Archive for the ‘Forex News’ Category

WASHINGTON, Dec 23 (Reuters) – Lockheed Martin Corp has won a five-year follow-on contract worth up to $980 million for work on U.S. missile defense command control, battle management and communications, the Defense Department said Friday.

The ordering period under the sole-source contract is from Jan. 1, 2012, through Dec. 31, 2016, the Pentagon said in a digest item, without specifying the overall system at issue.

(Reporting By Jim Wolf) Keywords: LOCKHEED MISSILE/USA

(jim.wolf@thomsonreuters.com)(+1 202 898 8402)

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Article source: http://www.xe.com/news/2011/12/23/2368073.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3

By Nigel Tutt and Andrea Mandala

MILAN, Dec 23 (Reuters) – Fondiaria-SAI, Italy’s largest motor insurer, said on Friday it plans a rights issue of up to 750 million euros ($978 million) to restore its capital strength, in a move that could loosen the grip of the Ligresti family on the insurer.

In a statement, Fondiaria said its solvency margin, a measure of an insurer’s capital, had dropped to around 90 percent, below the 100 percent minimum, adding the rights issue aimed to get the margin back to 120 percent.

The rights issue will not be for less than 600 million euros and will be for a maximum of 750 million euros, Fondiaria said, confirming what two sources told Reuters earlier.

Fondiaria wants to launch the rights issue by the end of March, subject to regulatory clearances, and has hired influential Italian investment bank Mediobanca, one of its biggest creditors, to organise a guarantee consortium.

Fondiaria gave no details on whether the Ligresti family, which controls over 35 percent of the insurer, will subscribe to the new share issue amid speculation the family’s stake could be sharply diluted and new shareholders brought on board.

Sicilian-born family patriarch Salvatore Ligresti, 80 next March, built his business empire on real estate and construction. His SAI insurer took over Fondiaria in 2002 to create Italy’s No.2 insurer by premiums.

Poor results and the arrival of Italy’s largest bank UniCredit as a 7 percent shareholder in July has forced the debt-laden Ligresti to take more of a back seat role.

Analysts said UniCredit and Mediobanca, tied to Fondiaria through a complex cross-shareholding web, will not favour foreign groups taking up Fondiaria shares because of their stakes in Italy’s No.1 insurer Assicurazioni Generali

France’s Axa, Germany’s Allianz and Aviva have been reported to be possibly interested in Fondiaria’s activities but Italian private equity funds or the state-controlled strategic fund are seen as more likely candidates.

BIG LOSS

In its statement, Fondiaria said it expects provisionally to report a 2011 loss of 925 million euros, hit by a series of one-off write-downs including on equities, Greek state bonds, real estate, and goodwill.

‘The combined effect of (write-downs) and the positive trend in operating results leads the group reasonably to see a loss in 2011, net of taxes…, of around 925 million euros,’ it said.

In 2010, Fondiaria had a net loss of 929 million euros mainly due to investment write-downs.

Fondiaria said it is working with consultant McKinsey Company on a business plan as part of its effort to boost its solvency margin. Goldman Sachs is giving Fondiaria advice on capital strengthening measures.

Fondiaria also said its board approved the sale of its 33 percent stake in IGLI, the vehicle which which owns nearly 30 percent of Italian constructor Impregilo.

($1 = 0.7669 euros)

(Writing by Nigel Tutt and Stephen Jewkes) Keywords: FONDIARIASAI/

(nigel.tutt@thomsonreuters.com)(+39 02 66129723)(Reuters Messaging: nigel.tutt.thomsonreuters.com@reuters.net)

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Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/23/2368077.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art2

