Bloomberg News

Copper Drops for Fourth Day on Europe Debt Concerns: LME Preview

October 20, 2011

Oct. 20 (Bloomberg) -- Copper dropped for a fourth day in London as a split emerged among European leaders over how to tackle the region’s debt crisis and concerns mounted about the recovery of the U.S. economy, threatening the demand outlook for commodities.

Market News:

-- A French-German split over Europe’s rescue strategy emerged as finance ministers prepare to meet in Brussels tomorrow under pressure to craft a solution to the region’s debt crisis. NSN LTCI396JTSEE <GO>

-- Asian stocks fell, wiping out this week’s gains, and the euro weakened for the first time in three days, as a split emerged among European leaders on a rescue plan and the Federal Reserve said companies grew more pessimistic about the U.S. economy. NSN LTCOUW07SXKX <GO>

-- Oil dropped a second day as Europe struggled to tame its debt crisis and the Federal Reserve said companies were increasingly pessimistic about the U.S. economy, stoking speculation commodities demand may falter. Brent’s premium to New York prices widened. NSN LTCQ9Q6K50Y0 <GO>

-- The biggest Wall Street firms posted their worst quarter in both trading and investment banking since the depths of the financial crisis as they face questions about the future of their business. NSN LTCBOJ0UQVI9 <GO>

-- German Chancellor Angela Merkel may be risking her 2013 bid for a third term with a bet on expanding the effort to save the euro. NSN LTBN8H6JIJVR <GO>

-- The European Union will seek to limit trading in commodities derivatives and curb high-frequency trading as part of proposals to overhaul the region’s financial-market rules. NSN LTBSL21A74E9 <GO>

Metals News:

-- Aluminum inventories in China, the largest user, rebounded 30 percent in three weeks and analysts expect further increases as physical trading has slowed along with the country’s economic growth. NSN LTCPNB1A74E9 <GO>

-- Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper miner, said it’s operating the open pit at the Grasberg mine in Indonesia at about two-thirds of capacity after workers went on strike. NSN LTCJYD0UQVI9 <GO>

-- Japan’s copper wire and cable shipments declined 1.6 percent in September from a year earlier as demand slowed after the March 11 earthquake and the yen’s strength reduced exports, an industry group said. NSN LTCH0G07SXKX <GO>

-- Codelco, the world’s largest copper producer, decided to go ahead with a project to convert its Chuquicamata copper mine in northern Chile into an underground operation, the company told the securities regulator. NSN LTBRY96TTDS6 <GO>

-- Zambian President Michael Sata fired the governor of the central bank and its board, reversed a foreign takeover of a local lender and temporarily halted metal exports within two weeks of taking office. Investors in Africa’s biggest copper producer aren’t panicking. NSN LTBLQQ6JTSEC <GO>

-- Iron ore’s biggest decline in 15 months may worsen as the economy slows in China, the largest importer, the European debt crisis persists and BHP Billiton Ltd. and Rio Tinto Group increase production, analysts said. NSN LTCO8S0D9L35 <GO>

--Editors: John Deane, Alastair Reed

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus