European Stocks Advance on Berlusconi Offer (Bloomberg)
European stocks advanced for a second day after Italian Prime Minister Silvio Berlusconi offered to resign, boosting optimism that a new government will stem the debt crisis. Asian stocks rose and U.S. index futures declined. Metro AG (MEO) gained 1.4 percent after UniCredit SpA advised buying the shares of Germany’s largest retailer. The Stoxx Europe 600 Index rose 1 percent to 242.9 at 8:02 a.m. in London. The index has rallied 13 percent from this year’s low on Sept. 22 as investors speculated that the euro area would protect the economies of Italy and Spain from the sovereign-debt crisis. Futures on the Standard & Poor’s 500 Index expiring in December slipped 0.4 percent, while the MSCI Asia Pacific Index gained 1.2 percent.
Berlusconi’s resignation “will be seen as supportive, as something is moving in Italy,” Valentijn Van Nieuwenhuijzen, head of strategy and chief economist at ING Investment Management in the Hague, said in a Bloomberg Television interview. “If a unity government is formed, that would be the most positive step.”
FOREX-Euro rally fights resistance but outlook still grim
TOKYO, Nov 9 (Reuters) - The euro fought stiff chart resistance on Wednesday following a rally after Italy's premier said he would resign, but its outlook remained gloomy amid the political turmoil engulfing both Greece and Italy and with those countries' borrowing costs showing no signs of easing.
Greece is scrambling to win emergency funds to avert bankruptcy as soon as next month with political parties arguing over a new coalition government, while yields on Italian 10-year bonds hover above 6.7 percent.
Corn, soy tick up ahead of USDA report; wheat dips
SINGAPORE, Nov 9 (Reuters) - Chicago wheat fell 0.2 percent, as the market came under pressure from plentiful global supplies, including expectations of a near-record Australian crop, which is likely to increase competition for U.S. suppliers.
"The sense that we are getting is that the soy market has been cautious because of slow U.S. exports, but today we are seeing a little bounce ahead of the report," said Abah Ofon, an analyst with Standard Chartered Bank in Singapore.
Thailand's Mitr Phol joins swoop on Australia sugar firms
SYDNEY, Nov 9 (Reuters) - Australia's sugar cane crushing industry is set to be dominated by foreigners after Thailand's Mitr Phol Sugar Corp Ltd on Wednesday launched a long awaited take-over offer for one the country's last remaining independent cane millers. Australia's MSF Sugar Ltd , previously called Maryborough Sugar Factory Ltd, said it had received a takeover approach from its biggest shareholder valuing the company A$313 million ($324 million).
Next Brazil soy harvest seen rising a shade
SAO PAULO, Nov 8 (Reuters) - Brazil's next soy harvest should turn out a fraction larger than the previous record crop, with an estimated 74.6 million tonnes up from 74.3 million in the harvest now ended, grain crushing industry association Abiove said on Tuesday.
Abiove estimated soy exports would also nudge up to a record 33 million tonnes in the 2011/12 harvest from 32.4 million tonnes in the current season.
Australia bets on wheat quality, freight to grab global sales
SYDNEY, Nov 9 (Reuters) - Australian wheat exporters are counting on lower shipping costs and higher quality grain from the advancing harvest to give them the upper hand in South East Asian markets, allowing them to fend off aggressive competition from Black Sea suppliers.
But the threat of wet weather during what should be a bumper 2011/12 crop remains a risk that could cut the protein content and downgrade quality of exports from the world's fourth-largest shipper of the grain.
Italy 2011 sugar output down 22 pct,content up
MILAN, Nov 8 (Reuters) - Italy's output of sugar made from local beets fell below earlier forecasts to 341,000 tonnes in 2011 after a sharper-than-expected drop in sown areas, but sugar content rose from 2010, a senior official at Italian beet growers' body ANB said. Sugar output fell about 22 percent from some 438,000 tonnes produced from local sugar beet last year, because sown areas dropped to 45,000 hectares in 2011 from 62,266 hectares in 2010, hit by bad weather, ANB's senior technical expert, Emilio Pattaro, told Reuters on Tuesday.
India cautious as its mills seek big sugar exports
MUMBAI/LONDON, Nov 4 (Reuters) - Sugar market heavyweight India is likely to delay half of this year's expected one million tonnes of unrestricted exports until early 2012 due to output delays, a decision that would protect Indian consumers and limit the country's impact on world prices.
India, the world's top sugar consumer and biggest producer after Brazil, can cause big gyrations in international sugar futures prices because of its clout as either an exporter or an importer, depending on the progress of its crop.
