Dollar rises in Asia ahead of key US jobs data

TOKYO – The dollar rose in Asian trade Tuesday as investors looked to key US jobs data later in the day as a gauge of the state of the world’s largest economy.

The greenback changed hands at 98.32 yen in Tokyo midday trade, up from 98.15 yen in New York Monday afternoon, partially shored up by speculation over strong jobs data, dealers said.

The euro weakened to $1.3661 from $1.3681 while it rose to 134.36 yen from 134.26 yen.

All eyes were on the September jobs report, which was delayed by a two-week US government shutdown but will be released later Tuesday.

Labor market strength is a key factor for the Federal Reserve’s timeline in scaling back its huge monetary easing drive.

“If Monday was quiet in front of Tuesday’s delayed US employment report, today threatens to be even more soporific as markets count the clock down” to the jobs data release, National Australia Bank said.

An upside surprise could see a revival of expectations that Fed tapering would still commence in December, the bank said, a move that would support the dollar.

“There may though be an inclination to dismiss the numbers as too backward-looking given the subsequent government shutdown and at least small hit to confidence and activity this month,” it added.

Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires that “the market lacks energy to move in either direction.”

While Japanese exporters are placing selling orders above 99.00 yen, importers are looking to buy below 97.50, keeping the dollar-yen rate in a narrow band, he added.

source: business.inquirer.net

Washington asked to freeze Napoles assets in US, says source

MANILA—The Philippines has formally asked the US government to freeze the assets of Janet Napoles in the United States, a source privy to the request told the Inquirer.

The source, who spoke on condition of anonymity, said Department of Justice officials recently went to the US embassy to formally submit and discuss the request

“The Philippine government requested that properties acquired by JLN and her family be frozen pending resolution of the cases filed against them,’’ the source said.

He added that “the request was done due to the time element of the proceedings and because plunder has a civil aspect of forfeiture if illegally obtained wealth is proven.’’

The US property forms part of Napoles’ many real estate assets, estimated to be worth at least P5 billion on the basis of records Napoles’ book keeper submitted to the DOJ.

“The forfeiture proceedings have a time element, that’s why all identified assets here and abroad should be frozen pending the resolution of the case,’’ the source explained. “The freezing of the assets is to ensure that the stolen money can be returned to the National Treasury in the event that the properties are proved to have been illegaly acquired.”

The source added that the request was anchored on the plunder charges filed against Napoles at the Office of the Ombudsman for preliminary investigation to determine if enough eveidence exists to warrant filing them in court.

“These cases will then be filed before the Sandiganbayan where criminal trial and forfeiture proceedings will begin,’’ the source said.

The Napoles US properties identified in the request included the following:

•   The Anaheim Express Inn, registered under Western Investment Corp. with address at 620 W Orangewood Avenue, Anaheim, California. The company is allegedly owned by Napoles’ brother Reynald Lim, and children James Christopher and Jo Christine .

•   No. 32 Wedgewood, Canyon View in Irvine, California, also registered under Lim and his wife Ana Marie Dulguime.

•   A two-bedroom apartment in the Ritz Carlton at 900 Olympic Boulevard in  Los Angeles, California, registered under the name of another daughter, Catherine Jeane.

•   Covina County Commercial Property in West Covina, Califnornia, registered under the Western Ventures management Inc. 19545 E. Cienega Avenue. The company’s two other addresses were Covina CA 91724 and 620 W. Orangewood Ave. Anaheim CA 92802. Listed as officers in the company were Lim and two older children of Napoles.

The source said that US legal procedures would be followed in the forfeiture proceedings under the Mutual Legal Assistance Treaty.

Napoles has been accused of pocketing billions of pesos in taxpayers’ money  in connivance with lawmakers and other individuals.

source: newsinfo.inquirer.net

Fitch puts US debt rating on watch for downgrade

WASHINGTON—Rating agency Fitch on Tuesday put the United States on warning for a downgrade after Congress failed to reach a deal on raising the country’s debt ceiling.

Fitch placed the United States’s top-grade AAA rating on a “negative watch,” citing the possibility the Treasury could default on its obligations after October 17 if the ceiling is not raised.

“The US authorities have not raised the federal debt ceiling in a timely manner,” Fitch said.

“Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a US default.”

The Fitch move came after a day of politicking in Congress revealed Republicans and Democrats remained far apart over a deal to fund the government and increase the $16.7 trillion debt ceiling.

US Treasury Secretary Jacob Lew has repeatedly warned that as of October 17 the government will not have any more room to borrow under the ceiling to cover the federal deficit, and that the Treasury’s cash level will be a small $30 billion.

After that, the risk steadily rises that the Treasury will default on its obligations, including possibly its debt.

“The Treasury may be unable to prioritize debt service, and it is unclear whether it even has the legal authority to do so,” noted Fitch.

Even if it can, the US government would risk missing payments to suppliers and employees, as well as social security payments to citizens, “all of which would damage the perception of US sovereign creditworthiness and the economy,” the agency said.

