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Commodities Briefing - Archive | October, 2010

China’s rare-earth power over global trade

Posted on 29 October 2010 by VRS  |  Email |Print

From Washingtonpost.com: For many Americans the phrase “rare earth” calls to mind nothing more consequential than the 1970s band responsible for such hits as “Get Ready” and “I Just Want to Celebrate.” But lately China has been teaching the United States, and the world, a new definition.
Rare-earth metals are 17 elements vital to high-tech products ranging from the Toyota Prius to the cellphone to the American military’s precision-guided munitions. The People’s Republic controls 97 percent of the world’s supply. And Beijing suddenly has slashed exports, causing near-panic in Japanese industry and exposing the United States’ own vulnerability……………………………………….Full Article: Source

China triggers rare earth metals war

Posted on 29 October 2010 by VRS  |  Email |Print

From Commodityonline.com: Japanese companies, which use the rare earths metals in hi-tech products, worry that Beijing is already using its power to squeeze supplies as a political tool in diplomatic disputes with Tokyo, something China denies.
Japanese companies are in full panic mode. As far as they are concerned, this is a red-alert situation. China, as other producers have given up environmentally destructive mining of rare earths, now supplies 97 per cent of the world’s demand for the metals, whose magnetic, luminescent and other qualities make them essential for clean energy, computers and electronics……………………………………….Full Article: Source

Rare earth metals won’t be used as ‘bargaining tool’, says China

Posted on 29 October 2010 by VRS  |  Email |Print

From Telegraph: China will not use its dominance of vital rare earth metals as a “bargaining tool” against other nations, the country’s industry ministry said on Thursday, as international discontent over China’s alleged hoarding of the metals continues to deepen.
China controls 97pc of the world’s rare earth metals supply and has faced mounting criticism in recent months after announcing it was slashing export quotas for rare earth metals by more than 40pc in 2010 compared with a year earlier……………………………………….Full Article: Source

Investors see potential for palladium over $1,000/oz again

Posted on 29 October 2010 by VRS  |  Email |Print

From Resourceinvestor.com: Value buyers are again looking at the relatively small palladium market and seeing the opportunity of further price gains. The fact that palladium remains well below its nominal high of nearly 10 years ago ($1,110.50/oz on a closing weekly basis seen on 26/01/10) is enticing hedge funds and investors.
Royal Bank of Scotland Plc said in a report today that platinum supplies may exceed demand through 2014 while palladium’s shortage will drive “significant price gains out to 2014.”………………………………………Full Article: Source

Further silver drama as traders sue JPMorgan, HSBC

Posted on 29 October 2010 by VRS  |  Email |Print

From Ibtimes.com: In the wake of Commodity Futures Trading Commission member Bart Chilton’s?announcement that the group had found fraud in the silver futures market, a pair of traders have filed suits against two investment banks, alleging that they helped conspire to suppress the price of silver.
The suit filed by commodity traders Peter Laskaris and Brian Beatty alleges that, while controlling over half of the total short positions - bets that the price of an asset will fall - HSBC?and JPMorgan Chase worked together to let each other know about major trades and placed “spoof” orders.?………………………………………Full Article: Source

CFTC investigation a boon for silver

Posted on 29 October 2010 by VRS  |  Email |Print

From Mineweb.co.za: As the price of silver backs off from its recent high of $25, it offers investors another amazing opportunity to buy the precious metal. In the past month silver has bounced back to prices not seen since the 1980’s, and even though the price of silver has had a spectacular move since the end of July - surging from $17.50 an ounce to almost $25.50/oz… a move of 45%, the price is still terribly undervalued.
There have not been any significant changes in any of the known supply/demand dynamics that have caused this run up in the price, but the price is being driven by surging investor demand as investors shy away from paper assets and turn to commodities……………………………………….Full Article: Source

