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Commodities Briefing - Archive | November, 2014

China’s slowdown is putting pressure on commodities market: Hemindra Hazari

Posted on 28 November 2014 by VRS  |  Email |Print

By and large everything has gone up in this market, everything looks over heated. Banking has gone up and people are still talking about that it is the beginning of a multi-year bull cycle run. Commodities are under lot of pressure because China is in a slowdown mode.
Surprisingly, while imports over all were down in month of October, iron ore imports were actually up which shows that a lot of dumping is taking place. Indian people are importing the iron and the steel because that is what is happening globally……………………………………Full Article: Source

Commodities cycle is alive and well – and turned very, very bearish

Posted on 28 November 2014 by VRS  |  Email |Print

Anybody who still has lingering doubts that the commodity cycle has turned bearish need only delve into two reports released this week on Australia’s resources sector. The half-yearly report from the Bureau of Resources and Energy Economics (BREE), the government’s forecaster, showed only three projects, worth a total A$597 million ($507 million), reached a positive final investment decision (FID) in the six months to October.
This is not only the lowest number, but the lowest value for more than a decade, and is conclusive proof that investment in projects is waning under the burden of low prices and more muted demand forecasts as growth in top buyer China slows……………………………………Full Article: Source

JP Morgan: The best way to invest in commodities right now

Posted on 28 November 2014 by VRS  |  Email |Print

Recent falls in commodities prices have brought the natural resources sector back to the lows witnessed last summer. October in particular was a challenging month, mostly due to falling oil prices, with all commodity sub-indices registering negative returns across the month.
Apart from the supply side considerations, of which more below, a number of global economic data points outside the US are continuing to worry investors about the health of the global economic recovery……………………………………Full Article: Source

Oil plunges as Opec tests the mettle of US shale industry

Posted on 28 November 2014 by VRS  |  Email |Print

Opec threw down the gauntlet to US shale oil producers by deciding not to cut its production, in a move that sent the oil price tumbling by more than 8 per cent to a four-year low. The cartel said it was leaving its output ceiling of 30m barrels a day unchanged, in a significant departure from its traditional policy of cutting production to prop up falling oil prices.
Any further fall in the price of crude, which has dropped by nearly 40 per cent since mid-June, will mean more pain for oil exporting countries and global energy companies, and could endanger billions of dollars of investment in new oil projects……………………………………Full Article: Source

Oil price plunges after Opec split keeps output steady

Posted on 28 November 2014 by VRS  |  Email |Print

Oil prices have crashed to a new four-year low, below $72 per barrel, after a major split inside Opec forced the cartel to hold production at current levels rather than make cuts to try to turn the market around.
The reduced cost of energy - prices are now down 37% since the summer - should be a boost to British consumers and the wider economy, but experts warned the North Sea oil industry is now facing a slump in investment and major job cuts. There are now predictions that the price of Brent blend could fall to as low as $60, which would be disastrous for countries with high producing costs and economies dependent on oil and gas, such as Russia and Iran……………………………………Full Article: Source

Saudis block OPEC output cut, sending oil price plunging

Posted on 28 November 2014 by VRS  |  Email |Print

Saudi Arabia blocked calls on Thursday from poorer members of the OPEC oil exporter group for production cuts to arrest a slide in global prices, sending benchmark crude plunging to a fresh four-year low.
Brent oil LCOc1 fell more than $6 to $71.25 a barrel after OPEC ministers meeting in Vienna left the group’s output ceiling unchanged despite huge global oversupply, marking a major shift away from its long-standing policy of defending prices……………………………………Full Article: Source

The Opec oil price still matters (just not as much as before)

Posted on 28 November 2014 by VRS  |  Email |Print

A cursory glance at the history of the oil price since the second world war tells its own story. There are booms when the price of oil is low and busts when the cost of crude rises. Four spikes in oil since 1973 have been matched by four recessions over the same period.
The so-called postwar golden age is also the story of a flatlining oil price, which remained at around $2 a barrel during that period. Five Middle Eastern nations formed the Organisation of the Petroleum Exporting Countries in 1960 but it was more than a decade before Opec bared its teeth……………………………………Full Article: Source

