Emerging-Market Stocks Set for Weekly Drop on Growth Concerns
By Saeromi Shin
Sept. 9 (Bloomberg) -- Emerging-market stocks fell, with the benchmark index set for its first weekly drop in three weeks, as U.S. President Barack Obama’s $447 billion jobs plan failed to ease concerns that the global economy is slowing. The MSCI Emerging Markets Index declined 0.9 percent to 1,004.24 as of 5:33 p.m. Seoul time, set to end the week 1.7 percent lower. The Kospi Index led losses in Asia, sinking 1.8 percent before holidays in South Korea. The BSE India Sensitive Index retreated from a one-month high after the steel ministry lowered its forecast for demand growth. The Shanghai Composite Index erased gains of as much as 1.2 percent after China’s industrial output growth trailed estimates. Industrials and consumer discretionary stocks led the drop. Emerging-market equity funds reported a sixth week of outflows amid signs that the global economic recovery is faltering, Citigroup Inc. said. President Obama called on Congress to pass his job-creation package after employment growth stalled last month. European Central Bank President Jean-Claude Trichet said “downside risks” for the region’s economies have risen. “Hopes for stimulus plan drove shares higher recently, and now investors are turning their focus to actual economic conditions,” said Chu Moon Sung, a Seoul-based fund manager at Shinhan BNP Paribas Asset Management Co., which oversees $29 billion. “Debt concerns in Europe are still here.” MSCI’s index of developing nations has dropped 13 percent this year, compared with the 9.2 percent decline in the MSCI World Index. Companies on the emerging-market gauge are trading at 10.1 times estimated earnings, compared with 11.3 times for stocks on the MSCI World Index.
China’s Stocks Decline on Concern About Bank Loans, Economy
By Bloomberg News
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.
Baltic sea index turns positive, seen volatile
LONDON, Sept 8 (Reuters) - The Baltic Exchange's main sea freight index or BDI, which tracks rates to ship dry commodities, rose on Thursday helped by fresh cargo business and market players expected conditions to remain volatile.
The overall index rose 2.18 percent or 38 points to 1,782 points, after turning negative on Wednesday. Prior to the drop, it had risen for five previous sessions and has reached its highest level in nearly nine months this week. Last month the index had hit a near seven-month high.
Glencore eyes CO2 trade from ships-Point Carbon
LONDON, Sept 8 - Glencore , the world's biggest trader of physical commodities, said on Wednesday it is looking at ways it can cut its growing carbon footprint from its shipping activities ahead of any emissions trading scheme for the maritime sector.
The Switzerland-headquartered company, which earlier this year floated on the London Stock Exchange with a valuation of 37 billion pounds, said in its first sustainability report it was looking at ways of cutting emissions in key areas of its business.
Asia Dry Bulk-Capesize rates to ease further from year high
SINGAPORE, Sept 8 (Reuters) - Rates for capesize dry bulk carriers on key Asian freight routes are expected to ease over the next week as abundant supplies halt a sharp rally.
For smaller panamax vessels, rates are seen mixed with long-haul routes rising on strong iron ore and coal demand, while intra-Asia voyages ease on waning freight activity, shipbrokers said on Thursday.
Euro Coal-S.African trades at $114.60/T
LONDON, Sept 8 (Reuters) - European prompt physical coal prices fell by around 75 cents again on Thursday but the market remained range-bound with few trades reported.
Prices have drifted lower because Europe is still oversupplied and weak buying interest has emerged from end-users and traders.
India took 1.8 mln T S.Africa coal in Aug
LONDON, Sept 7 (Reuters) - The Atlantic basin market's share of South African coal exports dropped to 36 percent in August from 42 percent in July because other coal origins were cheaper in the European market, exporters said.
South African coal continues to see strong demand from Asia, particularly China.
"We're seeing steady Chinese demand for standard grade as well as lower quality and we think this will continue through the year - there are still power shortages and winter is on its way," one major exporter said.
Iron Ore-Key indexes fall, Chinese buying slackens
SHANGHAI, Sept 9 (Reuters) - Slower demand for iron ore by Chinese steelmakers marginally dragged down major global iron ore indexes, but solid fundamentals may cap falls as the country still expects to post annual record steel output.
Steel mills and iron ore traders in China, also the world's top steel producer and consumer, have become increasingly cautious about purchases amid the rapid rise of the key steelmaking ingredient price since mid-August.
India Apr-July iron ore exports down 21.86 pct-trade body
MUMBAI, Sept 9 (Reuters) - Iron ore exports from India, the world's third biggest exporter, fell 21.86 percent to 25.29 million tonnes during April-July weighed by higher costs and slow efforts to resume shipments in a key state, data from the trade body showed.
Exports of the steel-making ingredient fell 29.01 percent to 8.142 million tonnes in April, and fell 16.89 percent in May to 9.338 million tonnes, the Federation of Indian Mineral Industries (FIMI) said in a statement late on Thursday.
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.
China probes some steel imports from Japan, Europe
BEIJING, Sept 8 (Reuters) - China has begun an anti-dumping investigation of some high-grade stainless steel seamless tubes imported from Japan and Europe, the Ministry of Commerce said on Thursday.
In an announcement on its website, the ministry said it would evaluate the impact of such imports on the Chinese stainless steel industry.
China nickel ore imports to slow in H2 vs H1 - Jinchuan exec
SHANGHAI, Sept 7 (Reuters) - China's nickel ore imports are expected to slow in the second half compared with the first, an executive at the country's top nickel producer Jinchuan Group told Reuters on Wednesday.
Wu Jun, vice president of Jinchuan Group Ltd, which is also China's third-largest copper producer, said the company expects to achieve its 2011 output targets of 130,000 tonnes of nickel and 500,000 tonnes of copper.
Friday, September 9, 2011
20110909 1845 FCPO EOD Daily Chart Study.
FCPO closed : 3050, changed : +25 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising, buyer and seller battling.
Support : 3020, 2970, 2930, 2900 level.
Resistance : 3050, 3070, 3100, 3150 level.
Comment :
FCPO closed recorded gain with lower volume changed hand while overnight soy oil ended lower and currently edging upward while crude oil currently trading weaker.
Wider price discount compare to rival soy oil prices lifted FCPO price to trade in positive territory through out and traders expecting Monday MPOB stock level to decline further.
Soy oil also trading higher as traders expecting USDA to announce lower crop forecast for soybean. News wise, Reuters reported that Indonesia new CPO export tax structure to be implement effectively 15 Sep 2011.
Daily chart formed an up doji bar candle positioned in between middle and higher Bollinger band level after market opened higher, traded in quiet 13 point range bound market followed by after lunch gap up, surged higher tested above resistance level and slide downwards to the low of the day before recovered upward to closed at 3050 resistance level.
Chart reading turned to a side way range bound market little upside biased outlook testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20110909 1841 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : rising higher, seller leaving.
Support : 1458, 1445, 1425, 1405 level.
Resistance : 1470, 1485, 1500, 1515 level.
Comment :
FKLI closed recorded small loss with slowing down volume participation doing 9 points discount compare to cash market that ended nearly unchanged. Overnight U.S. market closed lower and Asia markets ended mostly lower while European markets currently recording loss.
Lower Japan machinery orders, report on companies in a Chinese province lacked revenue to service their debts and limiting exposure ahead of G7 meeting override
U.S. President Barack Obama’s $447 billion jobs plan and news on easing inflation rate in China to 6.2% after hitting 3 year high level at 6.5%. resulted most global markets to trade lower.
Daily chart formed a down doji bar candle positioned in between middle and lower Bollinger band level after market opened 1 tick higher, ease little lower and climbed upward tested near resistance level and slide lower tested support level and recovered upwards slightly but still closed near the low of the day.
Base on current chart reading, market is still likely to trade side way range bound for the near term testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.
20110909 1839 Regional Markets EOD Daily Chart Study.
DJIA chart reading : side way range bound.
Hang Seng chart reading : side way range bound.
KLCI chart reading : side way range bound little downside biased.
20110909 1627 Global Market & Commodities Related News.
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.
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.
20110909 1548 Global Market & Commodities Related News.
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.
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.
20110909 1115 Global Market & Commodities Related News.
Asian Stocks Rise, Paring Weekly Loss, on U.S. Jobs Plan, Lower China CPI (Source: Bloomberg)
Asian stocks rebounded after U.S. President Barack Obama unveiled a $447 billion package to stimulate jobs growth and China said inflation was easing. Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday. The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
GLOBAL MARKETS-U.S. stocks slide on Bernanke; euro slumps
NEW YORK, Sept 8 (Reuters) - Wall Street stocks fell on Thursday on disappointment that a speech by the Federal Reserve chief lacked details on plans to spur economic growth, while the euro declined on fears the euro zone debt crisis is worsening with Greece failing to meet fiscal targets.
"The markets are going to be disappointed in this and concerned that the Fed is only acknowledging the problems without offering any real solutions," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Oil dips as dollar rises; awaits Obama, eyes Nate
NEW YORK, Sept 8 (Reuters) - Crude oil futures fell in choppy trading on Thursday, following Wall Street lower after the U.S. Federal Reserve Chief gave a speech that lacked new steps to spur economic growth, and as the dollar rose sharply.
"The dollar rose against the euro and that pulled down U.S. equities, dragging crude futures lower." said Tom Knight, trader at petroleum product marketeres Truman Arnold in Dallas,
UK oil output falls below 1 million barrels a day
LONDON, Sept 8 (Reuters) - UK oil production fell below 1 million barrels per day (bpd) for only the second time in more than 30 years this summer as maintenance exacerbated a decline in output from depleted North Sea oilfields.
The British sector of the North Sea pumped 984,000 bpd of oil in June, down from just over 1 million bpd in May and a peak of more than 2.7 million bpd in 1999, industry data show.
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.
Oil price volatility a concern for Asia
SINGAPORE, Sept 8 (Reuters) - Oil traders have been the only beneficiaries from this year's sharp swings in energy prices, but even they have been caught off guard at times, falling prey to geopolitics and wider financial market risk appetite swings.
That sums up reflections at Singapore's Asia Pacific Petroleum Conference (APPEC) this week, where oil traders, company executives and business leaders gathered to discuss an increasingly turbulent and volatile trading environment.
Oil producers target Asia as outlook in West bleak
SINGAPORE, Sept 7 (Reuters) - Oil producers from Brazil to Azerbaijan are targeting Asia to expand sales as growth falters in the U.S. and Europe, highlighting confidence that the world's fastest-growing energy market will offset any demand slump in industrialised nations.
At Singapore's annual Asia-Pacific Petroleum Conference (APPEC) this week, company executives are still upbeat about booming energy consumption in the region, despite the uncertainty surrounding the pace of global economic growth.
NYMEX-Natural gas ekes out gain despite neutral EIA data
NEW YORK, Sept 8 (Reuters) - U.S. natural gas futures eked out slight gains for a third straight day on Thursday, as an active tropical picture and late-week warm weather in much of the nation outweighed government storage data showing a slightly bigger-than-expected weekly build to inventories.
"The weekly EIA report only affects the market for about five minutes. Utilities decide at the beginning of the injection season how much they're going to put in and they will put that amount in come hell or high water," said Ed Kennedy at INTL Hencorp Futures in Miami.
Euro Coal-S.African trades at $114.60/T
LONDON, Sept 8 (Reuters) - European prompt physical coal prices fell by around 75 cents again on Thursday but the market remained range-bound with few trades reported.
"There's been a bit of utility buying but it's not because they need the coal particularly, just that the discount to swaps makes it a good buy for them," one utility source said.
COMMODITIES-Gold jumps ahead of Obama plan; oil falls
NEW YORK, Sept 8 (Reuters) - Oil and gold diverged a second straight day on Thursday, after a dim view of the U.S. economy by Federal Reserve Chairman Ben Bernanke pushed oil prices lower while gold was boosted by expectations of $300 billion jobs plan by President Barack Obama.
