Showing posts with label south america. Show all posts
Showing posts with label south america. Show all posts
Saturday, October 3, 2009
Sunday, August 23, 2009
Sinopec's profit soars; announces plans to boost oversea expansion
Sinopec's (a.k.a China Petroleum & Chemical Corp.) net income rose at least tenfold to 22 billion yuan ($3.22 billion usd) in the second quarter according to this Bloomberg article.
The company has also announced it is planning a "rapid" overseas expansion in order to secure energy supply adequate to feed Chinese demand.
[Sinopec I passed on a bus ride to Shanxi, October - 2006]
The announcement, along with the company's record gains in profit come as other global giants in the energy industry such as Royal Dutch Shell and Exxon Mobil have seen their earnings decline as prices plummeted and demand waned when the global slowdown ensued at the end of 2008.
According to Bloomberg, Sinopec supplies 80% of China's fuel needs and is China's largest refiner of crude oil. The company is looking for new foreign partners, expand its refining capacity and reduce operational costs. The company expects demand will remain strong in China and that oil prices will continue to rise throughout the second half of the year.
Here are a few highlights from the Bloomberg article, "Sinopec to Boost Expansion Abroad After Profit Surges to Record," which you can access in full by clicking here.
“Sinopec’s main business is refining and it needs to increase its oil reserves and reduce its reliance on other oil producers,” said Larry Grace, an independent oil analyst based in Hong Kong. “There’s a government directive to increase overseas oil and gas assets.”
...
Sinopec gets almost all its revenue from refining and the sale and distribution of fuels. Oil production accounted for just over 2 percent of sales, according to its 2008 annual report. The company imports about 80 percent of the crude it processes.
...
Su said the company will accelerate its “go global” strategy.
Parent company China Petrochemical Corp. said on Aug. 18 it had concluded the C$8.3 billion ($7.7 billion) acquisition of Addax Petroleum Corp. to secure reserves in Iraq and Africa. China Petrochemical has assets in Russia, Angola, Ecuador, Australia, Canada, Kazakhstan and Myanmar.
Sinopec’s parent completed the purchase of Tanganyika Oil Co. for about $1.8 billion in December. Vancouver-based Tanganyika holds stakes in two Syrian production-sharing agreements covering the Oudeh and Tishrine/Sheikh Mansour blocks after expanding from Tanzania in 1996.
The company has also announced it is planning a "rapid" overseas expansion in order to secure energy supply adequate to feed Chinese demand.
[Sinopec I passed on a bus ride to Shanxi, October - 2006] According to Bloomberg, Sinopec supplies 80% of China's fuel needs and is China's largest refiner of crude oil. The company is looking for new foreign partners, expand its refining capacity and reduce operational costs. The company expects demand will remain strong in China and that oil prices will continue to rise throughout the second half of the year.
Here are a few highlights from the Bloomberg article, "Sinopec to Boost Expansion Abroad After Profit Surges to Record," which you can access in full by clicking here.
“Sinopec’s main business is refining and it needs to increase its oil reserves and reduce its reliance on other oil producers,” said Larry Grace, an independent oil analyst based in Hong Kong. “There’s a government directive to increase overseas oil and gas assets.”
...
Sinopec gets almost all its revenue from refining and the sale and distribution of fuels. Oil production accounted for just over 2 percent of sales, according to its 2008 annual report. The company imports about 80 percent of the crude it processes.
...
Su said the company will accelerate its “go global” strategy.
Parent company China Petrochemical Corp. said on Aug. 18 it had concluded the C$8.3 billion ($7.7 billion) acquisition of Addax Petroleum Corp. to secure reserves in Iraq and Africa. China Petrochemical has assets in Russia, Angola, Ecuador, Australia, Canada, Kazakhstan and Myanmar.
Sinopec’s parent completed the purchase of Tanganyika Oil Co. for about $1.8 billion in December. Vancouver-based Tanganyika holds stakes in two Syrian production-sharing agreements covering the Oudeh and Tishrine/Sheikh Mansour blocks after expanding from Tanzania in 1996.
