Anglo Irish Bank Corp.

Bonds of Anglo Irish Bank Corp., the nationalised lender, jumped after an official said the bank asked for approval to buy back subordinated debt and the government announced plans to split the bank into two parts. The lender’s €750 million of floating-rate notes due 2017 soared 6.5 cents on the euro to 27.5 cents, equivalent to a 31 per cent gain. The Dublin-based lender’s €500 million of floating-rate notes due 2016 also rose, increasing to 28.5 cents on the euro from 26.5 cents.

Bank of England

The Bank of England maintained its emergency bond-purchase plan and left its benchmark interest rate at a record low to support an economic recovery that is showing signs of stalling. The nine-member Monetary Policy Committee, led by Governor Mervyn King, held the target for bond holdings at £200 billion. The bank kept the key interest rate at 0.5 per cent.

BMW

Bayerische Motoren Werke AG’s credit rating outlook was revised to “stable” from “negative” at Standard & Poor’s Ratings Services, which affirmed the German automaker’s ‘A-’ long-term and ’A-2’ short-term corporate credit grades.

Greece

Greece will not restructure its debt and will stick to austerity measures it pledged as part of a €110 billion bailout, said Petros Christodoulou, head of the nation’s debt management agency. “No one is even contemplating or thinking about” debt restructuring, Christodoulou told Andrea Catherwood on Bloomberg Television’s “The Pulse” programme on Thursday. “The general public is very supportive of our measures.”

Ireland

Ireland sold €400 million of treasury bills at the lower end of forecast amounts on Thursday, a day after the government said it will split Anglo Irish Bank Corp. to stabilise the cost of the bank bailout. The National Treasury Management Agency, which manages the government’s assets and liabilities, sold €150.1 million of securities due 14 February 2011, at an average yield of 1.925 per cent, compared with a yield of 1.978 per cent at an 26 August sale. The agency also sold €250 million of 18 April 2011 debt at an average yield of 2.19 per cent, down from 2.348 per cent.

Norway

Norway, which has amassed the world’s second-biggest sovereign wealth fund, says Greece won’t default on its debts. The Nordic nation’s US$450 billion Government Pension Fund Global has stocked up on Greek debt, as well as bonds of Spain, Italy and Portugal. Finance Minister Sigbjoern Johnsen says he backs the strategy, which contributed to a 3.4 per cent loss on European fixed income in the second quarter, compared with gains on bonds in Asia and the Americas.

Norway says its long-term perspective will protect it from losses. “One could say we are investing for infinity,” Johnsen said in an interview. “It is important when you look at the time scope of the fund and the investments that there should be a portion of active management.”

Data compiled by MPM Capital Investments Ltd of 81, B. Bontadini Street, Birkirkara. MPM Capital Investments Ltd is licensed to conduct investment services business by the Malta Financial Services Authority. MPM can be contacted on [email protected] or calling 2149 3250.

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