"I'd be interested to see how the President's speech outlines another $300 billion in stimulus to boost the economy, all of which will be bullish for gold," said Sean McGillivray, head of asset allocation at Great Pacific Wealth Management in Grants Pass, Oregon.
Asian stocks rebounded after U.S. President Barack Obama unveiled a $447 billion package to stimulate jobs growth and China said inflation was easing. Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday. The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
GLOBAL MARKETS-U.S. stocks slide on Bernanke; euro slumps
NEW YORK, Sept 8 (Reuters) - Wall Street stocks fell on Thursday on disappointment that a speech by the Federal Reserve chief lacked details on plans to spur economic growth, while the euro declined on fears the euro zone debt crisis is worsening with Greece failing to meet fiscal targets.
"The markets are going to be disappointed in this and concerned that the Fed is only acknowledging the problems without offering any real solutions," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Oil dips as dollar rises; awaits Obama, eyes Nate
NEW YORK, Sept 8 (Reuters) - Crude oil futures fell in choppy trading on Thursday, following Wall Street lower after the U.S. Federal Reserve Chief gave a speech that lacked new steps to spur economic growth, and as the dollar rose sharply.
"The dollar rose against the euro and that pulled down U.S. equities, dragging crude futures lower." said Tom Knight, trader at petroleum product marketeres Truman Arnold in Dallas,
UK oil output falls below 1 million barrels a day
LONDON, Sept 8 (Reuters) - UK oil production fell below 1 million barrels per day (bpd) for only the second time in more than 30 years this summer as maintenance exacerbated a decline in output from depleted North Sea oilfields.
The British sector of the North Sea pumped 984,000 bpd of oil in June, down from just over 1 million bpd in May and a peak of more than 2.7 million bpd in 1999, industry data show.
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.
Oil price volatility a concern for Asia
SINGAPORE, Sept 8 (Reuters) - Oil traders have been the only beneficiaries from this year's sharp swings in energy prices, but even they have been caught off guard at times, falling prey to geopolitics and wider financial market risk appetite swings.
That sums up reflections at Singapore's Asia Pacific Petroleum Conference (APPEC) this week, where oil traders, company executives and business leaders gathered to discuss an increasingly turbulent and volatile trading environment.
Oil producers target Asia as outlook in West bleak
SINGAPORE, Sept 7 (Reuters) - Oil producers from Brazil to Azerbaijan are targeting Asia to expand sales as growth falters in the U.S. and Europe, highlighting confidence that the world's fastest-growing energy market will offset any demand slump in industrialised nations.
At Singapore's annual Asia-Pacific Petroleum Conference (APPEC) this week, company executives are still upbeat about booming energy consumption in the region, despite the uncertainty surrounding the pace of global economic growth.
NYMEX-Natural gas ekes out gain despite neutral EIA data
NEW YORK, Sept 8 (Reuters) - U.S. natural gas futures eked out slight gains for a third straight day on Thursday, as an active tropical picture and late-week warm weather in much of the nation outweighed government storage data showing a slightly bigger-than-expected weekly build to inventories.
"The weekly EIA report only affects the market for about five minutes. Utilities decide at the beginning of the injection season how much they're going to put in and they will put that amount in come hell or high water," said Ed Kennedy at INTL Hencorp Futures in Miami.
Euro Coal-S.African trades at $114.60/T
LONDON, Sept 8 (Reuters) - European prompt physical coal prices fell by around 75 cents again on Thursday but the market remained range-bound with few trades reported.
"There's been a bit of utility buying but it's not because they need the coal particularly, just that the discount to swaps makes it a good buy for them," one utility source said.
COMMODITIES-Gold jumps ahead of Obama plan; oil falls
NEW YORK, Sept 8 (Reuters) - Oil and gold diverged a second straight day on Thursday, after a dim view of the U.S. economy by Federal Reserve Chairman Ben Bernanke pushed oil prices lower while gold was boosted by expectations of $300 billion jobs plan by President Barack Obama.
"I'd be interested to see how the President's speech outlines another $300 billion in stimulus to boost the economy, all of which will be bullish for gold," said Sean McGillivray, head of asset allocation at Great Pacific Wealth Management in Grants Pass, Oregon.
20110909 1032 Local & Global Economic Related News.
Malaysia: Export growth slowed in July as global demand waned
Malaysia’s export growth slowed in July as demand for electrical and electronic products eased, sustaining pressure on the central bank to refrain from raising interest rates. Overseas shipments rose 7.1% to RM59.2bn (USD20bn) from a year earlier after gaining a revised 9.6% in June, the trade ministry said. Malaysia’s exports have been undermined by a faltering US economy and Europe’s sovereign-debt crisis even as disruptions following the Japan earthquake in March have started to ease and shipments of commodities climb. (Bloomberg)
Malaysia and Asia: Central banks hold rates as global turmoil dims outlook
Four central banks in Asia held off from raising borrowing costs today even as the region contends with elevated inflation rates, forced into inaction by the threat of a slump in exports as the global outlook dims. Malaysia left its overnight policy rate at 3%. The Bank of Korea held its benchmark interest rate at 3.25%, and the central banks of Indonesia and the Philippines kept their rates at 6.75% and 4.5%, they said in statements. Economic data in the region yesterday showed an unexpected drop in Australian payrolls and the biggest slide in machinery orders in Japan in 10 months, adding to evidence of the toll from receding confidence among consumers from Europe to the US. (Bloomberg)
Euro: Trichet backs Italian austerity before debt sales
European Central Bank President Jean-Claude Trichet’s endorsement of Italy’s austerity plan may signal his willingness to further backstop the country’s bonds before EUR18.5bn (USD26bn) of debt sales next week. The Senate’s passage of the EUR54bn package on 7 Sept was of “extreme importance” and the final plan was “in line” with Italy’s initial pledge to balance the budget in 2013, Trichet said. Italy’s 10-year bond slid for 11 days through 5 Sept on concern that weeks of changes to the plan threatened ECB support for Italian debt. (Bloomberg)
UK: Bank of England resists calls to add more stimulus to economy
Bank of England officials resisted calls to extend economic stimulus as they attempt to navigate a path between accelerating inflation and a faltering recovery. The nine-member Monetary Policy Committee, led by Mervyn King, maintained the target of its bond program at GBP200bn (USD319bn), a move forecast by economists. It also held the benchmark interest rate at a record-low 0.5% yesterday. (Bloomberg)
US: Consumer comfort index falls to second lowest this year
US consumer confidence last week fell to the second-lowest level this year as Americans grew more pessimistic about the world’s largest economy. The Bloomberg Consumer Comfort Index was minus 49.3 in the period to 4 Sept compared with minus 49.1 the previous week. This year’s low of minus 49.4 was reached in May, when gasoline prices were the highest in three years. While the drop was within the survey’s 3-point margin of error, the index has been stuck below minus 40 - the level associated with recessions or their aftermath -- since the end of February. (Bloomberg)
US: Jobless claims unexpectedly rose to 414,000 last week
Claims for US unemployment benefits rose last week, a sign the labor market is struggling to gain traction more than two years after the recession ended. Jobless claims rose by 2,000 to 414,000 in the week ended 3 Sept, Labor Department figures showed. The number of people on unemployment benefit rolls and those receiving extended payments fell. Companies are stepping up the pace of firings; raising the risk that consumer spending will slow further. Job growth stagnated last month and the unemployment rate held unchanged at 9.1%, the Labor Department reported last week. The Labor Department said there was no national effect from Hurricane Irene. (Bloomberg)
US: Smaller trade gap Is bright spot for recovery
The U.S. trade deficit narrowed more than forecast in July as exports climbed to a record, offering a bright spot for an economy at risk of a bigger slowdown. The gap shrank 13.1%, the most since Feb 2009, to USD44.8bn from a revised USD51.6bn shortfall in June, Commerce Department figures showed. Exports rose as companies shipped more capital goods and automobiles overseas. (Bloomberg)
Bernanke disappointment pushes Wall Street lower
US stocks closed sharply lower on Thursday, 8 Sept after Federal Reserve Chairman Ben Bernanke gave no indications of new stimulus measures to boost the flagging economy in a keenly awaited speech. Investors have been looking to Bernanke, who gave his outlook on the US economy on Thursday, and other policymakers to address a host of concerns from slowing global growth to Europe's debt crisis. The Dow Jones industrial average .DJI dropped 119.05 points, or 1.04%, to 11,295.81 while the Standard & Poor's 500 Index fell 12.72 points, or 1.06%, to 1,185.90. (Financial Daily)
Malaysia’s export growth slowed in July as demand for electrical and electronic products eased, sustaining pressure on the central bank to refrain from raising interest rates. Overseas shipments rose 7.1% to RM59.2bn (USD20bn) from a year earlier after gaining a revised 9.6% in June, the trade ministry said. Malaysia’s exports have been undermined by a faltering US economy and Europe’s sovereign-debt crisis even as disruptions following the Japan earthquake in March have started to ease and shipments of commodities climb. (Bloomberg)
Malaysia and Asia: Central banks hold rates as global turmoil dims outlook
Four central banks in Asia held off from raising borrowing costs today even as the region contends with elevated inflation rates, forced into inaction by the threat of a slump in exports as the global outlook dims. Malaysia left its overnight policy rate at 3%. The Bank of Korea held its benchmark interest rate at 3.25%, and the central banks of Indonesia and the Philippines kept their rates at 6.75% and 4.5%, they said in statements. Economic data in the region yesterday showed an unexpected drop in Australian payrolls and the biggest slide in machinery orders in Japan in 10 months, adding to evidence of the toll from receding confidence among consumers from Europe to the US. (Bloomberg)
Euro: Trichet backs Italian austerity before debt sales
European Central Bank President Jean-Claude Trichet’s endorsement of Italy’s austerity plan may signal his willingness to further backstop the country’s bonds before EUR18.5bn (USD26bn) of debt sales next week. The Senate’s passage of the EUR54bn package on 7 Sept was of “extreme importance” and the final plan was “in line” with Italy’s initial pledge to balance the budget in 2013, Trichet said. Italy’s 10-year bond slid for 11 days through 5 Sept on concern that weeks of changes to the plan threatened ECB support for Italian debt. (Bloomberg)
UK: Bank of England resists calls to add more stimulus to economy
Bank of England officials resisted calls to extend economic stimulus as they attempt to navigate a path between accelerating inflation and a faltering recovery. The nine-member Monetary Policy Committee, led by Mervyn King, maintained the target of its bond program at GBP200bn (USD319bn), a move forecast by economists. It also held the benchmark interest rate at a record-low 0.5% yesterday. (Bloomberg)
US: Consumer comfort index falls to second lowest this year
US consumer confidence last week fell to the second-lowest level this year as Americans grew more pessimistic about the world’s largest economy. The Bloomberg Consumer Comfort Index was minus 49.3 in the period to 4 Sept compared with minus 49.1 the previous week. This year’s low of minus 49.4 was reached in May, when gasoline prices were the highest in three years. While the drop was within the survey’s 3-point margin of error, the index has been stuck below minus 40 - the level associated with recessions or their aftermath -- since the end of February. (Bloomberg)
US: Jobless claims unexpectedly rose to 414,000 last week
Claims for US unemployment benefits rose last week, a sign the labor market is struggling to gain traction more than two years after the recession ended. Jobless claims rose by 2,000 to 414,000 in the week ended 3 Sept, Labor Department figures showed. The number of people on unemployment benefit rolls and those receiving extended payments fell. Companies are stepping up the pace of firings; raising the risk that consumer spending will slow further. Job growth stagnated last month and the unemployment rate held unchanged at 9.1%, the Labor Department reported last week. The Labor Department said there was no national effect from Hurricane Irene. (Bloomberg)
US: Smaller trade gap Is bright spot for recovery
The U.S. trade deficit narrowed more than forecast in July as exports climbed to a record, offering a bright spot for an economy at risk of a bigger slowdown. The gap shrank 13.1%, the most since Feb 2009, to USD44.8bn from a revised USD51.6bn shortfall in June, Commerce Department figures showed. Exports rose as companies shipped more capital goods and automobiles overseas. (Bloomberg)
Bernanke disappointment pushes Wall Street lower
US stocks closed sharply lower on Thursday, 8 Sept after Federal Reserve Chairman Ben Bernanke gave no indications of new stimulus measures to boost the flagging economy in a keenly awaited speech. Investors have been looking to Bernanke, who gave his outlook on the US economy on Thursday, and other policymakers to address a host of concerns from slowing global growth to Europe's debt crisis. The Dow Jones industrial average .DJI dropped 119.05 points, or 1.04%, to 11,295.81 while the Standard & Poor's 500 Index fell 12.72 points, or 1.06%, to 1,185.90. (Financial Daily)
20110909 1031 Malaysia Corporate Related News.