How OPEC’s Vienna Meeting is Playing Out So Far

Posted on 28 November 2014 by VRS  |  Email |Print

There’s certainly grumbling among members of the Organization of Petroleum Exporting Countries as they meet at the cartel’s headquarters in Vienna to discuss tumbling oil prices. But oil prices sank to four-year lows Thursday, underlining the market’s perception that the griping won’t lead to action robust enough to stop the slump.
As they arrived at OPEC HQ this morning, the differences between OPEC members seemed as deep as ever–although most government officials were stressing they’d stick with the consensus to more strictly enforce the existing production quota of 30 million barrels a day, which could remove at least 300,000 barrels from the market based on recent data……………………………………Full Article: Source

Swiss vote provokes ‘6,000-year gold bubble’ attack

Posted on 28 November 2014 by VRS  |  Email |Print

‘Save Our Swiss Gold’ referendum is a primordial scream against a world of quantitative easing but would paralyze the Swiss National bank. Five million Swiss voters will decide on Sunday whether to force the Swiss National Bank to repatriate all its gold from vaults in Britain and Canada, boost its holdings of bullion to 20pc of foreign reserves and then keep the metal forever.
The “Save Our Swiss Gold” referendum is a valiant attempt by Switzerland’s army of gold bugs - and the populist Swiss People’s party (SVP) – to lead the world back to the halcyon days of the international Gold Standard. It is a primordial scream against a quantitative easing and money creation a l’outrance by the leading central banks……………………………………Full Article: Source

Gold is a 6,000-year bubble - Citi

Posted on 28 November 2014 by VRS  |  Email |Print

Citi’s chief economist Willem Buiter has trained his mental shotgun at goldbugs everywhere, and unloaded both barrels. In a research piece published late yesterday, the Anglo-Dutch economist argued that the metal was not so precious and merely a “six thousand year-old bubble” with hardly any real value. Mr Buiter therefore compares gold to the “intrinsically useless” stone money of the Isle of Yap.
Gold is unlike any other commodity. The only things that come close to it are Bitcoin and similar digital peer-to-peer currencies. Gold is costly to extract from the earth and to refine to a reasonable degree of purity……………………………………Full Article: Source

Ed Moy: World entering era of greater gold transparency

Posted on 28 November 2014 by VRS  |  Email |Print

Edmund C Moy, former US Mint Director and senior aide to President George W Bush, recently joined gold-backed IRA provider Fortress Gold Group as chief strategist. In this interview with MINING.com, Moy discusses growing demand from Asia, paper versus physical markets in gold, the changing central bank landscape and argues that the clamor from citizens for greater transparency about official gold holdings would only grow.
Moy says three-four years ago in the aftermath of the financial crisis, the paper markets in gold and the physical bullion market began to disconnect. “When the gold price hit $1,900 an ounce in 2011, it really should have been at $1,600. It will probably overshoot on the downside too. Paper markets are always way behind or way ahead,” says Moy……………………………………Full Article: Source

Gold rush in Europe as concern over money printing rises

Posted on 28 November 2014 by VRS  |  Email |Print

Many European countries are now moving to repatriate their gold holdings from storage abroad. They are also looking to increase the proportion of gold in their international reserves to assure currency and financial stability.
This move is significant, as it reflects growing concern that the unprecedented money printing of major central banks could debase fiat currencies, trigger runaway inflation and cause another financial crisis - perhaps even bigger than that of 2008. In spite of surging demand for the yellow metal, the gold price continues to struggle at under $1,200 per ounce……………………………………Full Article: Source

