December 20, 2010, 2:24 AM EST

By Maria Kolesnikova

Dec. 20 (Bloomberg) -- Copper climbed in London on speculation that growth signals in the U.S. economy will boost the outlook for demand of industrial metals.

Market News:

-- The U.S. may come out ahead in 2011 as policy makers from Federal Reserve Chairman Ben S. Bernanke to Chinese Premier Wen Jiabao jockey for advantage in the world economy.

-- The dollar rose to two-week high against the euro before reports this week that economists say will show the U.S. gross domestic product expanded more than previously estimated and personal spending climbed.

-- Asian stocks dropped as concern mounted Europe’s debt crisis will spread and South Korea proceeded with an artillery drill that has prompted threats of retaliation from North Korea.

-- South Korea commenced a live-firing drill, plans for which prompted North Korean threats of retaliation, as the United Nations Security Council failed to agree on steps to alleviate tension on the peninsula.

-- Government bonds are falling the most in a year as the gap between yields on longer-term Treasuries show that the Federal Reserve’s second round of quantitative easing may be its last.

-- The Bank of England will start raising interest rates within six months to curb inflation, the Confederation of British Industry said.

Metals News:

-- Speculators betting the commodities rally will continue into a third year are being confronted by currency investors wagering the dollar will strengthen in 2011.

-- Three workers were killed after a shiploader collapsed at the Potache port in Chile, according to the owner of Collahuasi, the world’s third-largest copper mine.

-- Australia will release a report on the planned 30 percent tax on iron ore and coal profits tomorrow as a mining group threatened to restart an anti-government advertising campaign over state royalties.

-- Gold assets held in exchange-traded products rose 0.7 percent from a day earlier to a record 2,113.2 metric tons as of Dec. 17, according to data collected by Bloomberg from 10 providers.

-- United Co. Rusal may sell its 25 percent stake in OAO GMK Norilsk Nickel to Norilsk for as much as $15 billion, Vedomosti reported, citing billionaire Rusal shareholder Mikhail Prokhorov.

--Editors: Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

Source: http://www.businessweek.com/news/2010-12-20/copper-climbs-on-speculation-of-u-s-growth-signs-lme-preview.html