DiGi to distribute RM509m proceeds
DiGi.Com will distribute to shareholders, via dividends or other such manner, “the excess proceeds” of about RM509m via its wholly owned unit DiGi Telecommunications SB. The move is to offset a potential drop in DiGi’s dividend payout as a result of group front-loading its capital expenditure over FY11 and FY12 ending 31 Dec. DiGi also announced a 1-into-10 stock split, expected to be completed in 4Q. (Financial Daily) Please see accompanying report
PM unveils 8 new projects worth RM1.4b under ETP
Prime Minister Datuk Seri Mohd Najib Razak announced yesterday eight new investment projects worth RM1.4bn in various sectors such as agriculture, education, aerospace, wholesale, retail and manufacturing. Among the 8 projects, KLK will invest RM706m to develop downstream sector of palm oil industry. (Malaysian Reserve)
KLK invests RM706m in plants and R&D centre
Kuala Lumpur Kepong is investing RM706m to develop oleo derivatives with the establishment of three new plants in the country and to set up a centralised research and development centre. The investment comes under one of the eight additional initiatives in the Economic Transformation Plan announced by Prime Minister Datuk Seri Najib Razak yesterday.(Financial Daily)
Syabas sues Selangor Govt for RM1bn
Puncak Niaga Holdings’ 70%-owned subsidiary, Syarikat Bekalan Air Selangor SB (Syabas), has instituted legal proceedings agains the Selangor state government for a sum of RM1.05bn. The company said the legal proceedings relate to compensation for the period from 1 Jan 2009, to 31 Mar 2011, from the state government under the terms of concession agreement dated 15 Dec 2004, between Syabas, the federal government and the state government. (Malaysian Reserve)
RCE strengthening loan business after Kowaja freeze
RCE Capital is focusing on strengthening its loan book after Koperasi Wawasan Pekerja-Pekerja ceased disbursing new personal loans sourced from RCE to its members between December last year and June 2011. “Right now, we are just purely looking at building the business,” RCE CEO Loh Kam Chuin told a press conference after the company’s AGM yesterday. (Financial Daily)
Ireka units acquires land for RM22m in Ulu Langat
Ireka Corp’s wholly owned subsidiary, Ireka Engineering & Construction SB, has proposed to acquire a parcel of freehold land in Ulu Langat, Selangor for RM22.4m from Borncity Development SB. The land, measuring 83,339.8sq m, is located within Bukit Angkat Industrial Zone and is intended for a gated and guarded mixed-use industrial development. (Financial Daily)
DiGi.Com will distribute to shareholders, via dividends or other such manner, “the excess proceeds” of about RM509m via its wholly owned unit DiGi Telecommunications SB. The move is to offset a potential drop in DiGi’s dividend payout as a result of group front-loading its capital expenditure over FY11 and FY12 ending 31 Dec. DiGi also announced a 1-into-10 stock split, expected to be completed in 4Q. (Financial Daily) Please see accompanying report
PM unveils 8 new projects worth RM1.4b under ETP
Prime Minister Datuk Seri Mohd Najib Razak announced yesterday eight new investment projects worth RM1.4bn in various sectors such as agriculture, education, aerospace, wholesale, retail and manufacturing. Among the 8 projects, KLK will invest RM706m to develop downstream sector of palm oil industry. (Malaysian Reserve)
KLK invests RM706m in plants and R&D centre
Kuala Lumpur Kepong is investing RM706m to develop oleo derivatives with the establishment of three new plants in the country and to set up a centralised research and development centre. The investment comes under one of the eight additional initiatives in the Economic Transformation Plan announced by Prime Minister Datuk Seri Najib Razak yesterday.(Financial Daily)
Syabas sues Selangor Govt for RM1bn
Puncak Niaga Holdings’ 70%-owned subsidiary, Syarikat Bekalan Air Selangor SB (Syabas), has instituted legal proceedings agains the Selangor state government for a sum of RM1.05bn. The company said the legal proceedings relate to compensation for the period from 1 Jan 2009, to 31 Mar 2011, from the state government under the terms of concession agreement dated 15 Dec 2004, between Syabas, the federal government and the state government. (Malaysian Reserve)
RCE strengthening loan business after Kowaja freeze
RCE Capital is focusing on strengthening its loan book after Koperasi Wawasan Pekerja-Pekerja ceased disbursing new personal loans sourced from RCE to its members between December last year and June 2011. “Right now, we are just purely looking at building the business,” RCE CEO Loh Kam Chuin told a press conference after the company’s AGM yesterday. (Financial Daily)
Ireka units acquires land for RM22m in Ulu Langat
Ireka Corp’s wholly owned subsidiary, Ireka Engineering & Construction SB, has proposed to acquire a parcel of freehold land in Ulu Langat, Selangor for RM22.4m from Borncity Development SB. The land, measuring 83,339.8sq m, is located within Bukit Angkat Industrial Zone and is intended for a gated and guarded mixed-use industrial development. (Financial Daily)
20110909 1028 Global Market Related News.
Asian Stocks Swing Between Gain, Loss After Bernanke Talk, Obama Jobs Plan (Source: Bloomberg)
Asian stocks swung between gains and losses, with the regional benchmark index headed for its first weekly loss in three weeks, after U.S. President Barack Obama unveiled a jobs plan and the Federal Reserve chairman failed to outline extra measures to shore up economic growth. Toyota Motor Corp., the world’s biggest carmaker, declined 0.9 percent after Fed Chairman Ben S. Bernanke said policymakers will discuss the economy at a two-day meeting later this month. Canon Inc., which counts Europe as its biggest market for sales, slumped 0.4 percent. Samsung Electronics Co., which counts America as its second-biggest market, rose 0.9 percent in Seoul. Hynix Semiconductor Inc., which receives 27 percent of its revenue from the U.S., jumped 7.8 percent in Seoul on speculation the company will benefit from production cuts by smaller rivals.
The MSCI Asia Pacific Index rose 0.1 percent to 122.17 at 10:13 a.m. in Tokyo after earlier falling as much as 0.5 percent. The measure is on course to fall 1.6 percent this week, its first weekly decline since Aug. 19. Of the 10 industry groups on the measure, eight rose while two declined. About the same number of stocks also rose as fell on the 1,017 member index.
G-7 Says Japan Should Build Yen Support: Tamaki (Source: Bloomberg)
The Group of Seven has signaled it wants Japan to build a consensus before intervening in the foreign-exchange market, according to the nation’s former head of currency policy. Members have indicated intervention “should be done in agreement with the G-7 as opposed to unilaterally,” Rintaro Tamaki, who was a vice finance minister until July and directed two of Japan’s three rounds of yen sales in the past year, said in an interview in Paris yesterday. He was referring to language in an Aug. 8 statement by the G-7 that said officials will “closely consult” each other on currencies. Tamaki’s comments indicate Japan may encounter opposition to further yen sales after acting by itself twice in the past 12 months. Canadian Finance Minister Jim Flaherty said he was concerned about actions by Japan and Switzerland to stem gains in their currencies and that the topic will be discussed by G-7 policy makers, who meet today in Marseille, France.
GLOBAL MARKETS - Euro slips, stocks gain before ECB rate decision
LONDON, Sept 8 (Reuters) - The euro slipped against the dollar on Thursday and stock markets rose ahead of a European Central Bank meeting that is likely to flag a halt to its monetary tightening cycle.
"Markets are a bit cautious going into the ECB rate meeting," said UBS currency analyst Chris Walker.
Obama Offers $447B Spending, Tax-Cut Plan to Spur Jobs (Source: 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.
Fed to Weigh Stimulus This Month: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said policy makers will discuss the tools they could use to boost the recovery at their next meeting this month and stand ready to use them if necessary. Policy makers “are prepared to employ these tools as appropriate to promote a stronger economic recovery in the context of price stability,” Bernanke said today in Minneapolis, echoing points from his Aug. 26 remarks in Jackson Hole, Wyoming. The Fed chief, in a speech to economists, stopped short of signaling what he believes is the central bank’s best option to aid the economy. He said in previous remarks that the Fed’s measures to bolster growth include lengthening the duration of securities in its $1.65 trillion Treasury portfolio and buying more government bonds.
Fed Policy Makers Lay Groundwork for Further Action to Foster U.S. Rebound (Source: Bloomberg)
Federal Reserve policy makers are laying the groundwork for further action at this month’s meeting, warning that U.S. economic growth could stall, producing lasting stagnation in the job market. Federal Reserve Bank of Chicago President Charles Evans said yesterday the Fed should consider adding “very significant amounts of policy accommodation” and attacked the notion it should abide by a 2 percent ceiling on inflation. San Francisco Fed chief John Williams cited “a number of steps” that could be taken to support growth, without offering specifics.
The Fed may decide at its Sept. 20-21 meeting to replace some of the short-term Treasury securities in its $1.65 trillion portfolio with long-term debt in a bid to lower rates on everything from mortgages to car loans, according to economists at Wells Fargo & Co., Barclays Capital Inc. and Goldman Sachs Group Inc. Some analysts dub the maneuver “Operation Twist” because it would bend long-term yields lower. Fed Chairman Ben S. Bernanke is due to speak in Minnesota on the economic outlook at 1:30 p.m. New York time.
U.S. Trade Deficit Narrowed in July More Than Forecast, to $44.8 Billion (Source: Bloomberg)
The U.S. trade deficit narrowed more than forecast in July as exports climbed to a record, offering a bright spot for an economy at risk of a bigger slowdown. The gap shrank 13.1 percent, the most since February 2009, to $44.8 billion from a revised $51.6 billion shortfall in June, Commerce Department figures showed today in Washington. Exports rose as companies shipped more capital goods and automobiles overseas. Jobless claims unexpectedly rose last week and consumer sentiment waned, indicating the biggest part of the economy will struggle to gain momentum through the end of the year, separate reports showed. President Barack Obama tonight will propose more than $300 billion of tax cuts and spending measures aimed at creating jobs and shoring up the recovery.
U.S. Consumer Borrowing Rose by $12 Billion in July, Twice Amount Forecast (Source: Bloomberg)
Consumer borrowing in the U.S. rose by the most in more than three years in July, led by a gain in non-revolving credit that includes student loans. Credit increased $12 billion after a revised $11.3 billion rise in June, the Federal Reserve said today in Washington. Economists projected a $6 billion gain, according to the median forecast in a Bloomberg News survey. The rise in non-revolving loans was the most since November 2001. Revolving credit showed the biggest decrease in six months, indicating Americans may be cutting back on non-essential items as limited job and wage growth depresses consumer confidence. Employment and income gains may be required to help spark the household spending and the recovery.
U.S. Consumer Sentiment at Second-Lowest Level of Year in Bloomberg Index (Source: Bloomberg)
U.S. consumer confidence last week fell to the second-lowest level this year as Americans grew more pessimistic about the world’s largest economy. The Bloomberg Consumer Comfort Index was minus 49.3 in the period to Sept. 4 compared with minus 49.1 the previous week. This year’s low of minus 49.4 was reached in May, when gasoline prices were the highest in three years. While the drop was within the survey’s 3-point margin of error, the index has been stuck below minus 40 -- the level associated with recessions or their aftermath -- since the end of February. Job creation stagnated in August, the unemployment rate held above 9 percent and hourly wages retreated, giving households little to cheer about. Pessimism stretches across social, economic and political lines, posing a threat to consumer spending that accounts for 70 percent of the economy.
