BLBG: U.S. Commodities Day Ahead: Soros Reduces Holding in SPDR Gold
Nov. 16 (Bloomberg) -- The following are the top stories on metals, agriculture and shipping.
ECONOMIC EVENTS, AGRICULTURE EVENTS:
TOP STORY:
Soros Reduces SPDR Gold Holdings, Invests in iShares (Update1)
George Soros, who’s described gold’s surge as the “ultimate asset bubble,” cut his holding in the SPDR Gold Trust in the third quarter, while investing in the iShares Gold Trust. Rival fund manager John Paulson kept his bet in shares of SPDR Gold, maintaining the largest stake.
COMMODITY EXCLUSIVES:
Coffee Harvest Delays Lengthen in Vietnam as More Rain Forecast
Harvesting of coffee in Vietnam, the world’s second-biggest producer, will be delayed for a further week because of rains, according to local weather officials.
Commodities Will Outperform Equities for 10 Years, Galtere Says
Commodities will outperform companies that buy raw materials as demand for food and clothing climbs in developing nations over the next decade, according to Galtere Ltd., an investment company with $1.1 billion.
Hedge Funds Raise Gas Bets Before Prices Drop: Energy Markets
Hedge funds raised bullish bets on natural gas futures to a six-week high the day before prices plunged on record inventories and warmer-than-expected weather.
Oil May Plunge as Prices Diverge From RSI: Technical Analysis
Crude oil may plunge below $80 a barrel in New York as the failure of its relative strength index to keep pace with price gains signals that this month’s rally is over, according to technical analysis by Commerzbank AG.
INDUSTRIAL METALS:
Copper Drops on Concern China May Take More Steps to Slow Growth
Copper fell in London on concern that China, the world’s biggest consumer of the metal, may take further steps to cool economic growth, damping demand for commodities.
ICAP Adds London Metal Exchange Desk in Hong Kong, Hires Dobson
ICAP Plc is expanding its industrial metals broking business by creating a London Metal Exchange desk in Hong Kong.
China to Auction 117,000 Tons Aluminum From Reserves (Update1)
China, the world’s biggest aluminum producer and consumer, will sell a second batch of ingots from state reserves next week to temper prices.
MINING:
South African Mines Minister Postpones U.S. Roadshow (Update1)
South African Mines Minister Susan Shabangu, who yesterday said her department uncovered “many irregularities” in awarding mining rights, delayed an investor roadshow to New York and Boston days before she was due to fly.
PhosAgro Seeks Canada Talks on Potential Potash Bid (Update1)
OAO PhosAgro, Russia’s largest maker of phosphate fertilizers, is seeking talks with the Canadian government about a potential bid to acquire Potash Corp. of Saskatchewan Inc.
Rothschild Buys Indonesian Coal Stakes for $3 Billion (Update2)
Nathaniel Rothschild, the only son of U.K. financier Jacob Rothschild, agreed to invest $3 billion in two Indonesian coal companies through Vallar Plc, allowing the nation’s biggest producer of the fuel to list in London.
Severstal Net Doubles, Beating Estimate; U.S. to Gain (Update1)
OAO Severstal, Russia’s largest steel producer, said profit almost doubled in the third quarter, beating analyst estimates, after the company sold surplus output of iron ore and coal used in steelmaking for higher prices.
Vallar to Acquire Berau, Bumi Stakes for $3 Billion (Update1)
Vallar Plc, Nathaniel Rothschild’s investment vehicle, will buy 75 percent of PT Berau Coal Energy and 25 percent of PT Bakrie & Brothers’ PT Bumi Resources in a cash and stock transaction valued at $3 billion.
BHP, Rio Called to Testify to Australia Tax Committee (Update1)
BHP Billiton Ltd., Rio Tinto Group and Xstrata Plc have been called to give evidence to an Australian parliamentary committee investigating the government’s planned 30 percent tax on iron ore and coal profits.
PRECIOUS METALS:
Gold Fluctuates Amid Irish Debt Talks, Signs of U.S. Recovery
Gold fluctuated in London amid signs that Ireland may have to accept a European Union bailout while the U.S. economy may be strengthening.
AGRICULTURE:
White Sugar Advances on India Export Prospects, Contract Expiry
White sugar climbed in London after India said it will be “cautious” on ending all export curbs and the December contract for the sweetener expired.
Palm Oil Drops on Concerns China May Take Steps to Cool Prices
Palm oil dropped the most in more than a year on concerns that demand from China, the biggest cooking-oils user, may wane after a state newspaper said price- controls could be imposed on some commodities to cool inflation.
India Buys Record $8.4 Billion Cooking Oils to Meet Supply Gap
Cooking oil imports by India, the biggest consumer after China, climbed 7 percent to a record last year as zero taxes and a growing population and incomes fuelled demand for processed foods, a processors’ group said.
