Bloomberg News

Copper May Fall as China Inflation May Limit Easing: LME Preview

February 09, 2012

Feb. 9 (Bloomberg) -- Copper may decline in London after a report showing inflation in China, the biggest metals user, unexpectedly accelerated in January, limiting room for monetary easing and as talks over a Greek bailout stalled.

Market News:

-- Greek Finance Minister Evangelos Venizelos said there are still doubts on the agreement needed to secure a 130 billion- euro ($172 billion) rescue package for his country ahead of a meeting of euro area finance ministers today. NSN LZ43496K50XV <GO>

-- China’s inflation unexpectedly accelerated in January on the boost to spending from a week-long holiday, limiting room for monetary easing as Europe’s debt crisis damps exports and the property market cools. NSN LZ40JU6S9728 <GO>

-- European futures rose and the euro climbed toward a two-month high on speculation regional policy makers meeting today will approve a second financing accord for Greece. Chinese stocks dropped after inflation unexpectedly accelerated. NSN LZ46P16K50XS <GO>

-- In his first 100 days as European Central Bank President, Mario Draghi has taken unprecedented action to tackle the sovereign debt crisis. Greece may push him even further into unknown territory. NSN LZ347Y6KLVRC <GO>

-- China’s exports probably declined in January after a slowdown in foreign trade in the second half of last year, Commerce Minister Chen Deming said as he pledged to maintain “stability” in the yuan’s exchange rate. NSN LZ47KI0UQVI9 <GO>

-- Indonesia’s central bank unexpectedly cut its benchmark interest rate for the first time in three months to support growth in a deteriorating global economy. NSN LZ434I0YHQ0X <GO>

-- Japan’s machinery orders fell at the fastest pace in three months in December as a faltering global economy and gains by the yen dimmed the outlook for exporters. NSN LZ3PL46JTSE9 <GO>

Metals News:

-- Rio Tinto Group, the world’s third-largest mining company, swung to a second-half loss, its first in four years, after taking a $8.9 billion one-time charge on the value of its aluminum business. NSN LZ45Q01A74E9 <GO>

-- Refined-tin shipments from Indonesia, the world’s largest exporter, plunged 64 percent in January from a month earlier after bad weather disrupted mining, reducing ore supplies to smelters. NSN LZ40PQ0UQVI9 <GO>

-- Rio Tinto Group had 181 million pounds of so-called open copper shipments that will be priced in the first half of this year. NSN LZ44J86KLVR7 <GO>

-- BHP Billiton Ltd., the largest mining company, may consider selling about $10 billion of aluminum, nickel and coal mines and smelters as it trims its portfolio, Deutsche Bank AG said. NSN LZ3NE61A1I4H <GO>

-- OAO GMK Norilsk Nickel is studying acquisitions in Africa, Chief Executive Officer Vladimir Strzhalkovsky told reporters in Moscow today. He declined to elaborate if any talks are already being held. NSN LZ47076TTDS2 <GO>

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