Week of September 30, 2012 thru October 6, 2012

China HSBC Sep PMI Shows Mfg Contracting, But At Slower Pace

BEIJING (MNI) - China's manufacturing sector activity contracted for an 11th straight month in September but at a slightly slower pace than in previous months, the final reading of HSBC's Purchasing Managers Index indicates.

Production fell in September at the fastest rate since March, while new export orders declined at the sharpest rate in 42 months amid reports of weak international demand.

The final reading of the September PMI was 47.9, up slightly on the flash reading of 47.8, which was released on September 20. The September final result was also slightly better than August's 47.6, which was the lowest since March 2009.

China Economic Data Calendar

All figures year-over-year percent changes unless otherwise specified.

Date Time For Event Previous Local/GMT


01 Oct 0900/0100 Sep Purchasing Manager's Index (CFLP) +49.2 02 Oct 0945/0145 Sep MNI China Consumer Sentiment Indicator +90.4 10 Oct -- / -- Q3 Forex Reserves*($trln,q/q chg $bln) 3.24/-64.97 10 Oct -- / -- Sep Money Supply (M2) (% ytd y/y) +13.5 10 Oct -- / -- Sep New Loans (yuan bln mth, trln ytd) +703.9/+6.10 13 Oct -- / -- Sep Trade Balance ($ bln mth, ytd) +26.66/+120.6 13 Oct -- / -- Sep Exports (% y/y, % ytd y/y) +2.7/+7.1 13 Oct -- / -- Sep Imports (% y/y, % yt

US Debt Offering, Auction Calendar for Tsy and Agency Issues

September 28

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

US News Events Calendar

--Meetings & Events of Interest to Subscribers



01-Oct 1230/0830 Chicago Federal Reserve Bank Pres. Charles Evans is interviewed on CNBC.

01-Oct 1530/1130 San Francisco Federal Reserve Bank Pres.

US News Events Calendar

--Meetings & Events of Interest to Subscribers



01-Oct 1530/1130 San Francisco Federal Reserve Bank Pres. John Williams to deliver very brief welcoming remarks at the opening of the "Capital Markets for Impact at Scale" conference at the Bank. sf.frb.org

04-Oct 2345/1945 St. Louis Federal Reserve Bank Pres.

Fed's Fisher: Worried That QE Has Painted Fed Into A Corner

WASHINGTON (MNI) - The unconventional measures taken by the Federal Reserve to boost the economy might have backed the central bank into a difficult position from which it does not possess the experience needed to extract itself, Dallas Federal Reserve Bank President Richard Fisher said Friday.

"We've had a recovery which is quite disappointing," Fisher said in a presentation at the Metroplex Technology Business Council Industry Luncheon in Dallas. "Right now we are cruising along very much at stall speed."

And although the U.S. unemployment rate has come down to 8.1%, "there are a lot of people that have just given up, and the fact is we are drowning in unemployment," he said.

US Rating:QE3 Credit Pos For Some, Case For Dngrade For Others

-- Retransmitting Story Sent At 11:58 ET
-- Correcting DBRS Rating to AAA In The Table At The Bottom Of Story

WASHINGTON (MNI) - The latest round of quantitative easing by the Federal Reserve is credit positive for the U.S. sovereign rating for some rating agencies, a case for downgrade for others, while other don't see it as having any major influence.

This partly reflects a divergence among rating agencies about whether additional monetary easing will succeed in boosting U.S. growth or not.

For Moody's and DBRS, the Fed's latest action is credit positive.

"Given the low levels of housing activity, the headwind presented by fiscal policy, the tail risk of the European situation for U.S.

FXWRAP: Dlr Up, Euro Defensive As Spain Remains The Refrain

NEW YORK, Sept 28 (MNI) - The dollar was able to rack up solid gains against the euro and the yen Friday, the euro on the defensive again as Spain worries remained in the fore.

Euro-dollar was changing hands at $1.2850 Friday afternoon, the euro below its early $1.2922 level of the day and in the lower reaches of the day's $1.2838-1.2940 U.S. hours range.

Dollar-yen meantime was changing hands in the upper reaches of its Y77.58-78.10 U.S. hours range after beginning the day at that low.

Afternoon flows were at a modest pace Friday following a busy day that saw euro-dollar pressed to morning lows under $1.2840, the single currency relinquishing all of the gains scored Thursday in the wake of Spain's budget announcement.

US$ CREDIT SUPPLY PIPELINE - September 28, 2012

WTD: 27,500 MTD: 139,91 MTD 2011: 68,700 YTD: 950,330 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 9/28 1000 *NBC Universal (Baa2/BBB) 10 T+125 CS/JPM/MS/ RBC 9/28 1000 *NBC Universal (Baa2/BBB) 30 T+165 CS/JPM/MS/ RBC 9/28 200 *Global Bank Corp (Baa3/BBB-) 5 5.00% DB/HSBC Covered Bonds, T+438.5 144A Reg S, Backed by 100% Res Mtgs Orig in Panama 9/28 4000 *Freddie Mac Reference Note 7 T+23.5 BAR/C/JPM 9/27 1000 *Republic of Serbia (BB-) 2021 T+560.8 DB/JPM 144A Reg S, R

Analysis: US Competitors Cheer UK, Europe Reform Tardiness

WASHINGTON (MNI) - After many months of groaning under the burden of threatened Dodd-Frank regulations, some U.S. marketeers are brightening their outlook as the regulatory noose promises even more damage for their competitors across the Atlantic.

Friday's UK Wheatley report attempt to salvage what has been viewed as a doomed LIBOR benchmark and the European Parliament's proposed half-second "resting period" for high frequency trades are the week's latest examples of good news for U.S.-based trading firms.

"London's days as the world's premier financial centre are numbered, with New York set to take over," writes one former London journalist turned New York analyst.