Former Deutsche Derivatives Executive Starts Correlation Fund

By Tom Cahill and Jeff Kearns

Sept. 21 (Bloomberg) -- Chris Craig-Wood, formerly Deutsche Bank AG’s head of equity-index trading, plans a fund he said will be the first dedicated to equity-index correlation, or the degree stocks and indexes move in tandem.

Craig-Wood, who left Deutsche Bank in May for Luxembourg Financial Group, a structured-products firm that manages about $2.5 billion, targets annual returns of 15 percent after fees and costs with the LFG Equity Correlation Fund. LFG plans to start the Luxembourg-listed fund with about 100 million euros ($147 million) and aims to raise as much as $250 million.

Investors who bet that correlation will increase benefit when stocks move in tandem, while those who wager on a decrease profit when stock moves have little in common. Correlation between major equity indexes surged earlier this year as markets plummeted, reaching a record on March 20, according to the Chicago Board Options Exchange S&P 500 Implied Correlation Index.

“Ten years ago people started to look at the VIX -- correlation is the next generation of indicators that can be used to understand the market,” Craig-Wood said in an interview at Luxembourg Financial Group’s offices behind London’s Royal Exchange. “Correlation has become an asset class of its own, with multiple ways to trade it.”

Correlation describes the degree to which prices move in the same direction. Global events affecting markets, such as the Sept. 11, 2001, terrorist attacks or the failure of Lehman Brothers Holdings Inc., can lead to an increase in correlation.

Market Tool

Craig-Wood said equity-index correlation, now traded mostly by securities firm derivative desks, is becoming an increasingly common market tool. CBOE, the biggest U.S. options market, introduced the index in July to track correlation for the Standard & Poor’s 500 Index. The gauge is similar to the exchange’s VIX index, the benchmark index for U.S. stock options and a measure of expected price swings.

The most common method used to trade correlation is a so- called dispersion trade, according to Carl Mason, head of U.S. equity-derivatives strategy at BNP Paribas SA in New York. The strategy involves selling options on a stock index while buying options on the companies in the index, either using individual options or over-the-counter derivative contracts as variance swaps, which are valued based on the volatility of an underlying index or security, he said.

Investors also use OTC derivatives to trade correlation itself, using correlation swaps, which settle based on the amount of actual correlation during a given period.

Options are derivatives that give the right, though not the obligation, to buy or sell a security at a set price and date. Investors use options to guard against fluctuations in the price of securities they own, speculate on share-price moves or bet that volatility, or stock swings, will increase or decrease.

‘Favorable Returns’

“Equity correlation has delivered favorable returns for investors who can manage the complexity of the strategy,” said Dean Curnutt, president of Macro Risk Advisors LLC, a New York- based firm that advises institutional investors on derivatives strategy. “The main source of excess return in the strategy likely results from the premium that investors pay to hedge overall market risk through index put options.”

Craig-Wood, 37, has 15 years of equity-derivatives experience, the last 10 trading at Deutsche Bank. At Luxembourg Financial, he joined a number of fellow Deutsche Bank veterans, including Johan Groothaert, who ran equity-structured products for Deutsche Bank’s equity-markets division. Deutsche ranked No. 2 in derivatives for 2008, according to Risk magazine.

“It’s opening up a new niche that isn’t over-populated,” said Gerald Pittner, 38, a partner at Luxembourg Financial.

To contact the reporter on this story: Tom Cahill in London at tcahill@bloomberg.netJeff Kearns in New York at jkearns3@bloomberg.net

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U.K. Bond Yields May Rise as Investors Shun Deficits, BOE Says

By Brian Swint and Gavin Finch

Sept. 21 (Bloomberg) -- Bond yields in countries such as the U.K. and the U.S. may rise as investors shun the debt of nations with large trade deficits, the Bank of England said.

“To the extent that savers in surplus countries may become more reluctant over time to invest funds in deficit-country government bonds, this would tend to raise the cost of borrowing in deficit countries,” the central bank said. “This shift in the relative cost of borrowing could be an important part of the process by which a rebalancing of demand from deficit to surplus countries is achieved over the medium term.”

The financial crisis has started to reduce the trade gap with surplus countries such as China by lowering domestic demand and prompting the depreciation in sterling and the dollar, the central bank said in a paper co-authored by former Lehman Brothers Holdings Inc. Chief European Economist Michael Hume. The structure of global demand will probably have to change more, the bank said.

Global imbalances may have exacerbated the financial crisis that sparked the biggest global economic slump since World War II. While the U.K. central bank has kept a lid on gilt yields by pledging to buy 175 billion pounds ($285 billion) of bonds to spur growth, it will likely sell those assets when the economy recovers, exacerbating any increase in borrowing costs.

The Bank of England published the paper in its quarterly bulletin, which also featured research saying that the dollar’s depreciation may have stoked demand for corporate bonds, stocks and “other risky asset prices.”

The U.K. current account deficit has narrowed from a record in September 2007, helped by the 30 percent drop in the pound in the period.

“Sterling’s depreciation may be part of a more prolonged process of rebalancing of the U.K. economy, generating a fall in the long-run sustainable real exchange rate,” the bank said in another article on the movements in the pound’s value.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net; Gavin Finch in London at gfinch@bloomberg.net.

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U.K. Home Sellers Raise Prices as Market Confidence Improves

By Brian Swint

Sept. 21 (Bloomberg) -- U.K. home sellers raised asking prices in September as confidence in the property market improved and the supply of homes dwindled, Rightmove Plc said.

The average cost of a home increased 0.6 percent to 223,996 pounds ($364,000) after falling 2.2 percent in August, the owner of the U.K.’s biggest residential property Web site said today in a statement. Price gains in London, the southeast and East Anglia outweighed declines in the rest of England and Wales.

“Confidence is up, stock is down and the number of people searching is high,” Miles Shipside, commercial director at Rightmove, said in the statement. “The recession appears to have hit prices harder in the north.”

The U.K. property market is showing signs of recovery as the country emerges from the worst recession in at least a generation. The Bank of England this month kept the benchmark interest rate at 0.5 percent and maintained a program to buy bonds with newly created money to stimulate the economy.

Prices increased on the month by 0.9 percent in London, 1.5 percent in the southeast of England and 8.4 percent in East Anglia. The biggest decline was in Yorkshire and Humberside, where the average price of a home fell 3.6 percent.

