ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Nonfarm Productivity 2Q P -0.9% 1.8% 8:30 Unit Labor Costs 2Q P 2.4% 0.7% 8:30 FOMC Rate Decision AUG 9 0.25% 0.25% 14:15 USDA Cattle Slaughter AUG 9 126000 14:00 USDA Hog Slaughter AUG 9 396000 14:00 METAL PRICES: ($/ton) Last % Chg RSI Copper 8,830 +0.6 28 Aluminum 2,417 +1.3 35 Zinc 2,135 +2.1 31 Lead 2,271 +3.0 27 Nickel 21,620 +1.7 33 Tin 23,000 +2.2 26 OTHER MARKETS: Last % Chg % YTD U.S. Dollar Index 74.406 -0.6 -5.8 Crude Oil $79.71 -2.0 -13 Gold $1,764.4 +2.6 +24 MSCI World Index 1,130.00 -0.3 -12 TOP STORY: Gold Advances to Record as Equity Rout Stokes Investor Demand Gold advanced to records in London and New York as the global rout in equities and commodities deepened on concern the economic slowdown will worsen after Standard & Poor’s cut the U.S. credit rating. COMMODITY EXCLUSIVES: Goldman’s O’Neill Says It’s Premature for Fed to Weigh More QE Goldman Sachs Asset Management Chairman Jim O’Neill said it’s “premature” for the Federal Reserve to consider expanding stimulus as inflation picks up. NMDC Raises Iron Ore Output Target by 10% on Bellary Mines (1) NMDC Ltd., India’s largest iron ore producer, raised its production target by 10 percent for this financial year after planning to increase output at its mines in Karnataka’s Bellary area. Oil Slump Strains Gulf Budgets Amid Spending Spree, Analysts Say Persian Gulf oil producers may need to reconsider spending plans to avoid depleting cash reserves as oil prices fall below estimated breakeven levels for their budgets, analysts said. NMDC Raises FY12 Iron Ore Production, Sales Target, Som Says NMDC Ltd. raised its iron ore production target to 32 million metric tons from 29 million tons for the year ending March 31, Chairman Rana Som said in an interview in New Delhi today. BP Delaying Wells Worsens Slump in Most Profitable Fields (1) BP Plc’s drilling delay in the Gulf of Mexico means production will keep declining at its most profitable fields as the company spends $2.4 million a day to keep rigs in the region idle. Aquila CEO Says ‘Dozens’ Are Studying Coal Acquisition (1) Aquila Resources Ltd., seeking to raise about A$1 billion ($1 billion) selling assets, said “dozens” of potential buyers are studying the purchase of its Washpool coal project in Australia’s Queensland state. Billionaire Ross Buys Assets as Fear Drives Market Declineses Billionaire investor Wilbur Ross said he is buying assets as the global market declines are being driven by fear rather than economic reality. Texas Dust-Bowl Redux Spurs Record U.S. Cotton Loss, Farm Claims The worst Texas drought in more than a century has left cotton-crop conditions that rival the Dust Bowl of the early 1930s, forcing farmers to abandon more fields than ever before. Hay Sent to China Cheaper Roiling U.S. Dairies: Freight Markets U.S. hay, the country’s third-largest crop by value, is now cheaper to ship to China than to farmers in central California, compounding shortages that mean record prices for the dairy industry. Oil Supply Rises in Survey on Reserves, Imports: Energy Markets U.S. crude oil supplies rose for a third week, the longest stretch of gains in three months, as the government released barrels from the Strategic Petroleum Reserve and imports increased, a Bloomberg News survey showed. INDUSTRIAL METALS: Copper May Advance From Eight-Month Low on Fed Speculation Copper may rise in London for the first day in five, after reaching an eight-month low, on speculation the Federal Reserve will take steps to support plunging financial markets. Copper Output in China Advances to Record as Aluminum Drops (2) Copper production in China climbed to a record in July as rising prices prompted smelters to increase processing rates. Aluminum output fell from an all-time high. Norilsk Nickel Heads for Lowest in Eight Months as Copper Drops OAO GMK Norilsk Nickel, Russia’s biggest mining company, slid to an eight-month low in Moscow trading as copper and nickel