ECONOMIC EVENTS, AGRICULTURE REPORTS: Forecast Prior Time (N.Y.) Net Long-Term TIC Flows JUL $30.0B $3.7B 9:00 Total Net TIC Flows JUL -$29.5B 9:00 U. of Michigan Confidence SEP P 57.0 55.7 9:55 Metal Prices: ($/ton) Last % Chg RSI Copper 8,820 +1.3 45 Aluminum 2,388 +0.6 47 Zinc 2,215 +1.2 49 Lead 2,419 +1.4 49 Nickel 21,913 +0.5 52 Tin 23,685 +0.4 45 Other Markets: Last % Chg % YTD U.S. Dollar Index 76.522 +0.3 -3.2 Crude Oil $89.24 -0.2 -2.3 Gold $1,787.5 -0.1 +26 MSCI World Index 1,175.75 +0.5 -8.1 TOP STORY: Copper Rises for Second Day on Reduced European Crisis Concern Copper rose for a second day in London, narrowing a second weekly drop, on reduced concern about Europe’s sovereign-debt crisis after central banks allied to help fund euro-area lenders. COMMODITY EXCLUSIVES: Barclays to Open London Precious Metals Vault on Demand Jump (1) Barclays Capital will open a precious metals vault in London next year as demand for assets boosted investors’ holdings and pushed prices to a record. Rural Electrification in Talks for $350 Million Chinese Loan (1) Rural Electrification Corp., a state-controlled lender to Indian power projects, is in talks to borrow $350 million from Chinese banks, Chairman Hari Das Khunteta said. Rice Imports by Bangladesh May Be Miss Forecast on Output (1) Rice imports by Bangladesh, South Asia’s biggest buyer, may be half the amount forecast earlier by the government as local production increases and domestic prices decline, according an executive at the state food buyer. China Hanking Said to Revive Iron Ore Mining IPO in Hong Kong China Hanking Holdings Ltd., an iron-ore miner, plans to revive an initial public offering to raise about $170 million in Hong Kong, two people with knowledge of the matter said. World’s First Solar Building Exporting Energy Shelved by Masdar Masdar shelved plans for the world’s first building that makes more energy than it consumes, a year after the financial crisis forced the Abu Dhabi company to step back from setting up the first carbon-neutral city. U.K. Deal Crackdown Forces Mystery Bidders to Reveal Themselves Mystery suitors for U.K. companies will be forced to declare themselves next week as regulators implement stricter guidelines to increase transparency and protect shareholders. BHP, Vale, Rio ‘Cheap’ on Catastrophic Fears: Chart of the Day Exporters of iron ore such as Vale SA, Rio Tinto Group and BHP Billiton Ltd. are cheap as Europe’s fear of economic catastrophe drags shares below levels supported by prices for the commodity, said Investec Securities Ltd. INDUSTRIAL METALS: Freeport’s Indonesia Strike May Cut Output by 230,000 Tons (1) A strike at Freeport-McMoRan Copper & Gold Inc.’s Grasberg copper and gold mine in Indonesia may cut output by 230,000 tons of ore per day, according to an estimate from the government, which is trying to broker a resolution. MINING: De Beers to Move Diamond Trading to Botswana From London (1) De Beers, which produces more than a third of the world’s diamonds, has agreed to move its diamond trading to Botswana from London by the end of 2013 under a 10-year agreement with the Southern African nation. Mongolian $300 Million Gold Deal May Revive Nation’s Output (1) Goldstream Inc., said it acquired gold miner ZAO Zolotoy Vostok Mongolia for $300 million in the nation’s second biggest deal and will restart a suspended operation next month as prices for the metal hit records. PRECIOUS METALS: Gold May Fall as ECB Coordinates With Fed to Lend Banks Dollars Gold may fall for a third day in London and head for the biggest weekly loss since May as easing concerns about Europe’s debt crisis cuts demand for the metal as a protection of wealth. AGRICULTURE: Corn Rises, Cutting Weekly Drop, as Lower Prices May Spur Demand Corn rose in Chicago, reducing a third weekly drop, on speculation lower prices will stoke demand. Wheat and soybeans climbed. Sugar Declines Amid Weakening Demand; Arabica Coffee Advances Sugar fell in London, paring a weekly gain, on slowing demand before the Northern Hemisphere harvest starts next month. Arabica coffee advanced. England Dry Weather Plagues Farmers as Government Saves Trout Parts of central and eastern England are still in a state of drought after the driest spring on record prevented some farmers from irrigating crops and led the government to relocate fish over the past week, the Environment Agency said. Bangladesh Plans to Import 600,000 Tons of Wheat by June Bangladesh plans to import 600,000 metric tons of wheat in the next nine months for various state- run welfare programs, Badrul Hasan, director for procurement at the Directorate General of Food, said today. Rubber Jumps for Second Day as ECB Plan Improves Demand Outlook Rubber gained, paring a weekly drop, on speculation that a plan by the European Central Bank and international policy makers to lend dollars to euro-area banks will contain the credit crisis, boosting the outlook for demand. Japan Seeks 31,000 Tons of Food Wheat in Tender on Sept. 30 (1) Japan is seeking