European Stocks Fall on Growth Concern
European stocks slid, with the benchmark Stoxx Europe 600 Index extending a weekly decline, amid concern the global economic recovery is stalling. U.S. futures were little changed and Asian shares fell. Porsche SE plunged 9.3 percent after Volkswagen AG (VOW) said it will no longer complete its merger with the carmaker by the end of the year because of pending lawsuits. STMicroelectronics NV (STM) and Infineon Technologies AG (IFX) slipped 2.6 percent and 1.5 percent, respectively, after Texas Instruments Inc. (TXN) cut its sales forecast. Verbund AG (VER) lost 6.2 percent after forecasting that profit will decline this year.
The Stoxx 600 declined 0.4 percent to 229.64 at 8:31 a.m. in London, extending its weekly drop to 1.5 percent. The gauge has fallen 21 percent from this year’s peak on Feb. 17 as European and U.S. economic reports trailed forecasts, adding to concern that the global economic recovery is at risk. The retreat has left the gauge trading at about 9.6 percent the estimated earnings of its companies, near the lowest valuation since March 2009.
Obama Proposes $447 Billion Jobs Stimulus Plan
President Barack Obama channeled the national frustration with the economy that threatens his political standing and challenged the U.S. Congress to pass a $447 billion jobs plan tilted heavily toward the Republican prescription of tax cuts. The president, speaking before a joint session of Congress, demanded six times that lawmakers act “right away” on a plan that would boost spending on infrastructure, stem teacher layoffs and cut in half the payroll taxes paid by workers and small business owners. “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 the lawmakers yesterday.
China Inflation Eases From Three-Year High, Giving Room for Pause on Rates
China’s inflation eased in August from a three-year high and industrial output growth slowed for a second month, giving policy makers more room to pause monetary tightening as the economy cools and a global slowdown threatens exports and jobs. Consumer prices climbed 6.2 percent from a year earlier, the National Bureau of Statistics said in Beijing today. That matched the 6.2 percent median forecast in a Bloomberg News survey of 31 economists. Prices gained 6.5 percent in July. The moderation may encourage China to keep interest rates on hold after five increases in the past year, joining Asian nations from South Korea to Indonesia that have paused as Europe’s debt crisis and a faltering U.S. recovery dim the outlook for exports. Premier Wen Jiabao said last week that while stabilizing prices remains the top priority, policies must avoid imposing “excessive shocks” on the real economy.
Germany’s Inflation Slowed Less Than Forecast in August on Energy Rebound
Inflation in Germany, Europe’s largest economy, slowed less than initially projected in August, as energy costs increased. The inflation rate, calculated using a harmonized European Union method, fell to 2.5 percent from 2.6 percent in July, the Federal Statistics Office in Wiesbaden said today. On Aug. 29, it had estimated the rate at 2.4 percent. From the previous month, prices remained unchanged. Crude oil prices have surged 20 percent over the past year, leaving consumers with less money to spend. Still, European Central Bank President Jean-Claude Trichet said yesterday he sees “risks to the medium-term outlook for price developments as being broadly balanced,” when keeping the benchmark at 1.5 percent. The central bank forecast euro-region inflation at 2.6 percent and 1.7 percent this year and next, respectively.
Metals financing deals now factor of market-LME
PARIS, Sept 8 (Reuters) - The opportunity to structure warehouse deals is now better than ever due to a low interest rate environment and these deals must now be regarded as a factor of the market, London Metal Exchange Chief Executive Martin Abbott said on Thursday.
"The opportunity to structure such deals is greater now than ever before due to the actions of) central banks led by the Federal Reserve," Abbott told delegates at the Metal Bulletin aluminium conference in Paris.
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.
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.
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.
China daily crude steel output down 2.2 pct in late Aug -CISA
SHANGHAI, Sept 8 (Reuters) - China's daily crude steel output fell 2.2 percent to 1.905 million tonnes in the last 11 days of August from the preceding 10 days, industry consultancy Custeel.com said on Thursday, citing data from the China Iron & Steel Association (CISA).
Several Chinese steel mills have scheduled maintenance over the summer to take advantage of the seasonal demand weakness during the period. Analysts expect steel output in the world's top steel-producing country to remain resilient over next two months.
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.
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."
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.
FOREX-Euro off 2-month low but vulnerable after ECB
TOKYO, Sept 9 (Reuters) - The euro bounced off a two-month low against the dollar but the risk of a break below its July trough is seen rising after a deepening debt crisis forced the European Central Bank to drop its tightening policy bias, a key driver in the euro's rally this year.
"The euro now doesn't have the support of expectations for rising interest rates, which clearly points to the higher possibility that the euro will fall below (its July low near) $1.38. In addition, strains on European banks' funding are rising. Given all this, the euro looks likely to fall further," said Minori Uchida, senior analyst at the Bank of Tokyo-Mitsubishi UFJ.
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