Dec 15, 2010 ~ Business

Wednesday, December 15, 2010

Oil futures rise after crude inventories fall more in eight years

Crude oil rose after a U.S. government report showed supplies fell the most since 2002, imports fell and refiners boosted fuel production. Inventories fell 9.85 million barrels to 346 million last week, the Energy Department said. The stock is expected to decline from 2.5 million barrels. Imports fell 15 percent to 7.69 million barrels, the lowest level since September 2008. Refineries operated at 88 percent capacity, the highest since September. "The numbers are striking oil," said Andre Julian, chief financial officer and senior market strategist OpVest Wealth Management in Irvine, California. "The short-term shortage of oil in the U.S. is forming. The prices could easily reach $ 100 by the end of the year on the basis of this report." Crude oil for January delivery rose 71 cents, or...

OAO Uralkali is near a deal to buy OAO Silvinit

OAO Uralkali, the largest fertilizer company in Russia, is near a deal to buy OAO Silvinit, its biggest domestic rival with a market value of $ 6.9 million, according to two people with knowledge of the situation. Uralkali obtained the agreement of the government to create a national champion to compete internationally, said the officials, who declined to be identified because the plan is confidential. The transaction is likely to be announced before year's end, the people said. Russian billionaire Suleiman Kerimov and partners acquired a controlling interest in Berezniki, based Urals Uralkali and Silvinit between June and August and have been trying to combine the two. The combined group representing 17 percent of world potash production, making it the second largest producer after Canada's...

European stocks fell

European stocks fell, breaking the longest streak of gains in six months, after Moody's Investors Service placed the debt rating of Spain on review for possible downgrade. Banco Santander SA, Spain's largest bank, and Banco Bilbao Vizcaya Argentaria SA, both landed in Madrid. Inditex SA, slid 4.7 percent after the world's largest clothing retailer reported a slowdown in earnings growth. The drug decreases limited after Novartis AG said it will take total control of Alcon Inc., ending a 11-month conflict with minority shareholders. The Stoxx Europe 600 index lost 0.3 percent to 276.94 at 3:09 pm in London, early crop a drop to 0.7 percent. The benchmark had risen in the last seven days China refrained from raising interest rates and U.S. data Retailers boosted confidence in the world's largest...

Silver is likely to repeat its success in 2011, reaching $ 40 an ounce in new applications and demand for the industry, said the head of commodity trading in Japan's Standard Bank Plc. The precious metal is likely to exceed the gains in gold next year, which exceed $ 1,500 an ounce and palladium, Ikemizu Bruce said in an interview in Tokyo. "Unexpected" new applications for silver, as in solar batteries, and industrial application that supports 80 percent of demand, make the metal's appeal to "a lot of famous investors, especially in the U.S. . "Ikemizu said, without elaborating. Cotton has only won silver in the UBS CMCI index of commodities...

S & P 500 can not rise beyond the pre-Lehman levels Amid technical resistance

The restoration of all losses spurred by the bankruptcy of Lehman Brothers Holdings Inc. is testing the determination of U.S. bulls stock market. 500 Standard & Poor's rose above 1245 hours before paring its gains, failing for a second day to overcome the closing level before Lehman Brothers collapsed in September 2008. Climbing above 1251.70, the closing price on September 12, 2008, may mean that investors are increasingly confident in the manifestation of 21 percent since the July 2 is sustainable, as companies reported earnings above the estimated and the Federal Reserve attempts to boost the economy by purchasing bonds. The S & P 500, up 11 percent this year surpassed the previous 2010 high of 1,217.28 hit in April and posted a combined increase of 13 percent in September and...

Gold fell for the first time in three days in New York as the Federal Reserve refrained from making further purchases of government bonds, curbing demand for the metal as a protection of wealth. The dollar was little changed against the euro before data forecast to show growth in U.S. industrial production, supporting the Fed's comments that the U.S. economy is recovering. The central bank yesterday held a $ 600 billion debt purchases. The dollar rose 0.7 percent against the euro today. Gold futures set a record $ 1432.50 an ounce on 07 December. The Fed "will not increase the volume of Treasury purchases," said Daniel Briesemann, an analyst...

