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Commodities Briefing - Archive | April, 2009

Commodity investors could soon be in strong position

Posted on 30 April 2009 by VRS  |  Email |Print

From The recent fall in commodity prices should prompt investors to examine what type of fund they invest in, according to wealth manager HFM Columbus. Rob Pemberton, investment director, said a number of opportunities in the fund universe existed for investors in commodities.

“A general fund investing in commodity-related equities, such as oil exploration or gold mining companies, is often the best bet for all but the most risk-embracing investor.”……Full Article: Source

Flu scare takes toll on equities and commodities

Posted on 30 April 2009 by VRS  |  Email |Print

From FT: The looming spectre of a global flu pandemic dragged most equity and commodity markets lower yesterday and risk aversion remained elevated following reports that Bank of America and Citigroup could need to raise billions of dollars more in capital as a result of the US government’s stress tests.

“This scare is hitting the world economy at a bad time,” said Gerard Lyons, chief economist at Standard Chartered Bank: “One of the factors that will heavily influence the timing of the end of this global recession is confidence and a health scare such as this will hit confidence.”……Full Article: Source

Whither commodities? Manager signals caution

Posted on 30 April 2009 by VRS  |  Email |Print

From Commodities are of increasing interest to pension funds and individual investors alike, but is it a mistake to enter the sector at this point? One prominent manager thinks so.

From the responses to our most recent European Fund Trends Survey, it is apparent that many fund groups still see energy as an attractive sector. More respondents (28%) said the energy sector would be the best performer over the next 12 months than any other sector…….Full Article: Source

GCC currency may be used to price oil

Posted on 30 April 2009 by VRS  |  Email |Print

From Gulf oil producers are expected to dump the US dollar and use their planned single currency in pricing their oil exports when they launch their landmark monetary union, a prominent financial expert said yesterday.

Nasser Al Saidi, Chief Economist at Dubai International Financial Centre (DIFC) Authority, said he expected the GCC countries to peg their common currency to a basket of global currencies of which the dollar and the euro will be the main components…….Full Article: Source

Crude above $50/Bbl on equities, stockpiles eyed

Posted on 30 April 2009 by VRS  |  Email |Print

From WSJ: Crude oil futures tracked firmer equity markets to trade back above $50 a barrel Wednesday, despite expectations that data due later will reveal U.S. crude stockpiles have continued to rise.

Worries about the potential economic impact of swine flu and the implications for crude demand also helped curb gains…….Full Article: Source

Energy policy swept by industry protest storm

Posted on 30 April 2009 by VRS  |  Email |Print

From British industry says the Government’s CO2 emissions-reduction targets are fantasy, and companies cannot see how cutting their carbon footprint will win them new business.

That is the withering verdict on the Government’s energy policy, which has also been hit hard by news that Britain’s largest wind-turbine maker has slashed 600 jobs because ministers have done “too little too late” to promote the green energy revolution…….Full Article: Source

How can we meet 2020 energy targets?

Posted on 30 April 2009 by VRS  |  Email |Print

From The news that motorists could get up to £5,000 in incentives if they buy an electric car has focused attention on the contribution of these vehicles towards the Government’s target of 15pc of energy coming from renewable sources by 2020.

But Mark Williamson, director of innovation at the Carbon Trust, argues that electric cars do not affect the targets unless they are actually powered by a renewable energy source…….Full Article: Source

US seeks renewable energy pact with India

Posted on 30 April 2009 by VRS  |  Email |Print

From With the US administration focusing on alternative sources of energy so as to reduce dependence on fossil fuel, the US President, Mr Barack Obama, wants to build Indo-US renewable energy partnership which would end up in benefiting not only t he two countries, but also the entire world.

When the Prime Minister’s Special Envoy on Climate Change, Mr Shyam Saran, met the US President at the White House at an official reception, Mr Obama was quick to remind him of the conversation he had in this regard with Dr Manmohan Singh in London early this month…….Full Article: Source

Canada aims to end traditional coal power

Posted on 30 April 2009 by VRS  |  Email |Print

From Reuters: The Canadian government plans new regulations that will effectively phase out traditional coal-fired power stations, Environment Minister Jim Prentice said in an interview published on Wednesday.

