Euro, Australian Dollar Up on U.S. Mfg Data

The euro and Australian dollar moved up early Tuesday on news that manufacturing in the U.S. expanded in September; the first move in positive territory since May.

In response, the U.S. dollar dropped while commodities in general responded by climbing. The euro got a reprieve from three-week lows,

As for factories in the euro zone, they ended the worst quarterly performance since the early part of 2009. China also continues to slow down, although that hasn't been as much of a surprise because of the announcement by Chinese leaders some time ago that they were going to attempt to cool off their fast-growing economy.

The Australian dollar jumped to $1.0366, while the euro climbed to $1.2895, after falling as low as $1.28035 in Monday trading.

Questions concerning the euro remain as uncertainty as to when Spain will officially seek a bailout, and also the possibility of its credit rating being downgraded to junk status by Moody's (MCO).

Societe Generale said concerning Spain, "The Spanish government probably thinks it needs to find a way of presenting the request for assistance as a victory of sorts, just like it did for the bank deal, to its electorate."

Spain has positioned itself to access aid by releasing a budget that has significant cuts for 2013. That also included a series of economic reforms after it banks went through stress tests in preparation of aid.

BP's (NYSE:BP) Loans Backing Liquidity to be Funded Next Week

Loans obtained by BP (NYSE:BP), worth $4.75 billion, which will be used to back the liquidity of the company, will reportedly be funded next week after the oversubscribed closing, according to bankers.

Royal Bank of Scotland (NYSE:RBS) and Societe Generale arranged a $2.25 billion loan, which was originally $2 billion. That is backed by BP crude sales from its stake in the Azeri-Chirag-Deepwater Gunashli field in Azerbaijan.

The remaining loan for $2.5 billion was arranged by BNP Paribas and Standard Chartered, and will have as collateral crude oil sales from Angola assets.

For the first two years of the five-year amortizing loans, BP will pay margins of 250 basis points (bps) over LIBOR. After that they'll increase to 300 for the third year of the loan, and for the final two years rise to 335 basis points.

The loans will mature on June 30, 2015.

Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Credit Suisse (NYSE:CS) Manage PGE Utility Sale

Along with UniCredit SpA, JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C) and Credit Suisse Group AG (NYSE:CS) helped coordinate the sale of 10 percent of PGE Utility for the Polish Treasury.

Late Friday on its website the Treasury Ministry confirmed they had sold the stake for $1.4 billion.

The sale was initiated to raise capital to lower the need to borrow and pay down the budget deficit of the country.

Polish law requires the government to maintaina stake of over 50 percent in PGE. That wasn't a problem as they hold 79 percent of the utility at this time.

The Treasury Ministry stated that the sale was oversubscribed, and drew the interest of investors from 22 countries. Investors from Poland acquired over half the shares offered.

Joint bookrunners on the sale were Goldman Sachs (NYSE:GS), PKO Bank Polski SA, Societe Generale SA and KBC Groep NV.