Thursday, August 13, 2009
Newswire: China & Commodities in focus
China stops expansion projects in steel industry for three years - Xinhua
China's Ministry of Industry and Information Technology (MIIT) Thursday announced a three-year moratorium on approvals of new expansion-related proposals in the iron and steel industry, as the government pledges to eliminate outdated capacity.
CISA stance hurts small steel mills - China Daily
China's top negotiators in the bitter and protracted row over the price of iron ore seem destined never to agree - risking a loss of face that will raise questions about whether they are up to the job and who it is they are actually representing.
Their apparent refusal to compromise is damaging the competitiveness of smaller domestic steel mills, forcing them to buy from their larger counterparts, say analysts. The bigger firms have been content to pay whatever the spot price is for ore and pass on the premiums.
CNPC to speed up oil assets buy plan - Xiao Wan of eChinaCities
China National Petroleum Corp (CNPC), the country's largest oil and gas producer, will speed up overseas acquisitions in regions such as Africa and South America this year, in a bid to boost China's quest for energy security.
Coal mines to merge in new plan - China Daily
A large-scale restructuring of the coal industry in China's major coal-producing province of Shanxi, starting at the end of this month, will reduce accidents and improve efficiency by shutting down small coal mines, officials said.
"The restructuring this time is the largest after years of adjusting the coal industry's structure," Miao Huanli, planning section director of Shanxi provincial coal bureau, said yesterday.
China's Ministry of Industry and Information Technology (MIIT) Thursday announced a three-year moratorium on approvals of new expansion-related proposals in the iron and steel industry, as the government pledges to eliminate outdated capacity.CISA stance hurts small steel mills - China Daily
China's top negotiators in the bitter and protracted row over the price of iron ore seem destined never to agree - risking a loss of face that will raise questions about whether they are up to the job and who it is they are actually representing.
Their apparent refusal to compromise is damaging the competitiveness of smaller domestic steel mills, forcing them to buy from their larger counterparts, say analysts. The bigger firms have been content to pay whatever the spot price is for ore and pass on the premiums.
CNPC to speed up oil assets buy plan - Xiao Wan of eChinaCities
China National Petroleum Corp (CNPC), the country's largest oil and gas producer, will speed up overseas acquisitions in regions such as Africa and South America this year, in a bid to boost China's quest for energy security.
Coal mines to merge in new plan - China Daily
A large-scale restructuring of the coal industry in China's major coal-producing province of Shanxi, starting at the end of this month, will reduce accidents and improve efficiency by shutting down small coal mines, officials said.
"The restructuring this time is the largest after years of adjusting the coal industry's structure," Miao Huanli, planning section director of Shanxi provincial coal bureau, said yesterday.
Tuesday, August 11, 2009
Sunday, June 14, 2009
How much of this map will be red when The Economist does a story on this in 20 years?
Oil and land rights in Peru -- Blood in the jungleFOR seven weeks tens of thousands of Amazonian Indians blocked roads and rivers across eastern Peru. They seized hydroelectric plants and pumping stations on oil and gas pipelines to try to force the repeal of decrees facilitating oil exploration...
Thursday, May 28, 2009
Corporacion Andina de Fomento Sells $1 Billion of 10-Year Notes
Corporacion Andina de Fomento sold $1 billion of 10-year notes, according to a person familiar with the transaction.
CAF sold the bonds to yield 4.5 percentage points above U.S. Treasuries, said the person, who declined to be identified.
[Source] -- Bloomberg
Tuesday, May 26, 2009
Laying the foundation for a tri-nation Boliviaran mining giant in South America
[South-South Cooperation] -- Ecuador, Venezuela, Bolivia
The Ecuadorian government announced plans yesterday of the establishment of a joint mining company with the country of Venezuela and possibly Bolivia. You can read all the vague details in this article from Chinamining.
"We are going to build a great mining company in association with Venezuela and perhaps with Bolivia to exploit some veins of mine ore returned to the State from private hands,"said Ecuadorian Minister of Mines and Petroleum Derlis Palacios.
