asterisk2a + commodities   60

A glut of crude politics - BBC News
It turns out US unconventional oil and gas production is more resilient, at a lower price, than the Saudis and others had predicted. Break-even for the new Texas and Dakota wells is higher than current prices (US West Texas Intermediate is below $37.50). So there is some expectation that supply from that American source will fall away in the next few months, as fracked wells lose pressure. But given the technology, it takes not much time to crank it back up again - once the price rises. [...] But the word from Oil and Gas UK is that there is now a "sustained fear" that prices will stay low for a long time. One of the trade body's senior managers told BBC radio on Wednesday that fields are losing money at current prices, and some aren't even covering their production costs. The consequence, says, Mike Tholen, will be fewer fields producing by the end of 2016. And with exploration all but dried up, there won't be fields to replace them. //&! bbc.in/1O0Rj4d
OPEC  Oil  price  commodity  prices  commodities  recovery  global  economy  Saudi  Arabia  unintended  consequences  energy  price  energy  policy  short-termism  unknown  unkown 
december 2015 by asterisk2a
Forget China - Oil Price Is Main Driver Of Market Turmoil | Zero Hedge
For the moment we are expecting oil producers to start to minimize their loses by producing even more oil. The oil crisis has just begun. // // &! DeMark compares China to the start of the Great Depression in the US, and when applying the 38.2 Fib retracement levels which have been breached, now expects even more pain for Chinese stocks - bit.ly/1NJdISb // // &! THINGS WERE TOO FAR AWAY FROM REALITY - Many indicators confirm that last week was remarkable and historic. Record after record was set, including the largest daily move, the biggest intra-day reversal and the most harrowing intra-day air pocket. - bv.ms/1O45W2i - legitimate questions about the robustness of the global economy [ contagion & overshoot - hubris and panic alike, good news gets washed down w bad news, extreme volatility still break markets, contagion still real & ppl are leveraged again (were complacent, institutional! investors!) ] market craziness. [ irrational exuberance that were equities ]. &! bv.ms/1UnLeMV
Oil  price  energy  price  OPEC  2015  China  commodities  global  trade  global  economy  western  world  developed  world  BRIC  credit  bubble  ZIRP  NIRP  QE  PBOC  economic  slowdown  reflate  reflation  asset  allocation  asset  bubble  hunt  for  yield  liquidity  trap  Fed  BOE  BOJ  ECB  hot-money  currency-war  currency  debasement  currency  war  economic  history  debt  monetisation  debt  monetization  contagion  VIX  volatility  uncertainty  unknown  unkown  unintended  consequences  margin  trading  deleveraging  Greed  Wall  Street  profit  maximisation  shareholder  value  share  buyback  hubris  panic  behavioral  finance  behavioral  economics  irrational  exuberance  economic  growth  monetary  policy  monetary  stimulus  unconventional  monetary  policy  zombie  banks  business  confidence  consumer  confidence  recovery  speculative  bubbles  speculative  speculation  equity  bubble  bond  bubble  property  bubble  economic  damage 
august 2015 by asterisk2a
Why Oil-Producing Countries Keep on Pumping - Bloomberg View
The simplest explanation for this phenomenon is that the producers need the cash; the lower the price, the more they need to sell to maintain revenue. Among the trio of top oil producers -- Russia, Saudi Arabia and the U.S. -- this need-for-cash argument works best for Russia. Last year, as crude prices began to tank, it quickly floated its currency. Since then, the ruble has devalued in lockstep with oil, so that every extra barrel sold produces the same revenue in rubles, which is the currency of the government's budget. As a result, Russia has no reason to cut production, even if it probably will suffer a future decline in output, because its major oil companies have sharply reduced investment.
OPEC  Oil  price  commodities  energy  price 
august 2015 by asterisk2a
Eight reasons why China’s currency crisis matters to us all | World news | The Guardian
If its economy really is much weaker than Beijing has let on, it would be alarming for any company hoping to export to China [...] However, the devalued yuan will force China’s Asian rivals, such as Indonesia and South Korea, to compete even harder in response; [...] fears that China’s economy is in trouble tend to undermine oil prices – and that probably means cheaper petrol in Britain. Of course, there are other factors, including strong oil production in the US; but global oil prices resumed their decline last week following China’s move, dipping back below $50 a barrel. In coming months, weak Chinese demand could force down the cost of many commodities, from oil to iron ore. [...] Delayed rate rises [ TAPER ] [...] Deflation, deflation, deflation [...] For now, a 4% devaluation in the yuan is more of a hairline crack in the world economic order than a seismic shift; but policymakers will be weighing up its consequences long after they return from their summer break.
China  devaluation  currency  debasement  currency  war  2015  recession  deflationary  deflation  Taper  western  world  UK  USA  Europe  secular  stagnation  globalization  globalisation  flat  world  global  trade  borderless  energy  price  Oil  price  commodities  recovery  economic  history 
august 2015 by asterisk2a
China's currency devaluation could spark 'tidal wave of deflation' | Business | The Guardian
