Today we look at why energy is becoming a flash point in Europe and how natural gas is taking centre stage. First, though, we’d like to announce a changing of the guard in the leadership of the resources market.
February 6th, 2012 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "rio tinto"
The China Effect on the Australian Economy
Note to the market: The Eurozone crisis hasn’t gone anywhere. The US and Iran are facing off in the Straits of Hormuz, the world’s most important oil supply route. And China’s economic slowdown has only just got underway.
January 5th, 2012 | Greg Canavan | 1 comment | Continued
Why is 5,000 a Key Psychological Level?
By the way, is that phrase “key psychological levels” just a load of horse pucky used by analysts and commentators to try and explain things they don’t understand?
April 8th, 2010 | Dan Denning | 2 comments | Continued
Proposed China Boycott of Aussie Iron Ore Majors
But we asked him via email if the proposed boycott of the Aussie iron ore majors (BHP and Rio) by the China Iron and Steel Association (CISA) was having effect on the smaller iron ore stocks he’s recommended. Incidentally, we wouldn’t expect the move to stick.
April 7th, 2010 | Dan Denning | 3 comments | Continued
If People Feel Good About the Economy then the Economy Must Be Good Itself
Stock markets are fixing to make their highest highs since September of 2008. The Dow nearly closed at a post-Lehman high of 11,000 overnight in New York trading. And here in Australia, the ASX/200 looks to break out of a long channel of indecisiveness and close above 5,000.
Surely those numbers indicate that people feel good about the economy.
April 6th, 2010 | Dan Denning | 3 comments | Continued
Merger and Acquisition Activity in Coal, Iron Ore and Gold
That brings us to the merger and acquisition activity in Australia. You may have seen that gold producer Lihir received a $9.2 billion takeover offer from Newcrest over night. Lihir says the offer undervalues the company’s assets. But whether it does or doesn’t, does the bid remind you at all of the BHP and Rio Tinto shenanigans a few years ago?
April 1st, 2010 | Dan Denning | 2 comments | Continued
Your Garden Variety Global Financial Crisis or Something Wilder?
But first, why are companies hoarding cash? Bloomberg reports that companies in the S&P 500 have increased their cash holdings to an aggregate US$1.18 trillion dollars. The big blue chip multinationals have cut spending, frozen new hires (not literally), and generally kept cautious until more details emerge about the economic landscape.
February 12th, 2010 | Dan Denning | 121 comments | Continued
Property Sector Has Seen the Value of its Assets Wiped Out
The “wipeout” in the sector was especially bad news for Babcock & Brown, Rubicon Asset Management, and Record Funds Management. These heavily leveraged firms didn’t survive the steep rise in global borrowing costs. It didn’t help that asset values began tumbling when the leveraged dried up.
August 17th, 2009 | Dan Denning | 1 comment | Continued
Buying and Holding a Bad Strategy if Bank Earnings Remain Unpredictable
If we’re right, households have just begun reducing their debt loads. It will take years for the leverage in the system to be wound down. See Bill’s comments about that below. If you’re buying bank stocks you’re assuming credit and debt growth will resume once this recession is over. That’s a big assumption. And probably stupid.
August 12th, 2009 | Dan Denning | 4 comments | Continued
Global Credit Shortage is Over According to European Central Bank
That all sounds like common sense. So why are so few policy makers using their head? The people who hope the global economy can be revived through a resumption of credit growth seem to forget that it was massive credit growth that created the problem (massive global imbalances, huge debt levels, and mal-investments) in the first place.
July 23rd, 2009 | Dan Denning | 2 comments | Continued
Australia Presents Investors With Great Portfolio of Energy Choices
The uranium spot price is coming off a low after a big correction. But as we’ve covered in Diggers and Drillers, the demand for nuclear fuel from global utilities is on the rise. Australia – with over 30% of the world’s proven uranium reserves – is in the pole position (side by side with Kazakhstan, arguably) to provide the world with what it needs.
July 21st, 2009 | Dan Denning | 1 comment | Continued
Meredith Whitney and the Buy Recommendation on Goldman Sachs
Hold that thought. Her recommendation preceded Goldman’s actual announcement on Tuesday that second quarter net earnings were up 65% to $3.44 billion. The company, like Wall Street’s very own chosen-one-boy-wizard, has once again waved its magic wand and produced something remarkable. So let’s remark on it…
July 15th, 2009 | Dan Denning | 3 comments | Continued
Can China Change the Rules of Global Capitalism?
For example, it appears China is beginning to throw its considerable economic weight around. It’s doing so in a tentative, experimental manner, not sure if it will offend but not seeming to care all that much. And why should it? The world is perfectly happy to do business with the largest emerging market of the next fifty years. Other issues-human rights, the environment, and the Rule of Law-are secondary.
July 13th, 2009 | Dan Denning | 5 comments | Continued
Mortgage Bubble and More at Stake Between Australia and China
Two other items of note in yesterday’s housing numbers. The First Home Buyer’s consolidated their position as the most important group propping up Australian house prices. First home buyers increased their percentage of total owner-occupied mortgage demand from 28.6% in April to 29.5% in May. Nearly a third of all demand for new mortgages is coming from new buyers sucked in by the grant. Hmmn.
July 9th, 2009 | Dan Denning | 5 comments | Continued
Were Chinalco’s Intentions With Rio Always Honourable?
By the way, no one should assume that Australia will always have China to fall back on, whether it is for capital in a pinch, or long-term resource demand. China’s apparent economic recovery is “mild” and “unstable” according to a study…
June 9th, 2009 | Dan Denning | 6 comments | Continued