How JPMorgan struck gold with copper: Andy Home

Posted on 28 November 2014 by VRS  |  Email |Print

December 2010 and the copper market was booming. On the London Metal Exchange (LME), three-month metal was charging to the then all-time high of $9,550 per tonne, and front-month spreads were tightening.
LME reports at the time showed a single entity controlling over half of all eligible LME stocks, leading to a frenzy of speculation as to just who was squeezing the copper market. JPMorgan was “outed” in the media as the controlling hand, which only fuelled further the whirl of speculation, given the same bank was proposing to launch an exchange-traded fund backed by physical copper……………………………………Full Article: Source

A copper bullion story

Posted on 28 November 2014 by VRS  |  Email |Print

A tip of the hat to John Kemp for drawing our attention to the latest from Reuters’ base-metals’ reporter Andy Home, who provides some much needed perspective on the nature of cartels in commodities. Namely, the fact they’re probably endemic.
Case in point, in December 2010 when the copper market was booming, LME reports showed that a single entity controlled over half of all eligible LME stocks, leading to speculation that someone was squeezing the market……………………………………Full Article: Source

Industrial metals beat wider slump

Posted on 28 November 2014 by VRS  |  Email |Print

Miners have watched iron ore sink precipitously this year to a five-year low. That has been repeated for oil and coal, as expectations of global demand have weakened.
Yet despite slower growth in China, the world’s largest consumer of commodities, analysts say demand remains robust for some industrial metals, which are set to benefit from any long-term shift towards more private investment and consumption……………………………………Full Article: Source

Deutsche Bank Shutters Precious Metal Trading Amid Cuts

Posted on 28 November 2014 by VRS  |  Email |Print

Deutsche Bank AG (DBK), Europe’s biggest investment bank, is exiting physical trading of precious metals as it scales back its securities unit to improve returns. Some parts of the business may be shifted to other units of Deutsche Bank and the firm will continue to trade derivatives linked to precious metals, a London-based spokesman for the bank.
Global banks are exiting or paring back their commodities arms as regulators order them to increase buffers for potential trading losses and avoid a repeat of taxpayer-funded rescues. Deutsche Bank’s move is part of an overhaul of its securities unit to help boost profitability and increase the proportion of capital on its balance sheet by shrinking assets……………………………………Full Article: Source

Rio Tinto iron ore exports to rise if miner approves new Pilbara project

Posted on 28 November 2014 by VRS  |  Email |Print

Rio Tinto’s controversial policy of expanding exports in a depressed iron ore market faces a litmus test on Friday, when the miner is expected to approve more than $US1 billion ($1.17 billion) in spending for a new iron ore mine in the Pilbara.
Despite months of criticism from takeover suitor Glencore and the Western Australian Premier, Deutsche analyst Paul Young said he still expected Rio to approve construction of the greenfields Silvergrass mine in the Pilbara, as part of efforts to lift iron ore exports to more than 330 million tonnes in 2015……………………………………Full Article: Source

Iron ore prices - Where’s the bottom?

Posted on 28 November 2014 by VRS  |  Email |Print

As the daylight hours shorten and winter chill takes hold of the iron ore mines and surrounding communities in the Labrador Trough, it’s as good a symbol as any of the deep freeze that is engulfing the global iron ore market, as spot prices continue to head south. Back in October, Cliffs Natural Resources said it would permanently close its Wabush iron ore mine on the Labrador side of the Trough, after having laid off some 500 workers in February when it first idled the mine.
And now Cliffs says it has failed in its attempts to find investment partners for the US$1.2-billion expansion of its Bloom Lake iron ore mine on the Quebec side of the Trough — an expansion that the struggling major said was needed to make the Bloom Lake mine financially viable……………………………………Full Article: Source

Reasons to be optimistic about aluminium in 2015 – Hydro

Posted on 28 November 2014 by VRS  |  Email |Print

World aluminium demand outside China is expected to have grown 3-4% over the course of this year and to grow by the same amount in 2015, Norwegian aluminium producer Norsk Hydro has said.
The company will therefore look to “create value in a tightening aluminium market” by working to become “bigger, better and greener”, it said on its annual capital markets day on Thursday November 27. Global aluminium markets are expected to remain tight, which will lead to higher all-in metal prices and improved earnings for producers, Hydro said……………………………………Full Article: Source

