Bullish Aussie dollar will be threatened by Chinese bubble July 28, 2009 THREE weeks ago, risk aversion was firmly back in the markets and commodity currencies were looking shaky. But equities and commodities have been surging across the board as investors rediscover their taste for risk. In such an environment, the Australian dollar ought to be doing well thanks to its economy’s dependence on exports of base [...]
Canny traders should look to buy crude oil on the correction July 27, 2009 CRUDE’S inexorable rise over the past few weeks in line with rallying equity markets pushed September Brent through the $70 a barrel mark in intraday trading yesterday, touching a session high of $71.28. Signs of an improving world economy and resilient Chinese GDP growth as well as relatively upbeat second quarter earnings in the US [...]
CHINA LOOKS OVER-COOKED RIGHT NOW July 27, 2009 DAVID MORRISONSENIOR DERIVATIVES TRADER, GFT YESTERDAY saw the result of the first Chinese initial public offering (IPO) in over a year since Chinese regulators suspended IPOs in September 2008 after worries that too many companies were anxious to tap investors for funds. And what a success the debut was. On the first day of trading [...]
China on alert for asset bubbles July 27, 2009 Chinese regulators yesterday warned banks to ensure unprecedented volumes of new loans are channelled into the real economy amid concerns that banks ignored basic lending standards in the first half of the year. Over 7,370bn yuan was issued in new loans during the first six months of 2009, more than twice the amount lent in [...]
WHAT THE OTHER PAPERS SAY THIS MORNING July 20, 2009 FINANCIAL TIMES CHINA FUND TAKES DIAGEO STAKEChina’s sovereign wealth fund has acquired 1.1 per cent of the Diageo drinks group, giving it a stake worth £221m, in a sign of its emerging strategy to spread its investments over different global markets and asset classes. The move by China Investment, which manages $200bn of the country’s [...]
UK dominates deal rankings July 19, 2009 LONDON dominated the global mergers & acquisitions (M&A) scene last week, with deals by buyout vehicle Resolution and gas giant Centrica pushing up UK volumes by 39 per cent compared to last year. Resolution’s talk of a $2.7bn (£1.65bn) buyout of insurer Friends Provident was the top announced deal and Centrica’s $1.7bn plans to take [...]
Rio staff quit China after four arrests July 16, 2009 MINER Rio Tinto told its overseas employees in China to leave the country yesterday, as concerns grew over four of its workers who have been detained by the state on espionage and bribery charges. Rio said it was “still operating” in the country, and refused to comment on the withdrawal of its foreign staff. Rio Tinto’s China [...]
Rio Tinto in China strife July 15, 2009 RIO Tinto, the world’s second-largest iron-ore producer led by Tom Albanese, has been accused of mass bribery by an official Chinese newspaper, as the row over arrested executives from the firm continues to mount. The state-owned China Daily paper said Rio has bribed all of China’s 16 major steelmakers, and threatened to cut them out [...]
WHAT THE OTHER PAPERS SAY THIS MORNING July 13, 2009 FINANCIAL TIMES GOLDMAN SACHS EXECUTIVES SOLD $700M OF STOCKExecutives at Goldman Sachs sold almost $700m worth of stock following the collapse of Lehman Brothers last September, according to filings with the Securities and Exchange Commission. Most of the sales occurred during the period in which the investment bank enjoyed the support of $10bn from the [...]
It’s time to start re-thinking your attitude to trading the oil market July 12, 2009 WHAT a difference a year makes. With crude oil sinking below $60 a barrel on Friday for the first time since mid-May, it seems incredible that it was only 12 months ago that oil hit a record high of $147 a barrel, fuelling speculation among industry players that it could reach $250. Oil prices had [...]