Oil market begs to be shorted—modestly

Posted on 29 October 2010 by VRS  |  Email |Print

From Hardassetsinvestor.com: Sometimes you just have to deal with limitations. For example, with interest rates as low as they are, you’re not likely to make big bucks off your deposit account. But the trade-off is, of course, the certainty of getting your principal back. So you accept a limited reward for a limited risk.
Bearish investors now seek a similar trade-off in the oil market as they consider put spreads……………………………………….Full Article: Source

Opec looks East

Posted on 29 October 2010 by VRS  |  Email |Print

From Petroleum-economist.com: If $80/b oil is a threat to the US economy, as some analysts claim, then prepare for a rocky few months. The world’s dominant producers are in no mood to soften the market, even as it threatens to breach $85/b.
Opec’s decision to roll over existing oil-output quotas was no surprise, but it still reinforced the prevailing sentiment. Ali al-Naimi, Saudi Arabia’s oil minister, said the group was “comfortable” with prices, despite their heady level at almost $10/b more than Opec’s price target……………………………………….Full Article: Source

Oil grab may lead to violence, says study

Posted on 29 October 2010 by VRS  |  Email |Print

From UPI: Oil politics have changed dramatically with the rise of major producers and exporters outside OPEC, increasing the risk of violence among nations that export or consume large quantities of crude oil, a new study said.
“Seizing Power: The Grab for Global Oil Wealth — How Oil Volatility May Lead to Violence Among Oil Powers,” by Robert Slater, argued volatility and uncertainty of global supplies of crude oil was a recipe for conflict……………………………………….Full Article: Source

Rare earth & strategic metals ETF slips in debut

Posted on 29 October 2010 by VRS  |  Email |Print

From Resourceinvestor.com: Shares of Van Eck Global’s new Market Vectors Rare Earth/Strategic Metals ETF declined in their first day of trading Thursday along with other rare earth stocks as The New York Times rained on the parade by reporting that Chinese government had suddenly ended an unacknowledged halt of rare earth shipments to Japan, the United States and Europe.
Trading of the new REMX exchange traded fund on the NYSE Arca started trading at $20.50 and fell as low as $19.51 before ending the day at $19.55 per share. Volume of trading totaled almost 2.2 million shares……………………………………….Full Article: Source

Derivative trade juices CME

Posted on 29 October 2010 by VRS  |  Email |Print

From WSJ: CME Group Inc. reported a 21% rise in third-quarter earnings, lifted by rising volume of derivatives contracts linked to commodities, interest rates and indexes that helped offset a modest charge for recent “phantom trades.”
Executives of the world’s biggest futures-exchange operator forecast a potential $40 million in revenue for new trading services set to launch in 2012 and said that new ventures targeting off-exchange business are gaining traction………………………………………Full Article: Source

Key emerging economies must let currencies rise: IMF

Posted on 29 October 2010 by VRS  |  Email |Print

From Indiatimes.com: Key emerging economies running trade surpluses must “begin in earnest” to allow their currencies to appreciate to help rebalance global demand , the International Monetary Fund urged on Thursday.
The IMF said in a surveillance note to G20 leading economies that trade imbalances would not correct themselves and required policies to smooth the distortions creating large surpluses in some countries and big deficits in others……………………………………….Full Article: Source

Moody’s: No harm to emerging-market ratings by currency actions

Posted on 29 October 2010 by VRS  |  Email |Print

From Dow Jones: Government and central bank responses to steep currency appreciation across the developing world are not seen weighing on the credit ratings of emerging-market sovereigns in the near term, but there could be longer-term implications, Moody’s Investors Service said in a report Thursday.
The ratings agency said it is watching for any “impact on economic growth, fiscal, and debt dynamics over the medium to long term.”………………………………………Full Article: Source

Dollar near 15-year low on prospects Fed will ease policy more

Posted on 29 October 2010 by VRS  |  Email |Print

From Bloomberg: The dollar traded near a 15-year low against the yen on prospects that the Federal Reserve will take more credit-easing steps to keep borrowing costs low, reducing the allure of U.S. assets.
The U.S. currency headed for a monthly decline versus 12 of its 16 major counterparts after the New York Fed asked dealers for projections of asset purchases over the next six months……………………………………….Full Article: Source

