Bloomberg News

Copper Rises on Speculation of More Demand in China: LME Preview

October 26, 2011

Oct. 26 (Bloomberg) -- Copper climbed in London on speculation of more demand in China, the world’s biggest buyer of the metal, after Premier Wen Jiabao said economic policy will be adjusted at a “suitable time.”

Market News:

-- Chinese Premier Wen Jiabao said that economic policy will be fine-tuned as needed and the industry ministry said it is studying “stimulative policies” for smaller companies as a global slowdown threatens growth. {NSN LTNNSN07SXKX <GO>}

-- European leaders “have risen to the challenge,” German Chancellor Angela Merkel said. French President Nicolas Sarkozy proclaimed their July 21 summit a “historic turning point” and Luxembourg Prime Minister Jean-Claude Juncker called it the “final package, of course,” to put out the debt inferno. {NSN LTNM7U1A74E9 <GO>}

-- Asian stocks erased earlier losses and metals rallied after comments from Chinese Premier Wen Jiabao stoked speculation the nation will ease monetary policy. The yen was 0.4 percent from a record high versus the dollar before European leaders meet to discuss the region’s debt crisis. {NSN LTNS7U1A1I4H <GO>}

-- Rajat Gupta, the former Goldman Sachs Group Inc. director once accused of feeding inside information to Galleon Group LLC’s Raj Rajaratnam, will face federal charges, a person familiar with the matter said, making him the highest-ranking executive to be named in the probe. {NSN LTNMCL0YHQ0X <GO>}

-- German lawmakers are set to back a planned increase in the European rescue fund’s capacity, removing one hurdle in the path of Chancellor Angela Merkel as she prepares for a summit on tackling the euro-area debt crisis. {NSN LTN3EX0D9L35 <GO>}

-- Japanese Finance Minister Jun Azumi said his ministry will take “decisive” measures to stem the yen’s rise after the currency surged to a post-World War II record against the dollar. {NSN LTNDHP6S9728 <GO>}

-- Australia’s underlying inflation slowed last quarter to the weakest pace in 14 years, sending the nation’s currency lower as traders bet the central bank will cut interest rates next week. {NSN LTNLFC6JTSEA <GO>}

Metals News:

-- Copper demand in China, the largest user, is unaffected by tight credit conditions and a slowdown in economic growth as infrastructure projects continue to fuel consumption, said a unit of the country’s largest producer. {NSNLTNMEC6JIJV2 <GO>}

-- Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, said it declared force majeure on some sales agreements because of a strike at its Grasberg mine in Indonesia. {NSN LTNSM26JIJVO <GO>}

-- Japan’s output of copper and copper-alloy fabricated products, including sheets and tubes, declined 6.8 percent in September from a year earlier, the Japan Copper & Brass Association said. {NSN LTNEO06TTDS9 <GO>}

Metals Prices:

--Editors: Claudia Carpenter, Alastair Reed

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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