BLBG: U.S. Commodities Day Ahead: Copper Advances to Record in London
The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS:
Forecast Prior Time(N.Y.)
Advance Retail Sales NOV 0.6% 1.2% 08:30
Retail Sales Less Autos NOV 0.6% 0.4% 08:30
Retail Sales Ex Auto & Gas NOV 0.6% 0.4% 08:30
Producer Price Index (MoM) NOV 0.6% 0.4% 08:30
PPI Ex Food & Energy (MoM) NOV 0.2% -0.6% 08:30
Business Inventories OCT 1.0% 0.9% 10:00
FOMC Rate Decision DEC 14 0.25% 0.25% 14:15
ABC Consumer Confidence DEC 12 -45 17:00
OTHER MARKETS:
Last % Chg % YTD
U.S. Dollar Index 78.996 -0.4 +3.5
Crude Oil $88.71 +0.1 +28
Gold $1,407.2 +0.9 +25
MSCI World Index 1,268.35 +0.2 +8.9
TOP STORY:
Copper Rises to Record in London on Outlook for Stronger Growth
Copper rose to a record for a second day in London before a U.S. report that may signal growth in the world’s biggest economy as the Federal Reserve prepares to discuss interest rates and bond purchases.
COMMODITY EXCLUSIVES:
Eveready Rises Most in 17 Months After Raising Prices (Update1)
Eveready Industries Ltd., India’s largest maker of batteries, had its biggest gain in seven years after increasing prices of some of its products by as much as 9 percent to pass on the higher cost of zinc, a key raw material.
Biggest Price Jump Since July Spurs CPI Bonds: Argentina Credit
Argentina may report the fastest consumer price increase since July, spurring demand for inflation-linked peso bonds that have handed investors almost double the return on government dollar debt this year.
Mortgage-Bond Slump ‘Won’t Be Fun’ for Housing: Credit Markets
A slump in government-backed mortgage bonds that’s sent yields to the highest level since May is threatening a recovery in the U.S. housing market, which had been bolstered by record- low borrowing costs.
U.K. Marine Energy Threatened, Pulse Tidal Chief Says (Update1)
Pulse Tidal Ltd., a U.K. tidal turbine maker, said Britain’s marine-energy industry is under threat as the government sends “mixed messages” of support and venture capitalists prefer small-scale wind and solar projects.
Odebrecht Reviving Loan Market as Yields Rise: Brazil Credit
Odebrecht SA and Centrais Eletricas Brasileiras SA plan to borrow using syndicated loans next year to finance investment, a sign the market for bank credit may rebound after sinking to a five-year low of $4.7 billion.
India’s Nuclear Power Generation Jumps 29% on Imported Uranium
Uranium supplies from Russia, Kazakhstan and France increased India’s nuclear power generation by 29 percent in the eight months ended November compared with a year earlier, the country’s state-run monopoly generator said.
UBS AG raised its copper estimate for next year to $4.15 a pound from $3.68 a pound and raised the gold forecast to $1,550 an ounce from $1,400 an ounce.
MINING:
Platfields Shares Fall to Half Forecast Price on Debut (Update1)
Platfields Ltd. shares fell to half the price forecast by the South African precious metals explorer in debut trading on the stock exchange in Johannesburg.
Norilsk Denies Talks With BHP Over Honeymoon Well Nickel Project
OAO GMK Norilsk Nickel denied a report it’s in talks with BHP Billiton Ltd. to jointly develop the Honeymoon Well nickel deposit in Western Australia.
Norsk Hydro Delays Completion of Vale Aluminum Deal (Update1)
Norsk Hydro ASA, Europe’s third-largest aluminum maker, will delay completing the purchase of $4.9 billion of assets from Brazil’s Vale SA until the first half from this quarter as it seeks regulators’ approval.
African Aura’s New Liberty Gold Mine to Have ‘Strong Economics’
African Aura Mining Inc. completed a study of its New Liberty gold project in western Liberia and said it shows potential for a “robust” open-pit mine with “strong economics.”
Ferrexpo Appoints Brian Maynard as Chief Operating Officer
Ferrexpo Plc, an iron-ore producer focusing on Ukraine, appointed Brian Maynard as chief operating officer, effective Jan. 10.
Coal Imports May Increase 78% to China, India: Energy Markets
China and India may increase imports of coal by 78 percent to 337 million metric tons next year, further driving up prices from the highest in two years and diverting supplies from Europe to Asia.
PRECIOUS METALS:
Gold Gains in London as Weaker Dollar Boosts Investor Demand
Gold gained for a second day in London as a weaker dollar boosted demand for the precious metal as an alternative investment.
Gold Society in Hong Kong to Offer Yuan-Denominated Contract
The Chinese Gold & Exchange Society, Hong Kong’s only bourse for spot precious metals, said it will introduce a yuan- denominated gold contract next year.
Gold Demand in Korea Set to Climb, Exchange Operator Predicts
Gold demand in South Korea is set to increase as consumers buy more bars and boost investments as currencies weaken, according to Korea Exchange Inc., which expects increased trading in its so-called mini futures contract.
AGRICULTURE:
Florida Orange Crop to Avoid ‘Killer’ Overnight Freeze (Update1)
Florida’s orange crop, the largest in the U.S., may be spared a “killer” overnight frost, with temperatures at 4 a.m. local time close to freezing, said Jim Dale, a senior meteorologist at British Weather Services.
French January-to-September Wine Exports Rise, Led by Champagne
French wine exports rose 7 percent in volume and 13 percent in value in the first nine months of 2010 from a year earlier, lifted by shipments of champagne, the agriculture ministry said in a statement on its website today.
White Sugar Rises for a Second Day as Rains May Curb Production
White sugar advanced for a second day in London on speculation that rains may limit supplies from India and Australia.
Rubber Reaches Record as Rain in Thailand Worsens Supply Outlook
Rubber extended a rally to an all- time high as persistent rain in Thailand, the top producer and exporter, lowered output, adding to worries over tightening supply ahead of low-production season early next year. The cash price in Thailand also reached a record.
Corn Futures Decline as Advance to One-Month High Prompts Sales
Corn dropped as investors locked-in gains after prices climbed to a one-month high yesterday on optimism that demand for commodities may grow as China refrained from raising interest rates. Wheat also declined.
Locust Activity Increasing as Temperatures Rise, Victoria Says
Locust swarms had become more active in northern and western Victoria amid rising temperatures, the state’s Department of Primary Industries said in an e-mailed update today. The department had received isolated reports of damage to dairy pastures and vegetable crops, Tatura-based spokesman Lewis Hill said by phone.
SHIPPING:
Persian Gulf Supertanker Surplus Shrinks, Strengthening Owners
An excess of supertankers competing for Persian Gulf crude oil shrank, strengthening owners’ ability to secure profitable charters.
Greek Shipping Costs Rise Over Lack of Seamen, PwC Says
A lack of Greek officers and sailors is increasing costs for the country’s shipowners, who control the world’s second- largest fleet after China, PricewaterhouseCoopers International Ltd.’s Greek unit said.
Supertanker Market Has 30 to 40 Spare Vessels, DnB NOR Says
DnB NOR Markets analysts Henrik With and Glenn Lodden comment in an e-mailed report today on supply and demand for supertankers to load 2 million-barrel cargoes of Middle East crude oil.
ECONOMIES:
Beijing Proposes Fees, Bicycles to Ease World’s Worst Traffic
The city of Beijing, ranked as having the world’s worst traffic, has proposed offering public bicycles, building tunnels and possibly imposing fees for driving in parts of the Chinese capital to ease congested roads.
China’s Rate Pause May Show Consensus Difficulty, Deutsche Says
China’s pause in adding to October’s interest-rate increase may reflect the difficulty in reaching consensus as the State Council consults with government agencies, according to Deutsche Bank AG economist Ma Jun.
WTO Rules U.S. Tariffs on Chinese Tire Imports Legal (Update1)
World Trade Organization judges rejected China’s complaint that U.S. tariffs on Chinese car and light-truck tires violate global trade rules, saying the Obama administration “did not fail to comply with its obligations.”
Irish, Portugal Bonds Outpace Peers on ECB Buying: Euro Credit
European Central Bank purchases ensured Irish and Portuguese bonds beat their euro-region peers this month even as Deutsche Bank AG predicted Portugal will be the next country forced to seek aid.
ECB Said to Consider Asking for Capital Increase as Cushion
The European Central Bank is considering asking euro-region members for a capital increase to protect itself from any losses stemming from its government bond purchases, said a euro-area central bank official with knowledge of the talks.
Bernanke Policy Options May Be Limited Amid Republican Scrutiny
Federal Reserve Chairman Ben S. Bernanke may find his options for reducing unemployment near a 26-year high are constrained after Republicans take control of the House of Representatives next month.
Trichet Calls for ‘Maximum’ Flexibility of Region’s Rescue Fund
European Central Bank President Jean-Claude Trichet said European governments should consider extending and broadening the region’s bailout fund to help fight the fiscal crisis.
OTHER MARKETS:
Asian Stocks, Currencies Rally as Central Banks Spur Growth
Asian stocks advanced, lifting the benchmark index to a five-week high, Taiwan’s dollar reached the strongest level in 13 years and rubber rose to a record on speculation central banks will adopt policies to support global economic growth.
Dollar Weakens as Fed Meets; Commodities Jump, Stocks Fluctuate
The dollar depreciated to a three-week low against the euro on speculation the Federal Reserve may buy more bonds to bolster the economy, while stocks and U.S. futures were little changed. Copper and cotton gained as Spanish and Portuguese bonds dropped.
N.Z. Dollar May Drop to Weakest Since 1992: Technical Analysis
New Zealand’s dollar may extend its drop to the lowest since 2000 versus Australia’s if it breaches so-called support near NZ$1.3187 on a closing monthly basis, ANZ National Bank Ltd. said, citing trading patterns.
Most European Stocks Drop; ProSiebenSat, Outokumpu Shares Slide
Most European stocks declined as the Stoxx Europe 600 Index dropped for the first time in seven days before the Federal Reserve’s last regular meeting this year. U.S. stock-index futures fluctuated and Asian shares rose.
Cotton Jumps by Daily Limit as USDA Data Raises Supply Concerns
Cotton futures in New York soared by the daily limit for a second day, advancing to a one-month high after a government report estimated U.S. inventories will drop to a 14-year low.
Oil Trades Near $90 on Bets Colder Weather Is Trimming Supplies
Oil traded near $90 a barrel in New York on forecasts that U.S. crude stockpiles are declining as colder weather approaches the nation.
Oil Trades Near $90 on Bets Colder Weather Is Trimming Supplies
Oil traded near $90 a barrel in New York on forecasts that U.S. crude stockpiles are declining as colder weather approaches the nation.
SPORTS:
City Ready to Sue Tevez Over Quit Threat, Mirror Says: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
Park Lifts Manchester United Over Arsenal Atop Premier League
Ji-Sung Park scored the only goal as Manchester United defeated Arsenal to replace the London team at the top of English soccer’s Premier League.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