G-20 accord to help ease currency volatility

Posted on 29 October 2010 by VRS  |  Email |Print

From Yonhap: Foreign exchange rate volatility is expected to ease following a recent agreement by the Group of 20 leading economies to avoid competitive currency devaluation, South Korea’s top central banker said Friday.
Finance ministers and central bank governors from the G-20 agreed during the weekend to refrain from competitively weakening their currencies and to move toward a market-determined foreign exchange rate system……………………………………….Full Article: Source

Currency trading made easy

Posted on 29 October 2010 by VRS  |  Email |Print

From Theglobeandmail.com: Global investment patterns have favoured emerging markets and commodity-producing nations for some time now, putting a fresh spotlight on the long tradition of the carry trade.
The carry trade is one of several tactics employed by professional investors betting on foreign currencies. Traders borrow funds in countries with low interest rates and put the money into higher-yielding assets abroad, betting that their gains won’t get erased by a sudden change in exchange rates……………………………………….Full Article: Source

US stalemate hits carbon markets

Posted on 29 October 2010 by VRS  |  Email |Print

From Petroleum-economist.com: The failure of US climate-change measures to pass through Congress this year leaves the near-term prospects for creation of a global carbon market in doubt, despite efforts elsewhere in the world.
The EU already has a functioning emissions-trading system (ETS), but until the US moves towards establishing its own cap-and-trade mechanism, there seems little hope of a global market materialising……………………………………….Full Article: Source

Carbon market likely to stay European in next decade -analyst

Posted on 29 October 2010 by VRS  |  Email |Print

From Dow Jones: Carbon market will likely remain dominated by European players in the next decade, as development of cap-and-trade systems elsewhere in the world is expected to be slow, an analyst said Thursday.
Europeans will still be almost the sole players, as the development of trading schemes in other areas “has been a huge disappointment,” said Trevor Sikorski, director of Carbon Markets and Environmental Products Research for Barclays Capital……………………………………….Full Article: Source

EU officials criticize new Europe for trading carbon credits

Posted on 29 October 2010 by VRS  |  Email |Print

From Err.ee: European climate change officials have rapped Estonia and other new member states for heavy trading of their carbon credits, saying that the practice is at cross-purposes to the spirit of Kyoto and other environmental accords.
Estonia began trading its allowances as part of an effort to raise money to balance the state budget during the recession. In 2010-2011 it is expected to sell a total of about 141 million euros worth of the so-called Assigned Amount Units (AAU)……………………………………….Full Article: Source

S.African assets rise on commodity prices, PPI data

Posted on 29 October 2010 by VRS  |  Email |Print

From Reuters: The South African rand and government bonds rallied on Thursday, still buoyed by the Finance Minister’s budget speech on Wednesday and after tame producer price inflation raised the chances of an interest rate cut next month.
The resource-heavy local bourse ended nearly 1 percent higher, led by miners on stronger commodity prices……………………………………….Full Article: Source

How investors can participate in the global commodity rally

Posted on 29 October 2010 by VRS  |  Email |Print

From Tycoonresearch.com: Active traders love hot markets with plenty of volatility and volume that generate frequent trading opportunities. And the action in commodities has been fast and furious, leading the headline news regularly.
Long term investors should think about getting some exposure in commodities as well. A balanced, diversified portfolio is the key to wealth preservation, and a natural hedge to broad-based market volatility. Having significant exposure to the Earth’s precious resources over the long term makes perfect sense……………………………………….Full Article: Source

IEA warns of asset bubble in commodities

Posted on 28 October 2010 by VRS  |  Email |Print

From Thestar.com.my: Further monetary easing by the US Federal Reserve could cause a rise in commodity prices, undermining the impact of moves aimed at supporting economic recovery, according to an official from the Paris-based International Energy Agency (IEA).
Investors could divert cheap US cash into commodities, triggering a rise in raw material prices and stoking inflation, said Eduardo Lopez, the IEA’s senior oil demand analyst……………………………………….Full Article: Source

