The yen weakened on speculation Japan will pursue more aggressive monetary easing to support its economy. European stocks slid while U.S. stock index futures climbed and Treasuries fell for the first time in five days. The yen fell against all 16 major counterparts and declined 1.1 percent to 101.99 per euro at 11:03 a.m. in London. Futures on the Standard & Poor’s 500 Index rose 0.4 percent while the Stoxx Europe 600 Index slipped 0.4 percent as ICAP Plc sank 6.2 percent after reporting declining profit. The pound dropped 0.4 percent against the euro and pared an advance against the dollar after the Bank of England said the U.K. economy may shrink. U.S. natural gas rose to a two-week high. Japanese Prime Minister Yoshihiko Noda said he is willing to dissolve parliament on Nov. 16, setting the stage for elections that polls show his party would lose, while Kyodo News reported the government will downgrade its monthly economic assessment. U.S. retail sales fell in October for the first time in four months as superstorm Sandy kept consumers in the Northeast away from auto dealers and shopping centers, a report at 8:30 a.m. in Washington may show. “Pressure for the BOJ to add stimulus is expected to increase given the chance of recession and a possible political power shift ahead,� said Masakazu Sato, a Tokyo-based foreign- exchange adviser at Gaitame Online Co. “These surely are negative factors for the yen.� Yen Depreciation The yen depreciated 0.8 percent to 79.98 per dollar. The won strengthened to 1,085.05 per dollar at the close in Seoul, the strongest level since Sept. 9, 2011. The U.K. currency weakened against the euro to 80.25 pence and was little changed at $1.5880 as the nation’s central bank cut its outlook and said growth may be “weaker for longer� due to a bigger impact from the financial crisis. European shares fell after Euro-area industrial production dropped the most in more than three years in September, led by double-digit declines in Portugal and Ireland. Output in the 17-nation euro area declined 2.5 percent from August, when it increased 0.9 percent, the European Union’s statistics office in Luxembourg said. Economists had projected a drop of 2 percent, according to the median of 35 estimates in a Bloomberg News survey. The Stoxx 600 (SXXP) declined for the fifth time in six days. ICAP sank to the lowest since March 2009 as the world’s largest broker of transactions between banks said fiscal first-half pretax profit fell 26 percent. Mediaset Slides Mediaset SpA (MS), the broadcaster controlled by former Italian Prime Minister Silvio Berlusconi, slid 4.9 percent after reporting a third-quarter loss and cutting its full-year forecast. Telekom Austria AG rallied 9.8 percent as the phone company partly owned by Carlos Slim’s America Movil SAB reported earnings that surpassed estimates. The gain in S&P 500 futures indicated the U.S. gauge will rebound from yesterday’s 0.4 percent decline. Cisco Systems Inc. (CSCO) surged 7.2 percent in German trading as the biggest maker of computer networking equipment reported quarterly profit that exceeded analysts’ estimates. Ten-year Treasury yields rose three basis points to 1.63 percent. Federal Reserve Vice Chairman Janet Yellen threw her support behind proposals to tie the central bank’s low-rate outlook to economic goals in a speech in Berkeley, California, yesterday. Dallas Fed President Richard Fisher said the U.S. central bank can’t act as a backstop for the economy should lawmakers fail to prevent the country from going over the so- called fiscal cliff. Deficit Negotiations President Barack Obama is negotiating to reach a deficit- reduction deal with Congress to avert $607 billion in automatic tax increases and spending cuts next year. He’s scheduled to talk today at the White House with a dozen corporate executives, including General Electric Co. Chief Executive Officer Jeffrey Immelt, and hold his first news conference since June. The meetings come before Obama sits down with Democratic and Republican congressional leaders Nov. 16 for an opening round of talks on taxes and spending. U.S. natural gas added as much as 5.6 cents to $3.795 per million British thermal units on the New York Mercantile Exchange, the highest since Oct. 30. Futures closed at a one- year high yesterday. A government report tomorrow may show stockpiles declined last week to 3.914 trillion cubic feet, according to C.H. Guernsey & Co. That would be the earliest seasonal decline since 2007. Euro Gain The euro gained 0.2 percent to $1.2735, rebounding from the lowest level in two months as a technical indicator signaled its recent decline may have been too rapid. The 14-day relative strength index for the euro versus the dollar fell to 33.4 yesterday, near the 30 level that some traders see as a sign that an asset price may reverse course. JPMorgan Chase & Co. (JPM), the largest U.S. bank, led European bond sales as it opened books on its first sale of benchmark- sized euro bonds since August. The seven-year senior unsecured notes will be priced to yield about 80 basis points more than swaps. Barclays Plc is also marketing 10-year, dollar-denominated contingent capital securities to yield 7.5 percent to 8 percent, while German carmaker Daimler AG opened books on a seven-year euro deal. Emerging-market stocks rose for the first time in five days, lifting the benchmark index from a two-month low, as Chinese banks rallied. China Construction Bank Corp., the nation’s second-largest lender by assets, said it can keep non- performing loans under control, Financial News reported. China’s 18th Party Congress drew to a close today. Vice President Xi Jinping and Vice Premier Li Keqiang were reappointed to the Chinese Communist Party’s Central Committee, positioning them to take over the country’s top two posts. China is the biggest buyer of industrial metals. Nickel jumped 1.3 percent, lead gained 1.2 percent and aluminum rose 1 percent. To contact the reporter responsible for this story: Michael Shanahan at mshanahan3@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

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