Maybe investors were relieved that the auction of US$24 billion in seven-year notes went off without a hitch. It’s always good to know your creditors haven’t cut you off yet-especially when you need to borrow another $2 trillion. It’s no wonder the Dow rallied 174 points and the NASDAQ climbed into positive territory for the year.
March 27th, 2009 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "rio tinto"
The Road to Weimar
Over at the Wall Street Journal’s European edition (paid subscribers only), Frenchman Jacques Attali reckons we are all on the road to Weimar now. That is, he believes the entire planet may be headed for a depression and massive inflation. We are slouching towards Weimar Germany, where inflation was rampant…
February 16th, 2009 | Dan Denning | 7 comments | Continued
The Mining Finance Black Hole
Could this have worked out any better for China? We’re talking about the position Rio Tinto put itself in by taking on US$38 billion in debt to acquire Alcan—and stave off the unwanted advance of an amorous BHP. Now, in a world where refinancing that debt is near impossible for one of the world’s largest miners, it must sue for peace with a strategic partner…
February 13th, 2009 | Dan Denning | 4 comments | Continued
Australia’s Next Big Export Industry
It may seem like a strange time to be talking up the resources sector, but while everyone else is running away I’m nipping in through a side door to get onboard one specific area of the resources industry. I’m talking about energy. But it’s not oil that’s grabbed my attention. It’s something much more exciting and potentially much more profitable than that. So profitable in fact, that it could soon be Australia’s single largest export industry…
January 28th, 2009 | Kris Sayce | 4 comments | Continued
Aussie Banks are Scrambling to Raise Their Tier 1 Capital Ratios
Aussie banks are scrambling to raise their Tier 1 capital ratios, according to yesterday’s Financial Review. Before this arcane financial knowledge induces you into a drooling coma, consider what it means. Banks are shoring up the quality of their assets so that when they go into the equity markets to raise new capital, investors greet them with open wallets instead of cold shoulder (or a punch to the face)…
December 11th, 2008 | Dan Denning | 0 comments | Continued
Small Caps to Lead the Way in 2009
Probably the biggest story this week was the end of what was destined to be the merger of the century. Aside from all the why’s and wherefore’s about what went wrong with the merger, it also elicited the greatest number of marriage/engagement/divorce metaphors in the history of journalism…
November 29th, 2008 | Kris Sayce | 1 comment | Continued
Oil Prices Under $70
One other reason the stock probably fell is that the company studiously avoided saying anything about global oil prices or a global recession. Oil futures were down almost US$6 in New York trading to close at $69.85. That’s the first time oil’s closed below US$70 since August 23rd of 2007. Is Woodside a Crusoe stock? Well, it depends on what your long-term view of energy is, doesn’t it?…
October 17th, 2008 | Dan Denning | 0 comments | Continued
Lehman CDS Auction Hammers Australian Resource Stocks
Finally, Australia gets its own $700 billion plan. Kevin Rudd’s government moved yesterday to slap a Federal guarantee on all deposits with banks, credit unions, and building societies. The $700 billion guarantee includes Australian subsidiaries of foreign owned banks. The government wants people to understand their money is safe in the banks. That’s why that last bit is in there. It’s designed to keep foreign holders of Aussie dollars from engaging in a run on the dollar and bringing their money home.
October 13th, 2008 | Dan Denning | 1 comment | Continued
Assets Race to the Bottom
Which asset class will find the bottom first? Will it be commodities, property, ore shares? And which shares? Local shares got a big yesterday, especially the miners.
October 2nd, 2008 | Dan Denning | 0 comments | Continued
Wayne Swan Approves Chinalco Investment in Rio Tinto (ASX: RIO)
Australian Treasurer Wayne Swan announced this weekend that Chinalco is more than welcome to 11% of Rio Tinto (ASX:RIO). He made it sound like there were some caveats, provisos, and addendums. But at the end of the day the Treasurer said, “I have decided to raise no objections under Australia’s foreign investment policy.” Okay. There are just two conditions that apply, though.
August 25th, 2008 | Dan Denning | 2 comments | Continued