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China set to add fuel to commodities rally

Posted on 28 October 2010 by VRS  |  Email |Print

From Indiatimes.com: China, wrongfooted by a blistering rally in corn, cotton and sugar markets , could be forced to replenish strategic reserves run down in a failed attempt to cool prices. Purchases by the world’s biggest consumer of cotton and the second-largest consumer of corn and sugar would provide fresh bullish momentum to prices already near record or multi-year peaks.
China, which buys around 60% of soybeans traded across the world, could be in the market to take more than 5 million tonnes of corn in 2011, according to some analysts, quadruple its buys this year and potentially making it the world’s fifth largest importer. The country is already the world’s No. 1 cotton importer……………………………………….Full Article: Source

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China commodities drop on concern regulators to tighten rules

Posted on 28 October 2010 by VRS  |  Email |Print

From Bloomberg: Commodities in China snapped a rally, led by rice, zinc, soybean oil and rubber, on growing concerns that security regulators may tighten trading rules to curb excessive speculation.
The Zhengzhou Commodity Exchange, China’s first such bourse, yesterday increased the margin requirement for rice, rapeseed oil, wheat and sugar trading to 8 percent from 3 percent or 4 percent, a statement on its website said yesterday……………………………………….Full Article: Source

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Agri commodities rally bypasses India

Posted on 28 October 2010 by VRS  |  Email |Print

From Business-standard.com: Agricultural commodities rocketed in markets abroad this month on bullish fundamentals, triggered by a weakening dollar. But in India, they remained range-bound due to measures taken by the government, including timely release of foodgrain, and beginning of harvesting of kharif soybean and corn.
Corn and soybean rose sharply at the Chicago Board of Trade (CBOT). Corn for delivery in December rose 13 per cent to the highest level since September 2008. Rabobank continued its positive view on prices, with risks remaining skewed to the upside. Corn (maize) was at $5.68 per bushel at CBOT on Wednesday……………………………………….Full Article: Source

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Why commodities belong in a portfolio

Posted on 28 October 2010 by VRS  |  Email |Print

From Marketwatch.com: The “respectable” reason for investing in commodities is to “hedge against inflation.” But ever since crude oil shot up to $140 a barrel in 2008, performance has attracted billions of dollars to the asset class over the past two years, when inflation has not been an issue.
Still, if commodity prices rocket higher, inflation could be ignited in the not-distant future……………………………………….Full Article: Source

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When high commodity prices come back to haunt us

Posted on 28 October 2010 by VRS  |  Email |Print

From Seekingalpha.com: Today, commodity prices are more sensitive to the monetary policy than consumer prices and employment. The current one year inflation expectation, according to the Cleveland Fed, is 1.36%, an increase of 0.46% from 0.90% before the QE talks. Over the same period, commodity prices measured by Dew Jones-UBS Commodity Price Index have shown a 9% increase.
The corporate profit margin is in danger of collapse as an unintentional result of the Fed’s QE program. Given that commodity prices move well ahead of any improvement in wealth growth, consumption, or employment, the production cost is rising faster than the retail price……………………………………….Full Article: Source

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Commodities could factor into Fed’s thinking on easing

Posted on 28 October 2010 by VRS  |  Email |Print

From Kitco News: Little in financial markets has been as hotly anticipated as next week’s Federal Open Market Committee meeting, where the Federal Reserve is expected to announce another round of quantitative easing.
Gold and other markets have risen sharply since the idea was first floated by Federal Reserve Chairman Ben Bernanke in August. Market watchers believe the Fed will buy longer-dated Treasury bonds, but how much is up for debate……………………………………….Full Article: Source

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Remember renewable energy?