There are some signs that banks are becoming more willing to lend money and that demand for home loans is increasing. U.K. mortgage approvals by the nation’s six biggest banks increased to the highest this year in August, the Bank of England reported last week.

Good Time

Surveyors reported more gains in home values than declines for the first time in two years, a report by the Royal Institution of Chartered Surveyors showed on Sept. 15. A majority of Britons say now is a good time to buy a home, a survey by the Building Societies Association showed last week.

The recession may also be easing for companies. An index showed 0.09 percent of U.K. companies failed in August, the lowest level this year, Experian Plc, the world’s biggest credit-checking company, said today in a separate report.

Unemployment is at the highest level since 1995 and central bank Governor Mervyn King said last week that joblessness will keep rising even after the economy starts growing again.

Andrew Sentance, a Bank of England policy maker who said last week that the economy may be turning around more quickly than he had expected, will deliver a speech today in London. The next interest-rate decision is Oct. 8.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net.

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Dodd Plan for Bank Regulator May Spark Fight With Frank, Obama

By Alison Vekshin

Sept. 21 (Bloomberg) -- Senate Banking Committee Chairman Christopher Dodd’s plan for a single bank regulator may set up a fight with House colleague Barney Frank and the Obama administration and might slow the overhaul of financial rules.

Dodd, leading efforts to rewrite regulations, will suggest combining the Federal Reserve, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the Office of the Comptroller of the Currency into one agency, the senator’s office said yesterday.

“Establishing a single regulator is a very bad idea,” Camden Fine, president of the Independent Community Bankers of America, a Washington-based trade group with 5,000 members, said yesterday in an e-mail. “When you have a cyclopic regulatory system, it only takes one stick in the eye to blind it.”

Dodd’s proposal goes further than recommendations by President Barack Obama that are backed by Frank, chairman of House Financial Services Committee that resumes hearings on the issue this week. Dodd’s plan embraces ideas of Democratic Senators Charles Schumer of New York and Mark Warner of Virginia and has elements from measures introduced by House Republicans. Any differences must be resolved before the rules become law.

Obama in June recommended combining OCC, regulator of national banks including New York-based Citigroup Inc., and OTS, which regulates savings and loans including Paramus, New Jersey- based Hudson City Bancorp Inc.. His proposal leaves intact oversight powers of the Fed and FDIC.

The multiple-agency system has produced “some real costs ranging from inefficiencies and redundancies to the lack of accountability and regulatory laxity,” Dodd said at an Aug. 4 Senate Banking Committee hearing to consider the issue. “We are now paying a very high price for those shortcomings.”

No Panacea

FDIC Chairman Sheila Bair and Comptroller of the Currency John Dugan support Obama’s proposal.

Bair said merging the four agencies is “no panacea” for effective oversight, according to Banking committee testimony Aug. 4. “One of the advantages of multiple regulators is that it permits a diversity of viewpoints to be heard,” she said.

Fed officials including Chairman Ben S. Bernanke and Governor Daniel Tarullo, who is leading efforts to overhaul the Fed’s bank supervision, have testified that the central bank should retain its authority over U.S. banks.

The administration recognizes “many ideas” will be offered and will “work with the leadership” in the House and Senate committees “to get a bill done” this year, White House spokeswoman Jennifer Psaki said yesterday in a statement.

‘Big Mistake’

Frank, the Massachusetts Democrat leading his chamber’s efforts, supports Obama’s merger. Stripping the Fed and FDIC of their oversight powers would be “a big mistake,” Frank said.

Representative Spencer Bachus of Alabama, top Republican on the Financial Services panel, has proposed consolidation as a step to reduce duplication and avoid the separate Consumer Financial Protection Agency proposed by Obama.

“If structured like the House Republican plan, streamlining and consolidating the functions of the four bank regulatory agencies will address consumer protection without the need for a new and costly government bureaucracy,” Bachus said in a statement. “It will create smarter regulation, and will benefit both taxpayers and consumers.”

Schumer and Warner, along with Republicans on Frank’s committee, support a single regulator.

“It does not make sense for up to four different federal regulatory bodies to retain oversight over the safety and soundness of banks,” Schumer wrote in June to Treasury Secretary Timothy Geithner. This system “preserves the regulatory arbitrage that allows institutions to pick the oversight scheme that benefits them the most.”

Warner told Bloomberg News July 1 that the Fed and FDIC should cede their bank oversight role to an “end-to-end” supervisor.

Jonathan Graffeo, a spokesman for Senator Richard Shelby, top Republican on Dodd’s committee, in an e-mail yesterday said “we continue to review” Dodd’s proposal.

To contact the reporter on this story: Alison Vekshin in Washington at avekshin@bloomberg.net

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China Can’t Buy Enough Bonds as Dollar No Deterrent

By Cordell Eddings and Lukanyo Mnyanda

Sept. 21 (Bloomberg) -- International investors are increasing purchases of Treasuries on a bet U.S. inflation will remain subdued, even as the dollar falls to the lowest levels of the year and the budget deficit tops $1 trillion.

Investors outside the U.S. bought 43.1 percent of the $1.41 trillion of notes and bonds sold by the Treasury Department this year, compared with 27.1 percent of the $527 billion issued at this point in 2008, government figures show. The Merrill Lynch & Co. Treasury Master Index of U.S. securities returned 1.18 percent in the third quarter after the worst first half on record as demand from the investor group that includes central banks climbed to record levels at Treasury auctions.

The trade-weighted U.S. Dollar Index’s 15 percent decline from its high this year on March 4 has proved no obstacle in Treasury auctions, aiding President Barack Obama’s efforts to sell an unprecedented amount of debt. Fund managers say their money is safe in the U.S. with expectations for inflation as measured by indexed bonds below the five-year average.

Treasuries are “starting to look like even a better value with a weaker dollar,” said Dave Chappell, who manages $90 billion in London at Threadneedle Asset Management Ltd., and has been buying longer maturity U.S. government debt.

The 10-year note yield rose 12 basis points last week, or 0.12 percentage point, to 3.46 percent, according to BGCantor Market Data. That’s the most since gaining 37 basis points in the five days ended Aug. 7. The 3.625 percent security due August 2019 fell 1, or $10 per $1,000 face amount, to 101 11/32.