[3rd day in a row Yuan/RMB is devalued by PBOC (13/08/15)] “We’re all going to feel it: we’ll feel it through commodities; we’ll feel it through manufactured goods exports, not just from China but from everywhere that has to compete with it; and we’ll feel it through wages.” [...] China could be willing to let the yuan depreciate by as much as 25% over the next five years – “stone by stone, step by step” – in an attempt to restore the export-led growth that was such a winning formula [...] China [may be] trying to protect itself against the period of financial instability [following Taper by western central banks Fed/BOE] [or counter $ recent rise 21% & peg against $] [or fight home grown recession with kitchen sink] // &! bloom.bg/1gC8FFe &! bloom.bg/1WkMfZZ &! bloom.bg/1hy7O9l &! bloom.bg/1NpE4FI &! bv.ms/1IKB3fX // what is the new normal 4 growth in this global economy, competitive = keeping prices low = inflation & low interest rate pressure.
yuan  RMB  PBOC  China  devaluation  deflationary  deflation  UK  USA  Europe  Exportweltmeister  competition  competitive  competitiveness  Lohnzurückhaltung  lohndumping  secular  stagnation  western  world  globalisation  globalization  commodities  commodity  business  commoditization  Germany  Asia  Latin  America  borderless  flat  world  wage  growth  wage  stagnation  inflation  expectation  inflation  targeting  wage  pressure  productivity  output  gap  recovery  GFC  economic  history  New  Normal  hunt  for  yield  Great  Moderation  fiscal  policy  monetary  policy  QE  ZIRP  NIRP  Taper  unintended  consequences  unknown  unkown  complexity  Industrial  Revolution  2.0  IMF  SDR  currency  war  disinflation  inflation  wage  inflation  Japan  Australia  Oil  price  energy  price  Developing  Frontier  Markets  Forex  USD  British  Pound  Euro  Yen  BOJ  BOE  Fed  ECB  Bank  of  Canada  asset  bubble  macroprudential  policy  asset  allocation  productive  investment  underinvestment  business  investment  2015 
august 2015 by asterisk2a
China devalues yuan currency to three-year low - BBC News
bbc.in/1WfUOFp // The weakening of the currency will also put the US Fed on the spot. In effect China is exporting deflation to the US - and so some will argue that the Fed should find an elegant way to back away from its recent signalling that September will see the first rise in interest rates since the Crash of 2008. Or to put it another way, in terms of US manufacturers and exporters, Beijing has done the monetary tightening that arguably the US economy needs. // &! tcrn.ch/1Tnj89s Apple shares reaction -5%, higher import costs. // &! bbc.in/1TrsssP - rattles the markets. // &! bit.ly/1JdPM8F - Der starke Verlust des Yuan deutete darauf hin, dass China einen Währungskrieg mit dem Westen provoziert. Doch tatsächlich spiegelt der niedrige Kurs die Schwäche der chinesischen Wirtschaft. // &! 3rd day, 3 devaluation move - bit.ly/1Ns1kmu &! Western central banks advised to resist [taper] & 2 prepare 2 ward off deflationary slump in face of cheaper Chinese exports - bit.ly/1DLIEy3
China  economic  growth  2015  yuan  currency  war  devaluation  PBOC  Taper  USA  UK  deflationary  deflation  RMB  Japan  Europe  Germany  disinflation  inflation  expectation  dis-inflation  inflation  inflation  targeting  western  world  BOE  Fed  ECB  BOJ  Brazil  Australia  commodities  IMF  SDR  Forex  Yen  USD  Euro  British  Pound  recovery  faultlines  global  trade  global  economy  globalisation  globalization  global  imbalances  savings  glut  hunt  for  yield  asset  bubble  asset  allocation  ZIRP  NIRP  QE  distortion  unintended  consequences  unknown  unkown  monetary  policy  Oil  price  energy  price 
august 2015 by asterisk2a
Last Week Tonight with John Oliver: Chickens (HBO) - YouTube
160 million chicken a week. its a commodity business. lowest price. commanded by rootless global conglomerate corporations that evade and avoid taxes and demand subsidies - no stakeholders in local economy, environment, ecology, country. no shared economic interest. listed on Wall Street; objective of profit maximization and creation of shareholder value. With a policy that pits farmers against each other. // And money buys you (Wall Street) career politicians, not representing your constituency (voters, people of America) instead you (Career Politician) bank that cheque from your regular corporate lobby representative.
omnivore  Standard  American  Diet  Western  pattern  ecological  disaster  environmental  disaster  food  industry  industrial  agriculture  lobbyist  lobby  Lobbying  USA  climate  change  global  warming  carbonfootprint  carbonemission  commodity  business  commodities  commoditization  Chain  Fast  food  waste  food  poverty  food  prices  food  borne  illness  processed  food  antibiotic  resistance  antibiotics  post-antibiotic  era  USDA  shareholder  value  profit  maximisation  Wall  Street  conglomerate  shared  economic  interest  stakeholder  tax  evasion  tax  avoidance  subsidies  subsidizing  oligopoly  oligopol  No  Representation  Career  Politicians  health  crisis  public  health  public  health  policy  chronic  diseases  animal  protein  cancer  dementia  Alzheimer  contractor  outsourcing  crony  capitalism  corporatism  accountability  transparency 
june 2015 by asterisk2a
Is Spotify doomed because of Apple Music? No — Spotify’s been doomed from the start | PandoDaily
