NEW YORK, May 16 (Reuters) - U.S. copper futures closed up more than 2 percent Friday, hitting nine-day highs, after sharp gains in metals and almost all commodities on the back of a weaker dollar.
NOTE: For detailed report, click on [MET/L].
* July copper delivery <HGN8> settles up 8.8 cents at $3.8265 a lb on the COMEX metals division of the New York Mercantile Exchange. Trade ranges from $3.7395 to $3.8595, highest since May 7.
* Final market volume estimated at 16,897 lots.
* Copper buoyed by gains in aluminum and zinc, and rally across commodities complex, led by crude oil and gold.
* No extra buying on back of surprise 8.2 percent gain in April U.S. housing starts - floor broker.
* Traders cite tightness based on LME cash three-month backwardation widening out after midweek narrowing.
* Chinese demand seen slack. Chinese dealers have built up stocks and could wait for lower prices.
* Shanghai inventories rose 1 percent to 51,507 tonnes.
* LME copper stocks rose 375 tonnes.
* LME three-month copper <MCU3> was last traded at $8,420.00 a tonne, against Thursday's kerb close of $8,296. (Reporting by Barani Krishnan and Alden Bentley) ((barani.krishnan@reuters.com; Reuters Messaging: barani.krishnan.reuters.com@reuters.net; 646 223 6192))
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RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S>
Keywords: MARKETS COPPER/COMEX
NEW YORK, May 16 (Reuters) - U.S. copper futures rose to an eight day high in early trade on Friday, following gains across the metals complex.
NOTE: For detailed report, click on [MET/L].
* July copper delivery <HGN8> up 9.30 cents at $3.8315 a lb on the COMEX. Range $3.7395 to $3.8420, highest since May 8.
* 9 a.m. EST volume estimated at 6,501 lots.
* Copper buoyed by gains in aluminum and zinc, and across commodities complex. Gold and oil surges watched.
* No extra buying on back of surprise 8.2 percent gain in April U.S. housing starts - floor broker.
* Traders cite tightness based on LME cash-three month backwardation widening out after midweek narrowing.
* Chinese demand seen slack. Chinese dealers have built up stocks and could wait for lower prices.
* Shanghai inventories rose 1 percent to 51,507 tonnes.
* LME copper stocks rose 375 tonnes.
* LME three-month copper rose to $8,432.50 a tonne as of 9:42 a.m. EST, from Thursday's kerb close at $8,296. (Reporting by Alden Bentley; editing by Jim Marshall) ((alden.bentley@reuters.com; Reuters Messaging: alden.bentley.reuters.com@reuters.net; 646 223 6041))
For the latest news and prices, click on the codes in brackets:
LME overview <RING>
LME Warehouse stocks <LME/STX1>
Spot gold/silver <XAU=><XAG=>
COMEX copper futures <0#HG:>
COMEX metals warehouse stocks <CMWST>-<CMWSV>
N.Y. metals hourly volumes <IZQI>
Vols/open interest <MTXM>
RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX
(For more Reuters DEALTALKS, click on [DEALTALK/])
By Tom Miles
HONG KONG, May 16 (Reuters) - Since Chief Executive Marius Kloppers said last week he had no doubt Chinese money would one day show up on BHP Billiton's share register, investors have piled in, expecting Beijing's cash sooner rather than later.
There is, however, no firm evidence of Chinese buying and Chinese sources say top officials, who would need to approve such a move, are tied up with the emergency response to Monday's devastating earthquake in Sichuan province.
But traders have followed Kloppers' "when, not if" script and lapped up a rumour on Wednesday and a thinly-sourced media report on Friday, driving up shares in the world's top miner to a record. BHP stock has risen 49 percent in eight weeks.
Many analysts say they are surprised China has not bought into BHP <BHP.AX> <BLT.L> already, since it is a powerhouse producer of the commodities, such as iron ore, coal and oil, that are desperately needed for China's rapid economic evolution.
"By buying BHP and Rio shares or investing in joint ventures, particularly in iron ore, Chinese steel producers and the Chinese government could hedge against rising commodity prices," CLSA analyst Matthew Whittall said in a note to clients.