He told the Globe and Mail newspaper that new coal plants would have to include technology to capture greenhouse gas emissions and inject them underground for permanent storage…….Full Article: Source

Carbon trading begins in Australian market

Posted on 30 April 2009 by VRS  |  Email |Print

From Australia’s fledging carbon market saw the first trade between two Australian counterparts today, one of the parties said.

The deal, for 100,000 certified emissions reduction certificates, took place between Arcadia Energy Trading and Loy Yang Power…….Full Article: Source

Asia’s carbon credits market expected to grow despite economic downturn

Posted on 30 April 2009 by VRS  |  Email |Print

From The carbon credits market in Asia is expected to continue to grow despite the economic downturn.

Asia currently accounts for over 75 per cent of the world’s total carbon projects, and is expected to hold 80 per cent of carbon credits by 2012…….Full Article: Source

European carbon trading scheme will not cut power sector emissions, MPs told

Posted on 30 April 2009 by VRS  |  Email |Print

From The European carbon trading system is a ‘failure’ and will not help the UK to meet its emission reduction targets, electricity generator EDF warns a committee of UK MPs.

The EU carbon trading system has failed and will not help meet government targets on decarbonising the power sector, energy operators told MPs yesterday…….Full Article: Source

Gold buying may rise after Opec official calls for $70 oil

Posted on 30 April 2009 by VRS  |  Email |Print

From A senior figure at the Organisation of Petroleum Exporting Countries (Opec) has called for oil prices to hit $70 per barrel.

Secretary general Abdalla el-Badri has explained that the current levels of about $50 per barrel are “insufficient for continued investment” considering the cost of exploration projects…….Full Article: Source

China maps out plan for Shanghai global financial hub

Posted on 30 April 2009 by VRS  |  Email |Print

From China said on Wednesday it would allow foreign companies to list on the Shanghai Stock Exchange and develop a greater variety of financial derivatives, elaborating on plans to make Shanghai an international financial and shipping centre by 2020.

China will also allow major domestic shipping companies to establish financial leasing companies and let such leasing firms trade on the Shanghai-based interbank market and issue bonds, according to a cabinet document published on the Chinese government’s website,…….Full Article: Source

Gold prices to stay high, but investors to shift to equities, industrial commodities

Posted on 30 April 2009 by VRS  |  Email |Print

From While gold prices are expected to stay high this year, Scotiabank economist Patricia Mohr predicts that “investor interest is likely to gradually shift first to equities and then to industrial commodities in the next several years.”

Mohr also noted that LME copper prices have surged to “genuinely profitable levels” of US$2.16 per pond on April 16, yielding an average 37% profit over average global break-even copper production costs…….Full Article: Source

CPM forecasts big silver surplus this year

Posted on 30 April 2009 by VRS  |  Email |Print

From In their annual yearbook, New York precious metals consulting firm CPM Group forecasts that the net surplus in silver is expected to rise to 182.1 million ounces this year, which will approach the record 222.2 million ounces of silver purchased in 1980.

In the Silver Yearbook 2009, CPM estimated that total silver supply increased 2.3% to 803.2 million ounces last year, and forecast that total silver supply will increase 2.5% to 823.1 million ounces this year, primarily due to increased mine production and secondary recovery from silver scrap…….Full Article: Source

China drives copper

Posted on 30 April 2009 by VRS  |  Email |Print

From FT: Firstly, China has been importing substantial quantities of copper. In March these reached 297 thousand tonnes (kt) and further strong imports are likely to be recorded in April. A second supportive factor has been short-covering.

Data from the Commodity Futures Trading Commission shows that net short speculative positions on US exchanges were reduced by 29% from mid-February to mid-April…….Full Article: Source

World metal market shudders as leader posts $1.5b loss

Posted on 30 April 2009 by VRS  |  Email |Print

From ArcelorMittal, the world’s biggest steel maker, posted a bigger than anticipated loss in the first quarter as plunging metals prices forced the company to cut the value of its inventories.