Treasuries Decline After Obama Offers $447 Billion Spending, Tax-Cut Plan (Source: Bloomberg)
Treasuries fell after President Barack Obama called on Congress to pass a jobs plan that would inject $447 billion into the U.S. economy. Ten-year Treasury yields rose three basis points to 2.01 percent as of 9:06 a.m. in Tokyo. Thirty-year yields gained three basis points to 3.34 percent.
U.S. Stocks Decline as Bernanke Avoids Offering New Plans to Boost Economy (Source: Bloomberg)
U.S. stocks fell, after the biggest gain in two weeks for benchmark gauges, as Federal Reserve Chairman Ben S. Bernanke disappointed investors by not detailing new plans to boost growth in the world’s largest economy. Financial and industrial shares had the biggest losses among 10 groups in the Standard & Poor’s 500 Index. JPMorgan Chase & Co. (JPM), Boeing Co. (BA) and DuPont Co. retreated at least 2.1 percent, pacing declines in companies most-tied to economic growth. Dollar General Corp. (DG) tumbled 5.7 percent after the company said holders will sell 25 million shares. The S&P 500 fell 1.1 percent to 1,185.90 at 4 p.m. in New York as all 10 of its groups declined. The Dow Jones Industrial Average slid 119.05 points, or 1 percent, to 11,295.81. Stocks extended losses as Bernanke stopped short of signaling what he thinks is the Fed’s best option to aid the economy, repeating points from his speech on Aug. 26 in Jackson Hole, Wyoming.
China Inflation Eases to 6.2% From 3-Year High (Source: Bloomberg)
China’s inflation eased in August from a three-year high, 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 compared with the 6.2 percent median forecast in a Bloomberg News survey of 31 economists and July’s 6.5 percent gain. 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.
China’s Stock Futures Rise Amid Obama Jobs Plan, Easing Inflation Outlook (Source: Bloomberg)
China’s stocks rose, narrowing a weekly drop, after inflation eased from a three-year high and investors speculated President Barack Obama’s jobs plan will boost growth in the world’s biggest economy. Industrial & Commercial Bank of China Ltd. led a gauge of financial companies to the biggest gain among industry groups. PetroChina Co., the largest oil producer, climbed 0.7 percent and Yunnan Copper Industry Co. advanced 1.4 percent. “Investors are reacting to Obama’s plan as it may ease concerns about a possible recession,” said Zhang Han, a strategist at Guotai Junan Securities Co. in Shanghai. “Even though inflation eased in August, it will stay at a high enough level that the central bank won’t ease its monetary policy in the near term.”
Food-Price Gains Driven by Chinese Consumers Defy Easing Global Inflation (Source: Bloomberg)
Rising food prices may be an exception to easing inflation worldwide, posing dilemmas for policy makers, particularly in emerging markets including China, panelists at a forum said today. A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs Group Inc. (GS), said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link. Central banks “should be concerned” about food-price inflation, said Roberto Rigobon, a Massachusetts Institute of Technology professor, while James Rickards, senior managing director of Tangent Capital Partners, said China risks harming employment if the country tries too hard to contain inflation. Their comments compare with signals today from the Federal Reserve and European Central Bank that the inflation outlook is benign enough to allow further easing.
Yuan Will Be Fully Convertible by 2015, Chinese Officials Tell EU Chamber (Source: Bloomberg)
Chinese officials told European Union business executives that the yuan will achieve “full convertibility” by 2015, EU Chamber of Commerce in China President Davide Cucino said. “We were told by those officials by 2015,” Cucino told reporters in Beijing yesterday, declining to identify the government departments involved. People’s Bank of China Governor Zhou Xiaochuan said that while there is no timetable for convertibility, the offshore yuan market is “developing faster than what we had imagined.” China has accelerated the use of the yuan in international trade and investment to curb its reliance on the dollar. A fully convertible currency is one of the criteria the U.S. and Europe are demanding from china as a condition for allowing it to be part of the International Monetary Fund’s currency basket. A 2015 target would be a year faster than the schedule expected by 57 percent of 1,263 global investors in a Bloomberg survey published in May.
Japan’s Economy Contracts More Than Initial Estimate as Yen Hurts Recovery (Source: Bloomberg)
Japan’s economy contracted more than the government initially estimated in the second quarter as capital spending decreased, adding to concern the stronger yen may derail the nation’s recovery from the March earthquake. Gross domestic product shrank at an annualized 2.1 percent rate in the three months ended June 30, more than the 1.3 percent contraction reported last month, the Cabinet Office said today in Tokyo. The reading was in line with the median forecast of 21 economists surveyed by Bloomberg News. Reports in the past week indicate growth in the world’s third-largest economy may stall toward the end of the year. Machinery orders, a leading indicator of capital spending, fell the most in 10 months in July and companies are also struggling with a yen near a postwar record, risking an erosion of oversea profits when they’re repatriated.
Japan Stocks Swing Between Gains, Losses on Obama Job Plan, Risk in Europe (Source: Bloomberg)
Japan’s Topix index swung between gains and losses as U.S. President Barack Obama’s $447 billion plan to spur growth countered downside risks to Europe’s economy. Banks gave the biggest support to the Topix index with Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, advancing 1.2 percent. Toyota Motor Corp. (7203), the world’s No. 1 carmaker, dropped 0.9 percent. Fanuc Corp. (6954), which gets 75 percent of its sales outside of Japan, fell 4 percent, the biggest slide on the Nikkei 225 Stock Average, after a report yesterday showed growth in Japan’s machine tool orders slowed in August. The Topix was little changed at 757.93 as of 10:02 a.m. in Tokyo after rising 0.3 percent and falling 0.4 percent. The Nikkei 225 (NKY) Stock Average was 0.2 percent lower at 8,774.30 after earlier declining as much as 0.7 percent. For the week, the Nikkei has fallen 2 percent, while the Topix is down 1.5 percent.
European Stocks Advance for a Second Day as Home Retail, KBC Shares Rally (Source: Bloomberg)
European stocks climbed, extending the Stoxx Europe 600 Index’s largest rally in three weeks, as oil producers and retailers advanced. Total SA (FP) and Tullow Oil Plc (TLW) advanced at least 2.5 percent as oil rose. KBC Groep NV rallied 5.9 percent following a report that Banco Santander SA (SAN) seeks to buy KBC’s Polish unit. Home Retail Group Plc (HOME) gained 2 percent after saying the sales decline at its Argos chain slowed. The Stoxx 600 climbed 0.7 percent to 230.47 at the 4:30 p.m. close in London. The benchmark measure has swung between gains and losses at least 12 times today. The gauge has still tumbled 21 percent from this year’s high in February as concern mounted that Europe’s debt crisis is spreading. The decline has cut the index’s valuation to 9.6 times estimated earnings, near the cheapest since March 2009, according to data compiled by Bloomberg.
Trichet Loses His Cool at Prospect of Deutsche Mark’s Revival in Germany (Source: Bloomberg)
Almost 13 years after its demise, the deutsche mark retains enough potency to haunt Jean-Claude Trichet’s final days as European Central Bank president. Trichet, 68, lost his cool yesterday with a reporter who asked whether Germany should abandon the euro and return to the mark as Europe’s debt crisis roils markets and spooks voters. “I would like very much to hear the congratulations for an institution which has delivered price stability in Germany for almost 13 years,” Trichet said in Frankfurt in an uncharacteristically raised voice. “It’s not by chance we have delivered price stability,” he said. “We do our job, it’s not an easy job.”
Trichet Opens Path for Further Steps as Euro Region’s Growth Forecasts Cut (Source: Bloomberg)
European Central Bank President Jean-Claude Trichet said threats to the euro region have worsened and inflation risks have eased, giving officials the option to take further action should the debt crisis worsen. The economy faces “particularly high uncertainty and intensified downside risks,” Trichet said at a press conference in Frankfurt today after the ECB left its benchmark rate at 1.5 percent. While monetary policy is still “accommodative,” financing conditions have worsened in parts of the 17-member euro region and the ECB stands ready to pump more cash into markets if needed, he said. The yield on German 10-year bunds fell to a record as some investors speculated the ECB could cut interest rates or open up more emergency credit lines for banks. The spreading debt crisis is sapping confidence in Europe’s financial institutions, driving up market borrowing costs and forced the ECB to widen its bond purchase program to Italy and Spain.
Inflation Bets Approach Year-Low as Unemployment Climbs: Australia Credit (Source: Bloomberg)
Bond investors’ expectations of inflation in Australia are falling toward the lowest level in a year after global market turmoil helped drive the nation’s unemployment rate to a 10-month high in August. Consumer prices will rise at a 2.58 percent annual pace over the next five years, yields on inflation-linked debt showed as of 10:28 a.m. in Sydney, four basis points above the lowest level since September 2010. The so-called breakeven rate is the highest across eight developed markets Bloomberg tracks, as a mining boom boosts export revenue. The second consecutive increase in the jobless rate backs Reserve Bank of Australia Governor Glenn Stevens’s view that global financial instability and local consumers retrenching may “curtail” inflationary pressures. Stevens signaled a willingness this week to keep the developed world’s highest interest rate on hold as the local dollar’s record advance and slumps in manufacturing and construction prompt companies including BlueScope Steel Ltd. to shed workers.
Dollar, Yen Drop as Obama’s Job Creation Proposals Curbs Demand for Safety (Source: Bloomberg)
The dollar and yen declined against the majority of their most-traded counterparts today after President Barack Obama unveiled proposals to create jobs and boost the U.S. economy, damping demand for safer assets. The dollar snapped yesterday’s advance versus the euro as Asian stocks erased early losses after Obama urged Congress to pass his $447 billion plan. The yen slid after Japan’s Finance Minister Jun Azumi said he will tell his counterparts in the Group of Seven nations that his country remains prepared to take “bold” action in currency markets. “We can say that Obama’s plan is seen favorably in the market, boosting risk appetite and spurring selling of the dollar and yen,” said Daisaku Ueno, president of Gaitame.com Research Institute Ltd. in Tokyo, a unit of Japan’s largest online currency broker. “Expectations for stimulus measures are strong and are prone to run ahead.”
FOREX - Euro slips before ECB rate decision, may bounce
LONDON, Sept 8 (Reuters) - The euro eased against the dollar on Thursday, as investors struck a cautious tone ahead of an European Central Bank rate decision, with policymakers likely to change tack and flag a pause in its monetary tightening cycle.
"Markets are a bit cautious going into the ECB rate meeting," said UBS currency analyst Chris Walker. "We could see a bounce in the euro as pricing in for rate cuts in October is a bit far-fetched. But any lift is likely to see some more selling."
Asian stocks swung between gains and losses, with the regional benchmark index headed for its first weekly loss in three weeks, after U.S. President Barack Obama unveiled a jobs plan and the Federal Reserve chairman failed to outline extra measures to shore up economic growth. Toyota Motor Corp., the world’s biggest carmaker, declined 0.9 percent after Fed Chairman Ben S. Bernanke said policymakers will discuss the economy at a two-day meeting later this month. Canon Inc., which counts Europe as its biggest market for sales, slumped 0.4 percent. Samsung Electronics Co., which counts America as its second-biggest market, rose 0.9 percent in Seoul. Hynix Semiconductor Inc., which receives 27 percent of its revenue from the U.S., jumped 7.8 percent in Seoul on speculation the company will benefit from production cuts by smaller rivals.
The MSCI Asia Pacific Index rose 0.1 percent to 122.17 at 10:13 a.m. in Tokyo after earlier falling as much as 0.5 percent. The measure is on course to fall 1.6 percent this week, its first weekly decline since Aug. 19. Of the 10 industry groups on the measure, eight rose while two declined. About the same number of stocks also rose as fell on the 1,017 member index.