Treasuries were unchanged today as of 10:01 a.m. in Hong Kong, with trading closed in Japan and Singapore for holidays.

Record Issuance

This week the U.S. will sell $112 billion of 2-, 5- and 7- year notes. The amount will be a record for that combination of maturities, exceeding the $109 billion sold the week of Aug. 24. Treasuries rallied that week, with the yield on the 10-year note falling 12 basis points to 3.45 percent.

Federal Reserve holdings of Treasuries on behalf of foreign accounts rose 16 percent to $2.07 trillion since the March high in the Dollar Index.

China, the biggest foreign owner of Treasuries, added $24.1 billion in July after net sales of $25.1 billion in June, raising its stake in U.S. government debt 3.1 percent to $800.5 billion, Treasury data showed on Sept. 16. The country’s holdings have risen 10 percent this year, after a 52 percent gain in 2008 amid the surge in demand for the safety of U.S. government debt as global credit markets froze.

Little Choice

Foreign governments have little choice than to buy Treasuries because they hold so many dollars. The U.S. dollar accounts for 65 percent for world currency reserves, up from 62.8 percent in mid-2008, according to the International Monetary Fund in Washington.

The Obama administration needs the foreign help to fund the debt sales needed for his $787 billion stimulus spending package. Chinese Premier Wen Jiabao said in March that the Asian nation was “worried” about the safety of its investment as a weakening dollar erodes the value of its record $2.1 trillion of foreign-exchange reserves.

“The interest rate on long-term Treasury bonds is at a very low level by historical standards,” said David Dollar, the U.S. Treasury Department’s economic and financial emissary to China on Sept. 11 at the World Economic Forum meeting in Dalian, China. “That says that the market has confidence the U.S. will get the fiscal problem under control.”

Inflation Protected Debt

Yields on U.S. inflation-protected debt show there’s little concern about consumer prices eroding the value of bonds’ fixed payments. The difference in rates on 10-year notes and Treasury Inflation Protected Securities, or TIPS, which reflects the outlook among traders for consumer prices, is 1.82 percentage points. While up from 0.04 points in November, the level is below the average of 2.19 points over the past five years.

The U.S. has the lowest so-called breakeven rates of any major sovereign debt market except Japan. The difference between three-year maturities is 0.71 point, below the average of 2.21 points this decade.

Prices of goods imported into the U.S. tumbled 15 percent in August from a year earlier, after a record 19.2 percent drop in July, the Labor Department said Sept. 11.

“There is no inflation on the horizon,” said Michael Cheah, who manages $2 billion in bonds at SunAmerica Asset Management in Jersey City, New Jersey. “The market is comfortable that the Fed will keep rates low and there isn’t much of an alternative.”

Current-Account Deficit

The Fed’s announcement June 24 that it anticipates the target rate for overnight loans between banks will stay at zero to 0.25 percent for an extended period is keeping two-year notes anchored near current levels. Policy makers meet Sept. 22-23 in Washington. Traders are pricing in less than a 50 percent chance of a rate increase before March, federal funds futures show.

A weaker dollar has increased concern among some investors as the budget and current-account deficits come back into focus in the currency market. The U.S. government and the Fed have spent, lent or committed more than $12 trillion in a bid to revive the economy and credit markets.

Economists forecast the current-account deficit will rise to 3.2 percent of gross domestic product in 2010 and 3.5 percent in 2011 from 2.9 percent this year as consumer and business spending boost imports and oil prices increase, according to the median estimates in Bloomberg News surveys.

‘Hard to Find’

“Even though U.S. asset markets are doing well, they’re not doing well enough,” Steven Englander, the chief currency strategist for the Americas at Barclays Capital Inc., said in an interview with Bloomberg Radio on Sept. 17. “The question is, what is there in the U.S. to attract capital? And that answer is hard to find.”

Investors buying a 10-year note today will lose 0.2 percent if yields rise to 3.57 percent by year-end as projected in a Bloomberg survey of forecasts. On an unhedged basis, European investors would have lost 13 percent on 10-year notes since the start of the year, according to Merrill Lynch index data.

Even with last week’s drop in bond prices, Treasuries have returned 2.8 percent in the past three months, including reinvested interest, beating the 2.3 percent return for mortgage-backed bonds, according to indexes compiled by Merrill. The rally reflects skepticism about the sustainability of the economic recovery once government stimulus ends.

Rising Unemployment

The Obama administration forecasts that unemployment in the world’s largest economy will rise above 10 percent in the first quarter. The jobless rate increased to 9.7 percent in August, a quarter-century high. Fed Chairman Ben S. Bernanke said in Washington Sept. 15 that the worst U.S. recession since the 1930s probably ended, while adding that growth may not be strong enough to quickly reduce unemployment.

“If you subscribe to the double dip school of thought this may not be a bad entry point for Treasuries,” said Steve Rodosky, the head of Treasury and derivatives trading at Newport Beach, California-based Pacific Investment Management Co., manager of the word’s biggest bond fund. “The longer-term risk is that the weaker dollar is the cause or affect of people diversifying their holdings or using other currencies as a global currency, but we are a long way from that.”

Yields on 10-year notes may fall toward 3 percent, the least in five months and down from 3.47 percent last week, as the inflation rate drops, Francesco Garzarelli, chief interest- rate strategist in London at Goldman Sachs Group Inc., wrote in a Sept. 15 research report.

“The international community has not lost favor with Treasuries, and the weakening currency allows an opportunity to increase their exposure,” Rodosky said.

Pimco’s Changes

Bill Gross, who runs Pimco’s Total Return Fund, increased holdings of government-related debt last month to the most in five years, according to the company’s Web site. Gross boosted the $177.5 billion fund’s investment in Treasuries, so-called agency debt and other bonds linked to the government to 44 percent of assets, the most since August 2004, from 25 percent in July.

The U.S. will sell $43 billion in two-year notes tomorrow, $40 billion of five-year debt on Sept. 23 and $29 billion in seven-year securities on Sept. 24.

Indirect bidders, the class of investors that includes foreign central banks, bought 49.4 percent of the notes at the two-year auction, up from 33 percent in July’s sale. They purchased 56.4 percent of the five-year notes, compared with 36.7 percent in July, and 61.2 percent of the seven-year securities, above the average of 43.7 percent at the prior six sales of that maturity.