And since BHP is trying to take over its main rival, Rio Tinto <RIO.L><RIO.AX>, it is logical for China to target both companies to hedge against an eventual merger.
"If you wanted to be sure of a seat at the table in the global mining game, it would make sense to have 10 percent of the world's largest miner," said one senior investment banker involved in the sector, who declined to be named.
Chinese aluminium giant Chinalco already bought 9.3 percent of Rio earlier this year in collaboration with U.S. partner Alcoa Inc <AA.N>, a stunning move that appeared to throw a $14 billion banana skin in the path of BHP's takeover bid.
Chinalco was widely seen to be trying to stop two of the big three iron ore suppliers joining forces to pump up prices for China's steel sector, the world's biggest.
The threat to BHP's takeover plan was sharpened by Chinalco and Alcoa reserving the right to make a counterbid for Rio, but that threat has not materialised and the idea has lost traction.
Chinese investment in BHP would signal that Beijing is more at ease with the BHP-Rio deal going through, since it would put China on both sides of the equation and inflate BHP's share price, the currency of the all-stock takeover offer.
Since BHP's bid for Rio, both firms have taken out the megaphones to try to win over shareholders, most of whom hold stakes in both companies. Rio argues that BHP undervalues its growth, but even CEO Tom Albanese has conceded that the potential synergies are compelling, at the right price.
And he and Kloppers appeared this week at the same Florida conference, setting tongues wagging once again.
If China wanted to block the deal, it might be expected to quash all talk of Chinese investing in BHP, since that speculation is buoying BHP's stock, improving the bid terms.
AUSSIE LIMBO
Although the Chinese have the economic firepower to buy all of Rio, they are uncomfortable with owning non-Chinese assets and are far happier with partnerships and agreements, a source familiar with the matter told Reuters recently.
He said China's investment in Rio was motivated by a desire to get a seat at the table. China would be keen to buy certain iron ore assets that a combined BHP-Rio would have to dispose of and wanted to push for a 20-year deal on iron ore prices.
But if China does want to get into BHP, it might find it a much tougher task than the raid on Rio, since that purchase prompted both London and Sydney to tighten their foreign investment rules, putting a bureaucratic hurdle in the way of any Chinese investment in BHP shares.
Investment bankers say there is a logjam of more than a dozen potential Chinese M&A deals in Australian commodities, including the entry of Chinese coal giant Shenhua Group into Australia. But those deals are in limbo while the two governments thrash out an understanding about China buying up Australian assets.
Chinalco avoided regulatory entanglements in Australia by restricting its buying to Rio's London-listed shares. But BHP has a much smaller London float, forcing any major buyer towards the Sydney market.
And a Chinese buyer would also face the conundrum of buying shares without tipping off investors, who anticipate another Rio-style windfall if, or when, China snaps up BHP shares.
"I would buy on the market as much as possible," said the senior investment banker, on how he would advise China.
"Talk to hedge funds and large option holders. As soon as you do anything quick the market's going to jump."
(For more on BHP/Rio, click [ID:nSYD39050] (Additional reporting by Eleanor Wason in LONDON and Lucy Hornby in BEIJING, Editing by Ian Geoghegan) ((tom.miles@reuters.com; RM: tom.miles.reuters.com@reuters.net; +852 2843 6532, fax +852 2845 0636))
Keywords: DEALTALK/BHP
By Jonathan Lynn
GENEVA, May 16 (Reuters) - The United States should cut barriers to its markets to help it tackle economic turmoil, and boost exports to deal with its current account deficit, the World Trade Organisation (WTO) said.
Further adjustment and reforms by the United States would lessen distortions in global markets and strengthen the global trading system, as the United States is the world's biggest economy and trader, it said in a trade policy review due to be published on June 9, a copy of which was obtained by Reuters.
"In the face of the economic uncertainty prevalent in early 2008, U.S. welfare would be best promoted by exploiting the adjustment capacity of the U.S. economy and continuing to reduce barriers to market access and other distorting measures, including those that result from high levels of assistance in agriculture and energy," the WTO said.