G-7 Says Japan Should Build Yen Support: Tamaki (Source: Bloomberg)
The Group of Seven has signaled it wants Japan to build a consensus before intervening in the foreign-exchange market, according to the nation’s former head of currency policy. Members have indicated intervention “should be done in agreement with the G-7 as opposed to unilaterally,” Rintaro Tamaki, who was a vice finance minister until July and directed two of Japan’s three rounds of yen sales in the past year, said in an interview in Paris yesterday. He was referring to language in an Aug. 8 statement by the G-7 that said officials will “closely consult” each other on currencies. Tamaki’s comments indicate Japan may encounter opposition to further yen sales after acting by itself twice in the past 12 months. Canadian Finance Minister Jim Flaherty said he was concerned about actions by Japan and Switzerland to stem gains in their currencies and that the topic will be discussed by G-7 policy makers, who meet today in Marseille, France.
GLOBAL MARKETS - Euro slips, stocks gain before ECB rate decision
LONDON, Sept 8 (Reuters) - The euro slipped against the dollar on Thursday and stock markets rose ahead of a European Central Bank meeting that is likely to flag a halt to its monetary tightening cycle.
"Markets are a bit cautious going into the ECB rate meeting," said UBS currency analyst Chris Walker.
Obama Offers $447B Spending, Tax-Cut Plan to Spur Jobs (Source: 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.
Fed to Weigh Stimulus This Month: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said policy makers will discuss the tools they could use to boost the recovery at their next meeting this month and stand ready to use them if necessary. Policy makers “are prepared to employ these tools as appropriate to promote a stronger economic recovery in the context of price stability,” Bernanke said today in Minneapolis, echoing points from his Aug. 26 remarks in Jackson Hole, Wyoming. The Fed chief, in a speech to economists, stopped short of signaling what he believes is the central bank’s best option to aid the economy. He said in previous remarks that the Fed’s measures to bolster growth include lengthening the duration of securities in its $1.65 trillion Treasury portfolio and buying more government bonds.
Fed Policy Makers Lay Groundwork for Further Action to Foster U.S. Rebound (Source: Bloomberg)
Federal Reserve policy makers are laying the groundwork for further action at this month’s meeting, warning that U.S. economic growth could stall, producing lasting stagnation in the job market. Federal Reserve Bank of Chicago President Charles Evans said yesterday the Fed should consider adding “very significant amounts of policy accommodation” and attacked the notion it should abide by a 2 percent ceiling on inflation. San Francisco Fed chief John Williams cited “a number of steps” that could be taken to support growth, without offering specifics.
The Fed may decide at its Sept. 20-21 meeting to replace some of the short-term Treasury securities in its $1.65 trillion portfolio with long-term debt in a bid to lower rates on everything from mortgages to car loans, according to economists at Wells Fargo & Co., Barclays Capital Inc. and Goldman Sachs Group Inc. Some analysts dub the maneuver “Operation Twist” because it would bend long-term yields lower. Fed Chairman Ben S. Bernanke is due to speak in Minnesota on the economic outlook at 1:30 p.m. New York time.
U.S. Trade Deficit Narrowed in July More Than Forecast, to $44.8 Billion (Source: Bloomberg)
The U.S. trade deficit narrowed more than forecast in July as exports climbed to a record, offering a bright spot for an economy at risk of a bigger slowdown. The gap shrank 13.1 percent, the most since February 2009, to $44.8 billion from a revised $51.6 billion shortfall in June, Commerce Department figures showed today in Washington. Exports rose as companies shipped more capital goods and automobiles overseas. Jobless claims unexpectedly rose last week and consumer sentiment waned, indicating the biggest part of the economy will struggle to gain momentum through the end of the year, separate reports showed. President Barack Obama tonight will propose more than $300 billion of tax cuts and spending measures aimed at creating jobs and shoring up the recovery.
U.S. Consumer Borrowing Rose by $12 Billion in July, Twice Amount Forecast (Source: Bloomberg)
Consumer borrowing in the U.S. rose by the most in more than three years in July, led by a gain in non-revolving credit that includes student loans. Credit increased $12 billion after a revised $11.3 billion rise in June, the Federal Reserve said today in Washington. Economists projected a $6 billion gain, according to the median forecast in a Bloomberg News survey. The rise in non-revolving loans was the most since November 2001. Revolving credit showed the biggest decrease in six months, indicating Americans may be cutting back on non-essential items as limited job and wage growth depresses consumer confidence. Employment and income gains may be required to help spark the household spending and the recovery.
U.S. Consumer Sentiment at Second-Lowest Level of Year in Bloomberg Index (Source: Bloomberg)
U.S. consumer confidence last week fell to the second-lowest level this year as Americans grew more pessimistic about the world’s largest economy. The Bloomberg Consumer Comfort Index was minus 49.3 in the period to Sept. 4 compared with minus 49.1 the previous week. This year’s low of minus 49.4 was reached in May, when gasoline prices were the highest in three years. While the drop was within the survey’s 3-point margin of error, the index has been stuck below minus 40 -- the level associated with recessions or their aftermath -- since the end of February. Job creation stagnated in August, the unemployment rate held above 9 percent and hourly wages retreated, giving households little to cheer about. Pessimism stretches across social, economic and political lines, posing a threat to consumer spending that accounts for 70 percent of the economy.
Treasuries Decline After Obama Offers $447 Billion Spending, Tax-Cut Plan (Source: Bloomberg)
Treasuries fell after President Barack Obama called on Congress to pass a jobs plan that would inject $447 billion into the U.S. economy. Ten-year Treasury yields rose three basis points to 2.01 percent as of 9:06 a.m. in Tokyo. Thirty-year yields gained three basis points to 3.34 percent.
U.S. Stocks Decline as Bernanke Avoids Offering New Plans to Boost Economy (Source: Bloomberg)
U.S. stocks fell, after the biggest gain in two weeks for benchmark gauges, as Federal Reserve Chairman Ben S. Bernanke disappointed investors by not detailing new plans to boost growth in the world’s largest economy. Financial and industrial shares had the biggest losses among 10 groups in the Standard & Poor’s 500 Index. JPMorgan Chase & Co. (JPM), Boeing Co. (BA) and DuPont Co. retreated at least 2.1 percent, pacing declines in companies most-tied to economic growth. Dollar General Corp. (DG) tumbled 5.7 percent after the company said holders will sell 25 million shares. The S&P 500 fell 1.1 percent to 1,185.90 at 4 p.m. in New York as all 10 of its groups declined. The Dow Jones Industrial Average slid 119.05 points, or 1 percent, to 11,295.81. Stocks extended losses as Bernanke stopped short of signaling what he thinks is the Fed’s best option to aid the economy, repeating points from his speech on Aug. 26 in Jackson Hole, Wyoming.
China Inflation Eases to 6.2% From 3-Year High (Source: Bloomberg)
China’s inflation eased in August from a three-year high, 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 compared with the 6.2 percent median forecast in a Bloomberg News survey of 31 economists and July’s 6.5 percent gain. 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.
China’s Stock Futures Rise Amid Obama Jobs Plan, Easing Inflation Outlook (Source: Bloomberg)
China’s stocks rose, narrowing a weekly drop, after inflation eased from a three-year high and investors speculated President Barack Obama’s jobs plan will boost growth in the world’s biggest economy. Industrial & Commercial Bank of China Ltd. led a gauge of financial companies to the biggest gain among industry groups. PetroChina Co., the largest oil producer, climbed 0.7 percent and Yunnan Copper Industry Co. advanced 1.4 percent. “Investors are reacting to Obama’s plan as it may ease concerns about a possible recession,” said Zhang Han, a strategist at Guotai Junan Securities Co. in Shanghai. “Even though inflation eased in August, it will stay at a high enough level that the central bank won’t ease its monetary policy in the near term.”
Food-Price Gains Driven by Chinese Consumers Defy Easing Global Inflation (Source: Bloomberg)
Rising food prices may be an exception to easing inflation worldwide, posing dilemmas for policy makers, particularly in emerging markets including China, panelists at a forum said today. A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs Group Inc. (GS), said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link. Central banks “should be concerned” about food-price inflation, said Roberto Rigobon, a Massachusetts Institute of Technology professor, while James Rickards, senior managing director of Tangent Capital Partners, said China risks harming employment if the country tries too hard to contain inflation. Their comments compare with signals today from the Federal Reserve and European Central Bank that the inflation outlook is benign enough to allow further easing.
Yuan Will Be Fully Convertible by 2015, Chinese Officials Tell EU Chamber (Source: Bloomberg)
Chinese officials told European Union business executives that the yuan will achieve “full convertibility” by 2015, EU Chamber of Commerce in China President Davide Cucino said. “We were told by those officials by 2015,” Cucino told reporters in Beijing yesterday, declining to identify the government departments involved. People’s Bank of China Governor Zhou Xiaochuan said that while there is no timetable for convertibility, the offshore yuan market is “developing faster than what we had imagined.” China has accelerated the use of the yuan in international trade and investment to curb its reliance on the dollar. A fully convertible currency is one of the criteria the U.S. and Europe are demanding from china as a condition for allowing it to be part of the International Monetary Fund’s currency basket. A 2015 target would be a year faster than the schedule expected by 57 percent of 1,263 global investors in a Bloomberg survey published in May.
Japan’s Economy Contracts More Than Initial Estimate as Yen Hurts Recovery (Source: Bloomberg)
Japan’s economy contracted more than the government initially estimated in the second quarter as capital spending decreased, adding to concern the stronger yen may derail the nation’s recovery from the March earthquake. Gross domestic product shrank at an annualized 2.1 percent rate in the three months ended June 30, more than the 1.3 percent contraction reported last month, the Cabinet Office said today in Tokyo. The reading was in line with the median forecast of 21 economists surveyed by Bloomberg News. Reports in the past week indicate growth in the world’s third-largest economy may stall toward the end of the year. Machinery orders, a leading indicator of capital spending, fell the most in 10 months in July and companies are also struggling with a yen near a postwar record, risking an erosion of oversea profits when they’re repatriated.
Japan Stocks Swing Between Gains, Losses on Obama Job Plan, Risk in Europe (Source: Bloomberg)
Japan’s Topix index swung between gains and losses as U.S. President Barack Obama’s $447 billion plan to spur growth countered downside risks to Europe’s economy. Banks gave the biggest support to the Topix index with Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender, advancing 1.2 percent. Toyota Motor Corp. (7203), the world’s No. 1 carmaker, dropped 0.9 percent. Fanuc Corp. (6954), which gets 75 percent of its sales outside of Japan, fell 4 percent, the biggest slide on the Nikkei 225 Stock Average, after a report yesterday showed growth in Japan’s machine tool orders slowed in August. The Topix was little changed at 757.93 as of 10:02 a.m. in Tokyo after rising 0.3 percent and falling 0.4 percent. The Nikkei 225 (NKY) Stock Average was 0.2 percent lower at 8,774.30 after earlier declining as much as 0.7 percent. For the week, the Nikkei has fallen 2 percent, while the Topix is down 1.5 percent.
European Stocks Advance for a Second Day as Home Retail, KBC Shares Rally (Source: Bloomberg)
European stocks climbed, extending the Stoxx Europe 600 Index’s largest rally in three weeks, as oil producers and retailers advanced. Total SA (FP) and Tullow Oil Plc (TLW) advanced at least 2.5 percent as oil rose. KBC Groep NV rallied 5.9 percent following a report that Banco Santander SA (SAN) seeks to buy KBC’s Polish unit. Home Retail Group Plc (HOME) gained 2 percent after saying the sales decline at its Argos chain slowed. The Stoxx 600 climbed 0.7 percent to 230.47 at the 4:30 p.m. close in London. The benchmark measure has swung between gains and losses at least 12 times today. The gauge has still tumbled 21 percent from this year’s high in February as concern mounted that Europe’s debt crisis is spreading. The decline has cut the index’s valuation to 9.6 times estimated earnings, near the cheapest since March 2009, according to data compiled by Bloomberg.