Platinum Declines as ETF Holdings Post Biggest Drop in 6 Months

Posted on 28 November 2014 by VRS  |  Email |Print

Platinum fell for the first time in three days as investors sold holdings of exchange-traded funds backed by the metal at the fastest pace in six months. Gold retreated as oil dropped to a four-year low.
Global holdings in platinum ETFs were down 1.2 percent to 82.65 tons as of yesterday, the biggest drop since May. In November, holdings have fallen on all but five days. The metal is down 11 percent this year as concerns about slowing economies outside the U.S. and the dollar’s rally curbed commodities demand……………………………………Full Article: Source

Agribusiness ETFs in Focus on Deere Earnings Beat and Weak Outlook

Posted on 28 November 2014 by VRS  |  Email |Print

The world’s largest agricultural equipment maker, Deere & Co, released fourth-quarter 2014 results before the opening bell on Wednesday. Though the company surpassed our estimates on both the top and bottom lines, it provided a gloomy outlook on fiscal 2015.
Earnings per share came in at $1.83, comfortably beating the Zacks Consensus Estimate of $1.58 but deteriorating from the year-ago earnings of $2.11. Revenues also fell 5% year over year to $8.97 billion, but strongly beat the Zacks Consensus Estimate of $7.76 billion……………………………………Full Article: Source

Euronext to launch dairy derivatives in 2015

Posted on 28 November 2014 by VRS  |  Email |Print

European exchanges operator Euronext will launch a range of dairy futures and options next year, betting the abolition of European Union milk production quotas will spur demand for hedging and pricing tools in the industry.
Euronext will offer derivatives for butter, skimmed milk powder and whey powder, with the launch scheduled for the spring, it said on Thursday. The EU, the world’s top dairy producer, is scrapping milk production quotas from April 2015 in response to growing global demand for dairy products, a move expected to lead to an increase in EU output and greater volatility in prices……………………………………Full Article: Source

Citi Chief Economist: Bitcoin is Closest Commodity to Gold

Posted on 28 November 2014 by VRS  |  Email |Print

Gold is a commodity like bitcoin and other cryptocurrencies, Citi’s chief economist argues in a research note published yesterday, ahead of a Swiss vote that could cause the global gold price to spike.
Switzerland will hold a popular referendum on Sunday called ‘Save Our Swiss Gold’. If passed, it would mandate the Swiss National Bank to hold a fifth of its assets in gold and to repatriate its holdings from England and Canada. The bank would also be banned from selling its gold in future. Gold prices have dropped as markets await the referendum. If the referendum is passed, gold prices will surge, although this is unlikely, CNBC reported……………………………………Full Article: Source

Nigeria currency devaluation to curb banks’ Eurobond bonanza

Posted on 28 November 2014 by VRS  |  Email |Print

Nigerian banks’ overseas borrowing bonanza looks to be over in the wake of a dramatic currency devaluation this week, but while risks are rising, repaying existing debt should not be a problem for most.
Companies in Africa’s largest economy have rushed in recent years to take advantage of rock-bottom global borrowing costs and investors’ hunger for yield, selling some $5 billion in hard currency bonds since 2007, according to Thomson Reuters data……………………………………Full Article: Source

Guangdong carbon market to restrict access to offset credits

Posted on 28 November 2014 by VRS  |  Email |Print

China’s biggest carbon market in Guangdong is going to clamp down on the use of cheaper credits generated by large government-regulated mitigation projects in an attempt to prop up prices in an oversupplied market.
China’s seven regional pilot carbon markets cover the CO2 emissions of around 2,000 companies, and handed out a total of 1.2 billion permits in 2013 that can be used to trade or are handed over to the government to fulfil carbon emission targets……………………………………Full Article: Source

