GLOBAL MARKETS-Asia stocks inch up after China CPI
HONG KONG/SINGAPORE, Sept 9 (Reuters) - Asian stocks edged up on Friday as Chinese consumer price data soothed fears over inflationary pressures building in the world's No.2 economy, but the mood was cautious after Western central banks failed to offer any fresh stimulus plans to revive their sputtering economies.
Global markets have been dominated in recent weeks by fears of a U.S. relapse into recession and Europe's snowballing debt crisis. Citigroup analyst Jonathan Stubbs said in a note on Friday that "recession appears to be a more likely outcome now in Europe and/or the U.S. than 3-6 months ago".
China’s Stocks Decline on Concern About Bank Loans, Economy
Sept. 9 (Bloomberg) -- China’s stocks fell, extending a weekly drop, after Caixin magazine reported Liaoning province defaulted on about 85 percent of its debt servicing payments last year and industrial output growth trailed estimates. China Minsheng Banking Corp. and Huaxia Bank Co. dropped more than 1 percent. Anhui Conch Cement Co., the biggest cement producer, slid to the lowest since January after industrial output rose 13.5 percent in August, compared with economists’ estimate of 13.7 percent. Citic Securities Co. led gains for brokerages on speculation they will benefit from a plan allowing yuan funds in Hong Kong to invest in mainland stocks. “Debt defaults would be a big problem for local governments by curbing investment in infrastructure,”Richard Chen, a strategist at Jianghai Securities Co., said in Shanghai. “Investors are selling into rallies as concerns over the economic slowdown may drag the index lower.” The Shanghai Composite Index lost 8.3 points, or 0.3 percent, to 2,490.58 at 1:46 p.m. local time, extending a weekly loss to 1.5 percent. The gauge earlier climbed as much as 1.2 percent today after a report showed inflation easing in August from a three-year high. The CSI 300 Index slid 0.2 percent to 2,749.71. The Shanghai gauge has slumped 11 percent this year as the central bank raised interest rates five times and ordered lenders to set aside more cash as deposit reserves 12 times since the start of 2010 to contain inflation. It is valued at 11.6 times estimated earnings, matching a record low set on Sept. 6, according to daily data compiled by Bloomberg.
Obama Offers $447 Billion Spending, Tax-Cut Jobs Plan (2)
Sept. 8 (Bloomberg) -- President Barack Obama called on Congress to pass a jobs plan that would inject $447 billion into the economy through infrastructure spending, subsidies to local governments to stem teacher layoffs and cutting in half the payroll taxes paid by workers and small-business owners. The package is heavily geared toward tax cuts, which account for more than half the dollar value of the stimulus, and administration officials said they believe that will have the greatest appeal to Republican members of Congress. “The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy,” Obama told a joint session of Congress tonight. A $105 billion infrastructure proposal includes money for school modernization, transportation projects and rehabilitation of vacant properties. Most of the economic impact from the infrastructure spending would be next year, though some of it would come in 2013, an administration official said. “Ultimately, our recovery will be driven not by Washington, but by our businesses and workers,” the president said. “But we can help. We can make a difference.” The administration estimated that $35 billion it’s seeking in direct aid to state and local governments to stem layoffs of educators and emergency personnel would save the jobs of 280,000 teachers, according to a White House fact sheet.
USDA seen trimming U.S. soy production forecast
CHICAGO, Sept 8 (Reuters) - Hot and dry August weather in the U.S. Midwest caused soybean crop ratings to deteriorate and should prompt the U.S. Department of Agriculture to trim its forecast of the size of the soy crop by about 0.8 percent, analysts said.
However, sluggish demand for U.S. soybeans from exporters and domestic crushers will help to offset some of the harvest shortfall, leaving only a slight drop from August in 2011/12 soy inventory forecasts.
US corn crop shrinks, may stoke high food prices
CHICAGO, Sept 8 (Reuters) - The hottest summer in over half a century is shrinking the U.S. corn crop, which will cut the nation's corn stocks to their smallest in 15 years next summer and boost already high global food prices, analysts said.
The U.S. Department of Agriculture, in its September crop report on Monday, is expected to reduce its estimate of this year's crop by 3 percent from its forecast last month, which could raise costs for meat companies and ethanol producers.
GRAINS-US corn, wheat rebound after selloff, trade cautious
SINGAPORE, Sept 9 (Reuters) - U.S. corn and wheat futures bounced back rising around half a percent on bargain hunting following a selloff triggered by India's move to export grains.
"Funds sold commodities last night as there was a bit of liquidation, it feels like the market has lost a little bit of upward momentum this week," said Brett Cooper, a senior manager of markets at FCStone Australia.