The net loss was $US1.06 bil-lion ($1.5 billion) compared with net income of $US2.37 billion a year earlier, the Luxembourg-based company said yesterday. The loss exceeded the median estimate of $US594 million from the five analyst forecasts compiled by Bloomberg. Sales slumped 49 per cent to $US15.1 billion…….Full Article: Source

China may cut iron ore imports by 21%, group says

Posted on 30 April 2009 by VRS  |  Email |Print

From Bloomberg: China, the world’s largest consumer of iron ore, may cut imports of the steelmaking ingredient by about 21 percent this year as demand from mills slumps, an industry group said.

Imports may fall to 350 million metric tons, Zou Jian, chairman of the China Metallurgical Mining Enterprise Association, said today in Beijing at a Metal Bulletin conference. ……Full Article: Source

Worst recession in living memory, but metals already eyeing the sunny uplands

Posted on 30 April 2009 by VRS  |  Email |Print

From The latest quarterly Commodity Companion from Royal Bank of Scotland records that the RBS Base Metal Price Index has since the end of 2008 risen by 20% and is on course for further gains.

Despite the fact that there is as yet little sign of any real demand growth, a number of elements have allowed commodities to prosper, and base and precious metals have taken the limelight with oil, natural gas and steel having to take a back seat…….Full Article: Source

Gold ETFs make golden sense

Posted on 30 April 2009 by VRS  |  Email |Print

From ETFs are essentially mutual funds listed on the stock exchange. You can buy and sell them just like you would buy and sell a share. In the case of a gold ETF, the underlying asset is standard gold bullion.

In other words, a gold ETF is just like any other mutual fund scheme — only difference being that instead of being invested in equity shares, the monies collected are invested in gold. Generally, the price of one unit represents approximately one gram of gold. Since these are passively managed funds, the NAV will basically track the price of gold in the open market…….Full Article: Source

Why your ETF may have hidden risks

Posted on 30 April 2009 by VRS  |  Email |Print

From Exchange Traded Funds, or ETFs for short, take an investment that’s normally complicated and simplify it. ETFs make it easy for any investor to put money into a variety of macro ideas with one easy to buy share.

Take the popular ProShares ETFs. ProShares give you the opportunity to buy and sell the Dow, S&P, NASDAQ, Russell and more. Overall, they mimic the price of these indices, minus a small fee or transaction cost…….Full Article: Source

Which niche ETFs are worthwhile?

Posted on 30 April 2009 by VRS  |  Email |Print

From This week we’re taking a look at niche ETFs that can add a little spice to your portfolio. Before, we begin a word of caution; these types of ETFs can be highly volatile and should only serve as a very small part of a well-diversified, long-term portfolio.

The potential options available are also so vast that we will only be considering two types this week, country and commodity ETFs…….Full Article: Source

Are ETFs right for you?

Posted on 30 April 2009 by VRS  |  Email |Print

From Fund investors in the UK suffer from what we consider to be inordinately high costs, particularly among retail equity funds.

Traditional trackers provide one alternative, but with total expense ratios (TERs) often reaching 1% per year or more, many of these are frankly still expensive for what they do. In the US, retail investors can purchase an S&P 500 index fund with no sales charge and a TER as low as nine basis points (0.09%) per year…….Full Article: Source

The future of reserve currencies

Posted on 30 April 2009 by VRS  |  Email |Print

From FT: A growing band of emerging economies are voicing concerns over the dollar’s status as the world’s premier reserve currency. China has already announced an increase in its bullion holdings as it diversifies its reserves portfolio, and it has also suggested greater use of the International Monetary Fund’s special drawing rights (SDRs).

At the same time, the current economic and financial crisis has raised market concerns about the structural integrity of the dollar’s chief competitor, the euro…….Full Article: Source

DGCX announces specialised training in futures trading

Posted on 30 April 2009 by VRS  |  Email |Print

From Dubai Gold & Commodities Exchange (DGCX) is hosting a series of professional training workshops, aimed at helping individuals better understand the trading and price risk management benefits of derivatives.

The ‘DGCX Commodities & Currency Futures’ workshops, to be held in Dubai, will feature courses by Simon Hart and Bill Beagles of K2 London, leading consultants specialising in derivatives…….Full Article: Source

SunGard launches commodity suite

Posted on 30 April 2009 by VRS  |  Email |Print

From SunGard has launched Aligne, a service-oriented architecture (SOA) based, straight-through processing solution suite that helps energy companies optimize decision making and quickly adapt to business change by streamlining processes and integrating information across multiple business operations.

