BLBG: U.S. Commodities Day Ahead: Copper Heads for a Weekly Advance
ECONOMIC EVENTS:
Forecast Prior Time
(N.Y.)
Change in Nonfarm Payrolls NOV 150K 151K 08:30
Change in Private Payrolls NOV 160K 159K 08:30
Unemployment Rate NOV 9.6% 9.6% 08:30
Avg Hourly Earning MoM NOV 0.2% 0.2% 08:30
ISM Non-Mfg. Composite NOV 54.8 54.3 10:00
Factory Orders OCT -1.2% 2.1% 10:00
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 80.025 -0.3 +7.2
Crude Oil $88.18 +0.2 +15
Gold $1,390.6 +0.4 +15
MSCI World Index 1,241.40 +0.3 +6.1
TOP STORY:
Copper Heads for Weekly Advance Before U.S. Employment Figures
Copper headed for the biggest weekly advance since July in London before a report that may indicate a strengthening economy in the U.S., the world’s second-largest consumer of the metal.
COMMODITY EXCLUSIVES:
ONGC Approves $1.8 Billion Spending for Gujarat Fields (Update1)
Oil & Natural Gas Corp., India’s biggest energy explorer, plans to spend 80 billion rupees ($1.8 billion) over three years to replace ageing infrastructure and maintain production at onshore oilfields in Gujarat state.
Cairn India Output Increase Delayed by Vedanta Review (Update2)
Cairn India Ltd.’s plan to boost oil output by 20 percent from its Mangala field is delayed as the Indian government reviews Vedanta Resources Plc’s $9.6 billion bid for the company, Chief Operating Officer Rick Bott said.
MOIL Said Likely to Sell Shares at Top of Range in India IPO
MOIL Ltd., India’s largest producer of manganese ore, is likely to sell shares at the top of the range in its initial offering, raising 12.4 billion rupees ($274 million), two bankers with direct knowledge of the sale said.
Deutsche Boerse, Russia Exchanges Said to Seek Tie-Up (Update1)
Russia is in talks with Deutsche Boerse AG about creating an alliance with Moscow’s two biggest stock exchanges to boost listings and trading in the face of competition from London and Hong Kong, two people involved in the negotiations said.
Coal’s Surge Coaxes U.K. Utilities to Burn Wood: Energy Markets
The highest-priced coal in two years is making wood pellets a viable fuel alternative for U.K. power producers, heralding a doubling of electricity generation from biomass in the next three years.
Lufthansa to Switch One Trent 900 Engine With Older Oil Pipe
Deutsche Lufthansa AG said it is swapping one Rolls-Royce Group Plc Trent 900 on an Airbus SAS A380 and added that all other engines are “uncritical” because they contain a newer build of an oil pipe.
Japan Accelerates Wheat Purchases as Supply Tightens (Update1)
Wet weather threatening wheat crops in Australia is forcing Japan, Asia’s second-largest importer, to accelerate purchases as supplies tighten and prices climb.
INDUSTRIAL METALS:
Rio, Chinalco Sign China Exploration Cooperation Deal (Update1)
Rio Tinto Group, the world’s third- largest mining company, and its largest shareholder, Aluminum Corp. of China, agreed to jointly seek and develop coking coal and copper deposits in China.
Collahuasi Wage Talks to Continue Tomorrow, Mine Union Says
Wage talks at Anglo American Plc and Xstrata Plc’s Collahuasi will extend into a fifth day after union and company representatives failed to reach an agreement that would end a four-week strike at the world’s third-biggest copper mine, a union official said.
MINING:
Walter Energy to Buy Western Coal for C$3.3 Billion (Update1)
Walter Energy Inc., a southern Appalachia producer of steelmaking coal, agreed to buy Canada’s Western Coal Corp. for C$3.3 billion ($3.3 billion) to add reserves and boost production of the commodity as prices rise.
Xstrata Says Coal Production at Mines Affected by Rain
Xstrata Plc, the world’s biggest thermal coal exporter, said coal production at its Rolleston and Newlands mines has been affected by unseasonal rains. It continues to meet deliveries from stockpiles, spokesman James Rickards told Bloomberg News.
Legend Said to Seek Buyers for Phosphate Operation (Update1)
Legend International Holdings Inc., backed by Soros Fund Management LLC, will next week approach buyers for part of its Australian phosphate project that’s worth as much as $1 billion, according to a person with knowledge of the matter.
Rio Tinto, Chinalco Sign China Exploration Joint Venture Accord
Aluminum Corp. of China, parent of China’s biggest aluminum producer, and Rio Tinto Group agreed to jointly explore for and develop mining projects in China.