India allows exports of 2 mln T each of rice, wheat
NEW DELHI, Sept 8 (Reuters) - India will allow unrestricted exports of two million tonnes each of wheat and common rice, as bulging stocks offer political room for overseas sales which could depress global rice prices but make little dent in wheat supplies.
"We will stop exports once shipments reach 2 million tonnes each," Food Minister K.V. Thomas said after a meeting of a ministerial panel. He said there will be no minimum export price for rice. Wheat has no floor price for exports.
Argentine wheat outlook dims due dryness - exchange
BUENOS AIRES, Sept 8 (Reuters) - Much of Argentina's wheat belt is getting dry, with frosts hampering the healthy development of 2011/12 crops in some northern areas, the Buenos Aires Grains Exchange said Thursday.
Argentina is one of the world's biggest wheat suppliers and farmers are expected to produce 13.5 million tonnes this season, down from 15 million in the 2010/11 crop year, according to the U.S. Department of Agriculture (USDA).
Smaller, lower quality barley crop in west Europe
LONDON, Sept 8 (Reuters) - Barley harvests in western Europe are winding down with an overall slight fall in the size of the crop and quality also expected to decline, particularly in Germany, crop analysts said on Thursday.
Winter barley in Germany, which is mainly used for animal feed, suffered major damage from the triple blow of a very cold winter, springtime drought and summer rain, according to the farm ministry.
EU cleared 415,000 tonnes wheat exports this week
PARIS, Sept 8 (Reuters) - The European Union this week granted export licences for 415,000 tonnes of soft wheat, the biggest award since the start of the 2011/2012 season on July 1, official data showed on Thursday.
European exports in the new season have been curbed by the return of Russia to export markets after it had banned grain exports in August 2010 in response to a drought that ravaged its crops.
Russia may export 3.3 mln T grain in Sept - analyst
MOSCOW, Sept 8 (Reuters) - Russia may export at least 3.3 million tonnes of grain in September, up from 3.2 million tonnes in August and 2.5 million tonnes in July, a leading agricultural analyst said on Thursday.
"Exports volumes are a record for the first months of the crop year," Dmitry Rylko, director of the Institute for Agricultural Market studies told a grain and sunseeds conference.
EU court says French GM maize ban was illegal
LUXEMBOURG, Sept 8 (Reuters) - France acted illegally when it imposed a ban on the cultivation of a genetically modified (GM) maize variety developed by U.S. biotech giant Monsanto in 2008, Europe's highest court ruled on Thursday.
The French authorities did have the right to impose a moratorium on the growing of Monsanto's insect-resistant MON810 maize, but based its decision on the wrong EU legislation, the Luxembourg-based European Court of Justice said.
Monsanto says corn rootworm resistance not spreading
KANSAS CITY, Mo., Sept 8 (Reuters) - Monsanto Co. is working with a "handful" of farmers to rein in problems with corn pests that appear to be growing resistant to the company's popular corn seed product that is genetically engineered to protect against insect damage.
Recent news reports of resistance problems in top corn-producing states of Iowa and Illinois have fueled investor concerns. The company is already struggling to address weed resistance problems related to its herbicide-tolerant genetically altered crops.
EU to delay action on biofuels' indirect impact
BRUSSELS, Sept 8 (Reuters) - The European Union's top climate and energy officials have agreed to delay by up to seven years rules that would penalise individual biofuels for their indirect climate impacts, details of the deal showed.
The political compromise is designed to protect EU farmers' incomes and existing investments in the bloc's 17 billion euro-a-year ($24 billion) biofuel sector, while discouraging new investments in biofuels that do nothing to fight climate change.
Brent oil steady near $115 on storms, US jobs package
SINGAPORE, Sept 9 (Reuters) - Brent crude oil edged up towards $115 a barrel after falling more than a dollar in the previous session, supported by storm threats and the U.S. president's latest plan to revive the world's largest economy.
"The question for the oil market is on demand destruction and how confident the consumer is, both of which are very uncertain," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.
Alaska oil lease sales delayed until December
ANCHORAGE, Alaska, Sept 8 (Reuters) - The Alaska Division of Oil and Gas has postponed a trio of North Slope lease sales in hopes of expanding the acreage that will be put on the auction block, state officials said on Thursday.
The lease sales -- for onshore territory in the central North Slope, offshore state territory in the Beaufort Sea and territory in the Brooks Range foothills south of established oil fields -- will be held in December instead of October 26, as was originally scheduled.
Canada energy sector sets fracking guidelines
CALGARY, Alberta, Sept 8 (Reuters) - Canada's energy sector released a set of guidelines for hydraulic rock fracturing on Thursday in an attempt to head off controversy over the drilling technique that has so far been largely relegated to the United States.