prices declined. Copper Stockpile Orders Drop for 13th Session to Four-Month Low Orders to remove copper from stockpiles monitored by the London Metal Exchange dropped for a 13th session to a four-month low. Orders for aluminum, lead and zinc also declined. MINING: Orissa Plans to Limit Iron Ore Sold to Other States in India India’s Orissa state, the nation’s largest iron ore producer, plans to restrict sales of the raw material to other provinces, aiming to increase supplies for local steelmakers and curb illegal mining. Aquila CEO Says ‘Dozens’ Are Studying Coal Acquisition (1) Aquila Resources Ltd., seeking to raise about A$1 billion ($1 billion) selling assets, said “dozens” of potential buyers are studying the purchase of its Washpool coal project in Australia’s Queensland state. PRECIOUS METALS: Gold ETF Assets in India Climb to a Record as Prices Surge (1) Assets in gold-backed funds in India, the biggest bullion consumer, tripled to a record in July as the precious metal rallied to an all-time high. AGRICULTURE: Corn Drops to One-Week Low as Slowing Recovery May Curb Demand Corn fell to a one-week low in Chicago on concern the loss of the U.S.’s AAA credit rating will sap a weakening recovery and erode demand. Soybeans reached the lowest price in almost five months. Palm Oil Drops to 9-Month Low as Slowdown May Reduce Demand Palm oil slumped to the lowest in more than nine months as the global rout in equities and crude oil deepened on concern the loss of the U.S.’s AAA rating will exacerbate a slowing global economy. India Ministers’ Panel May Allow Fresh Sugar Exports (1) India, the world’s biggest sugar producer after Brazil, may “soon” consider a demand from mills for additional exports amid forecasts for an increase in output for a third year, Farm Minister Sharad Pawar said. Cocoa in London Climbs as Next Year’s Deficit Looms; Sugar Drops Cocoa climbed in London and New York on speculation about a shortage in the season starting in October. Sugar dropped. Russia’s Grains Crop May Reach 92 Million Tons, Ikar Says Russia’s grains crop will be between 90 million and 92 million metric tons this marketing year and exports may exceed 20 million tons, the Institute for Agricultural Market Studies said. Rubber Tumbles Most in Six Weeks on Concern Demand May Decline Rubber slumped the most in six weeks as concerns deepened that a global economic slowdown may worsen after Standard & Poor’s cut the U.S. long-term credit rating. Futures plunged by the daily limit in Shanghai. SHIPPING: Oil-Tanker Surplus Jumps in Middle East as Vessel Demand Slows A glut of oil tankers competing for Middle East crude expanded as demand for the vessels slowed. China Forecasts Heavy Rain in Northeast After Muifa Downgraded Muifa, downgraded this morning to a tropical depression, is forecast to cause heavy and torrential rainfall in the nation’s northeastern provinces of Heilongjiang and Jilin, according to the China Meteorological Administration. Trade Finance Is ‘Very Liquid,’ Shows No Recession, Lazard Says Trade finance remains in plentiful supply for companies seeking to ship cargoes by sea and is not indicating a recession, Lazard Capital Markets LLC said. ECONOMIES: China 6.5% Inflation Limits Policy Response to Global Crisis (1) China’s inflation accelerated to the fastest pace in three years in July, limiting the scope for monetary easing to support growth as plunging stock markets signal the global recovery is weakening. Asia Stocks Drop as Yen, Treasuries Climb on Growth Concerns Asian stocks sank, extending a two- week rout that has erased $7.8 trillion in global equity values and commodities fell, with oil tumbling below $80 a barrel, on concern the loss of the U.S.’s AAA rating will exacerbate a slowing global recovery. Treasuries, the yen and gold climbed. Aussie Falls Below Parity First Time Since March on Global Rout Australia’s dollar dropped below parity with the greenback for the first time in five months as concern over a