“China and a few other central banks have grumbled about the dollar but they don’t have many other alternatives so they keep buying,” said Michael Atkin, head of sovereign research at Putnam Investments in Boston, who helps oversee $12 billion in fixed-income assets.

To contact the reporter on this story: Cordell Eddings in New York at Lukanyo Mnyanda in London at lmnyanda@bloomberg.net.

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Soybeans, Corn Decline as Warm Weather in U.S. Assists Harvest

By Luzi Ann Javier

Sept. 21 (Bloomberg) -- Soybeans and corn dropped on optimism warm weather will advance harvesting in the U.S., the world’s largest grower and exporter, and lessen the risk of frost damage.

Twenty-one of 31 traders and analysts surveyed from Tokyo to Chicago said soybeans will fall this week, while 21 of 30 respondents said corn would decline. Crops in the Midwest will benefit from near- to above-normal temperatures in the five to seven days from Sept. 18, according to DTN Meteorlogix LLC. The Midwest is the largest U.S. producing region.

“The weather has been pretty kind,” John Reeve, director for agricultural commodities at Standard Chartered Bank in Singapore, said in a Bloomberg Television interview today. “I don’t think we’re going to see a big spike in beans.”

Soybeans for November delivery fell as much as 1 percent to $9.315 a bushel in after-hours electronic trading on the Chicago Board of Trade. They traded at $9.3675 a bushel at 1:12 p.m. Singapore time. Corn for December delivery fell as much as 1.9 percent to $3.12 a bushel, before trading at $3.15 a bushel.

Parts of the Midwest, including Iowa and Illinois, the two largest producers, will have below normal precipitation from Sept. 26-30, the National Weather Service said yesterday.

Wheat for December delivery fell as much as 0.9 percent to $4.53 a bushel in Chicago, before trading at $4.5325 a bushel at 1:11 p.m. Singapore time. Wheat futures may decline to $4 a bushel in the next three to six months because of rising global supplies, Reeve said.

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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Dollar Advances as Federal Reserve May Signal Stimulus Exit

By Ron Harui

Sept. 21 (Bloomberg) -- The dollar advanced against the euro and the yen on speculation U.S. policy makers will this week signal they may withdraw economic stimulus measures, boosting the appeal of the nation’s assets.

The dollar reached a two-week high against the pound and rose versus 13 of the 16 major currencies before a U.S. report economists said will show an index of leading indicators gained a fifth month, backing the case for the Federal Reserve to wean the economy off support. The yen was near a three-week low versus the euro after Finance Minister Hirohisa Fujii edged away from comments last week that were interpreted to mean he would let the yen rise.

“There’s a risk the FOMC will indicate at some point they will start withdrawing their stimulus to the economy,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, the nation’s largest lender by assets. “The catalyst for the dollar strengthening on a sustained basis is likely to come from the FOMC.”

The dollar strengthened to $1.4673 per euro as of 6:26 a.m. in London from $1.4712 in New York on Sept. 18. The greenback jumped to 91.90 per dollar from 91.29. The U.S. currency rose to $1.6203 per pound from $1.6271, after earlier advancing to $1.6197, the highest level since Sept. 2.

The yen was at 134.91 per euro from 134.33 last week. It declined to 134.77 on Sept. 17, the lowest level since Aug. 28.

Dollar Index

The Dollar Index, which the ICE uses to track the dollar against the currencies of six major U.S. trading partners, rose 0.4 percent to 76.701.

Foreign-exchange trading may be more subdued than usual in Asian trading hours today because of public holidays in Japan, said Sue Trinh, a senior currency strategist at RBC Capital Markets in Sydney.

The Fed will keep its target rate for overnight loans in a range of zero to 0.25 percent at its two-day policy meeting starting tomorrow, according to all 91 economists surveyed by Bloomberg News. Chairman Ben S. Bernanke said in Washington on Sept. 15 that the worst U.S. recession since the 1930s has probably ended.

“That’s why there might be a little bit of nervousness going into the FOMC if they start signaling any potential unwind of quantitative easing,” Tony Morriss, senior markets strategist in Sydney at Australia & New Zealand Banking Group Ltd., said in a Bloomberg Television interview. “There is a bit of risk over the next couple of days of the dollar starting to recover a little bit of ground.”

The Conference Board’s gauge of the U.S. economic outlook for the next three to six months rose 0.7 percent in August, after a 0.6 percent gain in July, a Bloomberg survey showed before the New York-based group releases the report today.

Yen to Weaken

The world’s biggest banks say the Japanese currency is likely to weaken.

While the yen gained against all but one of the 16 most- actively traded currencies since early August as the Democratic Party of Japan became the likely winner in national elections, forecasters say it will decline 5.7 percent against the dollar and 1.2 percent versus the euro by year-end. The economy is too weak to support a stronger rate, based on the median estimate in a Bloomberg survey.

Japan will be the only Group-of-10 nation that won’t raise borrowing costs in 2010, keeping its benchmark interest rate at a record low 0.1 percent, the survey showed. The economy will expand 0.8 percent next year after contracting 6 percent in 2009, according to median forecasts, putting assets in the world’s second-biggest economy at a disadvantage to those in countries with higher borrowing costs.

‘Deteriorated Significantly’

“Everyone is seemingly buying the yen, which I think is ridiculous,” said Jim O’Neill, head of global economic research at Goldman Sachs Group Inc. in London. “The true underlying fundamentals for the yen in my book have deteriorated significantly.”

New York-based Goldman Sachs, which earned more than $100 million from trading for a record 46 days last quarter, predicts the yen will weaken to 98 per dollar and 142 per euro by the end of the year.

The pound may weaken further against the dollar and the euro on speculation the Bank of England will keep borrowing costs low, according to BNP Paribas SA.

BOE Governor Mervyn King last week told lawmakers in London that cutting the deposit rate paid to financial institutions is “something we’re looking at.” Banks are currently paid 0.5 percent on the deposits. While the U.K. central bank is boosting its reserves by buying 175 billion pounds ($284 billion) of bonds through so-called quantitative easing, King said he doesn’t want it to go too far.