Posted on 28 October 2010 by VRS  |  Email |Print

From Nytimes.com: Global warming, energy independence and good 21st-century jobs are three compelling reasons why Washington must do a lot more to promote renewable energy.
Congress seemed to get it in 2005 when it directed the Interior Department to approve enough wind, solar and other projects on public land to produce 10,000 megawatts by 2015 — enough to heat, cool and light five million homes. Not much has happened since……………………………………….Full Article: Source

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Iraq, Iran face off in oil power struggle

Posted on 28 October 2010 by VRS  |  Email |Print

From UPI: As Iran seeks to establish its supremacy in Iraq, its ancient enemy, the countries are also clashing in OPEC where Iraq’s re-emergence as a leading oil producer seems likely to upset the balance of power in the cartel.
Given the political turmoil inside Iraq as it struggles to form a coalition government seven months after an inconclusive parliamentary election produced no clear-cut winners, this energy rivalry could yet have geopolitical consequences that could threaten regional stability……………………………………….Full Article: Source

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Has gold paused or peaked?

Posted on 28 October 2010 by VRS  |  Email |Print

From Mineweb.com: Despite the G20 meeting deciding little apart from countries paying lip service to currency stability, gold has suffered a minor setback from its peak, but is this the start of a collapse or just a pause in its upwards rise?
The gold market expressed its disdain of the intentions issued by the G-20 by taking the gold price back to $1,345 at the morning Fix. We’ve seen $1,380 and the drop off last week was sudden. The dollar fell this morning back to $1.40 before pulling back to the $1.387 area when New York opened……………………………………….Full Article: Source

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Gold is a faith-based metal

Posted on 28 October 2010 by VRS  |  Email |Print

From Commodityonline.com: Additional gains recorded overnight brought the US dollar very near the 78 mark on the trade-weighted index and contributed to a fresh dip in gold prices down to the $1,326.00 level. Crude oil felt the rising dollar-induced selling heat as well, losing nearly $1 to fall to $81.72 per barrel.
Much of what was seen overnight was due to rising apprehensions related to next Tuesday’s Fed meeting……………………………………….Full Article: Source

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Current scenario suggesting much higher gold prices in the next 12 months - Embry

Posted on 28 October 2010 by VRS  |  Email |Print

From Mineweb.co.za: The world remains in a financial bind, the likes of which it has probably never seen and those people calling for corrections or bubbles in the gold market are flat out wrong. After a short pull back, gold could see a sharp move higher in November if recent history is any guide.
Speaking on Mineweb.com’s Gold Weekly podcast, Sprott Asset Management’s chief investment strategist, John Embry said the recent pullback is probably healthy for the market as many participants are focused on not only the up-coming US elections but also the potential for a further bout of quantitative easing to be announced when the FOMC meets next week,………………………………………Full Article: Source

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Manipulation signs point to silver - again

Posted on 28 October 2010 by VRS  |  Email |Print

From Futuresmag.com: Fresh off the heels of the passage of financial reform that gives the Commodity Futures Trading Commission broad new powers, one of its commissioners is publicly calling on the regulator to step up an ongoing investigation into the silver market.
The statement by Commissioner Bart Chilton came during a CFTC hearing yesterday at which the regulator was exploring the implementation of its new oversight responsibilities……………………………………….Full Article: Source

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JPMorgan, HSBC accused of manipulating silver futures

Posted on 28 October 2010 by VRS  |  Email |Print

From Bloomberg: JPMorgan Chase & Co. and HSBC Holdings PLC were sued by an investor claiming they manipulated silver futures and options prices in violation of U.S. antitrust law by placing “spoof” trading orders.
The investor, Peter Laskaris, alleges that starting in March 2008, the banks colluded to suppress silver futures so that call options, or the right to buy, would decline, and put options for the right to sell would increase, according to the complaint filed today in federal court in Manhattan……………………………………….Full Article: Source

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Scotiabank’s Mohr names palladium as top commodity pick for 2011

Posted on 28 October 2010 by VRS  |  Email |Print

From Mineweb.com: Scotiabank’s Pat Mohr said prospects for a further round of Fed ‘quantitative easing’ is weakening the U.S. dollar, boosting commodity prices and extending the commodity price super-cycle. “Spot palladium prices should average US$510 per ounce in 2010 and US$650 in 2011, up from only US$265 in 2009 and US$352 in 2008,” Mohr predicted in her October Scotiabank Commodity Price Index report.
Mohr noted that rising autocatalyst demand in China and other emerging markets, in the face of supply constraints, will boost prices……………………………………….Full Article: Source

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Rare earths: Is there is a classic bubble in the making?