EU agrees on law to make ships measure CO2 emissions

Posted on 28 November 2014 by VRS  |  Email |Print

For the first time, the shipping sector will have to monitor its carbon emissions under a law agreed upon by the European Union Wednesday (26 November), intended as a step towards tackling a growing source of pollutants linked to climate change.
International shipping accounts for around 3 percent of the world’s emissions of carbon dioxide, a share which could increase to 18 percent by 2050 if regulation is not in place, according to the International Maritime Organisation (IMO)……………………………………Full Article: Source

Commodities Guru Sees Bullish Markets Ahead

Posted on 27 November 2014 by VRS  |  Email |Print

Roughly seven years ago, commodity prices were surging to record highs as Western economies grew at a decent pace and Asian economies experienced supercharged growth. Though the 2008 financial crisis led to a pullback, commodity prices began moving higher again in 2009 and 2010 as economists predicted a synchronized global economic rebound.
We now know that such a widespread rebound never took root, and by the spring of 2011, commodity prices were showing signs of a breakdown. Fast forward to 2014, and this asset class is now deeply out of favor. The underperformance relative to stocks, in that time, has been quite striking…………………………………..Full Article: Source

Jim Rogers Weighs In on Commodities

Posted on 27 November 2014 by VRS  |  Email |Print

Roughly seven years ago, when China’s economy was surging and dollars were cheaper, “commodities” was one of the sexiest words in the investment lexicon. Seven years later, many commodities—including oil, copper, and gold—have fallen in value and out of favor for a host of reasons.
So what’s next for this timeless asset class? In a piece published Wednesday, Street Authority writer David Sterman discussed what legendary investor Jim Rogers is thinking about an investment category he has helped promote in recent years…………………………………..Full Article: Source

World on brink of oil price war as Opec set to keep pumping

Posted on 27 November 2014 by VRS  |  Email |Print

Oil slumped on Wednesday as expectations that Opec will cut production faded following dovish remarks by cartel kingpin Saudi Arabia, which could signal the beginning of a price war. Speaking on the sidelines ahead of Thursday’s critical meeting of the Organisation of Petroleum Exporting Countries (Opec) in Vienna, Saudi oil minister Ali Al-Naimi said: “The market will stabilise itself eventually”.
His remarks were interpreted by the market as a signal that the cartel would keep its production ceiling at 30m barrels per day (bpd), which sent the price of crude lower…………………………………..Full Article: Source

Saudi oil minister expects oil price to ’stabilise’ as OPEC gathers

Posted on 27 November 2014 by VRS  |  Email |Print

Oil prices are likely to again come under pressure Wednesday after Saudi Arabia’s oil minister showed little sign of concern ahead of a crucial meeting of the Organisation of Petroleum Exporting Countries (Opec). Speaking to reporters on the sidelines of the gathering of some of the world’s biggest oil producing countries in Vienna, Ali Al-Naimi said: “The market will stabilise itself eventually”.
He added that that Opec had made no decisions ahead of its formal meeting tomorrow after he met with senior oil emissaries of Russia’s President Vladimir Putin on Tuesday…………………………………..Full Article: Source

Russia sees average oil price at $80-90 in medium, long-term

Posted on 27 November 2014 by VRS  |  Email |Print

Russia sees an average oil price of around $80-90 per barrel in the medium- and possibly in the long-term, Finance Minister Anton Siluanov said on Wednesday, underlining growing pressure on the Russian budget.
Russia needs an oil price of $100 per barrel to balance its 2015-2017 budget and has watched nervously as Brent has lost around 30 percent since June. On Wednesday it traded at around $78 per barrel before an OPEC meeting to discuss the price…………………………………..Full Article: Source

Saudis to push OPEC to cut output: CNBC survey

Posted on 27 November 2014 by VRS  |  Email |Print

Saudi Arabia will this week push the Organization of Petroleum Exporting Countries (OPEC) to cut production by up to 1.5 million barrels a day to help re-balance the market and lift oil prices from their four-year lows, analysts and strategists told CNBC.
Nineteen out of 30 market professionals contacted by CNBC say OPEC’s leading member Saudi Arabia will spearhead an agreement to cut supply at its November 27 meeting. “Only a 1.5 million barrel-a-day reduction would help stabilize the price at this stage,” Ole Sloth Hansen, head of commodity strategy at Saxo Bank, told CNBC…………………………………..Full Article: Source

Winter of discontent for oil producers?