Cotton futures in New York fell for the first time in six days

Cotton futures in New York fell for the first time in six days on speculation a rally to a maximum of one month may reduce the demand for fiber and increase the sowing area in the U.S., the largest supplier in the world. Cotton for March delivery fell as much as 1.9 percent to $ 1.4178 a pound on ICE Futures U.S. New York and was at $ 1.42 at 4:06 pm in Tokyo. The contract touched $ 1.4597 yesterday, the highest since Nov. 10. "Today's higher prices may reduce purchases of foreign importers and encourage U.S. farmers to increase acreage," said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. "It can be it is selling to take profits as the plight of the power supply can last for a while. " cotton acreage may increase by at least 10 percent in the southwestern U.S., according...

Natural gas rose in New York

Natural gas rose in New York, reversing a previous fall, after the U.S. Federal Reserve reported that industrial production rose more than expected, indicating that economic growth can boost demand for fuel. Natural gas for January delivery rose 1.5 cent, or 0.4 percent, to $ 4.27 per million British thermal units at 9:31 am in the New York Mercantile Exchange. The future will take place from 2 percent this mon...

Global Demand for U.S. Assets Slowed in October

Global demand for U.S. stocks, bonds and other financial assets slowed in October from the previous month, the Department of the Treasury, as the pace of economic recovery weighed on demand. net purchases of long-term debt and bonds amounted to 27.6 billion during the month compared with net purchases of 77.2 billion U.S. dollars in September, according to statistics released today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $ 7.5 billion compared with net purchases of 80.1 billion U.S. dollars last month. U.S. economic recovery the deepest recession since the 1930's has lagged behind growth in emerging markets, burdened with an unemployment rate approaching 10 percent and record home foreclosures. "There are some doubts about the pace of...

Interest rates on deposits Argentina are rising to the highest level in 13 months

Interest rates on deposits Argentina are rising to the highest level in 13 months as banks try to meet a year-end demand for cash that the monetary authorities are trying to meet printing pesos. BADLAR call rate that banks pay on deposits of more than 1 million pesos ($ 252,000), held from 30 to 35 days rose to 11.25 percent on December 10, the highest since the 03 November 2009, and up to two-year low of 8.81 percent in May. The BADLAR, which is used as a reference point for Argentina yield corporate bonds, compared with 0.26 percent the interbank rate of one month's supply of London, or Libor, in U.S. dollars. The largest economic expansion since 2005 is driving the demand for cash that companies need to pay mandatory premiums in December and that tourists used to travel in the southern...

Moscow Micex began operating the yuan against the ruble for the first time today

Moscow Micex exchange began operating the yuan against the ruble for the first time today, as Russia and China try to reduce the use of dollars in trade. The ruble closed at 46.3405 for 10 Chinese yuan for 11 hours in Moscow, after opening at 46.35 yuan for 10 shortly after 10 am By the end of the session the trading volume amounted to 4.92 billion yuan (738 850 dollar), or 22.78 million rubles, according to data from the index. Both China and Russia have demanded that the dollar's role in world trade declined from the global financial crisis, and Russia is promoting the ruble as a reserve currency and trade within the former Soviet Union. China is allowing greater use of the yuan, which is not yet fully convertible in international transactions as it seeks to reduce its dependence on the...

Treasuries rose & pushing yields to 10 years less than the highest level in seven months

Treasuries rose, pushing yields to 10 years less than the highest level in seven months, a government report showed that consumer prices advanced in November than economists expected. The extra yield investors demand to hold a 10-year 2-year debt fell for the first time in four days as Moody's Investors Service said it may cut the credit rating of Spain. U.S. debt fell yesterday after the Federal Reserve said that economic recovery continues and maintained its program of 600 billion U.S. dollars for purchases of debt. "The rise in yields is ahead of itself," said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. "The Fed is still suspended, and inflation as evidenced by today's report is relatively benign." The yield on the benchmark 10-year fell six basis...