Posted on 28 October 2010 by VRS  |  Email |Print

From Mineweb.co.za: Analysts are concerned about the frenzy being whipped up in the world of rare earths as investors, concerned about China’s dominance, search out new supplies. China’s increasing reluctance to supply the rest of the world with rare earths is whipping up a gold rush-like frenzy to find new producers of the elements needed to manufacture everything from high-tech weapons to mobile phones.
Producers and would-be producers are forging new supply pacts with consumers, and investors are scooping up shares in mining companies promising to replace the lost Chinese material……………………………………….Full Article: Source

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Few cheers for physical base metal products from analysts

Posted on 28 October 2010 by VRS  |  Email |Print

From Cityam.com: This year’s annual London Metal Exchange (LME) week was abuzz with the news that physical exchange-traded commodities (ETC) for base metals are going to see the light of day.
After plenty of speculation in both the press and the markets, ETF Securities confirmed what many had assumed and announced that it was preparing to launch physically backed industrial metal ETCs……………………………………….Full Article: Source

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Decoding ETFs activity in base metals

Posted on 28 October 2010 by VRS  |  Email |Print

From Seekingalpha.com: Even as Copper prices fell on Tuesday after the rise of the US dollar, retreating from a 27-month peak hit earlier in the session and tracking choppy currency trading ahead of a key Federal Reserve meeting next week, the launch of new physically backed exchange-traded products [ETPs] in industrial metals is dominating base metals market and generating a lot of speculation about their effect on prices and demand.
Tight Supplies Helping Copper: Supply shortages have been a major factor behind the surge in copper prices due to a combination of falling ore grades in major producing nations, labour problems and project delays……………………………………….Full Article: Source

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Popular copper ETFs face hurdles -Credit Agricole

Posted on 28 October 2010 by VRS  |  Email |Print

From Reuters: Launching physically backed copper exchange traded funds (ETFs) will be popular, but could face hurdles as supplies for the red metal tighten, Credit Agricole said on Wednesday.
Talk that physically backed exchange-traded products (ETPs) in industrial metals are imminent has dominated base metals markets in recent months, generating speculation about their effect on prices and demand……………………………………….Full Article: Source

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First U.S. rare-earth mining ETF to trade in N.Y.

Posted on 28 October 2010 by VRS  |  Email |Print

From Bloomberg: The first U.S. exchange-traded fund linked to companies producing rare-earth elements and strategic metals will begin trading in New York tomorrow, according to Harvey Hirsch, a senior vice president at Van Eck Associates Corp., the issuer of the security.
The ETF will track an index that consists of 24 mining companies including Iluka Resources Ltd., the world’s largest zircon producer, and Titanium Metals Corp., Van Eck said in a report……………………………………….Full Article: Source

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NCDEX steps up non-agri trading

Posted on 28 October 2010 by VRS  |  Email |Print

From Business-standard.com: The National Commodity and Derivatives Exchange (NCDEX) is witnessing steady spurt in non-agri commodity futures trading since the last one month.
According to the exchange data, in non-agri commodities, futures trading has gone up in crude oil (light sweet crude contract), copper (copper cathode) and steel substantially……………………………………….Full Article: Source

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CFTC should be flexible on limits-Morgan Stanley

Posted on 28 October 2010 by VRS  |  Email |Print

From Reuters: Morgan Stanley urged the U.S. Commodity Futures Trading Commission to adopt a flexible approach toward speculative position limits, a new regime that the regulator is slated to unveil in coming weeks.
The banking firm recommended the CFTC propose interim limits in energy markets, and possibly certain precious metals markets that would not prevent businesses from using futures and swaps to hedge risk……………………………………….Full Article: Source

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Why not currency NAVs?

