Gold Climbs in London on Dollar, Fed Monetary Policy Outlook Gold gained in London as a weaker dollar boosted the appeal of the metal as an alternative investment and on speculation the Federal Reserve won’t start tightening monetary policy soon. COMMODITY EXCLUSIVES: Silver Note Trading Jumps Amid Metal’s Plunge From 30-Year High Trading of silver-linked structured notes on NYSE Euronext exchanges surged in the first two weeks of the month as the price of the metal fell from a 30-year high. OMV Signs Memorandum With Socar After CEO Meets Azeri President OMV AG, central Europe’s biggest oil company, signed a memorandum of understanding with the State Oil Co. of Azerbaijan this week when Chief Executive Officer Gerhard Roiss met Azeri President Ilham Aliyev in Baku. Buffett Accused of Sticking Shippers With Bill for Railroad Deal Coal shippers say Warren Buffett’s Burlington Northern Santa Fe railroad is trying to use U.S. government accounting methods to pass on $7.6 billion in Berkshire Hathaway Inc.’s costs of acquiring Burlington last year. Fund Manager Turned Farmer Birch Contending With Drought Stress England’s hottest weather in more than three centuries is making Graham Birch, the country’s best natural-resources fund manager for a decade, concerned about the state of his spring crop. Iron Ore ‘Bubble’ Looms, Will Lower Price, Baosteel Xu Says (1) The iron ore market has risen to “bubble” levels that will burst as new mines create oversupply of the steelmaking raw material, according to Baosteel Group Corp., China’s second- biggest mill. INDUSTRIAL METALS: Copper Heads for First Weekly Gain in Four as Stockpiles Decline Copper rose in London, heading for the first weekly gain in four weeks, as shrinking global stockpiles of metal fueled speculation demand may be improving. Norilsk Nickel’s Klishas to Quit for Duma Career, Vedomosti Says Andrei Klishas, the president of OAO GMK Norilsk Nickel, may leave the company to start a career as a lawmaker in the State Duma, Russia’s lower parliamentary chamber, Vedomosti reported, citing unidentified people familiar with the matter. MINING: Lonmin Production Hit by Strike at Karee in South Africa Lonmin Plc said production at its Karee operations in South Africa has been affected by industrial action by members of the National Union of Mineworkers since the night shift on May 17. Glencore Dips Below $10 Billion IPO Price in London Trading (1) Glencore International Plc, the commodities trader that sold $10 billion in an initial public offering yesterday, dipped below the offer price on its second day of so-called conditional trading in London. Baosteel Says ‘Very Interested’ to Join in Simandou Project (1) Baosteel Group Corp., China’s second-largest steelmaker, is “very interested” in participating in Rio Tinto Group and Aluminum Corp. of China Ltd.’s Simandou iron ore project in Guinea. Indonesia May Use Japan’s Floating Dock to Unlock Coal Mines (1) Indonesia, the world’s second-largest coal exporter, may build a floating dock worth as much as 100 billion yen ($1.2 billion) with Japan to enable speedier transfer of the fuel from barges to bigger ships. PRECIOUS METALS: China Gold Imports to Rise After Investment Overtakes India (1) Gold imports by China may increase after investment demand more than doubled in the first quarter, with the country overtaking India to become the largest market for gold coins and bars, the World Gold Council said. AGRICULTURE: Palm Oil Rallies in the Best Run Since March as Shipments Surge Palm oil gained for a fifth day, the best winning run in more than two months, as an increase in exports from Malaysia, the second-largest producer, signaled growth in demand from buyers in China and Europe. Corn Set for Biggest Weekly Gain Since October on Import Demand Corn rose in Chicago, heading for the biggest weekly gain in more than seven months, on speculation declines in the past two weeks may have increased demand from importers. Wheat and soybeans climbed. Coffee Rises on Tight Vietnam, Indonesia Supplies; Sugar Climbs Coffee rose for a fourth day in London, the longest winning streak in more than two months, on tight supplies from Indonesia and Vietnam, the largest producer of robusta beans. Sugar advanced. Russian Traders Getting Prepared to Export Grains, SovEcon Says Russian traders are getting