Energy traders, utilities, midstream gas companies and large industrial consumers of energy can use Aligne to process energy financial and physical transactions across front-, middle- and back-office operations, and utilize configurable components for risk management and compliance…….Full Article: Source

100% of global growth to come from emerging markets

Posted on 30 April 2009 by VRS  |  Email |Print

From A few months ago, the global economy was facing two dominant shocks: another drastic increase of commodity prices, which culminated in oil prices reaching new historical highs,on the one hand, and tighter credit conditions, on the other.

Just a few months later, oil prices have corrected by more than 60% and are thus no longer weighing on purchasing power and profit margins as previously…….Full Article: Source

Analysis: Flowers – tradable commodity or manufactured good?

Posted on 29 April 2009 by VRS  |  Email |Print

From The international market for cut flowers is worth over $100bn a year – twice the size of the copper trade. The market is becoming increasingly electronic and sophisticated. Could a futures market bloom?

The flower market rarely makes the headlines, but it is a large industry. UK consumers spend £2.2bn on flowers a year, more than the £2bn they spend on music. As an agricultural commodity, in which price is affected by many variables beyond the control of growers and distributors, flowers might be suitable for futures trading……Full Article (Registration Required): Source

Westpac sees gradual recovery commodities demand

Posted on 29 April 2009 by VRS  |  Email |Print

From Westpac has looked more closely at the latest Chinese economic data, attempting to analyse annual growth rates to determine just how much of a seasonal impact there is to the numbers coming out of the country and what this might mean for commodity prices.

Its findings suggest while March quarter data revealed a slight flattening in the moderation of annual growth rates for the Chinese economy the numbers don’t provide a clear picture of what Westpac views as an improving underlying trend……Full Article: Source

Commodity assets up 12 pct in first qtr -Barclays

Posted on 29 April 2009 by VRS  |  Email |Print

From Assets under management in commodities rose about 12 percent in the first quarter of this year, versus the 27 percent drop in the final quarter of 2008, thanks to renewed investor confidence in the asset class, Barclays Capital said on Tuesday.
But second-quarter growth may not be as much due to waning interest in gold and energy markets, which had driven much of the momentum in the first quarter, it said……Full Article: Source

Exchange-traded commodity investments dominate structured products

Posted on 29 April 2009 by VRS  |  Email |Print

From Exchange-traded products (ETPs) continued to dominate structured products as the premier choice for commodity investment in Q1 2009, new research by Barclays Capital has shown.

The assets under management (AUM) of ETPs, which includes both listed commodity funds and physically-backed investments, increased by an estimated US$19 billion from last quarter. This included new inflows of around $17 billion……Full Article: Source

Why new SEC chair is investigating commodity ETFs

Posted on 29 April 2009 by VRS  |  Email |Print

From The new Securities and Exchange Commission (SEC) chairman is concerned about the level of authority used with the introduction of new exchange traded funds (ETFs), especially those that focus on commodities.

SEC Chairman Mary Schapiro has brought concern to the forefront of the public’s awareness that the introduction of ETFs have not been monitored closely enough. The leveraged or inverse ETFs, as well as the commodity ETFs, are of the greatest concern……Full Article: Source

A global commodities shortage: Are you scared yet?

Posted on 29 April 2009 by VRS  |  Email |Print

From China, if you haven’t been noticing, has been using excess cash to snap up foreign natural resource assets. In fact, according to this article from Xinhua, “China is expected to own rights in more than 100 million tonnes of overseas iron ore assets next year.” That’s alot.

