China FX swaps a key tool against liquidity -PBOC

(Reuters) - The central bank has long been silent about its dollar swaps since an inaugural $6 billion transaction in November 2005. Deputy central bank governor Wu Xiaoling acknowledged late last month that currency swaps were among its policy tools, but she did not elaborate.

Zhou's comments, made last week, are the clearest signal yet of the swaps' significance to the People's Bank of China .


Read more at Reuters.com Bonds News

E.ON's Brokdorf Reactor Reports Switch Incident; Operations Not Affected

(Bloomberg) -- E.ON AG's Brokdorf nuclear reactor had a problem with a switch on April 13, the company said.

The incident, which was rated ``0'' on the International Nuclear Event Scale, didn't affect the plant's operation, the Dusseldorf, Germany-based company said on its Web site.


Read more at Bloomberg Energy News

ASE shares hit 7-yr high after Carlyle deal scrapped

(Reuters) - TAIPEI, April 18 - Shares of Advanced Semiconductor Engineering rose more than 2 percent on Wednesday after the world's top chip packager called off plans to be bought by private equity firm Carlyle [CYL.UL].

ASE shares initially opened up by their daily 7 percent limit at T$43.85 in Taiwan before falling back to T$42.00 around noon, outpacing a 0.41 percent gain on the broader tech sector and a 0.34 percent rise on the main TAIEX .


Read more at Reuters.com Mergers News

FTSE down on rate fears; sterling also weighs

(Reuters) - Britain's top share index fell early on Wednesday as lingering concerns over higher UK interest rates weighed on banks, but Barclays rose on relief that it may be outbid in the race for ABN AMRO.

"It's just the concern of interest rates," said David Buik of Cantor Index. "If you look at the sector that is suffering it is basically the banks."


Read more at Reuters Africa

UPDATE 1-Carlyle to pay $12.6 mln for Japan chip firm stake

(Reuters) - Nakaya, which is based in Kyushu, Japan's southernmost main island, assembles and tests microchips for chip makers including Toshiba Corp. , Japan's second-largest electronics conglomerate.

Carlyle's investment in Nakaya will be completed by the end of the month via a private placement. It will then have board representation and plans to help Nakaya expand by assisting with recruitment and evaluating acquisition targets.


Read more at Reuters.com Mergers News

Commodity Shipping Costs on Panamax Vessels May Rise on Supply Shortage

(Bloomberg) -- The cost of transporting coal, iron-ore and other so-called dry-bulk commodities on medium- sized ships, at its highest in more than two years, may rise because fewer larger vessels are available for hire.

An Indian tax on iron-ore exports is prompting Chinese buyers to travel greater distances to buy the raw material, boosting requests for so-called capesize ships, the largest vessels that haul commodities.


Read more at Bloomberg Commodities News

Dollar Falls to Lowest Since 2004 Against Euro as Yield Advantage Shrinks

(Bloomberg) -- The dollar fell to $1.36 against the euro for the first time since December 2004, on speculation slower U.S. inflation will spur investors to seek fixed-income assets in nations where interest rates are climbing.

The U.S. dollar dropped against 14 of the world's 16 major currencies after a government report yesterday showed consumer price gains eased, contrasting with the outlook for prices in countries including the U.K., Germany and New Zealand, where investors are betting on central bank rate increases.


Read more at Bloomberg Currencies News