to buy 31,000 metric tons of food wheat and 37,000 tons of food barley in a tender on Sept. 30, according to the Ministry of Agriculture, Forestry and Fisheries. Palm Oil to Climb on Soybean Oil Supply Cut, Demand, Mistry Says Palm oil may rally next year as demand for biofuels cuts soybean oil supply and a potential reversal in monetary policy in China and India boosts demand, according to Dorab Mistry, director of Godrej International Ltd. SHIPPING: North Sea Forties Premium Jumps to Record High on Cargo Delays The premium of North Sea Forties crude to Dated Brent, the benchmark for more than half of the world’s oil, jumped to a record after a series of shipment delays and cancellations. Norway’s Biggest Shipbroker to Add Workers, May List in 2012 RS Platou ASA, Norway’s biggest shipbroker, plans to increase its headcount almost 40 percent and is considering listing its shares next year as it expands to capture more of the shipping and offshore market. ECONOMIES: European Banks ‘Grossly Under-Capitalized,’ Brown Says (1) European banks as a whole are “grossly under-capitalized” in a region where governments are constrained by sovereign debt problems and faltering economic growth, said former U.K. Prime Minister Gordon Brown. Resource Grab Costs to Rise as Yields Hit ’08 High: China Credit The highest funding costs since 2008 may make it more expensive for China’s state banks to lend to commodity producing nations, as the world’s fastest-growing major economy tries to secure natural resources to fuel growth. China Auto Market to Avoid Bubble, Mobius Says: Chart of the Day China’s car industry, facing expansion plans by most major manufacturers amid slowing sales growth, will avoid “a bubble” in capacity thanks to low ownership rates, said Templeton Asset Management’s Mark Mobius. China Foreign Direct Investment Rises 11.1% to $8.45 Billion Foreign direct investment in China climbed 11.1 percent in August from a year earlier as the nation’s growth encourages companies from Volkswagen AG to Caterpillar Inc. to expand. Trichet Urges Euro Officials to Get ‘Ahead of Curve’ in Crisis European Central Bank President Jean-Claude Trichet pressed euro-area governments to take decisive action to halt the debt crisis, after the ECB bought them more time by extending an emergency lifeline to lenders. Euro Ministers Spar on Collateral as Geithner Calls for Action Europe’s challenges in stemming the debt crisis were underscored by snags over collateral to underpin Greece’s rescue loans and German objections to altering European treaties. India Increases Rates as Subbarao Breaks With BRIC Nations (2) India’s central bank raised interest rates for the 12th time since the start of March 2010, breaking ranks among the so- called BRIC nations that have either cut or held borrowing costs as the global recovery falters. Spanish Regions’ Debt Surges to a Record, Bank of Spain Says (1) Spanish regions’ debt burden surged to a record in the second quarter as administrations struggled to rein in spending amid a slump in tax revenue. OTHER MARKETS: Euro Weakens on EU Divisions Over Greece; Dollar Index Rises The euro fell, halting a two-day gain versus the dollar and yen, on concern issues of collateral required by some nations to take part in another Greek bailout will hinder agreement at a meeting of European officials today. Europe Stocks Advance for Fourth Day; U.S. Index Futures Decline European stocks rose for a fourth day as investors awaited a meeting of policy makers in Poland for more details on their efforts to contain the region’s debt crisis. Asian shares climbed and U.S. index futures fell. Asian Stocks Rise, Paring a Weekly Loss, on ECB Liquidity Plan Asian stocks rose, trimming losses on the regional benchmark index this week, after the European Central Bank and international policy makers coordinated to lend dollars to euro- area banks, increasing confidence the region’s debt crisis may be contained. Crude Oil Heads for Fifth Weekly Gain in London on Europe Plan Oil headed for a fifth weekly gain in London, the longest winning streak since March, on bets that a plan to contain Europe’s debt crisis will help shore up fuel demand. BHP, Vale, Rio ‘Cheap’ on Catastrophic Fears: Chart of the Day Exporters of iron ore such as Vale SA, Rio Tinto Group and BHP Billiton Ltd. are cheap as Europe’s fear of economic catastrophe drags shares below levels supported by prices for the commodity, said Investec Securities Ltd. SPORTS: All Blacks Beat Japan 83-7 to Move Clear Atop World Cup Group New Zealand beat Japan 83-7 to move clear atop its Rugby World Cup group with the maximum points from its opening two matches. Manchester United Said to Get Singapore’s Approval for Listing Singapore’s stock exchange approved Manchester United’s application to raise about $1 billion in an initial public offering in the city-state, two people with knowledge of the matter said. To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net

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