The Ecuadorian government announced plans yesterday of the establishment of a joint mining company with the country of Venezuela and possibly Bolivia. You can read all the vague details in this article from Chinamining."We are going to build a great mining company in association with Venezuela and perhaps with Bolivia to exploit some veins of mine ore returned to the State from private hands,"said Ecuadorian Minister of Mines and Petroleum Derlis Palacios.
Newswire: Latin America
Latinamerica foreign trade forecasted to contract 9 to 11% in 2009The main impact for Latinamerica of the global financial crisis and economic slowdown has been the contraction of trade, so far in the range of 9 to 11%, revealed Alicia Bárcena, Executive Secretary of the UN Economic Commission for Latinamerica and the Caribbean, Cepal.
“The strongest impact we are seeing in the region is the fall in trade volumes. I believe that the “shock” of the contraction of global demand for our goods and services is our most relevant issue”, said Bárcena in an interview with the Cuban daily Granma.
She recalled that when the last big crisis Latinamerica’s foreign debt was equivalent to 24% of GDP, while in 2008 it had dropped to 8%.
Latinamerican Liberals hold congress in “Bolivarian” Venezuela
Liberal political parties and thinkers from Latinamerica are holding their annual congress this week in the Venezuelan capital Caracas. The event is in the framework of the 25th anniversary of the local branch Cedice-Libertad and will promote debates on liberal policies to address poverty and the current global slowdown.
...
The congress is bound to spark some reaction among President Chavez followers since his Bolivarian revolution and XXIst Socialism stand at the opposite end of the political spectrum from the Liberals and the concept of individual freedom.
The two events will be taking place during a particularly sensitive week since President Chavez has ordered the nationalization of oil industry subcontractors, banks, steel industry, food processors and farm land considered idle.
Foreign direct investment to Latam reached 139 billion USD in 2008
Direct foreign investments in Latinamerica and the Caribbean are showing a significant resistance to the global crisis and in 2008 reached a record 139 billion US dollars, up 9.4% from the previous year according the United Nations Conference on Trade and Development.
Latinamerica’s bicentennial independence festivities begin in Bolivia
Bolivia’s commemoration on Monday May 25th of the 200th anniversary of the first uprising in Latinamerica against the Spanish colonial empire will also mark the beginning of similar independence celebrations along the continent which will peak in 2010.
Third re-election running “inappropriate” admits Colombia’s Uribe
Colombia’s President Alvaro Uribe says it would be “inappropriate” for him to seek a third consecutive term. His statement comes two days after the Senate approved a referendum that would ask voters to permit him to run again. Uribe did not, however, clearly rule out a re-election bid.
Sunday, May 10, 2009
Bank of the South - South American leaders reach a definitive agreement
A definitive agreement for the launching of the Bank of the South was reached in Buenoes Aires on Friday afternoon. Everything seems set to go with one minor change to note, The Bank of the South will begin operations with $7 billion in working capital, not the $10 billion reported previously.
South-South Cooperation is a term historically associated with the exchange of resources, technology and knowledge between developing countries. This latest initiative by the countries of Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela is especially exciting for the region as it:
a) Involves seven South American countries
b) Includes countries with very different political and economic ideologies
c) Includes the regional powerhouse of Brazil
d) Is not dominated by one power, but rather uses a fair system to calculate member country donations
e) Sends a message to member countries that what is good for the region is good me
What is mysterious, and surely politically motivated, is the fact the most staunch US allies in the region; Colombia, Peru and Chile, have not been included...
Here's the scoop from what went down over in Buenos Aires on Friday, courtesy of MercoPress.
“We’ve closed all pending issues and therefore this is the last ministerial meeting on the subject, said Argentine Finance minister Carlos Fernández who nevertheless added that the final stitch is “the technical review of statutes” of the new bank and the “parliamentary approval by the seven founding countries”.