slowdown in the U.S. economy and the euro- region’s debt crisis sapped demand for higher-yielding assets. Yuan Forwards Slide on Global Growth Concern; Swaps Fluctuate Yuan forwards weakened the most since November on speculation China will rein in appreciation to support exports as a global recovery falters. Swaps fluctuated after data showed inflation reached a three-year high in July. Fed May Strengthen Stimulus Pledge on Renewed Recession Concern Federal Reserve officials may strengthen their commitment to record monetary stimulus as soon as today after a faltering economic recovery and a U.S. credit- rating cut provoked a rout in global stocks. Rogoff Says Fed Will Embark on QE3, Act ‘Decisively’ on Economy Federal Reserve policy makers are likely to embark on a third round of large-scale asset purchases, moving “more decisively” to secure the U.S. recovery, said Harvard University economist Kenneth Rogoff. ECB Half-Hearted Bond-Buying Program May Backfire: Euro Credit The European Central Bank will need to commit more to its Italian and Spanish bond purchases than it did trying to cap the yields of Greece, Ireland and Portugal. OTHER MARKETS: Yen, Franc Gain as Havens on U.S. Slowdown, Europe Debt Concern The yen and Swiss franc rose as concern over a U.S. economic slowdown, tumbling stock markets and the euro region’s debt crisis spurred demand for the currencies as a refuge. Sinking Real Means Emerging Currency Swings Up From 10-Year Low Emerging-market currencies that three weeks ago showed the least volatility in a decade are dropping as traders bet slower expansions and an end to interest rate increases may weaken exchange rates from Sao Paulo to Moscow. European Stocks Slide for Eighth Day in Longest Rout Since 2003 European stocks retreated for an eighth day, the longest losing streak since 2003, amid concern the global economy is slowing. Asian shares sank and U.S. index futures fluctuated between gains and losses. U.S. Stock Futures Climb After S&P 500’s Biggest Loss Since 2008 U.S. stock futures advanced, indicating the Standard & Poor’s 500 Index rebound from its biggest loss since 2008, as investors awaited the outcome of a Federal Reserve meeting. Crude Falls to 10-Month Low in New York; Brent Dips Below $100 Oil fell to the lowest price in more than 10 months in New York and dipped below $100 a barrel in London as the U.S. credit-rating cut and rising stockpiles stoked concern a slowing economy will reduce demand for fuel. Cameron Recalls Parliament as 200 Held in Third Night of Riots David Cameron recalled Parliament from its summer vacation after police made more than 200 arrests in a third night of rioting in London and unrest spread to other British cities. Syria Pressed to End Crackdown as Arab States Join Criticism (2) Syrian President Bashar al-Assad faced renewed pressure to end his government’s deadly five-month crackdown against protesters after three Arab countries withdrew their ambassadors from Damascus and Turkey said it was preparing to send a “decisive” message to its neighbor. OPEC Oil Output Rises in July as Saudi Arabia Pumps More Crude OPEC crude oil production rose last month as Saudi Arabia, the group’s biggest exporter, and Angola pumped more, offsetting declines by Iran, Iraq and Nigeria. OPEC Cuts Oil Demand Forecasts for 2011, 2012 as Economy Falters The Organization of Petroleum Exporting Countries cut its oil demand forecasts for 2011 and next year as the global economic recovery loses momentum. SPORTS: Arsenal Opens Door for Nasri’s City Move, Guardian Says: Roundup The following is a roundup of soccer stories from U.K. newspaper, with clickable links to the websites. England-Netherlands Soccer Match Postponed by Riots in London England’s soccer exhibition match against the Netherlands tomorrow night in London was postponed following three days of rioting in the U.K. capital. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

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