U.S. exports and imports continued to expand faster than GDP over the past couple of years, the WTO noted.
And foreigners' willingness to invest in the United States has been vital in generating large capital inflows to finance the current account deficit.
"However the sustainability of the deficit cannot be taken for granted, and as such carries certain downside risks including an increase in protectionist sentiment," it said.
Measures to restrict trade would not be appropriate as the deficit reflects a gap in savings and investment, it said.
The United States may need to boost its savings rate while maintaining its traditional openness that allows U.S. producers and consumers to access foreign goods, services and capital.
"Reducing the current account deficit is also likely to require expanding U.S. exports, which would be facilitated by a more liberal trading system and stronger demand growth outside the United States," it said.
OBLIGATIONS
Although the United States is a strong supporter of the global trading system and a comprehensive deal in the long-running Doha round to open up world trade, it has not fulfilled all its international obligations, the WTO said.
These include notifying agricultural tariff quotas and government procurement statistics and fully implementing WTO rulings on intellectual property rights and anti-dumping.
The WTO called on Washington to ensure that amendments in 2007 by Congress to the way the Executive reviews the national security implications of foreign direct investment do not undermine predictability for foreign investors.
Looking at access to the U.S. market, the WTO noted that anti-dumping (AD) measures remain a key policy instrument.
As most of these measures, which set compensatory duties on unfairly priced imports, are imposed on intermediate goods like steel and chemical products, they also increase costs for U.S. downstream producers and consumers.
Only 0.3 percent of U.S. merchandise imports were directly affected by anti-dumping in 1980-2005 and the number of anti-dumping orders since then has fallen.
"Nevertheless it would be important to ensure that AD measures do not retard adjustment to changing overall conditions in international markets," the WTO warned.
U.S. domestic support programmes, especially for agriculture and energy, are not targeted at trade but can affect global markets as the United States is among the biggest producers and consumers of many products, it said.
In agriculture, some programmes may provide incentives that are inconsistent with market signals and affect trade when supported output reaches world markets, it said.
"The expiration of the 2002 Farm Act, and the current environment of high commodity prices, offers a favourable juncture to introduce policy change aimed at further improving the market orientation of the agriculture sector to the benefit of both consumers and taxpayers," the WTO said. (Editing by Stephanie Nebehay and Stephen Nisbet)
((jonathan.lynn@reuters.com ; +41 22 733 3831; Reuters Messaging: jonathan.lynn.reuters.com@reuters.net ))
Keywords: TRADE WTO/USA
Keywords: TRADE WTO/USA
Keywords: TRADE WTO/USA
HANOI, May 16 (Reuters) - These are some of the leading stories in the official Vietnamese press on Friday. Reuters has not verified these stories and does not vouch for their accuracy.
- - - -
FINANCIAL NEWS:
TUOI TRE
-- Japan's P&I Enterprise started construction of the $15 million Pulchra resort in Danang, the first Japanese invested project in the local tourism sector.
-- The import duty on automobile spare parts will be raised by between 5 and 10 percentage points as of May 20, the Finance Ministry said.
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DAU TU CHUNG KHOAN
-- Partly private VIB Bank projected gross profit in 2008 to reach 700 billion dong ($43.7 million) while the total assets would be 52.5 trillion dong and loans would grow 40 percent from last year to 23.4 billion dong.
-- The Vietnam Steel Corporation has proposed the government temporarily suspend privatisation of its two major subsidiaries.
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ECONOMIC AND GENERAL NEWS:
THANH NIEN
-- Work on scores of public projects has stalled in Ha Tay province because property owners are refusing to vacate in expectation of making a windfall if the government goes ahead with plans to merge Hanoi and Ha Tay into a "mega-city".
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VIETNAM NEWS
-- The National Assembly discussed ways to collect tax from goods and services that are not included in the Value Added Tax Law and also lowering the corporate income tax to 25 percent from 28 percent.
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Forestry officials caught a gang of seven timber thieves redhanded and reported collusion among some corrupt forestry workers in the Yok Don National Park in the central province of Daklak. ((hanoi.newsroom@reuters.com; +844 825 9623)) Keywords: VIETNAM PRESS/
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