Biotech-Crop Approval Proposal Gets ‘Negative Analysis’ by EU
The European Commission’s proposal to allow European Union countries to ban cultivation of genetically modified crops has raised legal questions, a spokesman for the bloc’s regulatory arm said.
India’s Cotton Output May Be 10% More Than Estimate, Group Says
Cotton production in India, the world’s second-biggest grower, may reach 35.7 million bales in the year from Oct. 1, 10 percent more than estimated by the nation’s Cotton Advisory Board, a group said.
Salmon Farming Industry May Have Record Quarter in 4Q, UBS Says
The salmon farming industry may have a record quarter in the final three months this year because of “high volumes and high prices,” UBS AG said in a report.
Former Malaysian Prime Minister Mahathir Mohamad, who fought off an attack on the ringgit with capital controls during the Asian financial crisis, said currency trading is “silly” and the world should return to the Bretton Woods System of fixed exchange rates.
Sichuan Borrows as California Combats Muni Crisis: China Credit
While California pays the price for its fiscal emergency on the other side of the Pacific, companies linked to China’s local governments may match their record for bond sales even after regulators added curbs to reduce risk.
China Stocks Fall on Concern Inflation May Spur More Controls
China’s stocks fell, driving the benchmark index to the lowest in a month, on speculation the government will intensify measures to curb accelerating inflation including higher interest rates and price controls.
Ireland’s Cowen to Weigh EU Steps to Shore Up Banks (Update2)
Ireland signaled a willingness to weigh European Union measures to aid its banks, potentially abandoning a go-it-alone defense to prevent a resurgent debt crisis from destabilizing the euro.
King Predicts ‘Elevated’ U.K. Inflation After Rate Breaches 3%
Bank of England Governor Mervyn King said inflation will remain “elevated” throughout 2011 after it unexpectedly accelerated in October, forcing him to write the fourth letter of explanation to the Treasury this year.
Sarkozy Under Pressure as France Feels Irish Heat: Euro Credit
French President Nicolas Sarkozy, fresh from skirmishes over plans to raise the retirement age, is now under pressure to reduce the government deficit as investors punish nations such as Ireland for having too much debt.
Battle With Bondholders Looms After G-20 Agrees on Basel Rules
The next hurdle to bank reform is looming after U.S. President Barack Obama and other Group of 20 leaders endorsed the Basel Committee on Banking Supervision’s new rules in South Korea last week: the bond market.
Euro Dominos Will Fall Until Currency Is Split: Matthew Lynn
Who’s next? First Greece went bust. Now Ireland is on the brink of a bailout from the European Union and the International Monetary Fund.
OTHER MARKETS:
Stocks, U.S. Futures Fall on China, Ireland Concern; Bonds Gain
Stocks fell for a seventh day, the longest losing streak since January, on concern China will take steps to curb inflation and as European finance officials met over Ireland’s debt woes. U.S. index futures dropped, bonds rebounded after a two-day slide and the dollar strengthened.
Dollar Reaches Six-Week High Against Yen on U.S. Recovery Signs
The dollar reached a six-week high against the yen before a report that economists said will show U.S. industrial production expanded last month, adding to signs the nation’s recovery is gathering pace.
European Stocks, U.S. Index Futures Drop; Rio Tinto, HSBC Fall
European stocks fell on concern that China will have to take measures to cool inflation, while European finance ministers meet to tackle Ireland’s debt crisis. Asian shares and U.S. index futures also retreated.
IMF Reduces Weighting of Dollar, Yen in SDR Basket (Update1)
The International Monetary Fund cut the weighting of the dollar and the yen and increased that of the euro in its Special Drawing Rights valuation basket based on the currencies’ share of global trade.
Oil Falls to Two-Week Low on Speculation Fuel Demand May Falter
Oil declined for a third day, dropping to a two-week low on speculation government steps to cool Asia’s economic growth may curb fuel use and that Europe’s debt crisis will reduce demand for commodities.
Italian President to Meet Parliament Speakers as Cabinet Teeters
Italian President Giorgio Napolitano will meet with the speakers of parliament after the survival of Prime Minister Silvio Berlusconi’s government was jeopardized by the resignation of four top officials.
Thailand Extradites Russian Arms Dealer Bout to U.S. (Update3)
Thailand extradited Viktor Bout to the U.S. to face terrorism charges, ending two years of legal wrangling over the accused Russian arms dealer dubbed the “merchant of death.”
SPORTS:
Manchester Utd. to Pay Off 220 Million Pounds of Debt (Update1)
Manchester United’s owners agreed to pay off a high-cost payment-in-kind loan worth about 220 million pounds ($353 million), according to a corporate filing by the English soccer club.
Manchester United Quarterly Loss Narrows on Commercial Income
Manchester United’s first-quarter loss narrowed as the 18- time English soccer champion made more from sponsorships.
Chelsea’s Terry May Be Out for Months With Leg Injury: Roundup
The following is a roundup of soccer stories from U.K. and French media, with clickable links to the Web.
--Editors: Claudia Carpenter, John Deane
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