Posted on 27 November 2014 by VRS  |  Email |Print

Global oil producers could face a bleak winter unless OPEC heavyweights reverse course as they head into a critical meeting and reach an agreement on production cuts to boost sagging prices.
Ministers from Saudi Arabia and the United Arab Emirates signalled Wednesday that there would be no deal reached in Vienna, although the cartel’s leaders may have been employing scare tactics in order to persuade fiscally-strapped members that they must participate in production cuts or face steep price declines…………………………………..Full Article: Source

Gold price eyed as investors await Swiss vote

Posted on 27 November 2014 by VRS  |  Email |Print

Gold prices slipped on Wednesday from this week’s highs, as the market awaited a Swiss referendum on central bank gold reserves. On November 30, voters in Switzerland will head to the polls to decide whether the Swiss National Bank (SNB) should refrain from selling any more gold and should boost its gold holdings to 20 percent, up from current levels of 7 percent.
The ultra-conservative Swiss People’s party proposed the initiative, called “Save Our Swiss Gold”, with the intention of boosting the security and independence of Switzerland in times of uncertainty…………………………………..Full Article: Source

Gold rangebound below $1,200/oz as Asia buying evaporates

Posted on 27 November 2014 by VRS  |  Email |Print

Gold eased slightly on Wednesday then steadied at just under $1,200 an ounce for another rangebound session as Asian overnight buying evaporated amid low volumes ahead of the US Thanksgiving holiday and a key Swiss vote on bullion holdings.
The US dollar retreated after data suggested US economic growth might be slowing in the final quarter of 2014. Oil was pulled lower after OPEC increased signals that it would hold off making any major production cuts this week…………………………………..Full Article: Source

Silver price outperforming gold – PGM’s rise

Posted on 27 November 2014 by VRS  |  Email |Print

Lack of agreement by key OPEC members yesterday to pledge cutbacks ahead of Thursday OPEC meeting sent oil prices lower and that led to an intraday sell-off in bullion, but prices recovered by the close, ending up 0.7 percent on average, with platinum up the most with a 1.2 percent gain in price to $1,220 and gold finished up 0.4 percent at $1,201.40.
This morning - Precious metals are mixed with bullion prices off 0.1 percent, with the gold price at $1,199.80 while the PGMs are up 0.3 percent. Interestingly silver has been outperforming gold as silver has been extending gains as seen by the weaker gold/silver ratio – this bodes well for bullion generally…………………………………..Full Article: Source

The 2015 Metals Outlook Series: Gold

Posted on 27 November 2014 by VRS  |  Email |Print

Gold has peaked, but the current price schizophrenia of spikes and troughs that have been experienced over the last six months will soon be at an end. However there is still likely to be pain for a number of unproductive gold miners as the commodity price goes through a rationalisation phase operations with high costs per ounce are likely to fall as the market becomes tighter.
But how did we get to this point, and how did the great decade long Bull Run get to its current state, and where will it head in 2015? The rise and fall of the gold market did not happen overnight; and it is not the first time this market has moved this frenetically either…………………………………..Full Article: Source

Copper Falls to Eight-Month Low on U.S. Equipment Orders

Posted on 27 November 2014 by VRS  |  Email |Print

Copper futures fell to an eight-month low as orders for business equipment unexpectedly dropped in the U.S., the world’s second-biggest consumer of the metal. Orders for non-military capital goods excluding aircraft declined 1.3 percent in October, a government report showed today. Economists in a Bloomberg survey expected a 1 percent gain. A slump in energy futures damped the outlook for some commodities.
“The lower oil prices cast a shadow on metals as well,” Richard Fu, the director for Asian commodity trading at Newedge Group SA in London, said in a note…………………………………..Full Article: Source

