Bloomberg News

Copper Falls in London, Ending Longest Gain in 2011: LME Preview

July 06, 2011

July 6 (Bloomberg) -- Copper fell in London, ending the longest winning streak this year.

Market News:

-- The dollar weakened against most of its major counterparts on speculation the U.S. jobless rate will remain elevated, delaying any tightening in monetary policy by the Federal Reserve. {NSN LNWCX96TTDS0 <GO>}

-- Service industries in the U.S. probably expanded at a slower pace in June, showing the expansion cooled at the end of the first half of 2011, economists said before a report today. {NSN LNVNYS0D9L35 <GO>}

-- President Barack Obama said he opposes a deficit-cutting measure that would only allow for a short-term increase in the country’s debt limit as he called a meeting tomorrow with Republican and Democratic lawmakers to work toward long-term fixes in the government’s finances. {NSN LNW2JS6S972L <GO>}

-- The cost of protecting Chinese debt against default rose yesterday for the first time in a week as Moody’s Investors Service said the credit outlook for banks may worsen as loans to local governments turn sour. {NSN LNV94I6S9728 <GO>}

-- The Reserve Bank of Australia’s signal that it’s preparing a cut in its forecasts for growth reduces the chance Governor Glenn Stevens will add to the developed world’s highest borrowing costs before year-end. {NSN LNURB10D9L35 <GO>}

Metals News:

-- Codelco, Chile’s state-owned copper company, said its Radomiro Tomic mine resumed operations after shutting for some hours because of downpours yesterday. {NSN LNVHNE6K50XX <GO>}

-- Complaints against China by the U.S., European Union and Mexico were bolstered by a World Trade Organization finding that the nation’s limits on raw-materials exports broke global rules and gave domestic companies an edge. {NSN LNW56W0YHQ0X <GO>}

-- Derivatives traders are betting there’s a 74 percent chance Eastman Kodak Co. is headed toward default after a trade panel delayed a decision on the 131-year-old camera maker’s claims it should receive licensing fees for technology used by Apple Inc. and Research in Motion Ltd. Eastman Kodak uses silver in film. {NSN LNVT991A74E9 <GO>}

-- Vale SA, the world’s largest iron-ore producer, may raise its bid for Metorex Ltd. after Jinchuan Group Co. offered $1.36 billion to acquire the African copper company, analysts said. {NSN LNW2MW0YHQ0X <GO>}

Metals Prices:

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@abloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.


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