‘Will be hit’

“Sterling will be hit by the BOE keeping interest rates low, continuing to purchase gilts in the open market via an expansion of its balance sheet,” analysts led by Hans-Guenter Redeker, London-based global head of currency strategy at BNP Paribas, wrote in a research note dated yesterday. “We have revised our pound projections lower.”

BNP now expects the pound to decline to $1.57 by the end of this year, compared with $1.53 previously. The French bank also forecasts the pound to fall to 98 pence per euro by year-end, versus a prior prediction of 88 pence.

The pound dropped to 90.53 pence per euro from 90.40 pence on Sept. 18, after earlier touching 90.67 pence, the lowest level since Apr. 24.

To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net

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China Metallurgical Shares Rise in Shanghai Debut

By Bloomberg News

Sept. 21 (Bloomberg) -- Metallurgical Corporation of China Ltd. rose 27 percent on its first day of trading in Shanghai, less than half this year’s average debut gain, as rising supply and valuation concerns weighed on demand.

China Metallurgical, the construction company that helped build the “Bird’s Nest” Olympic stadium in Beijing, rose to 6.89 yuan from the 5.42 yuan offer price at the 11:30 a.m. trade break. The company raised 18.97 billion yuan ($2.8 billion) in the nation’s second-biggest initial public offering of 2009.

The state-owned contractor that builds mines and factories trailed the average 68 percent first-day advance of the 22 other IPOs after selling stock at 41.9 times last year’s earnings compared with 32 for the benchmark index. Chinese companies raised 96.1 billion yuan in local IPOs since a nine-month moratorium on sales ended in June.

“China Metallurgical’s pricing is not very attractive if you compare it with existing steel and metal companies,” Helen Lau, a Hong Kong-based analyst at OSK Securities Hong Kong Ltd., said by phone today. “Still, it’s in the range of fair pricing, only that it didn’t offer a discount.”

China’s securities regulator changed pricing guidelines for IPOs this year to make valuations reflect more closely what investors are willing to pay.

Biggest Gains

The biggest gain since the ban was lifted was for Sichuan Expressway Co., which tripled on its debut on July 27. The toll road operator raised 1.8 billion yuan in its IPO. The worst first-day performer was Foshan Saturday Shoes Co., which rose 23 percent on its first day.

The Shanghai Composite Index dropped 1.5 percent today, trimming its gain for the year to 60 percent. Shares have been boosted as the government spends 4 trillion yuan to help achieve its target of 8 percent economic growth.

China Metallurgical, which begins trading in Hong Kong on Sept. 24, expects to benefit as the government encourages steelmakers to replace old mills. China is the world’s biggest steelmaker, producing about half the world’s supply.

“We can secure continued rapid growth,” Shen Heting, China Metallurgical’s president, said Sept. 10. Consolidation of the steel industry and environmental measures will “create a huge source of contracts for overhaul orders,” Shen said.

Coastal Expansion

The government is pushing the largest steel mills to expand near the coast while closing obsolete facilities inland. Shandong Iron & Steel Group, the nation’s sixth-biggest steelmaker, will build a 20 million ton-a-year mill in coastal Rizhao city after taking over local rival Rizhao Steel Holding Group this month.

China Metallurgical is building plants for Tangshan Iron & Steel Group and Anshan Iron & Steel Group in northern Chinese provinces, according to its prospectus.

The company is also constructing mines outside China as commodity prices rally. It’s building the $1.4 billion Ramu nickel project in Papua New Guinea and the Aynak copper mine in Afghanistan.

It may record a profit of 4 billion yuan this year, it said in the prospectus, without saying what accounting standard it is using. Last year net income fell 45 percent to 3.18 billion yuan under international accounting standards.

An increase in consumer spending in the world’s most populous nation has spurred a six-month rally in Asian stock markets and encouraged a flood of initial public offerings in the region, ending a two-year slump.

The possibility that China may pull the rest of the world out of a recession and whet investor appetite for IPOs has private-equity executives such as Carlyle Group co-founder David Rubenstein and Blackstone Group LP Chairman Stephen Schwarzman lining up to sell companies they’ve been forced to keep during the credit crisis.

--Helen Yuan, Xiao Yu, Zhang Shidong. With assistance from Kyunghee Park and Cathy Chan in Hong Kong. Editors: Andrew Hobbs, Jim Poole

To contact the reporters on this story: Helen Yuan in Shanghai at hyuan@bloomberg.net; Xiao Yu in Beijing on yxiao@bloomberg.net

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Areva Gets T&D Offers From Alstom, GE, Toshiba, Echos Says

By David Whitehouse

Sept. 21 (Bloomberg) -- The three offers received by Areva SA for its transmission and distribution unit were a joint bid from Alstom SA and Schneider Electric SA, as well as offers from Toshiba Corp. of Japan and a consortium led by General Electric Co., French daily Les Echos reported, without citing anyone.

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Antena 3, Brisa, Repsol, Telefonica: Iberian Equity Preview

By Sharon Smyth

Sept. 21 (Bloomberg) -- The following companies may have unusual price changes in Spain and Portugal. Stock symbols are in parentheses and share prices are from the previous close.

Spain’s IBEX 35 Index added less than 0.1 percent to 11,777.30 and Portugal’s PSI-20 Index declined 0.4 percent to 8,425.61.

Spanish stocks:

Repsol YPF SA (REP SM): Petroleo Brasileiro SA, Brazil’s state-controlled oil producer, isn’t considering a bid for Repsol’s assets in Argentina, Petrobras Chief Executive Officer Jose Sergio Gabrielli told reporters Sept. 18 in London. Repsol shares fell 5 cents, or 0.3 percent, to 18.77 euros.

Telefonica SA (TEF SM): Spain’s largest telecommunication company has agreed to purchase Antena 3 de Television SA’s television-production unit, the Wall Street Journal reported citing an unidentified person familiar with the situation. Telefonica retreated 17 cents, or 0.9 percent, to 18.62 euros. Antena 3 (A3TV SM) was unchanged at 7.86 euros.

Portuguese stocks:

Brisa-Auto Estradas de Portugal SA (BRI PL): Portugal’s biggest highway operator said it doesn’t plan to buy new shares being sold by Brazilian toll-road operator Cia. De Concessoes Rodoviarias. The capital increase that CCR plans to carry out will not be subscribed by the Brazilian company’s controlling shareholders, which include Brisa, according to a regulatory filing.