Spotify is really the only legitimate competitor left. But its fate, like that of every streaming music service, is also subject to forces outside of its control — forces that are guided by the three-headed hydra of Warner, Universal, and Sony. [...] Although Apple Music and Spotify’s paid tier offer perks that free subscriptions do not — namely, full mobile access and no ads between songs — the majority of users will not pay for something they can basically get for free, even if they miss out on a handful of features. The percentage of Spotify users who pay for the service bears this out, having held steady for years at only 25%. And this trend shows no sign of abating — according to the most recent figures, paid users as a percentage of the whole crept up a hair but still sits at only 26.7%. [rather spend limited disposable income (and time) on weed and other offline experiences (leisure activities) with friends. -VS- The time of u and ur buddy(s) listening 2 new vinyl release]
Apple  Music  iTunes  Spotify  Soundcloud  subscription  model  business  model  Music  Industry  360-music-contract  Indie  Music  self-publishing  The  Content  Wars  attention  span  user  behaviour  snacking  Pandora  Deezer  Radio  8tracks  Tidal  YouTube  marginal  cost  economics  of  abundance  abundance  friction  frictionless  convenience  Netflix  disposable  income  offline  experience  shared  experience  Millennials  generationy  aspirational  product  Apple  status  anxiety  status  symbol  socioeconomic  status  social  status  commodity  business  commoditization  commodities  Media  mass  market  consumerist  consumer  product  antitrust  freemium  Venture  Capital  value  creation  Core  Proposition  Proposition  intangible  value  added  value  Start-Up  lesson  Start-Up  advice  Silicon  Valley  corporate  strategy  exit  strategy  business  strategy 
june 2015 by asterisk2a
Frustrated Uber drivers take to the streets to protest shrinking fares | PandoDaily
Uber passengers may be celebrating the latest round of price cuts as the company continues on its mission to undercut the cost of car ownership. But drivers are none too pleased, arguing that the bargain pricing is threatening their ability to make a living via the service. [...] Last night, driver Aya Valilar, an 18 month veteran of the service, told CBSLA, “None of us have anything against the app. We love the app. I’ve experienced four cuts since I started. It was $2.50 a mile when I started a year-and-a-half ago, and now we are at $1.10 a mile. You can’t make a living off of that.” John Dabbah, another driver, echoed these frustrations, saying, “At the beginning, it was $2.50 a mile. People, they financed cars, they bought cars. They made money at the beginning. Now they are dropping the price day after day without even asking the driver.”
Uber  Lyft  commodities  commodity  business  margin 
september 2014 by asterisk2a
Lyft-Off: Zimride’s Long Road To Overnight Success | TechCrunch
+++ http://wrd.cm/1uanlMX "But the real peril to Uber [is] the costs of recruiting drivers & what that says about [its] business model compared 2 those of traditional software companies. More drivers don’t equal more value added. They simply equal staying alive." +++ http://bit.ly/1qygzks +++ http://bit.ly/1B4Ao6N +++ Lyft & Uber in the end, (may or) will actually have small margins business on their hand because of lack of differentiation (the only differentiator to bus, tram, train, own car, bicycle is - convenience), price sensitivity of customer, commodity of transportation options. And further drivers are not barred (yet) from driving for both companies. Drivers are inventory, both have the SAME INVENTORY! And a brand doesn't play a pivotal role for price sensitive customers. Thus, the only option to increase margins&rev is 2 expand via added value services/products adjunct 2 its core product value proposition (ie Delivery & Transportation of Goods&Services). + nyti.ms/Y79k90
Lyft  Zimride  Start-Up  lesson  Start-Up  advice  Uber  authentic  authenticity  PR  public  relations  Travis  Kalanick  commoditization  commodities  commodity  business  differentiation  differentiate  margin  convenience  sharing  economy  service  economy  branding  Brand  Services  Industry  service 
august 2014 by asterisk2a
Celebrity Culture | Max Clifford | Oxford Union - YouTube
I Hate Celebrity Culture | Jack Gleeson | Oxford Union >> http://www.youtube.com/watch?v=uKboLTwzFTs >> object of imitation >> quasi charisma >> like to imitated, to followed ... // imitation is pillar for western consumerism. // Das Versprechen von Status ist eines der wichtigsten Verkaufsargumente überhaupt. [Folglich die] Nachahmungstheorie des Kulturwissenschaftlers René Girard: Für ihn zählt der Drang von Menschen, andere in ihrem Verhalten zu imitieren, zu den Grundlagen der Zivilisation. [Und somit Grundstein der westlichen Konsumgesellschaft.] ( via http://www.spiegel.de/wirtschaft/unternehmen/oekonomen-konferenz-hongkong-warum-wir-immer-mehr-wollen-a-892673.html ) // "Intersubjectivity: Rene Girard's Vision of Mimetic Desire and Economic Dynamics" ( http://www.youtube.com/watch?v=-eusHpPO0fI )
celebrity  culture  Gossip  Charisma  Career  Politicians  Politics  personal  brand  branding  brands  brand  Consumerism  consumerist  zombie  consumer  capitalism  status  western  lifestyle  western  society  personality  success  validation  Fame  ego  philosophy  commoditization  commodities  Glossy  Magazine  Glamour  Privacy  role  model  moral  ethics 
february 2014 by asterisk2a
Food crisis: industry at turning point - YouTube
Economic crisis and rising food prices are putting pressure on consumer goods sales. FT analysis editor Frederick Studemann discusses if this is a turning point for producers with Louise Lucas, consumer industries editor and Gregory Meyer, commodities markets reporter.

