*T ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) EC PMI Composite JUL 50.8 50.8 4:00 EC PMI Services JUL 51.4 51.4 4:00 Euro Zone Retail Sales MoM JUN 0.5% -1.3% 5:00 MBA Mortgage Applications JUL 29 -5.0% 7:00 Challenger Job Cuts YoY JUL 5.3% 7:30 ADP Employment Change JUL 100K 157K 8:15 U.S. ISM Non-Mfg. Composite JUL 53.5 53.3 10:00 U.S. Factory Orders JUL -0.8% 0.8% 10:00 USDA Cattle Slaughter AUG 3 129000 14:00 USDA Hog Slaughter AUG 3 401000 14:00 USDA Broiler Eggs Set JUL 29 195994 15:00 Metal Prices: ($/ton) *Y Last %Chg RSI Copper $9,681.25 +0.01 55 Aluminum $2,584.50 +0.1 52 Zinc $2,441 +0.03 54 Lead $2,568 +0.3 41 Nickel $24,600 -0.8 59 Tin $27,200 -0.4 46 *Y Other Markets: *Y Last %Chg %YTD U.S. Dollar Index 74.468 -0.1 -5.7 Crude Oil $93.40 +0.2 +2.2 Gold $1,662.30 +0.1 +17.0 MSCI World (MXWO) Index $1,264.85 -0.4 -1.2 *Y TOP STORY: Japan Rebuilding Bright Spot for Western Ports: Freight Markets Longshoremen at ports in Washington state and Vancouver are set to load more timber and lumber onto vessels destined for Japan as the world’s third-biggest economy rebuilds from a $220 billion natural disaster. COMMODITY EXCLUSIVES: Anchor Ship May Double Fleet to 50 on China’s Iron-Ore Demand Anchor Ship Investment Co., Japan’s largest ship-fund manager, may more than double its fleet to as many as 50 vessels because of rising imports of coal and iron ore in China and India. Paulson, BlackRock, UBS Lead London Mining Analyst Hiring Spree Paulson & Co., BlackRock Inc. and UBS AG are leading a hiring spree of London-based mining analysts as banks, brokers and hedge funds compete to bolster research teams in an industry valued at more than $350 billion in the U.K. Fertilizer Boom Spurs Record Loans as Costs Sink: Russia Credit Farmers from China to Brazil are turning Russia into a global center for fertilizer exports and spurring a record borrowing spree by producers as rising sales send interest costs tumbling. INDUSTRIAL METALS: Copper May Drop as Mine Strike Nears End, U.S. Spending Weakens Copper may drop on the London Metal Exchange as a two-week strike at the world’s largest mine in Chile may be nearing an end and U.S. consumer spending fell, deepening concern demand may ease in the second-largest user. Iron Ore Swaps, Aided by Deutsche Bank, Surge Fourfold to Record Iron-ore swaps trading, developed by Deutsche Bank AG and Credit Suisse Group AG in 2008, rose almost fourfold this year to a record in July on demand for derivatives to hedge against price swings in the steelmaking ingredient. MINING: Lynas Says China Showing No Sign of Boosting Rare Earth Exports China is showing “no real sign” of boosting rare earths exports, Lynas Corp. Chief Executive Officer Nick Curtis told reporters in Kalgoorlie, Western Australia. Over 70 percent of rare earths output from Lynas’ Mount Weld mine in Australia has been committed on offtake contracts, he said. Molybdenum to Be Supported by Stronger Chinese Demand, CPM Says Molybdenum prices will be supported by rising demand in China, the world’s largest consumer and producer of the metal that’s used to strengthen steel, and a recovery in the global economy, according to CPM Group Inc. AngloGold, Gold Fields Strike Ends With Two-Year Wage Accord (2) AngloGold Ashanti Ltd., Gold Fields Ltd. and Harmony Gold Mining Co., South Africa’s largest producers of the metal, reached a two-year wage deal with workers, ending a strike that halted production on July 28. PRECIOUS METALS: Spot Gold, Gold Futures in New York Advance to All-Time Highs Spot gold and gold futures in New York climbed to all-time highs as concern that the global recovery may be losing momentum drove investors to buy the metal to protect their wealth. Gold Priced in Euro, Sterling, Canadian Dollars Climb to Record Gold climbed to all-time highs in euros, pounds and Canadian dollars as concern the global economy is losing momentum boosted demand for haven assets. Global Gold Hedges Increased 4.1% in First Quarter, GFMS Says Global gold hedges, or sales of future production, gained about 4.1 percent in the first quarter, researcher GFMS Ltd. said. AGRICULTURE: Rubber Rallies as Much as 2% as Rain in Thailand May Cut Supply Rubber gained, overturning