debt loses some appeal in Hong Kong In June, China struck a similar agreement with the Bank of England worth up to 200 billion yuan. The deal with the ECB comes as political gridlock in the U.S. weakens the U.S. dollar against many other global currencies. A spokesperson for the ECB said the deal had been in the works for the last few months. China’s wine obsession spurs Bordeaux sales The yuan, also called the renminbi, currently trades directly with the U.S. dollar, the Australian dollar and the Japanese yen . In September, the Bank for International Settlements announced the Chinese yuan was the ninth most traded currency in the world. The yuan was involved in 2.2% of foreign exchange trading worldwide in April, the period examined by the report, more than double its share in April 2010. The dollar was involved in 87% of all trades, the euro was part of 33% of trades, and the Japanese yen was involved in 23%.
With Europe now exiting its recession, theres hope for the regions refiners that fuel use will pick up, said Seth Kleinman, head of energy strategy at Citigroup Inc. in New York. The European economy appears to be going through a recovery, which should result in some stronger consumption demand, he said Sept. 19. A jump in European demand may entice local refiners to boost output, limiting imports from the U.S., Vienna-based researcher JBC Energy GmbH said in an Oct. 7 note. Low Inventories Inventories of gasoil, including heating oil and diesel, in independent storage in Europes oil trading hub of Amsterdam-Rotterdam-Antwerp dropped to 2.01 million tons for the week to Oct. 3, the lowest for this time of year since at least 2007, according to PJK International BV, a Netherlands-based researcher. The winter diesel market in Europe could be quite good as an export destination based on current stockpiles, Reliance Chief Executive Officer Tony Fountain said at a conference in London on Oct. 2. Mumbai-based Reliance operates the worlds largest refining complex. Refiners in the region arent likely to boost processing following seasonal maintenance because ample diesel imports are set to cap their profit margins, Gemma Parker, an analyst at Facts Global Energy in London, said by phone Sept. 27. Europe is idling as much as 1.2 million barrels a day, or 8 percent of its refining capacity, for maintenance in September and October, according to the Paris-based IEA. Indian Influx Exports from India climbed in August to the most in 10 months, also the highest level for this time of the year since at least 2004, according to data from the countrys Ministry of Petroleum and Natural Gas.
Diesel Flow to Europe to Cap Winter Price Surge
The announcement on her nomination is scheduled for 3 p.m. ET (8 p.m. London time) on Wednesday. “With Janet Yellen, you’re likely to get a situation where the Fed pursues its ultra-loose monetary policy well beyond the current threshold of unemployment at 6.5 percent and ultimately pushes into higher inflation,” Gabriel Stein, chief economic adviser of the Official Monetary and Financial Institutions Forum, told CNBC. (Read More: What would Yellen at the Fed mean for global finance? ) Global investor sentiment continued to be weighed down by rising concerns over a U.S. credit default with only nine days left for Congress to raise the debt limit before October 17. At a press conference on Tuesday, President Obama said he had yet to see serious proposals from the Republicans that would allow both sides to resolve their core differences. (Read More: US futures signal higher open for Wall Street ) “So my suggestion to the Speaker has been and will continue to be: ‘Let’s stop the excuses, let’s take a vote in the House, and let’s end this shutdown right now’…There are enough reasonable Democrats and Republicans in the house who are willing to vote ‘yes’ on the budget that the Senate had already passed,” he said. (Read More: UK industrial output drops ) How are bond and equity markets reacting to shutdown? Kiran Kowshik, currency strategist at BNP Paribas, discusses the reaction of the fixed income market and equity market to the debt ceiling debate and tapering timeline. In stocks news, shares of French telecoms company Alcatel-Lucent closed down 6.89 percent after President Francois Hollande called on the firm to save as many jobs as possible in France, after the equipment maker said it planned to cut 10,000 jobs worldwide. Meanwhile, shares in Telecom Italia closed around 6.24 percent higher on rumors the company is seeking at least $12 billion for its controlling stake in Brazil’s Tim Partecipacoes .