"meat is becoming increasingly a luxury"

"structural pressure"
weather  extreme  climatechange  globalwarming  drought  drough  2012  consumer  commodities  food-security  food  prices  Industry 
august 2012 by asterisk2a
Fleisch wird Luxusgut wegen Wassermangel laut Siwi-Studie - SPIEGEL ONLINE
1kg Pork = 10.000 L Water

Die Herstellung eines einzigen Kilogramms Schweinefleisch verschlingt rund 10.000 Liter.

---

Agriculture products are plenty to feed up to 9bn people. But that is not possible if we keep splashing out water for inefficient meat production for protein.

Clean water will become a commodity. Pricier than oil as it becomes scarcer.

Weather extremes through global warming will put a dent into agricultural stock. Current world stock of soy beans are at record low levels.

---

Feeding a thirsty world: Challenges and opportunities for a water and food secure world

http://www.siwi.org/sa/node.asp?node=52&sa;_content_url=%2Fplugins%2FResources%2Fresource.asp&id;=318

This report presents the latest thinking and new approaches to emerging and persistent challenges to achieve food security in the 21st century.
water  scarcity  weather  extreme  globalwarming  climatechange  commodities  food  prices  food-security  Industry  agriculture  water  watersupply  vegan 
august 2012 by asterisk2a
Dürre in USA und Indien: G20 wollen neue Nahrungskrise verhindern - SPIEGEL ONLINE
Die historische Dürre in den USA und Indien sorgt für massive Ernteausfälle. Es droht eine weltweite Nahrungskrise. Die G20 wollen gegensteuern, doch für die Ärmsten der Welt könnte es schon zu spät sein.
food-security  food  prices  weather  extreme  climatechange  globalwarming  volatility  commodities  2012  drought 
august 2012 by asterisk2a
Eurofin on increasing food prices - YouTube
The UN's Food and Agriculture Organization and the OECD have said food commodities will be more expensive this decade than the last.
agriculture  climatechange  globalwarming  food  prices  commodities  food-security  Industry 
july 2012 by asterisk2a
Breakingviews: Global warming spurs food inflation - YouTube
"For NOW."
Just wait till demand ramps up from Frontier and Emerging Market with the rising appetite for the western diet (MEAT).

- Global Policies need to aim at solutions. -
policy  folly  policy  error  weather  extreme  weather  globalwarming  commodities  food-security  Food  Industry 
july 2012 by asterisk2a
Guest Post: About Those High Gasoline Prices… Look Again | ZeroHedge
GOLD - It’s an anti-currency… appropriate for those who want to sit out of the market and be in cash without having to be in cash.
commodities  Oil  2012  monetary  policy  inflation  reflation  unintended  consequences  centralbanks  LTRO  QE  ZIRP  currency-war  currency  debasement  Gold 
march 2012 by asterisk2a
Global Response to S. China Sea Risks Needed - Bloomberg
The Philippines’ push to secure energy resources against the wishes of Asia’s biggest economy and military spender risks clashes that may ensnare the U.S., a treaty ally. Clinton left Indonesia for Hong Kong and the neighboring city of Shenzhen, where she is due to meet State Councilor Dai Bingguo today.‘Nine-Dash Map’Clinton’s call to internationalize the South China Sea issue may irk China, which maintains that disputes are a bilateral affair. China lays claim to most of the sea based on a “nine-dash map” that it drew up and says any attempt to challenge this is a violation of its sovereignty.

Asean members Philippines, Vietnam, Malaysia and Brunei have competing claims in the sea.
SouthChinaSea  resources  commodities  oil  China  russia  japan  philippines  vietnam  malaysia  brunei  conflict 
july 2011 by asterisk2a
How the world paid the hidden cost of America's quantitative easing | Business | The Guardian
local policy is leaking in a global economy. not deniable.

investor cash looking for a high return.The chase for yield – the need to hold assets with a low value relative to the return – is nothing new. However, the billions of pounds spent by central banks on their own government's bonds released a tidal wave of cash that needed to find a home. Booming commodity markets were an unwanted side-effect of boosting investor confidence in stock and bond markets, which had threatened to spiral downwards when the recession hit.