an earlier decline, as heavy rains in Thailand raised concern that supplies from the largest producer and exporter may be disrupted. Peanut Crop in India to Drop on Inadequate Rainfall, Trader Says Peanut production in India, the biggest buyer of palm oil, may decline this year as inadequate monsoon rains in the main growing regions and record cotton prices prompt farmers to reduce planting, according to GG Patel & Nikhil Research Co. Corn Gains to Two-Month High on Concerns of Lower U.S. Output Corn gained to the highest level in almost two months on concerns that output in the U.S. may fall below government forecasts. Wheat and soybean futures declined. East Australia Grain Crops May Be Boosted by Rainfall, CBA Says Grain-growing regions in Australia’s east may receive rainfall in the coming days that’s needed to boost yield potential in the world’s fourth-biggest wheat exporter, according to the Commonwealth Bank of Australia. China Soy Demand to Gain on Higher Hog Numbers, Boosting Imports Soybean demand from China, the biggest buyer, may climb in the second half as consumption by the hog industry increases, boosting processing profits and imports, a Bloomberg News survey showed. Indonesia Studies Plan to Sell Rice to South Korea Indonesia’s South Sulawesi province plans to export premium-grade rice to South Korea, Coordinating Minister for the Economy Hatta Rajasa told reporters in Jakarta today. FAO Cuts Forecast for Global Paddy Output by 1.5 Million Tons Global unmilled rice production is expected to climb to a record 718.3 million metric tons this year, 1.5 million tons less than forecast in April, according to the United Nations’ Food & Agriculture Organization. Output will be 2.5 percent higher than last year, the FAO said in an e- mailed statement today. SHIPPING: Cosco Pacific, Asia Port Operators Slump on U.S. Economy Outlook Cosco Pacific Ltd., part of China’s biggest shipping group, plunged the most in more than four months in Hong Kong as shares of Asian port operators fell amid concerns over the U.S. economic recovery. ECONOMIES: Debt Deal Compromise to Spark Debate Over Medicare Cuts, Taxes President Barack Obama’s signature on a bill raising the debt limit sealed a compromise that averted a U.S. default even as it did nothing to narrow the gulf between Republicans and Democrats over tax increases and spending cuts. China Non-Manufacturing Industries Grew in July, Surveys Show A Chinese non-manufacturing index rose for the first time in three months in July, indicating some industries are withstanding the government’s campaign to cool inflation in the world’s fastest-growing major economy. Australia Retail Sales Unexpectedly Fall, Trade Surplus Narrows Australian retail sales unexpectedly declined in June for a second straight month and the nation’s trade surplus narrowed more than economists forecast, sending the local currency to the lowest level in two weeks. U.S. Consumer Spending Unexpectedly Falls as Hiring Slumps (1) U.S. consumer spending unexpectedly dropped in June for the first time in almost two years and savings climbed, adding to evidence that the slump in hiring is hurting household confidence. OTHER MARKETS: Obama Bonds Proved World Beaters in Game of Chicken on Debt (1) For all the anxiety among politicians and their constituents over playing chicken with the debt ceiling and the prospect of the first-ever downgrade of U.S. debt, the people with the most at stake made more money buying Treasury securities in July than any month this year. Actually, they made a fortune, or $183,000 for every $10 million invested. Asia Stocks, Currencies Drop on U.S. Growth Outlook; Bonds Gain Asian shares fell, extending the global stock-market selloff to six days, and regional currencies sank on concern the U.S. recovery is faltering. Bonds rallied, with 10-year Treasury yields sinking to an eight-month low. Dollar Index Trades 0.3% From Two-Week High on Demand for Haven The Dollar Index was 0.3 percent from a two-week high as Asian stocks slumped amid concern the global economy is slowing, boosting demand for haven currencies. To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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