Trichet Loses His Cool at Prospect of Deutsche Mark’s Revival in Germany (Source: Bloomberg)
Almost 13 years after its demise, the deutsche mark retains enough potency to haunt Jean-Claude Trichet’s final days as European Central Bank president. Trichet, 68, lost his cool yesterday with a reporter who asked whether Germany should abandon the euro and return to the mark as Europe’s debt crisis roils markets and spooks voters. “I would like very much to hear the congratulations for an institution which has delivered price stability in Germany for almost 13 years,” Trichet said in Frankfurt in an uncharacteristically raised voice. “It’s not by chance we have delivered price stability,” he said. “We do our job, it’s not an easy job.”
Trichet Opens Path for Further Steps as Euro Region’s Growth Forecasts Cut (Source: Bloomberg)
European Central Bank President Jean-Claude Trichet said threats to the euro region have worsened and inflation risks have eased, giving officials the option to take further action should the debt crisis worsen. The economy faces “particularly high uncertainty and intensified downside risks,” Trichet said at a press conference in Frankfurt today after the ECB left its benchmark rate at 1.5 percent. While monetary policy is still “accommodative,” financing conditions have worsened in parts of the 17-member euro region and the ECB stands ready to pump more cash into markets if needed, he said. The yield on German 10-year bunds fell to a record as some investors speculated the ECB could cut interest rates or open up more emergency credit lines for banks. The spreading debt crisis is sapping confidence in Europe’s financial institutions, driving up market borrowing costs and forced the ECB to widen its bond purchase program to Italy and Spain.
Inflation Bets Approach Year-Low as Unemployment Climbs: Australia Credit (Source: Bloomberg)
Bond investors’ expectations of inflation in Australia are falling toward the lowest level in a year after global market turmoil helped drive the nation’s unemployment rate to a 10-month high in August. Consumer prices will rise at a 2.58 percent annual pace over the next five years, yields on inflation-linked debt showed as of 10:28 a.m. in Sydney, four basis points above the lowest level since September 2010. The so-called breakeven rate is the highest across eight developed markets Bloomberg tracks, as a mining boom boosts export revenue. The second consecutive increase in the jobless rate backs Reserve Bank of Australia Governor Glenn Stevens’s view that global financial instability and local consumers retrenching may “curtail” inflationary pressures. Stevens signaled a willingness this week to keep the developed world’s highest interest rate on hold as the local dollar’s record advance and slumps in manufacturing and construction prompt companies including BlueScope Steel Ltd. to shed workers.
Dollar, Yen Drop as Obama’s Job Creation Proposals Curbs Demand for Safety (Source: Bloomberg)
The dollar and yen declined against the majority of their most-traded counterparts today after President Barack Obama unveiled proposals to create jobs and boost the U.S. economy, damping demand for safer assets. The dollar snapped yesterday’s advance versus the euro as Asian stocks erased early losses after Obama urged Congress to pass his $447 billion plan. The yen slid after Japan’s Finance Minister Jun Azumi said he will tell his counterparts in the Group of Seven nations that his country remains prepared to take “bold” action in currency markets. “We can say that Obama’s plan is seen favorably in the market, boosting risk appetite and spurring selling of the dollar and yen,” said Daisaku Ueno, president of Gaitame.com Research Institute Ltd. in Tokyo, a unit of Japan’s largest online currency broker. “Expectations for stimulus measures are strong and are prone to run ahead.”
FOREX - Euro slips before ECB rate decision, may bounce
LONDON, Sept 8 (Reuters) - The euro eased against the dollar on Thursday, as investors struck a cautious tone ahead of an European Central Bank rate decision, with policymakers likely to change tack and flag a pause in its monetary tightening cycle.
"Markets are a bit cautious going into the ECB rate meeting," said UBS currency analyst Chris Walker. "We could see a bounce in the euro as pricing in for rate cuts in October is a bit far-fetched. But any lift is likely to see some more selling."
20110909 1027 Global Commodities Related News.
Corn (Source: CME)
US corn futures finish lower as some market participants worry the USDA may make a smaller-than-expected cut to its inventory forecast. The government, in a monthly crop report due Monday, is projected to tighten its supply outlook nearly 11%, according to a survey of analysts. However, that is less than what some had previously projected, notes Mike Zuzolo of Global Commodity Analytics & Consulting. That led to traders "deflating some of the price balloon ahead of the USDA report." CBOT December corn drops 14c to $7.34/bushel.
Wheat (Source: CME)
US wheat futures closed lower as strength in the dollar fueled concerns about weakening demand. The rising greenback makes US grains less attractive to foreign buyers at a time when exporters are already struggling on the world market, analysts note. The US faces stiff competition for exports from countries in the Black Sea region like Russia. US wheat export sales are expected to be a lackluster 300-500K tons in a weekly report due Friday. CBOT December wheat slid 13 1/2c to $7.38/bushel while KCBT December shed 13c to $8.46 and MGEX December stumbled 18 1/4c to $9.08 1/4.
Rice (Source: CME)
US rice futures close lower as traders book profits following a surge to contract highs last week. November rice has pulled back 3.2% since climbing to a fresh high Friday. Traders were taking money off the table ahead of a monthly USDA crop report that will update forecasts for supplies and demand. CBOT November rice slides 1.7% to $17.83/hundredweight.
Ukraine AgMin sees bumper wheat, maize exports 11/12
KIEV, Sept 7 (Reuters) - Ukraine plans to boost its grain harvest to 51 million tonnes in 2011 from 39.2 million a year ago and hopes to double exports to 24 million tonnes in the 2011/12 season, Ukraine's Agriculture Minister Mykola Prysyazhnyuk said on Wednesday.
Prysyazhnyuk told Reuters the former Soviet republic had harvested 22.2 million tonnes of wheat this year and had the capacity to ship abroad 10 million tonnes of the commodity in 2011/12, although current export restrictions were a big obstacle to this ambition.
EU wheat can hold its own against Russian export flood
PARIS, Sept 7 (Reuters) - European farmers will not have to struggle to sell their wheat this season, despite a flood of cheap Russian exports onto world markets as the EU benefits from ample internal demand and from its established African buyers.
Although it is very unlikely to repeat the hefty sales numbers from last season when it benefited from Russia's pullout of the market after a drought slashed crops, the 27-member bloc could sell all of its surplus this season, provided U.S. grains remain supported by weather problems, analysts and traders say.
US wheat falls for 2nd day on supply; corn, soy steady
SINGAPORE, Sept 8 (Reuters) - U.S. wheat futures slid around half a percent, falling for a second straight day as the market was weighed down by higher supplies in Canada and an improved weather outlook in Australia.
"The market is in a holding pattern prior to the USDA report," said Adam Davis, a senior analyst at Merricks Capital in Melbourne.
Cropcast weather pegs US corn/soy output below USDA
CHICAGO, Sept 7 (Reuters) - Cropcast, a weather information service widely watched by grain traders for its U.S. and global weather forecasts, on Wednesday estimated the 2011 U.S. corn and soybean harvests far below USDA's projections as a hot summer was seen stressing the crops.
Cropcast, a division of MDA Information Systems, forecast the U.S. corn crop at 11.913 billion bushels, reflecting an average yield 145.2 bushels per acre. That compares to USDA's August estimate of 12.914 billion bushels and an average yield of 153 bpa.
France raises maize outlook, sees bigger beet crop
PARIS, Sept 7 (Reuters) - France's farm ministry raised on Wednesday its outlook for the upcoming maize harvest, now expecting the crop to exceed last year's production.
This year's maize grain crop is now seen at 14.1 million tonnes, up from 13.3 million tonnes projected a month ago, and above last year's crop of 13.8 million tonnes.
Ukraine AgMin sees bumper wheat, maize exports 11/12
KIEV, Sept 7 (Reuters) - Ukraine plans to boost its grain harvest to 51 million tonnes in 2011 from 39.2 million a year ago and hopes to double exports to 24 million tonnes in the 2011/12 season, Ukraine's Agriculture Minister Mykola Prysyazhnyuk said on Wednesday.
Prysyazhnyuk told Reuters the former Soviet republic had harvested 22.2 million tonnes of wheat this year and expected to ship abroad 10 million tonnes of the commodity in 2011/12.
FAO: World Food Prices Nudge Lower In August (Source: CME)
World food prices nudged lower in August, as gains in cereal prices were counterbalanced by falls in oils/fats and dairy, the United Nations food body said. The Food and Agriculture Organization's food price index, based on a basket of food commodities, nudged lower by 0.4% to 231 points in August. This is up 26% compared with the same time last year, but down from the record 238 points in February this year. However, despite August's price fall the cereals index posted gains of 2.2% "stemming from a supply and demand balance that remains tight," the FAO said. The U.N. food body said the corn supply situation remained concerning due to downwards revisions to prospects in the U.S., the world's largest producer, after unfavorable weather in July and August.
The U.S. Department of Agriculture last month announced cuts to its forecasts for corn production as damaging heat took its toll on fields. Farmers in the U.S. are now forecast to produce 12.914 billion bushels of corn this year, 556 million bushels less than the USDA predicted in July. Still, gains in the cereals index were counterbalanced by significant falls in the oils/fats and dairy prices indexes. The FAO Dairy Price Index averaged 221 points in August, down significantly from 228 points in July. "Downward movements in milk powder and casein prices, both of which dropped by 6% between July and August, were the main drivers behind this decline. Butter and cheese values also fell," the FAO said. The FAO Sugar Price Index fell 2% in August, to 394 points, helped by positive prospects for Europe, India and Thailand. But for now, immediate relief seems out of reach for the U.S. corn crop.
Abdolreza Abbassian, secretary of the FAO's Intergovernmental Group on Grains, said it was unlikely the U.S. Department of Agriculture would revise upwards production forecasts for corn production next week. "Because the buffers are low in corn and we aren't seeing any recovery in inventory, this will keep the grains market on edge this year," he said. "Still, the tone for the grains market will be set after results of the U.S. harvest and if output is better than expected it's possible we could even see a big correction to prices." The FAO forecast the world cereal harvest will hit 2.307 billion metric tons in 2011, almost 6 million tons lower than the July estimate but still higher than predictions earlier this year.
Food-Price Gains Driven by Chinese Consumers Defy Easing Global Inflation (Source: Bloomberg)
Rising food prices may be an exception to easing inflation worldwide, posing dilemmas for policy makers, particularly in emerging markets including China, panelists at a forum said today. A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs Group Inc. (GS), said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link. Central banks “should be concerned” about food-price inflation, said Roberto Rigobon, a Massachusetts Institute of Technology professor, while James Rickards, senior managing director of Tangent Capital Partners, said China risks harming employment if the country tries too hard to contain inflation. Their comments compare with signals today from the Federal Reserve and European Central Bank that the inflation outlook is benign enough to allow further easing.
Corn Crop Shrinking as Hottest Summer Since ’55 Spurs Record Harvest Price (Source: Bloomberg)
The hottest summer since 1955 in parts of the Midwest has eroded corn yields in the U.S., the world’s largest grower and exporter, sending prices to record highs for the harvest season. The U.S. Department of Agriculture on Sept. 12 may cut its crop forecast for a second straight month, to 12.554 billion bushels, down 2.8 percent from an August projection of 12.914 billion, according to the average estimate of 30 analysts surveyed by Bloomberg News. Inventories before next year’s harvest will be the lowest since 1996, according to the survey. Cash-corn prices in Iowa and central Illinois, the two largest growing states, have risen at least 71 percent in the past year to the highest ever before harvesting began this month, government data show. Crops in parts of the Midwest were damaged by the hottest temperatures in more than 100 years, boosting costs for livestock producers including Tyson Foods Inc. (TSN) and ethanol makers such as Poet LLC.