PRECIOUS METALS:
Gold Gains in London on European Sovereign Debt Concerns, China
Gold gained in London as concern about Europe’s debt crisis boosted demand for a protection of wealth and on speculation China will consume more of the metal. Palladium traded near a nine-year high.
China Should Consider Adding to Gold Reserves, PBOC Adviser Says
China should consider adding to its gold reserves as a long-term strategy to pave the way for the yuan’s internationalization, central bank adviser Xia Bin wrote in the China Business News today.
Silver to Peak Near $35 An Ounce Next Year, GFMS’s Klapwijk Says
Silver prices may peak near $35 an ounce next year and average close to $30 on strong investment demand and continuing growth in industrial consumption, Philip Klapwijk, chairman of GFMS Ltd., a London-based research company, said today in Shanghai.
Platinum to Average $1,755 in 2011, GFMS’s Klapwijk Says
Platinum prices will average $1,755 an ounce in 2011 after trading between $1,550 and $1,720 in the next three months, Philip Klapwijk, chairman of GFMS Ltd., a London-based research company, said today in Shanghai.
AGRICULTURE:
Wheat Climbs to a Four-Month High on Worldwide Supply Concern
Wheat rose in Chicago to the highest price in almost four months on concern rainfall in Australia may curb supply of food- quality grain as dry weather threatens the U.S. crop.
Cocoa Heads for Biggest Weekly Gain in Six Weeks on Vote Dispute
Cocoa rose in London, heading for the biggest weekly advance in six weeks, as a disputed presidential election in Ivory Coast threatened to disrupt exports from the world’s largest grower.
Palm Oil Set for Biggest Weekly Gain in 5 Months on China Usage
Palm oil is headed for the biggest weekly advance in almost five months on optimism that rising demand in China may strain global supplies curbed by rain and drought in producing countries.
Wheat Advances to Fourth-Month High on Concerns on Global Supply
Wheat jumped to the highest in almost four months on lingering concerns wet weather in Australia, the world’s fourth- largest shipper, may curb supply of food-quality grain, while dry weather threatens the crop in the U.S.
Rubber Drops as High Price Curbs Demand; Thai Price at Record
Rubber declined as end-users slowed purchases on higher prices, while heavy rains in Thailand continued to cut supply in the largest exporter, boosting the cash price to a record. Futures were still set for a weekly gain.
Palm Oil May Slump by June as Premium Delays Buying, Fry Says
Palm oil prices may slump by June as production recovers and an “exceptionally high” premium over diesel prompts buyers to delay purchases until mid-2011, LMC International Ltd. Managing Director James Fry said today.
India’s Natural-Rubber Deficit to Surge, Group Says (Update2)
A natural-rubber shortage in India, the world’s biggest consumer after China, may surge almost five times over the next decade as rising incomes boost demand for tires, according to an industry group.
SHIPPING:
Norden Orders Four Ships; Secures Rio Tinto Charters (Update1)
D/S Norden A/S, Denmark’s biggest publicly traded commodities shipping line, said it ordered four dry-bulk carriers and secured long-term charters from Rio Tinto Plc for two of them.
Supertanker Rates ‘Easing Lower’ on Ship Glut, Imarex Asia Says
Imarex Asia Pte, a unit of Oslo-based freight derivatives broker Imarex ASA, comments by e-mail on supply and demand for supertankers to load 2 million-barrel cargoes of Middle East crude oil.
James Fisher Says Kilpatrick Joins Board as Finance Director
James Fisher & Sons Plc said Stuart Kilpatrick joined the board as group finance director on Dec. 1. Michael Shields retired, stepping down from the board, last month, the company said.
ECONOMIES:
PBOC Adviser Sees Only ‘Slow’ China Rate Moves as Policy Shifts
China will raise benchmark interest rates only slowly and won’t “slam on the brakes” as the nation officially switches to a tighter monetary policy, said Li Daokui, an academic adviser to the central bank.
China Will Shift to ‘Prudent’ Monetary Policy in 2011 (Update2)
China will shift to a “prudent” monetary policy next year as the government seeks to rein in liquidity, combat accelerating inflation and limit the risk of asset bubbles.
China’s Services Industry Slows as Inflation Erodes Margins
China’s non-manufacturing purchasing managers’ index fell to a nine-month low in November as accelerating inflation eroded service companies’ margins.