Posted on 28 October 2010 by VRS  |  Email |Print

From Thehindubusinessline.com: A derivative, goes its definition, is an instrument which derives its value or strength from its underlying assets. On this touchstone, option in a share is a derivative just as share futures are. Why, even a share itself, come to think of it, is a derivative deriving as it does its strength from the value of the undertaking(s) of the company issuing it.
A unit of a mutual fund derives its value from net asset value (NAV) which is nothing but the current market value of all the shares and securities the scheme has invested in as increased by the income if any that has accrued and as reduced by all the liabilities and ultimately divided by the number of units participating in the scheme……………………………………….Full Article: Source

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French G20 to seek reform of global monetary system

Posted on 28 October 2010 by VRS  |  Email |Print

From Reuters: France will seek reform of the global monetary system during its upcoming G20 presidency to protect emerging economies and to diversify international reserves, Economy Minister Christine Lagarde said on Wednesday.
France, which takes over the chair of the G20 group of leading economies in mid-November, has placed reform of the international monetary system at the top of its agenda for its year-long presidency……………………………………….Full Article: Source

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Singapore outlines growing market for carbon trading

Posted on 28 October 2010 by VRS  |  Email |Print

From Straitstimes.com: Singapore’s carbon market is growing and new firms are setting up shop here on the back of increased interest in carbon trading in Asia.
Ministry of Finance Permanent Secretary Chan Lai Fung said on Wednesday Singapore’s position as a major international financial centre has attracted key players such as Tricorona and Gazprom, which are the world’s leading traders of carbon……………………………………….Full Article: Source

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RIP: Carbon trading

Posted on 28 October 2010 by VRS  |  Email |Print

From Canadafreepress.com: In a little reported move, the Chicago Climate Exchange (CCX) is ending carbon trading this year — the very purpose for which it was founded. CCX will remain open for business, however, as it transitions into the murky world of dealing in carbon offsets.
Outside of a report in Crain’s Chicago Business and a soft-pedalled article in the certain-that-cap-and-trade-will-happen trade publication Carbon Control News, the media has ignored the demise of the only voluntary U.S. effort at carbon trading……………………………………….Full Article: Source

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Silver manipulated, U.S. regulator says

Posted on 27 October 2010 by VRS  |  Email |Print

From Bloomberg: As an investigation of the silver market by the top U.S. commodity regulator entered a third year, a member of the Commodity Futures Trading Commission said there have been “repeated attempts” to influence prices.
“There have been fraudulent efforts to persuade and deviously control that price,” said Commissioner Bart Chilton at a hearing today in Washington, alleging there have been violations of the Commodity Exchange Act. “Any such violation of the law in this regard should be prosecuted,” he said……………………………………….Full Article: Source

Act now, CFTC is urged

Posted on 27 October 2010 by VRS  |  Email |Print

From WSJ: A Commodity Futures Trading Commission regulator is putting pressure on the agency to take action in a high-profile, two-year-old investigation of the silver market.
At a CFTC hearing Tuesday to consider new rules to strengthen its commodity-enforcement powers, commissioner Bart Chilton said market players have made “repeated” and “fraudulent efforts to persuade and deviously control” silver prices……………………………………….Full Article: Source

Manipulation or not, is silver a smart investment?

Posted on 27 October 2010 by VRS  |  Email |Print

From Dailyfinance.com: Silver has long been viewed as gold’s stepsister. Not as pretty, not as profitable. But lately, silver’s getting a second look. Shares of silver are up about 40% so far this year, compared to just over 20% for gold and beating other industrial metals as well as stocks and Treasuries.
Should silver be trading even higher? The silver markets have been under investigation for the past three years by the Commodity Futures Trading Commission because some analysts have suspected manipulation of the price of the metal, driving the price down……………………………………….Full Article: Source

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