ICE coffee eases early, cocoa hits 3-week low
LONDON, Sept 8 (Reuters) - ICE arabica coffee and cocoa futures fell in early trade, tracking modest setbacks in crude oil and many other commodity markets and weighed by a firmer dollar.
ICE arabica coffee futures eased as the market retreated further after rising last week to the highest level in nearly four months.
Philippines says may nearly double 2011/12 sugar export
MANILA, Sept 8 (Reuters) - The Philippines' sugar exports in the current crop year ending August 2012 may climb around 86 percent from a year ago with a forecast surplus in domestic supply, the industry regulator said on Thursday, adding to the global oversupply.
More than a fourth, or 672,000 tonnes, of the Philippines' projected raw sugar output of 2.4 million tonnes in the 2011/2012 crop year can be sold to the United States and other countries, Regina Bautista-Martin, chief of state agency Sugar Regulatory Administration (SRA), told Reuters.
Vietnam has no coffee stocks at new season start-Vicofa
HANOI, Sept 8 (Reuters) - Vietnam, the world's second-largest coffee producer after Brazil, will run out of beans soon and have no stocks to carry forward to the next 2011/2012 season, an industry official said on Thursday.
"Warehouses are now running out of beans while in previous years Vietnam often had around 100,000 tonnes to bring forward," Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association (Vicofa) said.
India seen exporting 2.8 mln T sugar in 2011/12
NEW DELHI, Sept 7 (Reuters) - India is likely to allow unrestricted exports of 2.8 million tonnes of sugar in 2011/12 season, a Reuters poll showed on Wednesday, up from 1.5 million tonnes so far this year and the second straight year of exports from the world's top consumer.
Export estimates ranged from a low of 2.0 million tonnes to a high of 4.0 million tonnes in forecasts by 10 leading sugar firms, traders and analysts at a global sugar conference in New Delhi this week.
ISO sees China sugar imports up in 2011/12
LONDON, Sept 7 (Reuters) - The International Sugar Organization on Wednesday forecast China's sugar import demand to grow to 2.75 million tonnes in 2011/12, allowing a 500,000-tonne stock rebuilding, which will make the country the fourth largest sugar importer.
"China's purchases from the world market are expected to rise considerably in the second half of 2011," the ISO said in its latest monthly report.
Oil Erases Loss in New York After Obama Job Plan; Nate to Become Hurricane (Source: Bloomberg)
Oil headed for a third weekly gain as investors bet President Barack Obama’s job-creation plan will support demand for fuel and as Tropical Storm Nate was forecast to become a hurricane, threatening supplies in the world’s biggest crude-consumer. Futures climbed as much as 0.4 percent, erasing a decline of 0.8 percent, after Obama called on Congress to pass a proposal that would inject $447 billion into the economy. Prices slid yesterday after Federal Reserve chairman Ben S. Bernanke said the nation’s recovery is fragile. Energy companies began evacuating platforms in the Gulf of Mexico. Crude for October delivery gained as much as 38 cents to $89.43 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.38 at 11:53 a.m. Sydney time. Prices are 3.4 percent higher this week and 20 percent the past year.
Brent eases as awaits economic news, oil data
LONDON, Sept 8 (Reuters) - Brent oil eased on Thursday, falling from its highest in a month, ahead of news from the heads of the European and U.S. central banks, a jobs package from the U.S. president and weekly oil inventory data.
"Oil prices are in the hands of macro financial developments interrupted by occasional local developments," said David Hufton, managing director of PVM Oil Associates in London.
Mexico's largest oil refinery reopens after outage
MEXICO CITY, Sept 7 (Reuters) - Mexico's largest oil refinery reopened on Wednesday a day after it was closed for a power outage and operations should be back to normal on Thursday afternoon, state oil monopoly Pemex said.
The outage occurred at the 330,000 barrel-per-day capacity Salinas Cruz refinery in the southern state of Oaxaca, forcing Pemex to shut down 26 processing plants for safety reasons.
Oil price volatility a concern for Asia
SINGAPORE, Sept 8 (Reuters) - Oil traders have been the only beneficiaries from this year's sharp swings in energy prices, but even they have been caught off guard at times, falling prey to geopolitics and wider financial market risk appetite swings.
That sums up reflections at Singapore's Asia Pacific Petroleum Conference (APPEC) this week, where oil traders, company executives and business leaders gathered to discuss an increasingly turbulent and volatile trading environment.
New IEA head rules out oil reserves use to lower price
PARIS, Sept 8 (Reuters) - The International Energy Agency (IEA) will release emergency oil reserves only in case of a supply disruption and not to help the economy or lower prices, its new executive director said on Thursday.
Maria van der Hoeven, a former Dutch economy minister who started at the IEA on Sept. 1, also said the agency's release of oil from its emergency reserves in June was a success and there was no plan for a further move.
Gold Poised for Weekly Decline as Obama Employment Plan May Boost Economy (Source: Bloomberg)
Gold fell, set for a weekly decline, amid optimism a plan by U.S. President Barack Obama will create jobs and spur growth in the world’s largest economy, sending equities higher and trimming demand for safer assets. Bullion for immediate delivery shed as much as 0.9 percent to $1,853.93 an ounce and was at $1,858.70 at 9:41 a.m. Singapore time. December delivery futures in New York gained 0.2 percent to $1,861.60 an ounce. Obama called on Congress to pass a jobs plan that would inject $447 billion into the economy through spending on infrastructure, subsidies to local governments to stem teacher layoffs, and cutting in half the payroll taxes paid by workers and small-business owners. The MSCI Asia Pacific Index pared a 0.5 percent loss to trade little changed today.
US corn futures finish lower as some market participants worry the USDA may make a smaller-than-expected cut to its inventory forecast. The government, in a monthly crop report due Monday, is projected to tighten its supply outlook nearly 11%, according to a survey of analysts. However, that is less than what some had previously projected, notes Mike Zuzolo of Global Commodity Analytics & Consulting. That led to traders "deflating some of the price balloon ahead of the USDA report." CBOT December corn drops 14c to $7.34/bushel.
Wheat (Source: CME)
US wheat futures closed lower as strength in the dollar fueled concerns about weakening demand. The rising greenback makes US grains less attractive to foreign buyers at a time when exporters are already struggling on the world market, analysts note. The US faces stiff competition for exports from countries in the Black Sea region like Russia. US wheat export sales are expected to be a lackluster 300-500K tons in a weekly report due Friday. CBOT December wheat slid 13 1/2c to $7.38/bushel while KCBT December shed 13c to $8.46 and MGEX December stumbled 18 1/4c to $9.08 1/4.
Rice (Source: CME)
US rice futures close lower as traders book profits following a surge to contract highs last week. November rice has pulled back 3.2% since climbing to a fresh high Friday. Traders were taking money off the table ahead of a monthly USDA crop report that will update forecasts for supplies and demand. CBOT November rice slides 1.7% to $17.83/hundredweight.
Ukraine AgMin sees bumper wheat, maize exports 11/12
KIEV, Sept 7 (Reuters) - Ukraine plans to boost its grain harvest to 51 million tonnes in 2011 from 39.2 million a year ago and hopes to double exports to 24 million tonnes in the 2011/12 season, Ukraine's Agriculture Minister Mykola Prysyazhnyuk said on Wednesday.
Prysyazhnyuk told Reuters the former Soviet republic had harvested 22.2 million tonnes of wheat this year and had the capacity to ship abroad 10 million tonnes of the commodity in 2011/12, although current export restrictions were a big obstacle to this ambition.
EU wheat can hold its own against Russian export flood
PARIS, Sept 7 (Reuters) - European farmers will not have to struggle to sell their wheat this season, despite a flood of cheap Russian exports onto world markets as the EU benefits from ample internal demand and from its established African buyers.
Although it is very unlikely to repeat the hefty sales numbers from last season when it benefited from Russia's pullout of the market after a drought slashed crops, the 27-member bloc could sell all of its surplus this season, provided U.S. grains remain supported by weather problems, analysts and traders say.
US wheat falls for 2nd day on supply; corn, soy steady
SINGAPORE, Sept 8 (Reuters) - U.S. wheat futures slid around half a percent, falling for a second straight day as the market was weighed down by higher supplies in Canada and an improved weather outlook in Australia.
"The market is in a holding pattern prior to the USDA report," said Adam Davis, a senior analyst at Merricks Capital in Melbourne.
Cropcast weather pegs US corn/soy output below USDA
CHICAGO, Sept 7 (Reuters) - Cropcast, a weather information service widely watched by grain traders for its U.S. and global weather forecasts, on Wednesday estimated the 2011 U.S. corn and soybean harvests far below USDA's projections as a hot summer was seen stressing the crops.
Cropcast, a division of MDA Information Systems, forecast the U.S. corn crop at 11.913 billion bushels, reflecting an average yield 145.2 bushels per acre. That compares to USDA's August estimate of 12.914 billion bushels and an average yield of 153 bpa.
France raises maize outlook, sees bigger beet crop
PARIS, Sept 7 (Reuters) - France's farm ministry raised on Wednesday its outlook for the upcoming maize harvest, now expecting the crop to exceed last year's production.
This year's maize grain crop is now seen at 14.1 million tonnes, up from 13.3 million tonnes projected a month ago, and above last year's crop of 13.8 million tonnes.
Ukraine AgMin sees bumper wheat, maize exports 11/12
KIEV, Sept 7 (Reuters) - Ukraine plans to boost its grain harvest to 51 million tonnes in 2011 from 39.2 million a year ago and hopes to double exports to 24 million tonnes in the 2011/12 season, Ukraine's Agriculture Minister Mykola Prysyazhnyuk said on Wednesday.
Prysyazhnyuk told Reuters the former Soviet republic had harvested 22.2 million tonnes of wheat this year and expected to ship abroad 10 million tonnes of the commodity in 2011/12.
FAO: World Food Prices Nudge Lower In August (Source: CME)
World food prices nudged lower in August, as gains in cereal prices were counterbalanced by falls in oils/fats and dairy, the United Nations food body said. The Food and Agriculture Organization's food price index, based on a basket of food commodities, nudged lower by 0.4% to 231 points in August. This is up 26% compared with the same time last year, but down from the record 238 points in February this year. However, despite August's price fall the cereals index posted gains of 2.2% "stemming from a supply and demand balance that remains tight," the FAO said. The U.N. food body said the corn supply situation remained concerning due to downwards revisions to prospects in the U.S., the world's largest producer, after unfavorable weather in July and August.
The U.S. Department of Agriculture last month announced cuts to its forecasts for corn production as damaging heat took its toll on fields. Farmers in the U.S. are now forecast to produce 12.914 billion bushels of corn this year, 556 million bushels less than the USDA predicted in July. Still, gains in the cereals index were counterbalanced by significant falls in the oils/fats and dairy prices indexes. The FAO Dairy Price Index averaged 221 points in August, down significantly from 228 points in July. "Downward movements in milk powder and casein prices, both of which dropped by 6% between July and August, were the main drivers behind this decline. Butter and cheese values also fell," the FAO said. The FAO Sugar Price Index fell 2% in August, to 394 points, helped by positive prospects for Europe, India and Thailand. But for now, immediate relief seems out of reach for the U.S. corn crop.
Abdolreza Abbassian, secretary of the FAO's Intergovernmental Group on Grains, said it was unlikely the U.S. Department of Agriculture would revise upwards production forecasts for corn production next week. "Because the buffers are low in corn and we aren't seeing any recovery in inventory, this will keep the grains market on edge this year," he said. "Still, the tone for the grains market will be set after results of the U.S. harvest and if output is better than expected it's possible we could even see a big correction to prices." The FAO forecast the world cereal harvest will hit 2.307 billion metric tons in 2011, almost 6 million tons lower than the July estimate but still higher than predictions earlier this year.