XE Forex Rates

 
USD
EUR
GBP

1 USD =

1.00000

0.76646

0.64185
Inverse:
1.00000
1.30470
1.55800

1 EUR =

1.30470

1.00000

0.83742
Inverse:
0.76646
1.00000
1.19414

1 GBP =

1.55800

1.19414

1.00000
Inverse:
0.64185
0.83742
1.00000

1 JPY =

0.01282

0.00982

0.00823
Inverse:
78.02000
101.79269
121.55515

1 CAD =

0.97977

0.75095

0.62886
Inverse:
1.02065
1.33164
1.59017

1 AUD =

1.01460

0.77765

0.65122
Inverse:
0.98561
1.28593
1.53558

1 CHF =

1.06895

0.81930

0.68610
Inverse:
0.93550
1.22055
1.45751

1 RUB =

0.03207

0.02458

0.02058
Inverse:
31.18400
40.68576
48.58467

1 CNY =

0.15782

0.12096

0.10129
Inverse:
6.33650
8.26723
9.87227

1 ZAR =

0.12258

0.09395

0.07868
Inverse:
8.15800
10.64374
12.71016

1 MXN =

0.07235

0.05546

0.04644
Inverse:
13.82100
18.03226
21.53312

Article source: http://www.xe.com/news/2011/12/24/2368081.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art1

The Great Britain pound fell against the Japanese yen and erased its gains versus the US dollar today after the report showed that the banks approved less home loans in November than in the month before.

British Bankers’ Association reported that the number of the mortgage approvals was 34,700 in November, compared to 35,200 in October. Market analysts were optimistic before the report and hoped for an increase to 36,300. The FTSE 100 Index of stocks added 0.5 percent ahead of the report on the optimism.

GBP/USD traded at 1.5668 as of 10:07 GMT today after climbing from 1.5676 to 1.5706. GBP/JPY dropped from 122.52 down to 122.27.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/23/pound-falls-with-mortgage-approvals/

Euro remains vulnerable in Forex trading, thanks to the still-unresolved eurozone debt crisis. The 17-nation currency is flat right now, slightly lower, ahead of the holiday. Trades are winding down, and the euro is still likely to run into trouble against safe haven currencies like the US dollar and the Japanese yen.

Indeed,  euro is lower against both of those currencies today. Some are disappointed in the euro’s performance, though. Better news out of the United States is providing some hope for the global economy in general. However, with issues still not worked out in the eurozone, it’s hard for many to get excited about the euro.

European economies still remain sluggish, and there is still the potential for downgrades for member nations. Austria has escaped a downgrade for now, but there are still plenty of other eurozone nations that could be downgraded. On top of that, many Forex traders are waiting to see how the cheap three-year ECB loans work toward easing the crisis. Some think that the ECB will need to buy up more Italian and Spanish bonds to stave off the crisis.

At 15:16 local time EUR/USD is slightly lower at 1.3035, down from the open at 1.3053. EUR/JPY is lower, too, down to 101.8655, off the open at 102.1025. EUR/GBP is higher though, ticking up slightly to 0.8327 from the open at 0.8325.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/23/euro-vulnerable-in-forex-trading/

Swiss franc is lower today in Forex trading, dropping as leaders warn that more job cuts are likely on the way in the country. Swiss companies expect to see weaker sales going forward (an outgrowth of the recently strong franc, which puts Swiss companies at an export disadvantage), and the news means that job cuts are likely on the way. Additionally, Swiss financial leaders reiterated their commitment to a weaker franc.

Earlier this year, the Swiss National Bank instituted a cap on the franc, pegging it to the euro. On December 15, 2011 Philipp Hildebrand announced that the cap remained the same (although some wanted to see it force a weaker franc against the euro).

Even with the peg remaining unchanged, though, the Swiss have continued to express their desire to keep the franc weak. The strong talk most recently has put Forex traders on alert. The SNB has already proved it is not averse to intervening in the currency markets, and Forex traders are responding to renewed commitment to a weaker franc by selling it off a little.

However, there aren’t many big movements today; as with many other currencies today the trading is low as we move into the holidays for those in the United States and much of Europe.

At 16:05 GMT, EUR/CHF is a little bit higher, at 1.2232, up slightly from the open at 1.2217. USD/CHF is also up, moving to 0.9381 from the open at 0.9360. GBP/CHF is down to 1.4663 from the open at 1.4676.