Brisa rose 3.1 cents, or 0.5 percent, to 6.65 euros.

To contact the reporters on this story: Sharon Smyth in Madrid at ssmyth2@bloomberg.net;

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Areva, Danone, LVMH, Nexans, Vivendi: French Equity Preview

By Laurence Frost

Sept. 21 (Bloomberg) -- The following is a list of companies whose stocks may have unusual changes in Paris. Symbols are in parentheses after company names and prices are from the last close.

France’s CAC 40 Index fell 7.43, or 0.2 percent, to 3,827.84 in Paris. The SBF 120 Index dropped 0.2 percent.

Areva SA (CEI FP): The world’s biggest nuclear rector builder received several non-binding offers for its transmission and distribution unit, spokeswoman Patricia Marie said. The shares fell 2.40 euros, or 0.6 percent, to 412 euros.

Groupe Danone SA (BN FP): The Dannon Company, a U.S. unit of Groupe Danone SA, agreed to pay $35 million to settle a class-action lawsuit alleging that advertising claims made for its probiotic yogurt products were misleading. The shares rose 23 cents, or 0.6 percent, to 41.30 euros.

LVMH Moet Hennessy Louis Vuitton SA (MC FP): LVMH said it is “satisfied” with a Paris court ruling that eBay Inc. must pay the luxury group 80,000 euros ($118,000) in a counterfeiting case. The shares fell 1.24 euros, or 1.8 percent, to 68.50 euros.

Nexans SA (NEX FP): The Paris-based cable maker plans to cut 387 jobs in France and close its factory at Chauny as part of a plan to reduce costs, Le Figaro reported, citing the CGT labor union. The shares rose 1.15 euros, or 2 percent, to 59.31 euros.

Robertet SA (RBT FP): The Grasse-based maker of liquid flavorings, perfumes and aromatic ingredients said first-half net income fell 15 percent to 6.58 million euros from 7.74 million euros. The shares rose 50 cents, or 0.6 percent, to 85 euros.

Vivendi SA (VIV FP): General Electric Co. executives believe the Paris-based media company will exercise its right later this year to sell its stake in NBC Universal, the New York Times reported, citing people briefed on the matter. The shares rose 12 cents, or 0.6 percent, to 20.64 euros.

To contact the reporter on this story: Laurence Frost in Paris at lfrost4@bloomberg.net

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China’s Stocks Decline for Second Day; Jiangxi Copper Drops

By Bloomberg News

Sept. 21 (Bloomberg) -- China’s stocks fell for a second day, led by commodity producers and financial companies, as metals prices declined and investors speculated new share sales will draw funds away from existing equities.

Jiangxi Copper Co. and Baoshan Iron & Steel Co., the country’s biggest producers of copper and steel, lost more than 3 percent. Shanghai Pudong Development Bank Co., the Chinese partner of Citigroup Inc., retreated 4.7 percent after receiving regulatory approval to sell new shares. Metallurgical Corp. of China Ltd. jumped 27 percent on its first day of trading, less than half this year’s average debut gain.

The Shanghai Composite Index fell 49.18, or 1.7 percent, to 2,913.49 as of 1:16 p.m., extending a 3.2 percent decline on Sept. 18. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slipped 1.9 percent to 3,138.93.

“The market is worried there will be a new wave of fundraising,” said Zhang Ling, who helps oversee about $7.21 billion at ICBC Credit Suisse Asset Management Co. in Beijing. “In the absence of any new information showing the nation’s economic recovery is solid, some investors are choosing to play it safe and selling.”

The world’s third-largest economy faces an “arduous task” in maintaining steady growth and a stable society, President Hu Jintao said yesterday.

China’s securities regulator over the weekend approved six companies for listing on the nation’s Nasdaq-like board for start-ups in Shenzhen, bringing the total number to 13. The board will probably raise about 20 billion yuan ($2.9 billion) this year, with trading beginning by the end of October, the Hong Kong Economic Journal reported today, citing Shenyin & Wanguo Securities.

Share Sales

Jiangxi Copper fell 3.2 percent to 37.88 yuan. Baoshan Steel slumped 3.7 percent to 6.82 yuan. Zijin Mining Group Co., China’s largest gold producer, slid 4 percent to 9.25 yuan.

Copper declined 3.8 percent, the most since Aug. 31, and gold dropped 0.3 percent. The price for hot-rolled steel sheet in China fell 0.4 percent to a four-month low, according to data from Beijing Antaike Information Development Co.

Shipping lines retreated on lower transport rates. China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, fell 3 percent to 13.39 yuan. China Shipping Development Co., a unit of China’s second-biggest sea-cargo group, dropped 3.2 percent to 12.54 yuan.

The Baltic Dry Index slid 1.4 percent on Sept. 18, declining for a sixth session, according to the Baltic Exchange. The gauge lost 4.5 percent for the week.

Share Sale

Pudong Bank retreated 4.7 percent to 19.48 yuan after saying it has received regulatory approval to sell 1.14 billion new shares through a private placement. Pudong Bank said earlier it will raise no more than 15 billion yuan ($2.2 billion) from the private placement.

China Construction Bank Corp., the country’s second largest, fell 1.7 percent to 5.69 yuan. Industrial Bank Co., part-owned by a unit of HSBC Holdings Plc, slipped 2.9 percent to 32.94 yuan, paring its gain this month to 18 percent.

The two-day loss by the Shanghai Composite narrowed its advance this month to 9.1 percent. Equities rebounded in September from a 22 percent slump in August after the government signaled it won’t curb lending and data showed the country’s economic recovery is gathering pace. The index is up 60 percent this year.

Metallurgical Corp., the construction company that helped build the “Bird’s Nest” Olympic stadium in Beijing, jumped 27 percent to 6.86 yuan after raising 18.97 billion yuan ($2.8 billion) in the country’s second-biggest initial public offering this year.

Capital Raising

The gain compares with the average 68 percent first-day advance of the 22 other companies that debuted in China this year. Chinese companies have raised 96.1 billion yuan in yuan- denominated IPOs since a nine-month moratorium on domestic share sales ended in June.

“The pace of new share sales looks a bit fast now,” said Chen Wenzhao, a strategist at China Merchants Securities Co. in Shanghai. “That will have a negative impact at a time when the market is very sensitive to liquidity.”

