Bankscurrently receive 0

Bankscurrently receive 0.25 percent interest on overnight depositsand pay 1.75 percent to borrow overnight. It said the total purchased had risen to 2.554 billion eurosfrom just under 2.4 billion previously. The amounts are published on Reuters information pageECB59 after the purchases settle, which takes 2-3 days Noother details are provided. Outstanding liquidity in ECB operations — including thepurchased bonds — now totals 778.091 billion euros ECB40. The ECB kept its interest rates on hold this month, havingnarrowed the gap between its main policy rates to 75 basispoints from 100 basis points on May 13 The headline rate is at a record low of 1.0 percent. Banks deposited 178.631 billion euros on July 22, up fromthe 177.457 billion euros deposited previously, but well shortof the record 315.956 billion euros parked on July 5.

Banks alsoborrowed 152 million euros overnight, up from 94 million. The amounts parked at the ECB’s deposit facility have beenelevated since it flooded almost half a trillion euros into1-year money markets at the end of June. The ECB and the 16 euro zone national central banks are alsobuying euro-denominated covered bonds — debt backed by a poolof assets such as mortgage loans that remain on the issuingbank’s balance sheet — over the next year, from both primaryand secondary markets. FRANKFURT, July 23 (Reuters) – Commercial banks’ overnightdeposits at the European Central Bank inched up, data showed onThursday, while the amount of covered bonds bought by the ECBand euro zone national central banks rose to 2.55 billion euros. Next month will see the first anniversary of Georgia and Russia’s brief war last August, sparked by a Georgian assault on the rebel region.(Writing by Amie Ferris-Rotman; editing by Michael Stott) Russia Russia. MOSCOW, July 23 (Reuters) – Russia accused Georgia on Thursday of plotting to stage “provocative” incidents on its border with breakaway region South Ossetia on the anniversary of Moscow’s war with Georgia. Itar-Tass quoted Deputy Foreign Minister Grigory Karasin as saying that “the Georgian leadership is plotting various events on the border with South Ossetia to coincide with the anniversary of the 2008 events in the Caucasus…they (the events) are of a distinctly provocative nature”.

forces in Japan — where they often cause friction with local residents — and set the stage for Japan to play a bigger role in the alliance.Implementation of the realignment deal has been delayed already by objections from some residents of the southern island of Okinawa to moving the U.S. Marines’ Futenma air base from a crowded, centrally located city to a coastal area. Relocating the air base’s function is key to shifting the Marines to Guam.The opposition Democrats have also attacked the Guam plan as too costly, since Tokyo will foot a hefty portion of a total estimated cost of more than $10 billion.Rice said, however, that the U.S.-Japan alliance — the core of Japan’s diplomatic and security stance since its defeat in World War Two — would weather any changes in administration.”The primacy of the relationship between the United States and Japan will remain as it has been for 50 years,” Rice said.”There may be some changes around the edges, but I think that the fundamentals of this relationship are so strong that they will survive elections in both countries for the foreseeable future.”(Editing by Jeremy Laurence) Barack Obama Japan. “I think Chinalco behaved impeccably throughout that and Ican understand their disappointment… We should not have beenhaving a debate over whether 18 percent was too much or toolittle.” China bought 68 percent of Australia’s total commodityexports in 2008, and its unique role in the country’s economyshould be acknowledged, Barnett said. Barnett said he has reassured officials with some ofChina’s biggest state-owned firms — including the Anshan Ironand Steel Group and the China National Offshore Oil Corporation– that Western Australia will make “a special commitment tohelping Chinese projects get through.” (Additional reporting by David Stanway) (Writing by Dean Yates; Editing by Bill Tarrant) Stocks China. * Vertu says March-June profits up “significantly” * Says UK’s car scrappage scheme boosting earnings * Shares rise 7.6 pct (Adds details, background on scrappage, shares) LONDON, July 23 (Reuters) – Vertu Motors (VTU.L) said onThursday full-year profits will come in ahead of view after theUK’s car scrappage scheme lifted profitability in the fourmonths to end-June, boosting its shares.

The car dealership-operator also said integration of thedealerships it acquired in June was progressing, and that thepurchase of 3 locations from the receivers of Brooklyn Motorshad cost 1 million pounds less than previously announced. “Given current trading levels, (the board) anticipates theresults for the financial year will be ahead of current marketexpectations,” the company said in a statement. “The new financial year has seen the new car market showsigns of resilience aided significantly by the government’sscrappage programme,” it said, even though new vehicle stockswere scarce. Carmakers have been among the sectors hardest hit by theeconomic downturn. To lift sales, the British government introduced a 300million pound programme in April allowing motorists to trade incars more than 10 years old in return for a 2,000 pound subsidytowards a new model.

The government said in June the scheme had increased ordersfor new cars by 60,000. [ID:nL0803825] Vertu also said margins at its new commercial vehicledivision were reduced due to the pressure of stocking levels andbecause customers’ vehicles got less wear and tear owing tolower levels of use. Shares in the company were up 7.6 percent at 0717 GMT,outperforming the AIM small-cap index, which rose 0.8 percent.(Reporting by Catherine Bosley; Editing by Victoria Bryan). TOKYO (Reuters) – A planned rejig of U.S. military forces in Japan, including moving 8,000 Marines to Guam, should proceed whatever the outcome of a Japanese national election next month, the top U.S military commander in Japan said on Thursday. Barack Obama  |  JapanThe main opposition Democratic Party of Japan has pledged to review the realignment plan if, as surveys suggest, it wins an August 30 election. Surveys show the opposition have their best-ever shot at ousting the ruling Liberal Democratic Party (LDP), ending more than 50 years of almost unbroken rule.The Democrats’ promise to adopt a diplomatic stance less subservient to Washington has sparked some concerns about upsets in the alliance, under which Japan has followed Washington’s lead in return for protection under its “nuclear umbrella.”"The (realignment) road map is not a menu from which either side can pick and choose what it wants to implement,” Lt.