama Bin Laden has had his jail term reduced to two years by the US military under a secret deal, reports said on Wednesday. Full Article