RIM Rally May Fizzle as Rival estimates are too optimistic IPAD

Research In Motion Ltd. has increased by 41 percent since August on prospects for its new tablet device. That may be too big jump since the product is late to a market led by Apple Inc. 's IPAD, analysts say they are reducing ratings. Sales estimates for the BlackBerry playbook vary from 1 million units next fiscal year to 8 million analysts try to predict demand for a team that will not leave until the first quarter and will also face other rivals as well Apple. "It will be a modest seller and the IPAD probably make 10 times more," said Shaw Wu, an analyst at Kaufman Bros. in San Francisco, which cut its rating on RIM to "hold" on November 9. He estimates RIM sold 1,000,000 playbooks next year at most. The tablet shows that RIM are the growth beyond the BlackBerry device, which is losing...

India plans to start field testing a genetically modified

India, the largest consumer of natural rubber, after China, plans to start field testing a genetically modified as it tries to overcome a shortage forecast by industry to increase fivefold in the next decade. The state-run Rubber Board shall ensure the approval of the states of Kerala and Maharashtra before planting 0.4 hectares, James Jacob, director of the Rubber Research Institute of India, said via email. Trials were cleared last month by the Evaluation Committee of genetic engineering, a group of experts established by the Ministry of Environment, said. Global automobile manufacturers led by Ford Motor Co. are building plants in the second fastest in the fastest growing economy in Asia where auto sales are projected by the government to double to 3 million by 2015. Bridgestone Corp....

He urged the CFTC to curb speculation in the commodity trade

U.S. regulators and lawmakers this week are considering rules to curb speculation in the commodity trade, as Wall Street firms delay calls for companies like Delta Airlines Inc. urging strict limits. Commodity Futures Trading Commission Chairman Gary Gensler is set to appear today before a subcommittee of U.S. agriculture House, in part to discuss the progress of the agency about the rules. Tomorrow, the commissioners will meet in the field. The CFTC has received hundreds of comments on how to implement a contentious part of the Dodd-Frank financial reform - the limits of the influence of large traders in the markets for crude oil, gasoline, heating oil and natural gas. Commissioners have discussed so-called position limits in at least 75 of the 400 meetings have been held with banks, oil...

Copper fell for the first time in four days

Copper fell for the first time in four days in New York as a potential reduction of Spain's interest credit rating debts are revived hinder economic recovery in Europe. Spain's rating may be cut from Aa1, Moody's Investors Service said, amid concern that Greece and Ireland would continue seeking a ransom. Copper also fell as the dollar rose before the forecast data to show growth in U.S. industrial production. "The reduction potential of the Spanish debt weakened the euro, adding to the downward pressure of the metals," said William Adams, analyst at Basemetals.com in London. Copper for March delivery fell 6.75 cents, or 1.6 percent, to $ 4.1415 a pound at 7:46 am on the Comex in New York. Copper for delivery in three months declined 1 percent to $ 9,075 a ton on the London Metal Exchange. LME...

Dynegy Agrees to Be Acquired by companies Icahn for $ 665 million

Dynegy Inc., the U.S. producer third largest independent power, said its board has unanimously approved a bid of 665 million U.S. dollars to be acquired by Icahn Enterprises LP after the company's shareholders rejected a lower bid from Blackstone Group LP. Icahn companies offer $ 5.50 per share represents a premium of 10 percent of Blackstone's offer of $ 5 per share, Dynegy said in a statement. Agreement also allows Dynegy to continue pursuing a better offer until 24 January. Icahn has agreed not to oppose another buyer if Dynegy receives a higher offer. Carl Icahn and hedge fund Seneca Capital, major shareholders of Dynegy, opposed Blackstone bid to acquire Houston-based company. Most Dynegy's shareholders voted to reject the deal last month. Sale of the company at more than $ 4.50 per...

The UK is proposing major changes to energy policy in two decades ago, when the coalition government set plans to ensure the aging plants are replaced and met with the climate targets. Government, David Cameron, is likely to reassert state control over the market-based system introduced by his predecessor, Margaret Thatcher, when submitting proposals to Parliament. The regulator has proposed a "carbon floor" price target to increase the cost of emission of greenhouse gases, encouraging investment in nuclear reactors and wind farms. The cost of replacing existing facilities and the creation of renewable energy projects will be around 200 million...