[Arg Finance Minister, Carlos Fenandez]
The Bank of the South, started at the end of 2007 (and the brainchild of Venezuela’s Hugo Chavez), will have an initial capital of 7 billion US dollars (originally it was planned 10 billion), of which Argentina, Brazil and Venezuela will supply 2 billion US dollars each; Ecuador and Uruguay 400 million US dollars each and Bolivia 200 million.
“The terms of the agreement are acceptable, so the statutes should be easily approved without much discussion”, said Brazil’s Finance minister Guido Mantega. “This is the missing step for financial integration”, he added.
“Given the current international context the bank should be operational as soon as possible” added Argentina’s Fernandez. “It’s not easy to create a financial institution of this kind in the midst of an international crisis”.
According to the statutes each country member will have “one vote” in the board but for approval of loans 70 million US dollars plus, support from votes representing two thirds of capital subscription will be needed, explained Fernandez.
At the same meeting Argentina and Brazil also agreed to a 1.5 billion US dollars swap to reinforce their international reserves. The operation is similar to that recently agreed between Argentina and China and the one signed by the Federal Reserve and fifteen other countries, including Brazil.
The swap is “preventive” and enables each country access to a credit in Brazilian Reales or Argentine Pesos equivalent to 1.5 billion US dollars and valid for three years.
Brazilian minister Mantega said that when Brazil signed the agreement with the FED he advanced that the scheme would be expanded to the region, with Argentina and Uruguay as first interested parties.
“It’s a precaution mechanism to reinforce international reserves. Let’s hope this becomes available as soon as possible and operational for the two central banks”, said Fernandez.
South-South Cooperation is a term historically associated with the exchange of resources, technology and knowledge between developing countries. This latest initiative by the countries of Argentina, Brazil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela is especially exciting for the region as it:
a) Involves seven South American countries
b) Includes countries with very different political and economic ideologies
c) Includes the regional powerhouse of Brazil
d) Is not dominated by one power, but rather uses a fair system to calculate member country donations
e) Sends a message to member countries that what is good for the region is good me
What is mysterious, and surely politically motivated, is the fact the most staunch US allies in the region; Colombia, Peru and Chile, have not been included...
Here's the scoop from what went down over in Buenos Aires on Friday, courtesy of MercoPress.
“We’ve closed all pending issues and therefore this is the last ministerial meeting on the subject, said Argentine Finance minister Carlos Fernández who nevertheless added that the final stitch is “the technical review of statutes” of the new bank and the “parliamentary approval by the seven founding countries”.[Arg Finance Minister, Carlos Fenandez]
The Bank of the South, started at the end of 2007 (and the brainchild of Venezuela’s Hugo Chavez), will have an initial capital of 7 billion US dollars (originally it was planned 10 billion), of which Argentina, Brazil and Venezuela will supply 2 billion US dollars each; Ecuador and Uruguay 400 million US dollars each and Bolivia 200 million.
“The terms of the agreement are acceptable, so the statutes should be easily approved without much discussion”, said Brazil’s Finance minister Guido Mantega. “This is the missing step for financial integration”, he added.
“Given the current international context the bank should be operational as soon as possible” added Argentina’s Fernandez. “It’s not easy to create a financial institution of this kind in the midst of an international crisis”.
According to the statutes each country member will have “one vote” in the board but for approval of loans 70 million US dollars plus, support from votes representing two thirds of capital subscription will be needed, explained Fernandez.
At the same meeting Argentina and Brazil also agreed to a 1.5 billion US dollars swap to reinforce their international reserves. The operation is similar to that recently agreed between Argentina and China and the one signed by the Federal Reserve and fifteen other countries, including Brazil.
The swap is “preventive” and enables each country access to a credit in Brazilian Reales or Argentine Pesos equivalent to 1.5 billion US dollars and valid for three years.
Brazilian minister Mantega said that when Brazil signed the agreement with the FED he advanced that the scheme would be expanded to the region, with Argentina and Uruguay as first interested parties.
“It’s a precaution mechanism to reinforce international reserves. Let’s hope this becomes available as soon as possible and operational for the two central banks”, said Fernandez.