prepared to export grains because of better prospects for harvests this year, said SovEcon Managing Director Andrey Sizov Jr. by phone from Moscow today. SovEcon is a Moscow-based agriculture research company. Rubber Drops as Weak Economic Data Spurs Concern Demand May Fall Rubber fell from a more than two-week high after weakness in U.S. home sales and manufacturing in the Philadelphia area raised concern the global economic recovery may slow, damping demand. SHIPPING: Iron Ore May Fall on Chinese Power Shortages, Deutsche Bank Says Iron ore may fall next week on speculation power shortages in China, the world’s biggest importer of the steelmaking raw material, will force steel mills to cut output, Deutsche Bank AG said. ECONOMIES: Developers Pay 25% to Borrow at Investment Trusts: China Credit China’s developers are paying as much as 25 percent to borrow from private trust companies as property firms avoid lending curbs intended to control inflation and cut the risk of corporate default. Hong Kong May ‘Tap Brake’ on Record Yuan Deposits, CCBI Says (1) Hong Kong may introduce measures to slow growth in the city’s yuan deposits to help stem an exodus of local currency from the financial system, according to CCB International Securities Ltd. Lagarde Favored to Head IMF as Emerging-Market Bid Founders (2) French Finance Minister Christine Lagarde emerged as the leading contender to replace Dominique Strauss-Kahn at the International Monetary Fund as developing nations failed to unite behind a candidate. Greece Keeps Cutting as Roubini Sees Restructuring: Euro Credit Prime Minister George Papandreou is finalizing the fifth round of deficit cuts to comply with an international bailout as economists, including Nouriel Roubini, say he’ll fail to prevent Greece from becoming the first country to restructure its debt in the euro region. BOJ Refrains From Adding Stimulus Even as Economy Contracts (3) The Bank of Japan’s policy board unanimously voted to maintain monetary policy even after a report yesterday showed the country slipped into a recession following a record earthquake. Summers Sees Bubble Concern in U.S. Technology as Stocks Soar Former U.S. Treasury Secretary Lawrence Summers said there’s a rising concern that technology stocks are in a bubble as investors shake off their apprehension from the 2007-2009 American mortgage and credit collapse. BOE Policy Inflating Away U.K.’s Debt Pile: Chart of the Day The Bank of England will help the U.K. shave about 1 percentage point off its debt-to-gross domestic product ratio this year by keeping interest rates low even as inflation surges, Armstrong Investment Managers said. OTHER MARKETS: Stocks Advance as Gold, Oil Climb; Greek Bonds, Euro Decline Stocks rose, with Europe’s benchmark equity index heading for its first weekly gain in three, while gold and oil advanced. Greek bonds fell for a fifth day on speculation the government will have to reorganize its debt. Euro Declines as Bundesbank Says Germany’s Economy May Weaken The euro weakened against the dollar and the yen as the German Bundesbank said Europe’s largest economy will probably lose some growth momentum. Yuan Gains by Most in Three Weeks as Zhou Says Inflation High China’s yuan rose by the most in three weeks after People’s Bank of China Governor Zhou Xiaochuan said inflation remains “high,” fueling speculation further gains will be tolerated. Oil Climbs in New York on Signs of Demand, Trimming Weekly Drop Oil rose in New York, trimming its weekly decline, on signs of growing fuel demand in the world’s two biggest crude- consuming nations. Netanyahu Says Obama Endangering Israel Before Oval Office Talks Israeli Prime Minister Benjamin Netanyahu said Barack Obama’s call for a Palestinian state “based on the 1967 lines” risks endangering his country, just hours before the two are scheduled to meet in the Oval Office. NATO Says Its Aircraft Hit Eight Pro-Qaddafi Libya Warships (3) NATO aircraft hit eight of Libyan leader Muammar Qaddafi’s warships in the ports of Tripoli, Al Khums and Sirte overnight as U.S. Secretary of State Hillary Clinton said members of Qaddafi’s family fled the country. SPORTS: Real Madrid May Sell Ronaldo, Daily Mail Says: Soccer Roundup The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

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