If you have any questions, comments or opinions regarding the Swiss Franc,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/23/swiss-franc-lower-on-expected-job-cuts/

(Repeats with no changes to text)

* House, Senate arrange for fast passage of legislation

* Bill would extend lower payroll tax rate for two months

* Democrats on verge of scoring victory

By Richard Cowan

Dec 23(Reuters) – The U.S. Congress, after months of bitter fighting, is poised on Friday to pass a payroll tax cut extension that President Barack Obama argues is vital to the health of the U.S. economy.

The legislation would continue for two months a 4.2 percent payroll tax rate that otherwise would expire on Dec. 31 and ratchet up to 6.2 percent for 160 million American workers.

‘I congratulate members of Congress for ending the partisan stalemate,’ said Obama, a Democrat.

House of Representatives Speaker John Boehner, the top U.S. Republican, yielded to pressure from Democrats and his party and agreed, with minor changes, to allow a vote on a bill passed by the Senate last week with bipartisan support.

Boehner acknowledged the opposition that he faced in initially opposing the measure.

‘It may not have been politically the smartest thing in the world,’ Boehner told reporters late on Thursday. But he said his fellow House Republicans ‘waged a good fight.’

Obama said: ‘Because of this agreement, every working American will keep his or her tax cut – about $1,000 for the average family’ over the course of a year.

The two-month deal between Democrats and Republicans in the Senate and House comes after they were unable to agree on ways to offset the costs of a full-year extension.

If both chambers approve the two-month extension on Friday, a new round of negotiations would begin in January to add 10 more months to the measure.

Some last-minute roadblocks could still occur. If any member of Congress objects to a fast vote on Friday, passage of the two-month extension would be delayed, probably until next week.

It was unclear whether any restive conservative Republicans in the House might object to a voice vote, forcing Boehner to schedule a roll-call vote in coming days.

But either way, the legislation is expected to eventually be approved by Congress and sent to Obama to sign into law before the Dec. 31 deadline.

Last Saturday, the Senate approved the two-month extension in a strong, bipartisan vote. But House conservatives, challenging Boehner, said they would not go along. Instead, they pushed for a year-long extension, despite earlier opposition to any renewal of the payroll tax cut.

Their maneuvers led some Democrats to suspect that Republicans were simply trying to kill the measure.

House Republicans all week insisted on a 12-month payroll tax extension. But Democrats did not budge, arguing that the two-month compromise hammered out in the Senate must first be approved to ensure no lapse in the lower rate. Then, they said, negotiations could continue.

But with opposition to the House Republicans mounting every day – from Senate Republicans lawmakers to conservative commentators and outside political advisors, Boehner saw no alternative but to relent.

Besides extending the payroll tax cut for two months, the legislation also temporarily continues some unemployment benefits that were set to expire in coming weeks and avoids a cut in payments to doctors who treat elderly patients in the government-backed Medicare health insurance program.

In one victory for Republicans, the legislation has a provision aimed at forcing a quick decision by Obama on the Keystone XL pipeline project that would run from Canada to the Texas coast.

(Editing by Paul Simao) Keywords: USA TAXES/

(Richard.Cowan@thomsonreuters.com)(202-898-8391)(Reuters Messaging)(richard.cowan.reuters.com@reuters.net)

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Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/23/2367041.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3

COLOMBO, Dec 23 (Reuters) – Sri Lanka’s stock market

gained for a second day on Friday to a more-than one-week high,

with market heavyweight John Keells Holdings boosting

the turnover, while the central bank kept the rupee steady by

selling over $20 million.

The day’s turnover was at a near three-week high of 1.15

billion Sri Lanka rupees ($10.10 million), with Keells

accounting for around 50 percent of it. Keells fell 1.2 percent.

Keells trade boosted the overall sentiment of the market,

which has seen a dull trade as investors stayed away for the

past three weeks due to a lack of credit and big investors wound

up their books for the year ahead of holidays.

The island nation’s main share index closed 1.07

percent or 63.23 points firmer at 5,982.58, its highest close

since Dec. 13.

A credit limit imposed by the SEC along with the resignation

of its head and deputy and a 3 percent currency devaluation have

dampened the market. Investors are waiting for direction from

the new SEC head on credit limits but that is not expected until

next year.