The Canadian Association of Petroleum Producers, the industry's main lobby group, said it developed the "guiding principles" in response to public concerns over the process widely known as "fracking," which is used to develop shale gas and oil.
METALS-Copper steady after China inflation data; uncertainty persists
SINGAPORE, Sept 9 (Reuters) - Copper prices held steady after China's inflation cooled a notch as expected, while an uncertain global economic outlook is likely to keep prices rangebound.
"The sentiment in the market is still fickle," said a Shanghai-based trader. "Even though the inflation rate has eased, people are not sure if it means inflation has peaked and policy will be loosened."
Iron ore market remains strong -Vale CEO
RIO DE JANEIRO, Sept 8 (Reuters) - Brazilian mining giant Vale is not seeing any slowdown in the global iron ore market despite a growing crisis in Europe and a weak U.S. economy, Chief Executive Murilo Ferreira said in an interview on Thursday.
Ferreira told Reuters he expects prices to remain strong as rising incomes and infrastructure spending in emerging markets, particularly China, keep driving demand for the steel ingredient.
Vietnam to start alumina production in Nov-Vinacomin
HANOI, Sept 9 (Reuters) - Vietnam's first alumina refinery would turn out its first product in November and sell alumina, expected to total 50,000 tonnes this year, directly to clients without any tenders, the company operating the refinery said on Friday.
Output of the $460 million Tan Rai plant would rise to 350,000 tonnes in 2012, Chief Executive Officer Le Minh Chuan of Vietnam National Coal and Mineral Industries Group said, adding that no tenders had been planned yet.
Rusal sees aluminium demand staying firm
PARIS, Sept 8 (Reuters) - The world's top aluminium producer UC Rusal expects global demand for the metal to stay robust despite economic worries in the West, a senior executive said on Thursday.
The group see worldwide demand growing by 10 percent in both 2011 and 2012, Vladislav Soloviev, Rusal's first deputy CEO, said.
Airbus' aluminium head says no impact from downturn
PARIS, Sept 8 (Reuters) - Planemaker Airbus, part of aerospace group EADS , has seen no impact on its business so far from the current economic climate, its chief aluminium buyer said on Thursday.
"Today we have a record high of aircraft sold this year, more than 1,000 already sold to the market, and our order backlog exceeds 4,200 aircraft to be delivered," Elmar Luetjen, head of procurement materials aluminium, told Reuters on the sidelines of a conference in Paris.
Venezuela gold repatriation may hurt credit rating
CARACAS, Sept 8 (Reuters) - Venezuelan President Hugo Chavez's plan to repatriate the country's external gold reserves could weaken its credit ratings, causing losses for bondholders while attracting a new wave of high-risk investors.
The 57-year-old socialist leader announced last month he was nationalizing the country's gold industry and bringing back some $11 billion in international bullion reserves that Venezuela holds in banks abroad.
Global mining plans to ease rare earth concerns
PARIS, Sept 8 (Reuters) - A wave of mining projects worldwide should tap into sizeable deposits of rare earths and ease supply concerns caused by export curbs in top producer China, France's strategic metals committee told Reuters.
A push to diversify supply sources and rising prices could encourage further exploration, including in Europe, while also spurring more recycling, said Francois Bersani, secretary general of COMES, a body created this year by the French government.
China, India inflation drive gold, not Europe woes: Clyde Russell (Reuters)
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Sept 8 (Reuters) - One of the oft-cited reasons for gold's strong rally this year has been investor concern over the European sovereign debt crisis and fears of renewed global recession, but this argument doesn't stack up.
Demand by what could be termed professional investors has been largely unchanged, as shown by holdings in exchange traded funds and futures contracts.
PRECIOUS-Gold edges down after Obama's jobs speech
SINGAPORE, Sept 9 (Reuters) - Gold ticked down more than half a percent having risen sharply in the previous session, as investors digested U.S. President Barack Obama's $447 billion jobs plan to spur economic growth and battle unemployment.
"I think Obama's speech was actually better-than-expected. The market was pricing in for a $300 billion dollar package," said Natalie Robertson, a commodities strategist at ANZ.
Venezuela gold miner sees 1.2 tonnes output in 2011
CARACAS, Sept 8 (Reuters) - Venezuela's state gold miner Minerven expects to produce 1.2 tonnes of the precious metal this year, rising to 4.5 tonnes in 2012 as it takes a central role in the nationalization of the sector, state media said on Thursday.
Socialist President Hugo Chavez targeted the gold sector last month after his government quarreled with foreign miners over limits on how much they could export.
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