Adam Posen, an external member of the Bank of England's monetary policy committee, repeated his warning earlier in the week that Britain needed another dose of QE to keep asset prices from sliding and stop confidence in the economy ebbing away. In the face of government austerity cuts, which will strip more than £12bn out of the economy this year in rising VAT bills alone, he said an extra £50bn in QE was the bare minimum needed.
QE  QE-2.0  quantitative  easing  2011  commodities  benbernanke  Fed  UK  BoE  judgement  outlook  review  monetary  policy 
july 2011 by asterisk2a
BIS: interest rates too low | City A.M.
INTEREST rates are too low in developed economies, risking a dangerous price instability and market distortions, the Bank of International Settlements (BIS) declared yesterday.

 abnormally low rates “risk creating serious financial distortions, misallocations of resources and delay in the necessary de-leveraging” in advanced countries.
Unusually, BIS singles out the Bank og England for its loose monetary policy in the face of inflation that is more than double its two per cent target.
Bank of England: “One wonders how long its current policy can be sustained.” The report shows that combined with interest rates of 0.5 per cent, Britain has a negative real interest rate of minus four per cent, lower than that of the US, the Eurozone and Japan.
the Bank of England that its lack of control over commodity prices, which are driving inflation, means that raising rates won’t help.
“extraordinarily loose monetary policy” is boosting commodity prices because a “search for yield”
ZIRP  unintended  consequences  bubble  BOE  BOJ  Fed  ECB  recovery  monetary  policy  2011  greatrecession  creditcrunch  liquidity-trap  liquidity  reflation  reflate  balancesheet  recession  commodities 
june 2011 by asterisk2a
Goldman Caught Manipulating Brent/WTI Spread: Penalty: $40,340 | zero hedge
"On 28 January 2011 the Exchange’s monitoring detected six notable “price spikes” in the April11 Brent/WTI spread, between 14:26 hours and 14:31 hours UK time. These were investigated and found to be the result of a limit order and several large market orders placed in quick succession by a GSF trader...In relation to the events described above, the Exchange alleged that GSF had breached the following Rule: "It shall be an offence for a trader or Member to engage in disorderly trading whether by high or low ticking, aggressive bidding or offering, or otherwise."

"Having examined the instant messenger logs of the communication between the GSF trader and their client, the Committee found no evidence of intentional manipulation of the market; nevertheless it considered the breach to be of a serious nature." 

Bottom line: the fine for Goldman Sachs: £25,000
FSA  goldmansachs  fraud  settelment  oil  oilprice  commodities  jpmorgan  manipulation  LIBOR 
june 2011 by asterisk2a
Another Broker Halts Trading In Gold And Silver Products | zero hedge
While we still are not confident we understand precisely what span of products is prohibited by Dodd-Frank, it appears that ever more brokers are interpreting the law loosely enough to where practically all gold and silver products will soon be removed from retail participation. Readers, however, can rest assured that the CFTC, which is urgently delaying any of the Frankendodd provisions that impair Wall Street bottom lines, will not move a finger to address or resolve this issue which will suddenly affect millions of retail investors in the US, and around the world.
Dodd-Frank  SEC  CFTC  2011  commodities 
june 2011 by asterisk2a
Wheat Futures Climb for Second Day on Weather Concerns in U.S., EU, Canada - Bloomberg
Wheat Futures Climb for Second Day on Weather Concerns in U.S., EU, Canada (Bloomberg)
commodities  weather  wheat  drought  harvest  trading 
june 2011 by asterisk2a
Jim Grant And James Turk Discuss The Endgame Of The Keynesian Experiment | zero hedge
"who benefit from zero interest rates and how savers are penalized by this easy money policy.
http://www.youtube.com/watch?v=1VcN_Z6L0jM&feature=player_embedded#at=258
- speculative asset classes doe benefit from ZIRP
- Savers a loosing out. WallStreet winning
- negative saving yield rate
ZIRP  QE  QE-2.0  QE3  2011  monetary  policy  wallstreet  speculation  commodities  equities  history  JimGrant 
june 2011 by asterisk2a
All Roads Lead to Athens? | zero hedge
"From my vantage point, the trip to Greece is a little bit pleasure but mostly political. While Canada is definitely in better shape than Greece, there are some eery similarities. In particular, household debt in Canada is at record levels, spurring a Canada bubble of historic proportions, which is also aided and abated by Canada's mortgage monster. When this bubble pops -- and it eventually will -- the economy will get hit hard and our Canadian dollar will tank (still think if CAD reaches 1.10, it's a short!) and our bonds will rally (that's why Canadian bonds are still valuable)."