CLP, NSW Origin buy energy assets for $ 5.3 billion, outbidding AGL Energy

CLP Holdings Ltd., Hong Kong's largest power supplier, and Origin Energy Ltd. won the assets of the electricity in the state of New South Wales in Australia for $ 5.3 billion, outbidding AGL Energy Ltd. to get about 3 million customers. TRUenergy Holdings Pty, a unit of CLP is the purchase of assets including EnergyAustralia dealer for 2.04 billion U.S. dollars (2020 million dollars), the state government said today. Source of earnings Country Energy and Integral Energy, plus the right to sell the production of state-owned power station Eraring, for 3.25 billion U.S. dollars. The purchases will double the number of retail customers in Australia CLP has 2.8 million, while Sydney-based Origin said it will become the largest energy supplier with a jump of 50 percent over users. The agreement...

Chinese consumers are more concerned about rising prices at any time in the last decade

Chinese consumers are more concerned about rising prices at any time in the last decade, underscoring the pressure on policy makers to step up efforts to counter inflation running at a maximum of two years. A price satisfaction index fell to 13.8 this quarter, the lowest level since data began in the fourth quarter of 1999, the central bank said on its website today. The authorities have taken place outside of the addition of October to raise interest rates, rather than ratchet up bank reserve requirements and the use of tools such as the sale of food reserves to cope with inflation. The Ministry of Commerce said today that "closely monitored" prices during the next quarter, especially during holiday periods, and maintain the release of the pork stores and sugar. "Normalization of interest...

The strongest signals Fed will not slow economy stimulus of $ 600 billion

Responsible for the Federal Reserve said that signs of economic strength not deter them from injecting money into the financial system as long as unemployment remains high. The Federal Open Market Committee said yesterday after their last meeting in 2010 that growth is "insufficient to reduce unemployment" and inflation has "followed a downward trend." U.S. central bankers said a plan to buy $ 600 billion of bonds through June and renewed his promise of an "extended period of low interest rates. Stocks rose and Treasuries fell as a continuation of the Fed's stimulus and sales better than expected retail growth increased prospects for next year. Policy makers led by Chairman Ben S. Bernanke, are challenging the Republican criticism that his policy of fuel inflation and bubbles in asset prices...

Spanish government bonds fell for an eighth day

Spanish government bonds fell for an eighth day after Moody's Investors Service said it may cut the country's credit rating, citing a possible fight for the government to fund itself next year amid losses at banks. The decline pushed the yield 10-year Spanish to within nine points of the highest since September 2000. Portuguese bonds fell after costs rose by 500 million euros (664 million dollars) the sale of Treasury bonds. Spain plans to sell bonds tomorrow. "The rating action reminds the market and investors that the fundamental problems have not been mitigated by the purchase of the European Central Bank bonds," said Michael Leister, a bond analyst at WestLB AG in Dusseldorf. "Until the supply is off tomorrow, it is expected that Spain will continue to underperform." The Spanish production...

Real Estate Evita "catastrophe"

investor confidence in U.S. commercial property is the highest since the 2007 market peak, a sentiment reflected in the bonds of real estate companies that own everything from the skyscrapers of New York to California malls. Yields on debt securities issued by real estate investment trusts average of 210 basis points more than Treasuries, at least from the November 12, 2007, according to data from Bank of America Merrill Lynch index. The debt has returned 13.2 percent this year, outpacing an 8 percent increase in investment grade bonds. The debt of the companies that own offices, shopping centers, apartments and warehouses has joined as a lack of demand spurs development of new "little by little," according to billionaire investor Sam Zell, chairman of Chicago-based Residential Capital apartment...

World Cup Mantega Push to Strengthen Local Bond Market

Brazil's local corporate bond market is not providing the necessary funding to help pay the 955 billion reais (562 billion) for infrastructure projects, prompting the government to accelerate reforms to extend credit. Companies in Latin America's largest economy raised 41 billion reais this year in the local bond market, up 48 percent from the year 2009, according to the Brazilian capital markets known as Anbima. The emission lags behind Russia's 27 billion and 163 billion U.S. dollars China. Only India, at $ 18 billion, has fewer than corporate debt issuance between the largest developing economies, or BRIC. The Finance Minister Guido Mantega, who shall hold office under President-elect, Dilma Rousseff, is set to raise awareness of measures today to lower borrowing costs and increase long-term...

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