Food-Price Gains Driven by Chinese Consumers Defy Easing Global Inflation (Source: Bloomberg)
Rising food prices may be an exception to easing inflation worldwide, posing dilemmas for policy makers, particularly in emerging markets including China, panelists at a forum said today. A growing middle class seeking higher-protein foods is contributing to increased demand and prices, Abby Joseph Cohen, partner and senior U.S. investment strategist at Goldman Sachs Group Inc. (GS), said at the Bloomberg Global Inflation Conference in New York hosted by Bloomberg Link. Central banks “should be concerned” about food-price inflation, said Roberto Rigobon, a Massachusetts Institute of Technology professor, while James Rickards, senior managing director of Tangent Capital Partners, said China risks harming employment if the country tries too hard to contain inflation. Their comments compare with signals today from the Federal Reserve and European Central Bank that the inflation outlook is benign enough to allow further easing.
Corn Crop Shrinking as Hottest Summer Since ’55 Spurs Record Harvest Price (Source: Bloomberg)
The hottest summer since 1955 in parts of the Midwest has eroded corn yields in the U.S., the world’s largest grower and exporter, sending prices to record highs for the harvest season. The U.S. Department of Agriculture on Sept. 12 may cut its crop forecast for a second straight month, to 12.554 billion bushels, down 2.8 percent from an August projection of 12.914 billion, according to the average estimate of 30 analysts surveyed by Bloomberg News. Inventories before next year’s harvest will be the lowest since 1996, according to the survey. Cash-corn prices in Iowa and central Illinois, the two largest growing states, have risen at least 71 percent in the past year to the highest ever before harvesting began this month, government data show. Crops in parts of the Midwest were damaged by the hottest temperatures in more than 100 years, boosting costs for livestock producers including Tyson Foods Inc. (TSN) and ethanol makers such as Poet LLC.
ICE coffee eases early, cocoa hits 3-week low
LONDON, Sept 8 (Reuters) - ICE arabica coffee and cocoa futures fell in early trade, tracking modest setbacks in crude oil and many other commodity markets and weighed by a firmer dollar.
ICE arabica coffee futures eased as the market retreated further after rising last week to the highest level in nearly four months.
Philippines says may nearly double 2011/12 sugar export
MANILA, Sept 8 (Reuters) - The Philippines' sugar exports in the current crop year ending August 2012 may climb around 86 percent from a year ago with a forecast surplus in domestic supply, the industry regulator said on Thursday, adding to the global oversupply.
More than a fourth, or 672,000 tonnes, of the Philippines' projected raw sugar output of 2.4 million tonnes in the 2011/2012 crop year can be sold to the United States and other countries, Regina Bautista-Martin, chief of state agency Sugar Regulatory Administration (SRA), told Reuters.
Vietnam has no coffee stocks at new season start-Vicofa
HANOI, Sept 8 (Reuters) - Vietnam, the world's second-largest coffee producer after Brazil, will run out of beans soon and have no stocks to carry forward to the next 2011/2012 season, an industry official said on Thursday.
"Warehouses are now running out of beans while in previous years Vietnam often had around 100,000 tonnes to bring forward," Chairman Luong Van Tu of the Vietnam Coffee and Cocoa Association (Vicofa) said.
India seen exporting 2.8 mln T sugar in 2011/12
NEW DELHI, Sept 7 (Reuters) - India is likely to allow unrestricted exports of 2.8 million tonnes of sugar in 2011/12 season, a Reuters poll showed on Wednesday, up from 1.5 million tonnes so far this year and the second straight year of exports from the world's top consumer.
Export estimates ranged from a low of 2.0 million tonnes to a high of 4.0 million tonnes in forecasts by 10 leading sugar firms, traders and analysts at a global sugar conference in New Delhi this week.
ISO sees China sugar imports up in 2011/12
LONDON, Sept 7 (Reuters) - The International Sugar Organization on Wednesday forecast China's sugar import demand to grow to 2.75 million tonnes in 2011/12, allowing a 500,000-tonne stock rebuilding, which will make the country the fourth largest sugar importer.
"China's purchases from the world market are expected to rise considerably in the second half of 2011," the ISO said in its latest monthly report.
Oil Erases Loss in New York After Obama Job Plan; Nate to Become Hurricane (Source: Bloomberg)
Oil headed for a third weekly gain as investors bet President Barack Obama’s job-creation plan will support demand for fuel and as Tropical Storm Nate was forecast to become a hurricane, threatening supplies in the world’s biggest crude-consumer. Futures climbed as much as 0.4 percent, erasing a decline of 0.8 percent, after Obama called on Congress to pass a proposal that would inject $447 billion into the economy. Prices slid yesterday after Federal Reserve chairman Ben S. Bernanke said the nation’s recovery is fragile. Energy companies began evacuating platforms in the Gulf of Mexico. Crude for October delivery gained as much as 38 cents to $89.43 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.38 at 11:53 a.m. Sydney time. Prices are 3.4 percent higher this week and 20 percent the past year.
Brent eases as awaits economic news, oil data
LONDON, Sept 8 (Reuters) - Brent oil eased on Thursday, falling from its highest in a month, ahead of news from the heads of the European and U.S. central banks, a jobs package from the U.S. president and weekly oil inventory data.
"Oil prices are in the hands of macro financial developments interrupted by occasional local developments," said David Hufton, managing director of PVM Oil Associates in London.
Mexico's largest oil refinery reopens after outage
MEXICO CITY, Sept 7 (Reuters) - Mexico's largest oil refinery reopened on Wednesday a day after it was closed for a power outage and operations should be back to normal on Thursday afternoon, state oil monopoly Pemex said.
The outage occurred at the 330,000 barrel-per-day capacity Salinas Cruz refinery in the southern state of Oaxaca, forcing Pemex to shut down 26 processing plants for safety reasons.
Oil price volatility a concern for Asia
SINGAPORE, Sept 8 (Reuters) - Oil traders have been the only beneficiaries from this year's sharp swings in energy prices, but even they have been caught off guard at times, falling prey to geopolitics and wider financial market risk appetite swings.
That sums up reflections at Singapore's Asia Pacific Petroleum Conference (APPEC) this week, where oil traders, company executives and business leaders gathered to discuss an increasingly turbulent and volatile trading environment.
New IEA head rules out oil reserves use to lower price
PARIS, Sept 8 (Reuters) - The International Energy Agency (IEA) will release emergency oil reserves only in case of a supply disruption and not to help the economy or lower prices, its new executive director said on Thursday.
Maria van der Hoeven, a former Dutch economy minister who started at the IEA on Sept. 1, also said the agency's release of oil from its emergency reserves in June was a success and there was no plan for a further move.
Gold Poised for Weekly Decline as Obama Employment Plan May Boost Economy (Source: Bloomberg)
Gold fell, set for a weekly decline, amid optimism a plan by U.S. President Barack Obama will create jobs and spur growth in the world’s largest economy, sending equities higher and trimming demand for safer assets. Bullion for immediate delivery shed as much as 0.9 percent to $1,853.93 an ounce and was at $1,858.70 at 9:41 a.m. Singapore time. December delivery futures in New York gained 0.2 percent to $1,861.60 an ounce. Obama called on Congress to pass a jobs plan that would inject $447 billion into the economy through spending on infrastructure, subsidies to local governments to stem teacher layoffs, and cutting in half the payroll taxes paid by workers and small-business owners. The MSCI Asia Pacific Index pared a 0.5 percent loss to trade little changed today.
20110909 1025 Soy Oil & Palm Oil Related News.
Soybeans (Source: CME)
US soybean futures stumbled, pressured by traders reducing risk ahead of Monday's update on crop production from government forecasters. Investors were nervous about the buildup of long positions in the market in the face of an uncertain crop size and sluggish export demand, says Sterling Smith, analyst with brokerage Country Hedging. A rising US dollar also spurred on losses. A firmer USD makes US farm products less attractive to foreign buyers, and high prices are already showing signs of curbing demand, analysts add. CBOT Nov soy dropped 7 1/2c to $14.18 1/4.
Soybean Meal/Oil (Source: CME)
Soy product futures backpedaled in unison with soybeans, succumbing to profit taking from prior gains as traders gear up for Monday's outlooks for US soybean production. The uncertainty of soy supplies in 2012 are keeping traders on edge, limiting their willingness to take on risk, particularly with a firmer US dollar helping to limit export demand, analysts say. CBOT Dec soymeal dropped 0.5% to $372.10/short ton; Dec soyoil end down 0.6% at 58.33c/lb.
Palm oil up as discount to soyoil deepens
KUALA LUMPUR, Sept 8 (Reuters) - Malaysian palm oil futures extended gains for a second day, as the tropical oil's discount to competing soyoil has widened due to dry weather curbing U.S soybean yields.
"The market driving support purely from the fact that crude palm oil is at a $220 discount to soyoil," said a trader with a foreign commodities brokerage. "That spells an opportunity for palm oil to grab some share as stocks are still ample despite the a recent draw down."
China 2011/12 soy imports seen higher - Chinatex
SHANGHAI, Sept 8 (Reuters) - China is expected to import 58 million tonnes of soybeans in 2011/12 (October-September), supported by expectations of a recovery in domestic pig production, according to estimates from a senior industry official with a state-owned trading house.
Guo Feng, deputy general manager of Chinatex Grains and Oils Import and Export Co, said imports in the marketing year could even hit 60 million tonnes if increases in pig production exceed expectations.
Castor seed area rises 62 pct in key Indian state
AHMEDABAD, India, Sept 7 (Reuters) - Negligible rainfall in June and a price rally have prompted farmers to raise area under castor seed in Gujarat, India's top producer, by about 62 percent in 2011/12, data with the state farm department showed.
Castor seed is normally sown in July and August in the western state and requires less water than pulses and groundnut, the other main summer-sown crops.
US soybean futures stumbled, pressured by traders reducing risk ahead of Monday's update on crop production from government forecasters. Investors were nervous about the buildup of long positions in the market in the face of an uncertain crop size and sluggish export demand, says Sterling Smith, analyst with brokerage Country Hedging. A rising US dollar also spurred on losses. A firmer USD makes US farm products less attractive to foreign buyers, and high prices are already showing signs of curbing demand, analysts add. CBOT Nov soy dropped 7 1/2c to $14.18 1/4.
Soybean Meal/Oil (Source: CME)
Soy product futures backpedaled in unison with soybeans, succumbing to profit taking from prior gains as traders gear up for Monday's outlooks for US soybean production. The uncertainty of soy supplies in 2012 are keeping traders on edge, limiting their willingness to take on risk, particularly with a firmer US dollar helping to limit export demand, analysts say. CBOT Dec soymeal dropped 0.5% to $372.10/short ton; Dec soyoil end down 0.6% at 58.33c/lb.
Palm oil up as discount to soyoil deepens
KUALA LUMPUR, Sept 8 (Reuters) - Malaysian palm oil futures extended gains for a second day, as the tropical oil's discount to competing soyoil has widened due to dry weather curbing U.S soybean yields.
"The market driving support purely from the fact that crude palm oil is at a $220 discount to soyoil," said a trader with a foreign commodities brokerage. "That spells an opportunity for palm oil to grab some share as stocks are still ample despite the a recent draw down."
China 2011/12 soy imports seen higher - Chinatex
SHANGHAI, Sept 8 (Reuters) - China is expected to import 58 million tonnes of soybeans in 2011/12 (October-September), supported by expectations of a recovery in domestic pig production, according to estimates from a senior industry official with a state-owned trading house.
Guo Feng, deputy general manager of Chinatex Grains and Oils Import and Export Co, said imports in the marketing year could even hit 60 million tonnes if increases in pig production exceed expectations.
Castor seed area rises 62 pct in key Indian state
AHMEDABAD, India, Sept 7 (Reuters) - Negligible rainfall in June and a price rally have prompted farmers to raise area under castor seed in Gujarat, India's top producer, by about 62 percent in 2011/12, data with the state farm department showed.
Castor seed is normally sown in July and August in the western state and requires less water than pulses and groundnut, the other main summer-sown crops.
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