Add: Commodities, Speculation, VIX down, ... Australia a bubble too. Brazil. etc. 
... G8 ZIRP = created new local bubbles
... money hunts down yield, how irrational it is does not matter, as long as it bring real returns.
canada  bubble  2011  ZIRP  australia  commodities  speculation  QE  QE-2.0  hot-money 
may 2011 by asterisk2a
The Inflation Monster Under the Bed - NYTimes.com
but what is happening for real is, that while living costs increase, less is left for "spending". and with economies which relie on spending effects for their growth formula will have lower than average growth y/y
economics  paulkrugman  commodities  UK  USA  GDP  growth  2011  2012  outlook  recovery  greatrecession  inflation 
may 2011 by asterisk2a
Reuters Special Report On What Caused The "Causeless" Crude Crash
identifies that while the shaky macroeconomic conditions and an overbought market were among the key reasons for last week's history crude rout, the match that caused an unseen before plunge in commodities was, you guessed it, "computers." Naturally, this is not unexpected to Zero Hedge readers who have been warned about the market destabilizing influence of a market comprised almost entirely of unsupervised algos, since the spring of 2009. Additionally, in addition to the previously identified losses at Clive Capital and Andrew Hall's latest plaything, Reuters also identifies BlueGold, Winton Capital and FTC. Basically, throw out a name that has energy exposure (let's not forget Touradji or Centaurus) and you likely have a winner. Must read.
http://www.reuters.com/article/2011/05/09/us-financial-oil-rout-idUSTRE7480AI20110509
HFT  speculation  commodities  2011 
may 2011 by asterisk2a
A Brief Reminder On NYSE Margin Debt | zero hedge
Today seems like an opportune time to remind readers that as of March, margin debt, and specifically net leverage, were at near all time highs. Surely, selling off from a market that has more leverage now than almost ever, will lead to a perfectly orderly unwind
leverage  speculation  commodities  2011  silver  gold  oil 
may 2011 by asterisk2a
Does The Glencore IPO Have Goldman Sachs And Morgan Stanley Waking Up In A Cold Sweat? Dealbreaker: A Wall Street Tabloid Business News Headlines and Financial Gossip
“Glencore is unregulated and competes in many of the same businesses,” said William D. Cohan, author of “Money and Power: How Goldman Sachs Came to Rule the World” and a contributing editor to Bloomberg. “It’s based in Switzerland and can do a lot of things that Goldman can’t do anymore.”
glencore  goldmansachs  jpmorgan  regulation  reform  commodities  proptrading  2011  competition 
may 2011 by asterisk2a
Barclays faces protests over role in global food crisis | Business | The Guardian
Along with Goldman Sachs and Morgan Stanley, BarCap has pioneered new kinds of financial products that have enabled pension funds and other investors traditionally barred from commodities exchanges to bet on food prices.
Deborah Doane, director of the World Development Movement (WDM), accused Barclays of making excessive profits at the expense of millions in poor countries. "First, it was sub-prime mortgages, now it's food commodities," she said. "The lack of transparency in these markets bears worrying resemblance to the behaviour that led to the 2008 financial crash. Like any irrational asset bubble, the investors pile their money in for short-term profits, in spite of the consequences."
commodities  barclays  goldmansachs  morganstanley  financialmarket  2011 
april 2011 by asterisk2a
Hong Kong Canary Singing Commodities Boom Peaking in Aussie Mine: Real M
The little-known takeover bid for a money-losing Australian mining company by a Hong Kong limousine operator shows all the signs of a peaking commodities boom.
commodities  australia  2011 
april 2011 by asterisk2a
The Cost of Food and Energy across Consumers :: Daniel Carroll :: Economic Trends :: 03.14.11 :: Federal Reserve Bank of Cleveland
For those astutely wondering why food and energy expenditures are a larger fraction of total expenditures than of total income for the bottom 20 percent, there is a much higher fraction of households in this quintile which may be using savings and credit markets to consume above their annual income. Likely categories are the unemployed, business owners with temporary losses, students living on loans, and retirees drawing down their nest eggs.
food  commodities  inflation  consumer  research  study  paper  trend  2011  energy  oil  income  Expenditure  poor  rich  distribution  economics 
march 2011 by asterisk2a
Gillard's Concern at Aussie's Impact Shows 'Dutch Disease' Risk - Bloomberg
Prime Minister Julia Gillard highlighted risks posed by Australia’s ties to a global commodity boom, with a patchwork economy emerging from export gains accompanied by subdued domestic spending.