China Yangtze Power Co. and other hydro-electric power producers rose after the China Securities Journal reported the government may increase the companies’ energy prices.

Yangtze Power, owner of the world’s biggest hydropower project, gained 2.6 percent to 13.79 yuan. Chongqing Three Gorges Water Conservancy and Electric Power Co. climbed 7.8 percent to 8.39 yuan.

The country will implement a plan “when appropriate” to make hydro-power prices match the cost of coal-fired electricity, Zhang Guobao, the head of the National Energy Administration, was quoted by the newspaper as saying.

--Zhang Shidong. Editors: Richard Frost, Linus Chua

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104-7014 or szhang5@bloomberg.net

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Most Asian Stocks Decline on Valuation Concerns; STX Advances

By Shani Raja

Sept. 21 (Bloomberg) -- Most Asian stocks fell, led by finance and mining companies, amid concern a six-month rally has made shares expensive relative to earnings prospects.

BHP Billiton Ltd., the world’s largest mining company, declined 1.2 percent after metal prices slumped in London and New York. Shanghai Pudong Development Bank Co. fell 4.8 percent after winning regulatory approval for a share sale. STX Pan Ocean Co., South Korea’s biggest bulk carrier, climbed 8.2 percent after saying it’s in talks with Vale SA on a contract to transport iron ore.

About five stocks declined for every three that rose on the MSCI Asia Pacific excluding Japan Index, which lost 0.2 percent to 390.77 as of 12:28 p.m. in Hong Kong. The measure swung between gains and losses at least seven times. The gauge that includes Japan has rallied 67 percent from a five-year low on March 9, driving the average price of stocks in the index to 1.6 times book value, the highest level since this year’s trough.

“The path of least resistance for the market right now is up, but it won’t be a straight line up,” said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $75 billion. “You eventually get to a point where the market superficially looks expensive. We’re at that point now.”

Markets in Japan, Singapore, Malaysia, Indonesia, the Philippines and India are shut for holidays. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 1.5 percent on concern new share sales will draw funds away from existing equities.

Australia’s S&P/ASX 200 Index lost 0.4 percent. Harvey Norman Holdings Ltd., the country’s biggest electronics retailer, declined 2.3 percent after it was downgraded at Credit Suisse Group AG. Hong Kong’s Hang Seng Index added 0.2 percent.

Hynix Semiconductor

Metallurgical Corporation of China Ltd., the construction company that helped build Beijing’s Olympic stadium, rose 28 percent on its debut. Hynix Semiconductor Inc., the world’s second-largest maker of computer-memory chips, added 4.4 percent in Seoul after Morgan Stanley upgraded the stock.

Futures on the U.S. Standard & Poor’s 500 Index lost 0.2 percent. The gauge added 0.3 percent on Sept. 18, amid analyst upgrades of companies from Procter & Gamble Co. to SanDisk Corp. and Chevron Corp.

BHP lost 1.2 percent to A$38.23. A gauge of six metals on the London Metal Exchange sank 2.9 percent on Sept. 18, the most in a week, while copper futures in New York slumped 3.8 percent, the biggest drop since Aug. 31. Jiangxi Copper Co., China’s biggest producer of the metal, slumped 2.9 percent to 38.01 yuan.

Centennial Coal Co. lost 3.2 percent to A$3.35 in Sydney after the Australian Financial Review reported the company plans to raise A$200 million ($173 million) in a share sale.

Share Sales

Shanghai Pudong Bank sank 4.8 percent to 19.47 yuan after winning approval from the China Securities Regulatory Commission to sell 1.14 billion new shares in a private placement.

Metallurgical Corporation soared 28 percent to 6.91 yuan on its first trading day. The state-owned contractor that works for China’s largest steel mills raised 18.97 billion yuan ($2.8 billion) and has said it expects to benefit as the government encourages steelmakers to replace old mills.

China’s securities regulator at the weekend approved six more companies for listing on the nation’s Nasdaq-like board for start-ups in the second batch of initial public offerings in Shenzhen, bringing the total number to 13.

“The pace of new share sales looks a bit fast now,” said Chen Wenzhao, a strategist at China Merchants Securities Co. in Shanghai. “That will have a negative impact at a time when the market is very sensitive to liquidity.”

Credit Crisis

The MSCI Asia Pacific Index’s six-month rally has been driven by better-than-estimated economic reports and corporate earnings. Of 648 companies on the gauge that reported net income for the latest quarter, 225 beat analyst predictions, compared with 138 that missed.

The index has now recovered to levels last seen before the collapse of Lehman Brothers Holdings Inc. a year ago. The ensuing credit crisis caused more than $1.6 trillion in losses at financial institutions and helped drag economies globally into recession. Federal Reserve Chairman Ben S. Bernanke said last week the U.S. recession is “very likely” over.

The Bank of Japan upgraded its assessment of the economy on Sept. 17 though said it remained concerned about the strength of the recovery. South Korea’s economic growth in the third quarter may slow from the previous three months, Finance Minister Yoon Jeung Hyun said today.

‘Much Deeper Correction’

“A lot of good news is already reflected in the market,” said AMP’s Naeimi. “We have to come to terms with the reality that sooner or later we’ll get a much deeper correction than we’ve experienced so far.”

Brilliance China Automotive Holdings Ltd., a partner of Bayerische Motoren Werke AG, fell 5.4 percent to 88 Hong Kong cents after reporting a first-half loss.

In Seoul, STX Pan Ocean climbed 8.2 percent to 12,500 won. The company may haul about 300 million metric tons of iron ore for Vale, the world’s biggest producer of the commodity, over 25 years, spokesman Hwang Sung Min said by phone today.

Hynix surged 4.4 percent to 21,300 won in Seoul after it was raised to “equal-weight” from “underweight” at Morgan Stanley. Separately, the price of the benchmark computer-memory chip climbed 5.9 percent on Sept. 18, the most since April 22, according to Dramexchange Technology Inc.

Harvey Norman declined 2.3 percent to A$4.21 in Sydney after it was cut to “underperform” from “neutral” at Credit Suisse. APN News & Media Ltd. fell 1.6 percent to NZ$2.45 in Wellington after the publisher of more than 100 newspapers in Australia and New Zealand was downgraded to “underweight” from “neutral” at JPMorgan Chase & Co.