Further, we got news today that China has signed a free trade deal with Peru. Why would such a big economy sign a deal with such a small economy? Remember that Peru is enormously rich in resources, including copper, silver, gold, petroleum, timber, coal, phosphate, potash, and natural gas — all commodities the Chinese would very much like to secure long-term access to……Full Article: Source

NFA introduces new anti-hedging rules

Posted on 29 April 2009 by VRS  |  Email |Print

From The NFA (National Futures Association) proposed a rule change to the CFTC (Commodity Futures Trading Commission) last year that was approved and will begin applying to forex dealers in the U.S. on May 15th 2009.
There are two unrelated features in the rule change. The most controversial feature has to do with “hedging” or hedged forex positions. The second feature has more to do with the conditions that must be applied before a trader’s position can be adjusted by a dealer. This article will discuss the changes and why they may not be such a bad thing……Full Article: Source

Opalesque Exclusive: Galena on metals and energy sectors; sees alpha year in mining, remains short crude, Special Sits fund +28.26% YTD

Posted on 29 April 2009 by VRS  |  Email |Print

Benedicte Gravrand, Opalesque London: Cedric Chone, the Geneva-based lead portfolio manager of the Galena Special Situations Fund, gives his outlook for the metals and energy sectors:
Case for investing in Metals
There are two key themes today and in coming months that support the case for metal investing: restocking and inflation.

- Restocking
A normal down cycle in mining would see mines continue to produce at a loss, with banks willing to lend money to producers, secured by the minerals they have in the ground. However, due to the financial crisis, this has not happened during this cycle and as the expectation of recovery has been pushed back further, we are seeing more and more production cuts:

If you take Nickel for example: We have already lost 25% of nickel production and given the recent news of the closure of all Australian production by one of the world’s largest Nickel producers, we could see production falling to 30% or perhaps even as low as 40%.

We are going to have a recovery, at some stage. Once production cycles start to pick up and demand starts to show the first signs of recovery, then we will be caught in a precarious situation.

Manufacturers have run down stocks to previously unseen levels, while producers have cut back production and pushed out or cancelled new projects. Together this sets the stage for the start of another super cycle.

We do not know when the rebound will occur but the recent manufacturing data in China (i.e. recent PMI numbers up to 52.4) suggests it is closer than many believe.

We have already started to see this in Q1 with equity markets looking ahead to an expectation of some stability. Europe saw a marked increase in auto production which could lead to its own restocking cycle.

- Inflation
We have seen some huge stimulus packages across the world to kick-start the economies. These measures are inflationary, will benefit commodities and push prices higher in the medium to longer term.

Opportunities in Mining

The mining sector sold off aggressively last year as the investment community saw unprecedented redemptions. The overshoot that this forced selling has created, leaves a lot of projects and companies trading below their cash backing and/or at very distressed levels. This creates a unique opportunity to invest at this time of the cycle.

A lot of money has been sitting on the sidelines and is not investing at a time when we believe we have seen the bottom.

As a specialist fund focused on mining opportunities, we are very happy to invest at this stage of the cycle and despite the recent equity market weakness, in the first two months, we outperformed the markets.

We see good opportunities in projects and assets and expect this to be a big alpha year. Last year was a beta year with not a lot of liquidity around.

We are already observing a dramatic pick-up in interest in cash rich commodity companies. The key will be to invest selectively. In previous years, the rising tide floated all boats and there were plenty of investors willing to invest in weak projects. This year, there is a better allocation of resources and capital because less money will be invested.

Companies looking to raise money this year are finding it very difficult. This will create even more opportunities, especially in the small and mid cap market. Small caps have been devastated, with investors flocking to the security and liquidity of larger cap stocks.

At the height of the crisis in September and October last year, people bought gold and, to raise cash, they sold gold stocks; so gold started to shine again. During Q1, gold companies have issued a lot of equity funds that were previously underinvested during the last few weeks. The gold market went from $750 to $950.

Once the economic recovery is underway, investments in the Gold sector will shift to base metals which will create an influx of capital. There are signs of this happening already, with a number or large equity raisings by copper producers in the last few days.

We favour smaller gold companies to larger cap stocks that have been overvalued, in this sector as we expect gold to lose its shine as the market recovers. We have invested in around four excellent undervalued projects with discoveries that could be very profitable irrespective of the gold price.

Outlook for the energy sector

The oil price has fallen to $40 as demand collapsed during the last year and even with all the OPEC cuts the world is still swimming in oil. Our preferred way of investing in the oil market at these levels is to be long production and exploration companies against a short crude position, based on the relative undervaluation of the companies. This trade makes even more sense in the current environment where we see huge contangos in the forward prices. Few funds can trade this compelling trade through cash equities and oil futures, which insulates Galena Special Situations Fund from ‘crowded trades’.