HSBC, Goldman rigged platinum prices

Posted on 27 November 2014 by VRS  |  Email |Print

Goldman Sachs and HSBC were sued in New York over claims they conspired for eight years to manipulate prices for the precious metals platinum and palladium in what plaintiffs’ lawyers say is the first class-action lawsuit of its kind in the US.
Standard Bank and a metals unit of BASF, the world’s largest chemical company, were also sued. The four companies used inside information about client purchases and sale orders to profit from price movements for the metals used in products ranging from jewellry to cars, according to a complaint filed yesterday in Manhattan federal court…………………………………..Full Article: Source

State Street to Debut ‘Low Carbon’ ETF on Friday

Posted on 27 November 2014 by VRS  |  Email |Print

State Street Global Advisors is set to launch the market’s first-ever low-carbon exchange-traded fund on Friday, according to a trader alert from exchange operator Bats Global Markets. The ETF, called the SPDR MSCI ACWI Low Carbon Target ETF, will arrange a basket of global stocks by their low carbon footprints, according to the ETF’s most recent filing with regulators. It follows a passive index to do so.
Rankings in the index will be determined by a company’s greenhouse gas emissions per sales and potential carbon emissions from fossil fuels (fossil fuel reserves) per dollar in market value…………………………………..Full Article: Source

Who Will Benefit From Digital Currency?

Posted on 27 November 2014 by VRS  |  Email |Print

One of the questions that’s still an open question is whether, if all your friends had Bitcoin, if you would find it useful to use Bitcoin too. Right now, people don’t use Bitcoin to split checks, because for every person who has Bitcoin, most of their friends don’t. But if you had a whole community of people who all had Bitcoin, would they find this to be more convenient than using cash or other options?
By seeding an entire community with Bitcoin, we can test the hypothesis that it’s lack of community adoption that’s keeping people from using Bitcoin. Another hypothesis is that maybe it just doesn’t provide that much value above cash or other alternatives…………………………………..Full Article: Source

How foreign currencies affect your investment returns

Posted on 27 November 2014 by VRS  |  Email |Print

There is money to be made from backing the right foreign currencies via the right funds. Here we predict the future winners. The movement of currencies on the foreign exchanges may sound like a matter for professional traders in the City of London, not ordinary investors. But, in fact, anyone with an Isa should appreciate the risks – and opportunities – that can be offered by currency fluctuations.
Over the next couple of years, small fortunes are there to be made not just by picking the right funds or shares but by backing the winning currencies, according to experts…………………………………..Full Article: Source

Time To Rethink Currency Hedged ETF Use

Posted on 27 November 2014 by VRS  |  Email |Print

Yesterday’s surprisingly strong GDP numbers—third-quarter annualized growth was revised up to 3.9 percent—has many investors scratching their heads. To say we’re in a world of conflicting economic news would be an understatement.
Just to wrap a few data points: We have the strong GDP, suggesting basic economic growth for the U.S., but with a backdrop of flagging consumer confidence. The European Central Bank seems ready to keep stimulating the euro, pulling it off the two-year lows…………………………………..Full Article: Source

Huaneng sets up China’s first carbon fund

Posted on 27 November 2014 by VRS  |  Email |Print

State-owned power generator Huaneng on Wednesday set up China’s first carbon fund, which will focus on trading carbon permits in the emissions trading scheme in Hubei province.
The establishment of the 30 million yuan ($4.9 million) fund marks another step towards maturity for China’s fledgling pilot carbon markets, which will convert to a national scheme in 2016…………………………………..Full Article: Source