The local dollar, spurred by revenue from shipments of coal and iron ore to China, has reached levels unseen since 1982 in recent weeks.
Gillard’s comments reflect a challenge faced by policy makers from Brazil to China, where strengthening exchange rates risk undermining exports unconnected to the climb in global commodity prices. While emerging markets have taken steps to stem currency gains, such as through limits on capital inflows, Australia has refrained from such measures and Gillard said she favors letting the market set the so-called Aussie.
“The domestic economy is probably weaker than expected and that reflects the fine balancing act for policy makers,” “There is a risk of a Dutch disease effect,”
australia  boom  commodities  2011  China  Asia  emergingmarkets  bubble  ZIRP  unintended  consequences 
march 2011 by asterisk2a
Australia's house prices: Iron, coal, bricks and mortar | The Economist
In a recent paper, Patrizia Tumbarello and Shengzu Wang of the  IMF show that a 10% improvement in the terms of trade tends to lift Australian property prices by about 5%. What they don't investigate is whether it raises the ratio of prices to rents. I think it's at least possible that a resource boom affects asset prices, like houses, differently from the price of a service, like rental accommodation. The bright prospects in mining and minerals will attract capital inflows into the resource sector, which might bid up the price of other assets in the economy. And in buying a house, the average Australian might see a way to crystallise the future income he expects will trickle down to him from the commodities boom.
Thanks to the improvement in the terms of trade, the average Australian's expected lifetime wealth has increased. In theory, ....
Australia  boom  2010  2011  commodities  asset  bubble  unintended  consequences  ZIRP  China  Brazil  India  Asia  outlook  globalisation  trade 
march 2011 by asterisk2a
YouTube - Taylor Says Fed Should Begin Discussing `Exit Strategy'
money growth M3
- short term big stimulus - with only small long-term effect
markets are forward looking, pricing in already in a rate increase in UK and EU
- accommodative policy -- leaking -- first signs of inflationary effect abroad
- 70s - Fed behind the curve
- it is hard to get in-front of inflation without unsettling growth
QE  QE-2.0  Fed  unemployment  2011  exitstrategy  benbernanke  economics  quantitative-easing  BOJ  USA  Japan  M3  monetary  policy  lesson  inflation  commodities  bubble 
march 2011 by asterisk2a
YouTube - Wong Says HSBC Is `Well Short of Talent' in China
"We have to be careful about price  (price bubble) in Asia"
secondary - effects
- as it is considerable risk on the horizon
- not going away !!!

Peter Wong, chief executive officer for the Asia-Pacific region at HSBC Holdings Plc, talks about the bank's financial results and growth strategy. HSBC Holdings, Europe's biggest bank by market value, posted full-year earnings that missed analyst estimates after an "unacceptable" increase in costs, and said it would reduce its profitability target. Wong speaks in Hong Kong with Phillip Yin on Bloomberg Television's "First Up." (Source: Bloomberg)
Asia  inflation  bubble  commodities  food  price  risk  banking  China  India 
march 2011 by asterisk2a
Soaring Food Prices - NYTimes.com
What’s behind the surge in food prices? The usual suspects have made the usual claims — it’s all about the Fed, or it’s all about speculators. But I’ve been looking at the USDA World supply and demand estimates, and what stands out from the data is mainly that we’ve had a huge global harvest failure.
economics  paulkrugman  inflation  food  commodities  2011 
february 2011 by asterisk2a
YouTube - The Dragon in the Room
China the rising power house, making their investments speak for them self.

Needs to secure its future - commodities, agriculture.

Latin America not diversifying, relying for much of the growth solely on Commodities export.
China  latin-amarica  2010  2011  2012  commodities  agriculture  brasil  argentina  copper  mining  export  BRIC  Next-11 
november 2010 by asterisk2a
Geologists And Tech Industry Leaders Fear Mineral Trade Wars Imminent
“China is preparing to build 330 giga-watts worth of wind generators. That will require about 59,000 tons of neodymium to make high-strength magnets — more than that country’s annual output of neodymium. China supplies the world with a lot of those rare earth elements, like neodymium, and will have little or none to export if it moves ahead with its wind power plans…So the source for the West is problematical.”

Earlier this month, during the East Asia Summit, Chinese officials told U.S. Secretary of State Hillary Clinton that Beijing aims to be a reliable minerals supplier and would not impose bans on exports of industrial minerals for political purposes.
rare-earths  foreignaffairs  China  Japan  G20  politics  tradewar  commodities  2010  export  manufacturing 
november 2010 by asterisk2a
Chinas Rare Earth Embargo Changes Incentive for Toxic Work - NYTimes.com
China currently controls almost all of the world’s supply of rare earths, for which demand is soaring.

the undeclared embargo looked like a pure power play - with little regard for the conventions of international trade. The export quotas China continues to impose on rare earths,

From the Chinese perspective, though, the issue looks very different.

China feels entitled to call the shots because of a brutally simple environmental reckoning: It currently controls most of the globe’s rare earths supply not just because of geologic good fortune, although there is some of that, but because the country has been willing to do dirty, toxic and often radioactive work that the rest of the world has long shunned.

Despite producing 95 percent of the world’s rare earths, China has only 37 percent of the world’s proven reserves. Sizable deposits are known to exist in the United States, Canada, Australia, India and Brazil, among other places.
China  export  exports  rare-earths  manufacturing  2010  WTO  worldtrade  environment  USA  commodities  speculation  Japan  foreignaffairs 
october 2010 by asterisk2a
Boomland Brasilien: Die neue Weltmacht wackelt - SPIEGEL ONLINE - Nachrichten - Wirtschaft
Brasiliens Boom wird oft dem seit acht Jahren amtierenden Präsidenten Lula zugerechnet, dessen zweite Amtszeit nun zu Ende geht und der nicht wiedergewählt werden kann. Dabei hat nicht er die Grundlagen geschaffen, sondern sein Vorgänger Henrique Cardoso.