- The next rally will see 3 phases:
The fund has been positioning itself at a time when the majority of participants were sitting on the sidelines holding cash. We believe the next rally will see 3 phases, phase one has already started to play itself out during the last couple of weeks.

- Cheap restocking by China. China drastically cut high cost mines and production and is restocking its own depleted stocks with cheap metals from the west. This will leave the West very short commodities (Chinese data saw strong imports; PMI up 14.1% YoY to 52.4%.)

- The second leg of the rally is expected once some of the physical measures start to take effect and manufacturers are forced back into the market to rebuild the inventories that have been sold off. Europe has seen new car registrations leap by 40% in March, while in the US, new car sales appear to have stabilised.

- The third leg up will be provided by reflationary effects of the quantitative easing.

Galena’s Special Situations Fund is a multi-strategy commodity fund investing in the mining and energy sectors. The core investment strategy is to invest in listed projects at a development stage. The Fund also trades commodity-related equities and underlying derivative markets, in order to leverage market opportunities and hedge against adverse market conditions. The Fund is up +28.26% YTD (net estimate, as of 13 April) and currently manages $110m. The fund returned almost 26% in 2007 and -31.07% in 2008.

See our 16-Dec-2008 Opalesque Exclusive:
Galena`s fund at ease with metals, (+5.25% in November, 16.17% YTD) as market is in contango Source

Corporate website:
Article Source:

Oil prices dip on new economic fears

Posted on 29 April 2009 by VRS  |  Email |Print

From Crude oil prices fell beneath $50 a barrel again on Tuesday, as pessimism about a recovery in the global economy pushed bulls out of commodity and equity markets across the world.

In London, the forward-month Brent contract was down by more than 2% on Tuesday afternoon, trading at around $49.20/b. The price for the June contract for light sweet crude oil in New York was also just over $49/b……Full Article: Source

It’s not just BP that feels oil price pain

Posted on 29 April 2009 by VRS  |  Email |Print

From Profits down 62%. Cash from operations down almost 50%. How long can it be before BP cuts its dividend, delivering a blow to every pension fund in the land?

Actually, don’t place much money on that outcome. It is now becoming possible to believe that the dividend will survive the fall in the oil price. Yesterday’s numbers weren’t pretty for BP’s shareholders but encouragement for them lies in the fact that an old rule in the oil business - costs follow prices - is still working……Full Article: Source

Opec calls for control over speculation

Posted on 29 April 2009 by VRS  |  Email |Print

From TheOrganisation of Petroleum Exporting Countries (Opec) and 13 Asian states have urged greater oversight of oil and other commodity markets to prevent a surge in prices after the global economy recovers from the worsening recession.

Participants in a ministerial energy roundtable in Tokyo sought limits on positions in over-the-counter trades and said “excessive” oil-price movements were “undesirable”, according to a statement released after Sunday’s meeting. They also called for “continuous” investments to boost energy supplies……Full Article: Source

Nigeria: Nigeria, others blame non-Opec members for oil price woes

Posted on 29 April 2009 by VRS  |  Email |Print

From Nigeria and other members of the Organisation of Petroleum Exporting Countries (OPEC) have accused non-members for oversupplying global market with 720, 000 barrels per day.

The aggrieved members of oil cartel stated through one of their chieftains, Chakib Khelil that the non-OPEC members have continued to increase output at a time OPEC slashed 4.2 million barrels per day from its production to save the price from the oversupplied market……Full Article: Source

Wind energy: Mainstream renewable power

Posted on 29 April 2009 by VRS  |  Email |Print

From Wind energy is spearheading Britain’s efforts to generate 35pc of our electricity from renewable sources by 2020 because the nation has plentiful supplies.
In addition, the technology for wind energy is better developed and more commercially viable than other renewable energy sources……Full Article: Source

Solar energy: Future looks bright for projects as costs drop

Posted on 29 April 2009 by VRS  |  Email |Print

From Given Britain’s unpredictable summers, UK involvement in solar energy projects is largely restricted to funding projects in other countries, where Tom Murley sees no shortage of investment opportunities.
“People in the UK are doing solar projects on a different scale,” says Mr Murley, director and head of the renewable energy team at private equity group Hg Capital……Full Article: Source

US more optimistic about climate deal after talks

Posted on 29 April 2009 by VRS  |  Email |Print

From AP: The top U.S. negotiator on climate change said Tuesday that he is slightly more optimistic about striking a new international agreement to curb global warming after a two-day meeting with the world’s largest emitters of greenhouse gases.

