Exploring and keeping readers up to date with the growing economic and political ties between China and South America. Including all the good stuff: Commodities, Energy, International Finance, South-South Cooperation, Microfinance and more
Gold and dollar denominated gold assets have been on the rise recently. People have long looked to the metal as the classic safe heaven investment in bad times, and now is no different. Check out Kitco's 1 year chart. As the financial world came crumbling down back in Oct-Nov 2008, Gold started to climb back up towards its high of $1011.25/ ounce.
A nice four day rally in gold came to a close today. Falling from the highest level in about seven months as investors decided to take some profits and readjust their investments into stocks and oil.
It will be interesting to see if gold can get back above $1000/ ounce. A lot of investors seem to think it will. I've been trying to keep up to date with gold (see posts on Jan 26 and Feb 2) and I think it will. I don't feel it will move above $1300 as the readers of Mineweb believe, but I definitely see it retesting the $980-1050 in the next few months. Click here for today's Market Watch report on Gold
Chinalco investing nearly $20-billion in Rio Tinto; deal suggests Canadian resources sector could climb out of doldrums sooner
ANDY HOFFMAN
February 13, 2009
MINING REPORTER
China's blockbuster deal to invest $19.5-billion (U.S.) in Rio Tinto Group bodes well for Canada's resource-driven economy as it shows the world's largest commodities consumer is betting on a faster-than-expected recovery in metals demand.
State-controlled China Aluminum Corp. (Chinalco) is buying $7.2-billion worth of convertible bonds and will pay $12.3-billion for stakes in eight of Rio Tinto's mines that produce a range of metals including iron ore, copper and aluminum.
Rogers Says Geithner Caused Crisis, Must Let Banks Fail Feb. 11-- Jim Rogers, chairman of Rogers Holdings, talks with Lori Rothman about U.S. Treasury Secretary Timothy Geithner's handling of the financial crisis.
Geithner yesterday pledged government financing for as much as $2 trillion of efforts to spur new lending and address banks' toxic assets. Rogers, speaking from Singapore, also discusses the U.S. banking industry and investment strategy
In-Depth Look - Rogers on the Financial Rescue Plan - Bloomberg Feb. 10-- Analysis and Discussion by Jim Rogers of Rogers Holding (First Word)
Crude Oil Inventories Rise 4.72 Million Barrels; Gasoline Inventories Fall 2.7 Million Barrels; U.S. Refineries Operated at 8.16% Capacity, Lowest Since October (In Focus)
It is very typical for strongmen, with gigantic macho Latino attitudes to like to control everything. It is even more common for wealthy big shots from North American or European companies to bribe and use their domestic connections with natives to ensure they get what they want.
Well, as you can read in more detail at this post from IncaKolaNews, the journalist who published the photos of Monterrico Metals torturing himself and others is now receiving death threats on his personal cell phone.
This is very common in Peru. I was young at the time but I vividly remember the fear in the eyes of my family members when my Peruvian uncle, Lucho Iberico helped break the Fujimori scandal (where video's where made public of Montesinos bribing Peru's elite). To all readers keep this story alive and knowledge of this story alive, so that this company and the people responsible for these horrible things get what they deserve (Andrew Bristow, Richard Ralph). Full Article from IncaKolaNews
Feb 9 - The mining group's chairman-designate quits after objecting to a potential deal with state-run Chinese aluminium maker Chinalco.
Jim Leng, deputy chairman of India's Tata Steel, was named as Rio's next chairman just over three weeks ago. Current Rio Chairman Paul Skinner will now stay in the post until mid 2009 to allow time to appoint a successor.
What's weighing on metal prices? -- article highlights
--> China is buying up copper from domestic bonded warehouses --> Weak economic data reports from Japan and Europe --> Copper, aluminum stocks on LME continue to rise
Seems as if the China factor outweighs the negative data from Europe. Chinese demand in my opinion will not be enough to push metals, in particular copper back to record setting highs of 8 months ago.
None the less, as reported in this Reuters article people remain cautiously bullish.
Top officials from the Chinese government have been busy visiting or preparing for trips to Africa, the Middle East, Latin America and Europe.
Premier Wen Jiaobao latest European trip has boosted confidence in the two regions joint efforts at tackling the global financial crisis, reported Xinhua today.
Chinese Preisdent Hu Jintao will visit Saudi Arabia, Mali, Senegal, Tanzania and Mautitius from Feb 10th to Feb 17th.
Vice President Xi Jinping left yesterday on Sunday to meet Vice Premier Hui Liangyu (below) for his own official visits to Mexico, Jamaica, Colombia, Venezuela, Brazil and Malta.
Chinese Vice Premier Hui Liangyu (2nd L) is greeted upon his arrival in Buenos Aires, Argentina, on Feb. 8, 2009.(Xinhua/Martin Zabala)
Jia Qingguo, associate dean of the School of International Studies at Peking University, told the Beijing-based Global Times newspaper that “the international community expects China's greater involvement in international affairs and a greater international responsibility for China.” On the other hand, "it signifies that China is placing a greater emphasis on cooperation with the rest of the world, which has an important bearing on our own interests," Jia said.
Chinese Vice Premier Hui Liangyu (L) is greeted upon his arrival in Buenos Aires, Argentina, on Feb. 8, 2009. (Xinhua/Martin Zabala)