Er besiegte die Hyperinflation. Er sanierte den Haushalt. Er entwarf eines der weltweit größten Sozialprogramme, um Millionen Menschen aus der Armut zu befreien. Die Ernte dieser Saat fuhr Lula ein. Heute ist Cardoso einer der letzten Politiker, die den Präsidenten noch kritisieren. "Lula hat das Land betäubt", sagte er kürzlich. Brasilien befinde sich auf dem Weg in den Staatskapitalismus.

Doch nur wenige wollen solche Sätze hören. Vier von fünf Brasilianern unterstützen Lula, der sein Amt zum 1. Januar 2011 abgibt. Seine wahrscheinliche Nachfolgerin Dilma Rousseff, die an diesem Sonntag aller Voraussicht nach gewählt wird, wäre ohne Lulas Unterstützung chancenlos gewesen.

Rohstoffexporte statt Industrieaufbau
brazil  2010  election  economy  BRIC  export  exports  commodities  infrastructure  outlook  critics  politics 
october 2010 by asterisk2a
JPM, HSBC Sued For Silver Market Manipulation, Reaping Billions In Illegal Profits | zero hedge
Yesterday's announcement by CFTC commissioner Bart Chilton that he was fully aware of fraudulent efforts to persuade and deviously control silver prices may have been the straw that broke the gold and silver price manipulating camel's back on precious metal manipulation. Today, Brian Beatty and Peter Laskaris (Southern District Court of New York, cases 10-08146, and 10-01857) sued the two firms at the very top of the precious metal manipulation pyramid: JPMorgan and HSBC. The lawsuit, which seeks class action status, alleges that "between in or about March 2008 and continuing through the present, Defendants have combined, conspired and agreed to restrain trade in, fix, and manipulate prices of silver futures and options contracts traded in this District on the COMEX division of the NYMEX.
silver  manipulation  jpmorgan  HSBC  fraud  stockmarket  2010  commodities 
october 2010 by asterisk2a
Dealbook Column - Worrying About a Chinese Move on Food - NYTimes.com
Saskatchewan is home base for the Potash Corporation, the fertilizer company. If you care at all about the future of the world’s food supply, you care — whether you know it or not — about Saskatchewan.

A consortium of state-backed Chinese companies and financiers may make a takeover offer for Potash that rivals a $38.6 billion hostile bid from BHP Billiton, and that prospect has lawmakers in Washington, regulators in Canada and bankers on Wall Street all talking.

Do we really want the Chinese to control the company that has the largest capacity to produce fertilizer?

But that outburst of protectionism was only about the nation’s oil supply, and this would be about something much more vital, food: 45 percent of Potash’s production is sold to farmers in North America. The big worry, in part, is that the Chinese could seek to redirect that supply to China, starving other countries of a much-needed commodity.
China  policy  2010  2011  food  crisis  commodities  USA  Potash  BHPBiliton  protectionism  trade  tradewar 
october 2010 by asterisk2a
Neues Gesetz: Für Rohstoffspekulanten beginnt die Zeit des Zitterns | FTD.de
CFTC

Ihre Kompetenzen auf dem Rohstoffmarkt werden in mehrer Hinsicht verstärkt. So darf sie Positionsgrenzen über Handelsplätze hinweg setzen. Entsprechende Vorschläge für Energiekontrakte unterbreitete sie bereits. Zudem darf sie gegen mehrere Handelspraktiken vorgehen, die zuvor noch erlaubt waren. Dabei geht es um "Spoofing" und "Banging the close". Beim "Spoofing" gibt ein Händler ein Gebot mit der Absicht ab, es kurz danach wieder zurückzuziehen. Bei "Banging the close" versuchen Händler den Abrechnungspreis, der am Ende des Handelstages festgelegt wird, zu beeinflussen.
CFTC  derivatives  wallstreet  financial  regulation  reform  july  2010  usa  commodities  manipulation  market  spoofing 
july 2010 by asterisk2a
Secondary Sources: Fed Watch, Financial Pay, Waitress Indicator - Real Time Economics - WSJ
And there certainly would be no rush to react if low U.S. interest rates fueled bubbles outside U.S. borders; that, after all, would be the responsibility of foreign policymakers. “
.
Every stock market and commodities marked in the world is on record monthly highs 9-12 months highs.
Well some money of the bailouts has to be speculated somewhere.
fed  policy  monetary  bubble  2009  recession  s&p500  dowjones  commodities  oilprice 
august 2009 by asterisk2a
Commodities on Fire - CNBC By The Numbers - CNBC.com
The U.S. Dollar continues its slide, with the Dollar Index falling to its lowest levels since the end of September. The index is now down 14 percent from its March highs.
>> Through the money amount which is thrown at banks from Treasuries and Central Banks - all this money must go somewhere. And it goes into the financial markets. Not into the balance sheet or Main Street.
Many indexes are on a 9 to 14 month high. Because of the floods of money.
inflation  moneymarkets  moneysupply  monetary  policy  fed  ECB  BOE  financial  markets  stockmarket  stocks  commodities  oil  s&p500  dowjones 
august 2009 by asterisk2a

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