European financial coal trading to dip in 2011-report
FRANKFURT, Nov 7 (Reuters) - Europe's financial coal trading business in 2011 is expected to fall 4 percent below estimated 2010 levels to 1,840 million tonnes, according to a study by British consultancy Prospex.
The report, abstracts of which were issued to media ahead of publication on Nov. 9, said the small size of the dip, down from 2010's 1,920 million tonnes, reflected dynamism in the sector, despite economic turmoil and ongoing credit concerns.
Brent rises above $115 on Chinese inflation data
SINGAPORE, Nov 9 (Reuters) - Brent crude gained for a fifth day, to stand above $115 a barrel, as positive Chinese inflation data soothed fears of a sharp slowdown in the world's second largest oil consumer.
"The data is bullish for oil as it indicates that there will be no hard landing for the Chinese economy," said Gordon Kwan, head of energy research at Mirae Asset Management in Hong Kong.
POLL-US crude stocks seen up on higher imports
Nov 8 (Reuters) - U.S. crude oil inventories likely rose for a third straight week due to higher imports while distillate stockpiles were seen falling, an expanded Reuters poll of analysts showed on Tuesday.
On average, crude stockpiles were forecast up 400,000 barrels for the week ended Nov. 4, the poll of 10 analysts showed. Six of the analysts called for a stock build. One expected an unchanged level from the previous week, and three projected a drawdown, citing a small drop in imports.
Iron Ore-China steel futures edge up, ore extends gains
SINGAPORE, Nov 9 (Reuters) - Shanghai steel futures rose for a third time in four sessions on Wednesday after in-line Chinese inflation data suggested there is room for Beijing to relax its monetary policy, a move that may revive demand.
Gains in Chinese steel prices bode well for iron ore, the steelmaking raw material which rose for a seventh straight day on Tuesday as Chinese steel mills continued to replenish inventories after prices slumped more than 30 percent last month.
OPEC raises oil demand view, says risk to downside
LONDON/VIENNA, Nov 8 (Reuters) - Oil producer group OPEC is investing in new supplies to meet rising consumption, even as it sees the risk to the demand outlook as being on the downside because of Europe's sovereign debt crisis and a slowing global economy.
The Organization of the Petroleum Exporting Countries in its 2011 World Oil Outlook increased its estimate of supplies, saying the amount of unused oil production that the 12-member group holds in reserve in case of supply shocks would double by 2015.
European copper premiums drop on demand uncertainty
LONDON, Nov 8 (Reuters) - Copper premiums in Europe may slip further as uncertainty about the region's growth prospects dims the outlook for demand, while annual contracts are expected to meet consumers' needs until the end of the year, traders and consumers said.
The premium for copper Grade A Rotterdam -- paid over the London Metal Exchange (LME) cash price -- was quoted in a range of $40 to 60 a tonne, against $60 to 80 quoted previously.
Copper up on China data, Berlusconi's exit pledge
SHANGHAI, Nov 9 (Reuters) - Copper rose after data showed China's inflation slipped in October, easing concerns that the government will further tighten monetary policy.
"We saw a rise earlier on short covering on the back of s decent equity close in the U.S. last night, where the markets were cheered by news that Berlusconi had fallen on his sword," said global head of base metals research David Thurtell.
Australian iron ore magnate Forrest returns to nickel
SYDNEY, Nov 9 (Reuters) - A company chaired by Australian iron ore magnate Andrew "Twiggy" Forrest wants to reopen a nickel mine in Western Australia shut more than 15 years ago.
A successful restart of the Mount Windarra mine by Poseidon Nickel Co , would mark Forrest's return to nickel mining after quitting the board of Anaconda Nickel in 2002 and founding Fortescue Metals Group , Australia's third-largest iron ore company.
Freeport Indonesia union plans to extend strike to Dec 15
JAKARTA, Nov 9 (Reuters) - Freeport McMoRan Copper & Gold Inc's Indonesian workers union plans to extend a strike at the Grasberg mine by one month to Dec 15, said union official Virgo Solossa on Wednesday.
Workers have been on strike over pay since mid-September, slashing production at the world's second biggest copper mine.
Freeport Indonesia mining union may cut pay demand
JAKARTA, Nov 8 (Reuters) - Freeport McMoRan Copper & Gold Inc's union in Indonesia will consider almost halving its pay demand if the firm agrees an extra pay hike when workers are promoted, the union said on Tuesday, taking the near two-month strike a step towards resolution.