In addition, it said, “the prolonged negotiations over raising the debt ceiling… risks undermining confidence in the role of the US dollar as the preeminent global reserve currency.”

Fitch said that if the US was forced into default, it would reduce the US sovereign credit grade to “restricted default” based on the belief that Washington would quickly move to make good on the debt.

But it would cut the rating on the specific debt affected by missed payments to B+ from AAA, the highest rating it could give defaulted securities, in expectation that the default would be “cured.”

Still, Fitch said that if and when the political gridlock is overcome and the ceiling is raised, allowing the Treasury to balance its finances, it would review the rating based on how the problem was solved “and the perceived risk of a similar episode occurring in the future.”

The proposals in Congress Tuesday left open the prospect for a new crisis in January and February.

A Treasury spokesperson said in reaction: “The announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy.”

source: business.inquirer.net

US says shutdown hurting business and data gathering

NUSA DUA – The impacts of the US government shutdown are cascading into the business sector and into vital collection of economic data, Commerce Secretary Penny Pritzker warned Sunday.

The first shutdown in 17 years has directly affected hundreds of thousands of government employees, but Pritzker said companies were also starting to hurt.

“The shutdown is not good for business. It’s not good for the economy,” Pritzker told reporters at the Asia-Pacific Economic Cooperation (APEC) forum on the Indonesian island of Bali, which President Barack Obama has been forced to skip.

“And we need to move in with the business of doing business in the United States. So, I am hopeful this gets resolved soon. It’s obviously having an impact.”

Pritzker said one big problem was businesses could no longer access vital data about the economy that is normally posted on the commerce department’s website.

But the website has been taken offline because staff who run it are not working.

“We’re a huge source of data for American business and that is a problem… It’s affecting businesses and it’s affecting their ability to get data,” she said.

Pritzker recounted the story of her son, an analyst in New York, who could not access retail sales data that is normally accessible online.

“He said: ‘I need retail sales numbers and your website is not functioning right now,’” Pritzker said.

Nevertheless, Pritzker said she was an optimist and believed a solution to the shutdown would be achieved soon.

The US government closed all but its essential operations on Tuesday when Republican lawmakers refused to approve money for government operations without first delaying or defunding the new health care law, commonly known as Obamacare.

Obama is refusing to negotiate with Republicans over the budget issues until they pass a temporary bill to reopen the government, and has abandoned a planned tour of Asia taking in the APEC summit while the crisis plays out.

He said they must also agree to raise the $16.7 trillion US statutory borrowing limit — without which Washington could default on its debts for the first time ever starting on October 17.

source: business.inquirer.net

Obama addresses military as gov’t shuts down

WASHINGTON — President Barack Obama is telling members of the military he’ll work to get Congress to re-open the government as soon as possible.

Obama is addressing troops in a video message after Congress missed a midnight deadline to avert a partial government shutdown.

Obama says troops in uniform will remain on duty as usual. He says he’s signed a law ensuring troops get paid on time. He says ongoing operations in Afghanistan and elsewhere will continue and the U.S. will ensure those in harm’s way have what they need.

But Obama says Defense Department civilians may be furloughed. He says that compounds the damage from spending cuts that have already affected the military.

Hundreds of thousands of government workers will be off the job Monday, but some essential services will continue.

source: newsinfo.inquirer.net

Millions sign Google's anti-SOPA petition

Google's homepage today shows a thick black censorship stamp across its colorful logo.

And, if clicked on, it leads users to a "End Piracy, Not Liberty" petition that asks people to sign-on to protest the two anti-piracy laws to be voted on by Senate and Congress.

"Millions of Americans oppose SOPA and PIPA because these bills would censor the Internet and slow economic growth in the U.S.," the petition reads. "Sign this petition urging Congress to vote NO on PIPA and SOPA before it is too late."

Over the course of the day, millions of people signed onto Google's petition. "The last number we released was at 4:30pm ET," said Google spokesperson Christine Chen. "At that point we were at 4.5 million signatories and counting."

This search-giant is showing that it is in lock step with hundreds of other individuals, groups, and Web sites that either sent out their own petitions, wrote letters to the U.S. government, or went black today in protest of the anti-piracy laws. Among Google's allies are Facebook, AOL, Wikipedia, Amazon, Twitter, and Firefox.

"Fighting online piracy is important," Google wrote on the petition. "The most effective way to shut down pirate websites is through targeted legislation that cuts off their funding. There's no need to make American social networks, blogs and search engines censor the Internet or undermine the existing laws that have enabled the Web to thrive, creating millions of U.S. jobs."

There are signs that the SOPA and PIPA protests are working. A whole host of senators and members of Congress from both sides of the aisle have announced that they will either vote against or vote to amend the bills. Earlier today, Republican Sens. Roy Blunt from Missouri, John Boozman from Arkansas, and Orrin Hatch from Utah all said they were withdrawing co-sponsorship from the Protect IP Act.

source: http://news.cnet.com/8301-1023_3-57361565-93/millions-sign-googles-anti-sopa-petition/?tag=mncol