New Carbon Market Most Important in Climate Deal, U.K. Says

Posted on 27 November 2014 by VRS  |  Email |Print

A new carbon market that will spur emerging nations to cut emissions is the key element of next year’s planned global climate accord, a U.K. official said.
Winning United Nations support for a market that would give credits for emission reductions “would be the most important part of any international agreement,” Amber Rudd, parliamentary under secretary of state for climate change, said yesterday at a hearing at the U.K. Parliament in London. Rather than specify what nations must do, the meeting needs to agree on a framework, or “toolbox that countries can take down and operate” themselves, she said…………………………………..Full Article: Source

Commodities accumulators panic – from Vienna to Zurich

Posted on 26 November 2014 by VRS  |  Email |Print

The fact that the accumulators of the world’s key commodities are gathering this week in Austria (OPEC on oil) and Switzerland (Swiss vote on gold reserves) to rein in a sharp decline in their valued resources is a manifestation of rising deflation risks emerging from a strengthening US dollar and a slowing Chinese economy.
Year-to-date, the Reuters/Jefferies CRB Commodity Index is down 5%, and as much as 15% from its June highs. Admittedly, the index is more weighed towards energy commodities than to metals and agricultural commodities. But the technical break of the CRB’s 30-month trendline (green support line in chart), portends further declines below the 260 level……………………………Full Article: Source

Venezuela Seeks Oil Price Up Back at $100 a Barrel

Posted on 26 November 2014 by VRS  |  Email |Print

Venezuela wants oil prices to return to $100 a barrel, the country’s foreign minister said on Tuesday, ahead of an OPEC meeting. Speaking to reporters, Rafael Ramirez, who will represent Venezuela at the Organization of the Petroleum Exporting Countries gathering on Thursday, said “the [oil] price has to be $100 per barrel, [that] is a fair price.”
Ramirez made the remarks as he exited a meeting with fellow OPEC member Saudi Arabia and envoys from Russia and Mexico, two key oil producers outside the group. The price of Brent crude, the global benchmark, was quoted at $78.40 a barrel on Tuesday following the meeting, down 1.6%……………………………Full Article: Source

Iran parliament suggests $75-80/bbl oil price for budget

Posted on 26 November 2014 by VRS  |  Email |Print

Iran’s parliament recommends basing next year’s budget on an oil price of $75-80 a barrel, a senior lawmaker was reported as saying on Monday, down from $100 in the 2014 budget plan. “It seems the trend of decline in oil prices will continue and a return to previous oil prices is not expected,” the official IRNA news agency reported Gholamreza Tajgardoon, head of parliament’s planning and budget commission, as saying.
“Parliament and the planning commission recommend an oil price of about $80 a barrel to the government,” he said when asked about how the fall of oil prices would affect the budget. “The price of oil for the budget still can’t be announced, but it seems with caution and foresight, it will be based on a barrel of oil between $75 and $80,” he said……………………………Full Article: Source

US energy is growing, and so is US ‘power’

Posted on 26 November 2014 by VRS  |  Email |Print

America’s unexpected transformation into the world’s biggest natural gas producer and one of the globe’s largest oil producers will give the U.S. more geopolitical clout on the world stage—including in key relationships with China, Russia and the Middle East.
By 2020, the U.S. is likely to be energy independent, along with Canada, its biggest import and export partner. Add to that a new boom expected from a reforming energy industry in Mexico, and North America will more than hold its own as a powerhouse in the global energy market……………………………Full Article: Source

Gold prices may surge if Swiss vote on reserves passes

Posted on 26 November 2014 by VRS  |  Email |Print

Global gold prices may surge in the coming week if Swiss voters approve a controversial measure that would force their country’s central bank to keep at least a fifth of its assets in gold. If the referendum Sunday passes and the Swiss government is forced to start beefing up its reserves, the price of gold could jump to more than $1,350 an ounce — an increase of 18%, Bank of America predicts.
Spearheaded by the right-wing Swiss People’s Party, the so-called Save Our Gold law would compel the Swiss National Bank, the country’s central bank, to increase its gold reserves from the current 7.7% to 20% within five years……………………………Full Article: Source

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