Virgo Solossa, a union official at the giant Grasberg mine, told Reuters that workers would consider cutting their wage demand to $4.00 an hour from $7.50 if the company agrees to add another $1 when workers improve their skills and are promoted.
Scrap copper scarce in China's Guangdong after customs tightens checks
HONG KONG, Nov 8 (Reuters) - Copper scrap is in short supply in Guangdong province, one of the major industrial metal fabricating bases in China, after the customs authorities intensified checks on imports, trading sources said on Tuesday.
The new policy, which took effect on August 1, requires customs officials to tighten checks on all scrap imports and bans import licences from being transferred or sold, according to a document on the General Administration of Customs website (www.customs.gov.cn).
European debt crisis hits German steel industry
DUESSELDORF, Germany, Nov 8 (Reuters) - Europe's largest steel producer, Germany, will likely produce less crude steel this year than expected as the euro zone debt crisis creeps its way into the real economy.
"In the past few weeks business in the steel industry has become bleak, mainly due to the euro zone debt crisis," German Steel Federation President Hans Juergen Kerkhoff said on Tuesday.
Australia aluminium sector to contract over carbon plan
SYDNEY, Nov 8 (Reuters) - Australia's new carbon pricing plan will cause a contraction in the country's energy-intensive aluminium industry, already under pressure from cheaper Chinese output, the Australian Aluminium Council said on Tuesday.
"This puts us at more of a disadvantage than we were at without the scheme," the council's executive director, Miles Prosser,told Reuters.
Europe zinc premiums dip as steel mills cut output
LONDON, Nov 8 (Reuters) - The premium for physical zinc on the spot market in Europe dipped in recent weeks as key consumers like steel mills cut consumption amid concerns over the euro zone debt crisis, traders and analysts said.
The premium for special high grade zinc in Rotterdam - the price paid over and above LME cash - is currently at around $125-140 a tonne, having averaged some $135-140 for most of the past two months.
METALS-Copper up on China data, Berlusconi's exit pledge
SHANGHAI, Nov 9 (Reuters) - Copper rose on Wednesday after data showed China's inflation slipped in October, easing concerns that the government will further tighten monetary policy.
News of Italian Prime Minister Silvio Berlusconi agreeing to step down also allayed some fears over Italy's commitment to the budget reforms crucial to keeping the euro zone debt crisis in check.
Gold edges up, Italy's debt worries linger
SINGAPORE, Nov 9 (Reuters) - Gold inched up on fears the euro zone debt crisis could engulf Italy, despite news that Prime Minister Silvio Berlusconi would resign, which was initially seen as clearing the way for a new leader to act more aggressively to tackle the country's debt problems.
"Are we still going to see the political willpower to resolve Italy's challenges? I think that is necessary before we can see a sustainable risk rally," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.
China 2011 gold consumption to exceed 400 tonnes -paper
SHANGHAI, Nov 9 (Reuters) - China's gold consumption is expected to jump nearly 50 percent to reach 400 tonnes this year, exceeding the country's forecast production of more than 350 tonnes, the China Securities Journal reported on Wednesday, citing China Gold Association President Sun Zhaoxue.
Gold production in the world's largest gold miner is likely to exceed last year's record, possibly increasing to more than 350 tonnes from last year's 340.9 tonnes, Sun was quoted as saying at a mining conference in Tianjin.
PRECIOUS-Gold edges up, Italy's debt worries linger
SINGAPORE, Nov 9 (Reuters) - Gold inched up on Wednesday on fears the euro zone debt crisis could engulf Italy, despite news that Prime Minister Silvio Berlusconi would resign, which was initially seen as clearing the way for a new leader to act more aggressively to tackle the country's debt problems.
Berlusconi said he would leave office after parliament approved a budget law that included reforms demanded by Europe as Italy's failure to fix its debt problems would have a far bigger impact on the euro zone than difficulties in Greece.
Baltic index at 2-month low, capes turn positive
LONDON, Nov 8 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to its lowest in two months on Tuesday although the larger capesize segment turned positive with potential scope for further gains.
The overall index fell 7 points or 0.4 percent to 1,759 points in a tenth straight drop and was at its lowest since Sept. 7.
Singapore seizes COSCO ship over payment dispute
SINGAPORE, Nov 9 (Reuters) - A dry bulk vessel operated by China COSCO Holdings has been seized by authorities in Singapore over a financial dispute with one of its clients, court documents and a shipbroker said on Wednesday.
The 74,000-tonne bulk carrier, Song Shan Hai, was seized on Friday by the law firm Asia Legal, which is representing an unknown client of COSCO's, according to Singapore's Supreme Court.
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