Todd Stern, the U.S. special envoy for climate change, told reporters at a briefing Tuesday that he is “a bit more optimistic” that the U.S. will be able to broker a new deal in Copenhagen in December……Full Article: Source

Obama pushes for cap on emissions

Posted on 29 April 2009 by VRS  |  Email |Print

From U.S. President Barack Obama made a sweeping appeal Wednesday for America to break its dependence on foreign oil and renewed his push for Congress to pass this year global warming legislation imposing a hard cap on U.S. carbon emissions.

Marking Earth Day with a trip to an Iowa manufacturer of wind turbine towers, Obama said he is determined to use his presidency to “break the bonds of fossil fuels” and cast oil as an energy source destined to become part of America’s past……Full Article: Source

China’s big gold buy barely kept pace with forex

Posted on 29 April 2009 by VRS  |  Email |Print

From Reuters: The big surprise in China’s revelation on Friday that it had secretly added over 450 tonnes of gold to its foreign reserves over the past six years may be the fact that it hasn’t bought far more than that.

Now, many analysts say the rare public disclosure may be a prelude to Beijing accelerating its purchases — possibly from big government agencies or central banks — as it worries about the erosion of its $2 trillion cash pile……Full Article: Source

‘Buy Gold, not Gold shares’- John Licata

Posted on 29 April 2009 by VRS  |  Email |Print

From Bullish on gold, platinum, palladium and natural gas, “If you think that you can be a beneficiary of some commodity strategies, just stick with it in the downturn,” says John J. Licata Chief Investment Strategist at Blue Phoenix, Inc., , even though he’s anything but bullish on the apparent recovery in the global economy just now.
“We’ve been hearing from many companies, prior to earnings releases, that the second half of this year was going to look a lot better. Once these companies actually started to release earnings, however, we started to hear that recovery could be pushed back in 2010.”…..Full Article: Source

Gold Investment still popular ‘for safe-haven appeal’

Posted on 29 April 2009 by VRS  |  Email |Print

From The head of the Dubai Multi Commodities Centre (DMCC) has claimed that Gold Investment remains attractive against the backdrop of a turbulent economy.

Industry dignitaries from institutions such as Standard Bank, the World Gold Council and GMFS descended on the emirate yesterday (April 27th) for the DMCC Gold Convention 2009…..Full Article: Source

Copper declines on outlook for demand after swine flu outbreak

Posted on 29 April 2009 by VRS  |  Email |Print

From Bloomberg: Copper fell for a second day in London on concern that an outbreak of swine flu will prolong the global economic recession and sap demand for raw materials.

The World Health Organization raised its global pandemic alert to the highest since it adopted a warning system in 2005, saying the outbreak isn’t containable. Trading volume of the benchmark copper contract dropped to 26,464 lots yesterday, the lowest in a week, according to London Metal Exchange data on Bloomberg. One lot is equal to 25 metric tons……Full Article: Source

Copper supply and demand - New rule book still being written

Posted on 29 April 2009 by VRS  |  Email |Print

From What’s driving copper to its recent high of $2.20 a pound? If demand is down, how is it possible that the price of copper went up 40% to 50% within the last three months alone?
“We’re playing by a different set of rules now,” says Gianni Kovacevic, corporate development strategist at Global Opportunities AG……Full Article: Source

Eurodollar futures up on Citi/BofA report

Posted on 29 April 2009 by VRS  |  Email |Print

From Reuters: Eurodollar futures rose in Asia on Tuesday after a news report saying U.S. regulators had told Citigroup and Bank of America they may need to raise more capital spurred a broad flight to safer assets.

Dollar interbank rates however were fixed at new lows, their lowest since mid-2003, extending a downtrend driven by the rally in stocks and sporadic upbeat economic news over the past few weeks……Full Article: Source

April 2009
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