In Taipei, Dynapack International Technology Corp., a battery maker, surged 6.9 percent to NT$108.50 after the Commercial Times reported Delta Electronics Inc. may invest in the company.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

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No Break From USD Selling - EUR And Gold Surge

Daily Forex Fundamentals | Written by AC-Markets | Sep 17 09 10:53 GMT |

News and Events: The USD sank to new lows on broad based selling, as participants ponder whether the Fed is really concerned about potential inflationary pressure of QE and actually moving toward an exit strategy. In addition, risk appetite remains high and risk correlated trades are gaining across the board, many making yearly highs. The EURUSD traded up to 1.4755, while the AUDUSD traded up to 0.8772. Considering the wide spread, the USD selling the reaction in USDJPY has been muted, with the pair stuck in a mild 90.0- 91.80 range. Asian region indexes are currently trading higher across the board, with Shanghai leading gainers up 1.96%. Precious metals continued to rip through resistances, with spot Silver and spot Gold peaking at $17.65 and $1024.25, respectively. At this point, pressure is mounting on the greenback from all sides and we don't see the selling abating any time soon. The BoJ left policy rates unchanged overnight, as was universally expected. However, the tone regarding economic prospects was slightly more optimistic. But markets are not too concerned over the BoJ 's stagnate monetary policy, but more interested in the incoming DPJ remarks on intervention and the JPY. So far, we have not gotten much insight, just random comments. The general sell-off of the USD has been distorting the historically positive correlation between USDJPY and SPX. We still believe the JPY is overbought and still remains a risk trade. When the USD stabilizes, then JPY will be next to come under significant selling pressure. In Switzerland, the SNB will be meeting today. We are inline with consensus and expected no change in interest rates. However, while the CHF is trading at the SNB implicit ceiling against the EUR , the recent strength against the USD might come under question. We would not be completely surprised if the Central Bank renewed its focus on exchange rates. While domestic data has improved, including yesterday's ZEW whopper, and global recovery well underway, deflation fears still linger and there is a clear understanding that backing away from their current stance will lead to substantial CHF gains. Currently, EURCHF is trading around horizontal resistance located at 1.5193 as traders unwind long CHF positions due to event risk. The sterling was able to shrug off Governor King's statement about the likelihood of lowering the rate paid on banks' reserves for most of Asian trading. However, when UK retail sales failed to reach market expectations printing at 0.0 vs. 0.1% m/m (2.1 vs. 2.7% exp y/y) sellers jumped in, trading the GBPUSD down to the 1.6500 handle. In the US, data should continue to surprise to the upside (House Starts, Build Permits, Continuing Claims and Philly Fed) to the detriment of the USD. In Canada, the CPI will be released and markets are expecting it to remain weak. The data will be less important than the fact that traders will be watching CAD. Markets have been jittery around the CAD since BoC continues to warn against elevated CAD levels. Just yesterday, BoC Deputy Governor Murray stated that a strong CAD is a 'headwind' that threatens economic recovery. With USDCAD trading to yearly lows (breaking key horizontal support at 1.0630) we expect verbal intervention to begin in earnest now. Today Key Issues: 08:30 GBP Retail sales, % m/m (y/y) Aug 0.1 (2.6) exp 09:00 EUR Trade balance, € bn (sa) Jul 0.3 1.1 1.0 4.0 1.2 11:00 GBP CBI industrial trends, total orders, net bal Sep -50 exp, -54 prior 11:00 CAD CPI, %y/y Aug 0.1 -0.6 exp, -0.6 exp, 0.9 prior 11:00 CAD Bank of Canada core CPI, %y/y Aug 1.6 exp, 1.8 prior 12:00 CHF SNB Interest rate announcement, % Q3 0.0 - 0.75 exp/prior 12:30 EUR ECB non-policy meeting 12:30 USD Initial jobless claims, thous (4wk ma) 12-Sep 561 (565) exp 12:30 USD Housing starts, thous Aug 594 exp, 581 prior 14:00 USD Philadelphia Fed mfg index Sep 8.0 exp, 4.2 prior 16:00 USD Flow of Funds accounts Q2 The Risk Today: EurUsd Well well well. EUR USD continues to ramp higher on the 'carry trade theme' and a continuation of risk appetite in the equities markets. Looking at the 4 hour chart, we can see that while the Euro is moving higher, the RSI on the pair is going in completely the other direction..... not particularly confidence inspiring for those looking to get into a long trade as RSI divergence of this magnitude usually equals upcoming weakness. Furthermore, while the world's journalists continue to bang the tables about the USD carry trade, one can easily argue that the smart money behind the theme is already in, precisely why the pair has moved 6 big figures since it touched the 10 month uptrend only 2 weeks ago. GbpUsd While on the carry trade theme, sterling has just added another feather to the bow of weakness. If risk appetite subsides, sterling should get hit. If risk appetite increases, sterling should still get hit because of the carry trade. Doesnt leave much hope for the cable bulls. Only a break above 1.6750 would put the current head and shoulders formation in jeopardy. UsdJpy The 6 week downtrend continues to dominate for the pair. With some support found at 90.20 and positive RSI divergence there is a chance that we see a pop up to the upper downtrend and resistance at 91.80 where one would expect to see short sellers coming back for more. Keep a close eye on the 4 hourly RSI to see if ti breaks its uptrend over the next 24 hours as this can give an early indication to whether we see a break of 90.20 or not. UsdChf We mentioned a few days back that sicne the descending triangle breakdown, there is a very clear trend channel on USD CHF 15 minute chart that can be traded very easily. This point remains firm with shorts expected on the upper trendline and resistance in the 1.0340 / 50 area with 1.0260 as the next support in the pair's continued march towards the text book target of 1.0050. Bear in mind that text book targets are applicable only in a perfect world so it is more likely that the pair will find major support at 1.0150. EURUSD GBPUSD USDJPY USDCHF 1.4910 1.6745 93.30 1.0700 1.4860 1.6700 92.30 1.0550 1.4800 1.6660 91.80 1.0452 1.4737 1.6538 90.70 1.0314 1.4640 1.6445 90.10 1.0220 1.4560 1.6425 89.90 1.0175 1.4520 1.6365 89.20 1.0135 S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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