Last month brokers, who complained that tougher regulation

was hurting stock market prices, met President Mahinda Rajapaksa

to urge him to intervene in his capacity as finance minister to

revive the slumping bourse.

Since Oct. 1, the bourse has fallen 11.8 percent.

The bourse saw a net foreign inflow of 216.7 million rupees

on Friday and foreigners have sold 18 billion thus far in 2011,

and a record 26.4 billion in 2010.

The Colombo Stock Exchange has fallen to Asia’s 12th-best

performer with a year-to-date loss of 9.84 percent after being

at the top until June. It delivered Asia’s best returns in 2009

and 2010.

The rupee closed flat at 113.89/90 rupees a dollar

for a 23rd straight session with the central bank selling

more-than $20 million to defend it, dealers said.

The central bank on Tuesday said it can continue to maintain

the rupee exchange by selling dollars from the foreign

reserves as it expects large dollar inflows in the coming

months.

The bank has spent around $560 million to keep the exchange

rate steady since a 3 percent devaluation on Nov. 21. It spent

almost $2 billion this year until the end of September holding

back depreciation pressure.

FACTORS TO WATCH:

– Changes from the SEC on credit and trading controls

– The potential for imported inflation post-devaluation

– The reserve cost of defending the new rupee rate

DATA

Colombo Stock Exchange:

Stock Market Volume (Shares)

Current Volume Average Volume 30 Days

26,126,586 46,967,873

Yield and Price of Sri Lanka’s sovereign bonds:

Maturing year Tenure amount Reuters yield 2012 5-yr $500 mln 6.638-6.324 2014 5-yr $500 mln 5.521-5.175 2020 10-yr $1,000 mln 6.2482-6.0993 2021 10-yr $1,000 mln 6.3852-6.2434

* For Sri Lankan treasury securities benchmarks and data,

please click and

* For interbank lending rate or call money rate or

* For secondary market rates, please see.

($1 = 113.9000 Sri Lanka rupees)

(Reporting by Shihar Aneez; Editing by Ed Lane)

Keywords: MARKETS SRILANKA/

(shihar.aneez@thomsonreuters.com)(+94-11-232-5540 Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net)

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/23/2367045.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art2

(The following statement was released by the rating agency)

Dec 23 – Fitch Ratings has placed Scaldis Capital Limited’s (Scaldis) asset backed commercial paper (ABCP) notes’ Short-term ‘F1+sf’ rating on Rating Watch Negative (RWN).

The rating action follows the downgrade of the conduit’s main liquidity provider and sponsor, Fortis Bank SA/NV’s Short-term rating (Fortis; ‘A’/Stable/’F1′).

The documentation allows for a 30-day grace period in which to find a suitably rated liquidity provider in order to maintain the ‘F1+sf’ rating on the CP issued by Scaldis. Fitch will monitor the situation and seek to resolve the RWN within the 30 days.

Scaldis, launched in November 1999, is structured to issue USD-, EUR- and GBP-denominated ABCP up to a maximum aggregate amount of USD35bn to fund the purchase of Fortis assets and rated securities. As Fortis provides the committed liquidity facilities for Scaldis’s CP, the rating on the CP is therefore dependent on its rating.

As of end-October 2011, Scaldis had USD6.23bn of CP outstanding.

(Bangalore Ratings Team, Hotline: +91 80 4135 5898 satish.kb@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: satish.kb.thomsonreuters.com@reuters.net)

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/23/2367049.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art1

The Swedish Krona gained today after touching the highest level in a week against the US dollar yesterday as the speculation that the US economy is recovering returned risk appetite to the Forex market to some degree.

Analysts predict that today’s economic data will show that the US economy grew in the third quarter and the consumer confidence improved this month. The Standard Poor’s 500 Index futures rose 0.3 percent today. The Stoxx Europe 600 Index advanced 1 percent after losing 0.5 percent yesterday.

USD/SEK traded at 6.8820 today as of 10:13 GMT, following the drop from 6.8896 to 6.8437. Yesterday, the currency pair reached 6.7828 — the lowest level since December 12.

If you have any questions, comments or opinions regarding the Swedish Krona,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/22/swedish-krona-gains-after-reaching-weekly-record/