Posted on 28 May 2012 by VRS | Email |Print
The World Bank’s lead economist for the Pacific says potentially slowing commodity prices will aid the recovery of small Pacific countries but could hamper the growth of bigger economies such as Papua New Guinea.
The comment follows the release of the bank’s latest economic update on East Asia and the Pacific, which puts last year’s growth in the region, excluding China, at four point three percent………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
In the last few years, global analysts and investors ranging from Warren Buffet to Jim Rogers have been telling people to put their money in China. Most of them have been betting big on China’s growth story saying that the dragon country being the largest consumer of several commodities in the world is the right choice for investing your hard-earned money.
Largely, the China growth story has been very rewarding for global private equity players, investors, bankers and budding entrepreneurs………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
Speculators raised bullish bets on commodities before signs of Europe’s deepening debt crisis and slowing Chinese growth drove prices lower for a fourth consecutive week, the longest slump since September.
Money managers boosted net-long positions across 18 U.S. futures and options by 9.5 percent to 675,362 contracts in the week ended May 22, government data show. The Standard & Poor’s GSCI Spot Index of 24 raw materials reached a five-month low on May 23………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
It’s convenient that Brent is hovering just above $100/b right now – the main international benchmark for oil perfectly dissects the price band that we’ve actually been living with for the past two years: a $50-150/b spread.
It’s never been an issue of which side of the supply-demand equation worked best, but which proved to be most dysfunctional – the battle is currently being raged with a brutal vengeance………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
It was supposed to be Cuba’s economic saviour: vast untapped reserves of black gold buried deep under the rocky ocean floor. But the first attempt in nearly a decade to find Cuba’s hoped-for undersea oil bonanza has come up dry, and the island’s leaders and their partners must regroup and hope they have better luck - quickly.
Experts say it is not unusual that a 3-mile (4.8-kilometre) deep exploratory well drilled at a cost of more than $100 million by Spanish oil giant Repsol was a bust. Four out of five such wells find nothing in the high-stakes oil game, and petroleum companies are built to handle the losses………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
Gold supporters always point to gold as a safe haven in times of trouble. It is a place of safety for people to pour money into. But right now, this is not the case. Gold is acting like just another trading entity right now.
A “safe haven” does not fall 7% in two weeks. People look to safe havens for stability and security in rocky times. Lately, gold has not been safe and has not been stable. It has paralleled the markets since the end of March………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
In India, the world’s biggest annual bullion importer, gold jewelry plays a central role in weddings and festivals. But its main appeal is as an investment favored by both rich and poor.
India imported 933 metric tons of gold for private consumers last year, a 35 percent rise over five years and just under a quarter of global demand, according to the World Gold Council. But the bustling business at jewelry shops is putting an increasing strain on India’s national finances………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
The global economy is still failing to grow at a sustainable rate while Europe and America could be on the brink of recession. The latest UK statistics published by the Government have confirmed its economy is contracting.
In Spain, nearly one in four nationals are officially unemployed while unconfirmed estimates of unemployment suggest a rate as high as 30 per cent………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
A civilized individual or a Neanderthal? Berkshire Hathaway’s Charlie Munger provides a simple litmus test. “Civilized people don’t Buy Gold,” says Munger.There you have it. If you possess absolutely no gold, other than maybe a tooth filling, you are civilized. Congratulations!
If, however, you’ve chosen to Buy Gold…and perhaps stashed a few Krugerrands under your mattress…we’ve got some bad news for you. You are hopelessly uncivilized – a financial Neanderthal, deserving of pity from your civilized counterparts………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
Gold may not rally strongly until there is more clarity on Europe, said TD Securities (TDS) in a commodities briefing. TDS is the global wholesale banking arm of Toronto-Dominion Bank Financial Group.
According to TDS, in recent years, the metal tended to be sold during systemic uncertainty when investors need liquidity to cover other positions and margins. Often, gold may have been the only asset that had bids and a relatively stable price………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
The great China-led economic supercycle that has been boosting global economies for a decade is falling below its expected trajectory, which is giving rise to questions regarding super- cycle slippage and demise.
First to counteract the changing paradigm by publicly reining in its well-publicised capital project growth ambitions is the world’s biggest mining company, BHP Billiton. In quick succession, Billiton CEO Marius Kloppers put the amber light on iron-ore growth investment and BHP Billiton chairperson Jac Nasser spoke of the investment climate having changed since the company announced that it would be spending $80-billion on project growth by 2015………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
There are plenty of exchange traded products - ETFs and ETNs - you can use to trade volatility. But if the performance of these products are based on volatility futures contracts, why not trade actual volatility futures contracts directly instead?
For example, some traders will short the iPath VIX Short-Term ETN (VXX) against the VIX Mid-Term ETN (VXZ). This takes advantage of the usual state of contango in volatility futures………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
The outlook for agriculture remains positive in Australia, according to ABARES agricultural commodities and trade assistant secretary and chief commodity analyst Jammie Penm.
Penm told the conference that despite flooding in 2011 in Queensland, Victoria and New South Wales, the agricultural industry had performed well in the past 12 months. Agricultural commodities would be worth $35.5 billion this year, and commodity values were expected to remain at a similar level in the short term, until 2016 to 2017………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
Commodity traders have lauded plans by the Ghana Grains Council (GGC) to implement a Warehouse Receipt System as a necessary step towards the development of a commodity exchange in the country.
The Chief Executive Officer of Commodities Clearing House and Finance, Alexis Aning, said the initiative to get a Warehouse Receipt System (WRS) ahead of the introduction of the proposed Ghana Commodities Exchange is essential to the success of the Exchange………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
The fortunes of Europe’s beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness. This has proven seriously vexing for traders trying to focus on fundamentals.
But the extreme euro pessimism worrying everyone is actually very bullish. This loathed, oversold currency is due to surge again………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
The United States on Friday declined to name China a currency manipulator but said it would “press for policy changes that yield greater exchange rate flexibility” in the yuan.
The Chinese currency remains “significantly undervalued” and “further appreciation of the RMB (renminbi) against the dollar and other major currencies is warranted,” the US Treasury Department said in its latest semiannual report to Congress on international exchange-rate policies………………………………………..Full Article: Source
Posted on 28 May 2012 by VRS | Email |Print
Japan and China plan to start direct trading of the yen and yuan as early as June, aiming to make trade and financial transactions between the countries easier, Japanese media reported on Saturday.
The step follows an agreement between the leaders of Asia’s two largest economies in December to promote direct trading of their currencies without the interim step of using dollars to set exchange rates………………………………………..Full Article: Source
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