China Needs to Increase Deposit Rates to 12-Year High, Xie Says
China has to raise deposit rates by “at least” 3 percentage points in the next 12 months to protect investors faced with a negative return on their savings as inflation accelerates, independent economist Andy Xie said.
China Has $1.5 Trillion Spending Plan, Reuters Says (Update1)
China may spend as much as $1.5 trillion on seven strategic industries over the next five years, Reuters reported, citing an unidentified source with direct knowledge of the matter.
Trichet Keeps Up EU Pressure as ECB Buys Bonds to Calm Investors
Jean-Claude Trichet is keeping the onus on governments to fix the debt crisis as the European Central Bank buys bonds to win politicians time to cut deficits.
Brazil Raises Bank Reserve Requirements on Deposits (Update2)
Brazil’s central bank raised reserve requirements on cash and time deposits to slow consumer lending that’s growing 20 percent annually and prevent a credit bubble. Interest-rate futures yields dropped.
Greece’s Long-Term Sovereign Credit Rating May Be Cut by S&P
Greece was warned it could receive a lower credit rating from Standard & Poor’s as proposed European Union rules threaten to hurt bondholders.
Payrolls Probably Rose in November as U.S. Economy Picked Up
An increase in November payrolls probably pushed U.S. job gains past the 1 million mark for the year as the world’s largest economy strengthened heading into 2011, economists said before a report today.
OTHER MARKETS:
Dollar Weakens, Stocks, U.S. Futures Fluctuate Before Jobs Data
The dollar weakened for a third day while stocks and U.S. index futures fluctuated before a report that may show America’s unemployment rate held at 9.6 percent. Irish and Portuguese bonds gained and the ruble jumped.
Euro May Fall Below $1.25 on Ichimoku: Technical Analysis
The euro’s drop in the past month has pushed the currency through key levels on a so-called ichimoku chart, indicating its decline may continue to $1.25 next year, Bank of America Merrill Lynch said, citing trading patterns.
European Stocks Fluctuate Before U.S. Jobs Data; Berkeley Climbs
European stocks fluctuated, with the Stoxx Europe 600 Index poised to snap three weeks of losses, before a report that may show the labor market in the world’s largest economy has begun to improve. U.S. futures were little changed and Asian shares gained.
Asian Stocks Rise as U.S. Data, ECB Program Boost Growth Hopes
Asia’s benchmark stock index rose for a third day as U.S. housing data and an extended emergency loan program from the European Central Bank bolstered confidence in a global economic recovery.
Cooking Oils to Extend Rally on Supply Deficit, Mistry Says
Cooking oils prices will extend a rally as rising global demand exceeds supplies curbed by drought and heavy rains, pushing palm oil to 3,600 ringgit a ton this month, according to Dorab Mistry, director of Godrej International Ltd.
Corn ‘Destined’ for Record $8 as Supply Shrinks: Chart of Day
Corn prices are headed to a record $8 a bushel by late June as rising demand erodes global inventories and governments fail to keep inflation in check, said William Fordham, the president of C & S Grain Market Consulting.
South Korea’s New Defense Chief Threatens Air Strikes on North
South Korea’s new defense minister vowed retaliation that would include airstrikes if North Korea makes another attack following last month’s deadly artillery bombardment.
China Turns Negotiating Tables on U.S. in Stalled Climate Talks
The U.S. pressed China to do more at climate-change talks in Copenhagen last year. Now, as the U.S. falls short of its own goals, China may have gained more credibility in renewed negotiations by moving to clean up its energy industry.
Emerging Stocks Post Biggest 3-Day Rally Since May; Micex Jumps
Emerging-market stocks rose, with the benchmark index headed toward its biggest three-day advance since May, on speculation a recovery in the U.S. economy will drive demand for developing nations’ exports.
Oil Heads for Biggest Weekly Increase in a Month on U.S. Economy
Oil headed for its biggest weekly gain in a month on speculation that U.S. fuel demand will increase as the economic recovery gathers pace.
Oil Will Rise to $120 by End of 2012, JPMorgan Says (Update1)
Oil will advance to $120 a barrel before the end of 2012 as consumption grows in emerging economies, according to JPMorgan Chase & Co.
SPORTS:
Failed World Cup Bid Head Says England, U.S. Shouldn’t Try Again
The U.S. and England shouldn’t bid for the World Cup again until soccer’s governing body changes the way it decides where sport’s most-watched event is staged, the leader of England’s failed effort for 2018 said today.
Manchester City Plans to Sell Adebayor, Bridge, Given: Roundup
The following is a roundup of soccer stories from European newspapers, with clickable links to the Web.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