Friday, May 1, 2009
The IncaKolaNews Weekly -- Mining, LatAm, Stocks and more
Back in May 2008, soon after I made my decision to participate the world of internet blogging, social networking, independent analysis/journalism and information exchange I stumbled upon a incredible site by the name of IncaKolaNews. It is run by a humble, well informed, intelligent guy who goes by the name of Otto.
He's down on the ground in Peru, and by "down on the ground" I don't mean living in a nice Miraflores apartment facing the Pacific Ocean in the capital Lima.
Otto is the real deal and offers a very insightful view into the real world of South American politics, mining and finance.
Check out his site @ http://incakolanews.blogspot.com
Here are some highlights as to what the INK Weekly will offer subscribers. I have copy and pasted this information from this page where you can click to read a more in depth summary.
* Fundamental analysis of mining stocks. The weekly will include at least two NOBS reports per month (perhaps more), a format that has proved very popular with site regulars. These reports are likely to cover mostly junior miners but may include other regions than LatAm or different industrial sectors if good opportunity arises. The NOBS reports will likely aim at highlighting buying opportunities, but may also cover updates or even hold/sell calls if a company catches my eye. The reports will also eventually cover the 'Stocks to Follow' portfolio.
* Stocks to follow. I plan on developing a short list (likely not more than ten stocks at any given moment) of companies that I believe will offer strong profit-making opportunities. Once again, Latin American exposed stocks will be favoured but other regions will not be excluded for simple geographical reasons. The performance will be tracked using a model portfolio. Additionally, as 'selling well' is equally as important as a successful buy call, the IKN Weekly will not hesitate in giving 'take profit' or 'stop loss' signals. Regular readers of the blog will know how I normally call my trades on site and the principle will be the same.
* Regional Politics, but not any old gossip. Regional political or economic developments that offer the investor a potentially profitable knowledge advantage are the matters that will interest us in The IKN Weekly. What Hugo said to Evo about Barack will not interest us. The type of political development in Ecuador that allowed this blog to call Dynasty (DMM.to) a buy just days before the beginning of its 300% upmove in December will most definitely interest The IKN Weekly.
* Market Watching, providing impressions, thoughts, opinions on whatever happens in the sector during the week and how you as an investor might benefit going forward. This would really be a catch-all category covering many aspects of the junior mining investment world, but a topical example would be as in yesterday morning's blog content mentioning International Royalty Corp. (IRC.to) (ROY). I wrote that IRC.to would be a good way to play the positive news from Barrick about Pascua Lama. It subsequently rose 13% from C$2.63 to C$2.97, with the final push made when IRC.to published its news release promoting the Pascua Lama link late Thursday.
Click here to read more about the INK Weekly or to sign up now!
He's down on the ground in Peru, and by "down on the ground" I don't mean living in a nice Miraflores apartment facing the Pacific Ocean in the capital Lima.
Otto is the real deal and offers a very insightful view into the real world of South American politics, mining and finance.
Check out his site @ http://incakolanews.blogspot.com
Here are some highlights as to what the INK Weekly will offer subscribers. I have copy and pasted this information from this page where you can click to read a more in depth summary.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* Fundamental analysis of mining stocks. The weekly will include at least two NOBS reports per month (perhaps more), a format that has proved very popular with site regulars. These reports are likely to cover mostly junior miners but may include other regions than LatAm or different industrial sectors if good opportunity arises. The NOBS reports will likely aim at highlighting buying opportunities, but may also cover updates or even hold/sell calls if a company catches my eye. The reports will also eventually cover the 'Stocks to Follow' portfolio.
* Stocks to follow. I plan on developing a short list (likely not more than ten stocks at any given moment) of companies that I believe will offer strong profit-making opportunities. Once again, Latin American exposed stocks will be favoured but other regions will not be excluded for simple geographical reasons. The performance will be tracked using a model portfolio. Additionally, as 'selling well' is equally as important as a successful buy call, the IKN Weekly will not hesitate in giving 'take profit' or 'stop loss' signals. Regular readers of the blog will know how I normally call my trades on site and the principle will be the same.
* Regional Politics, but not any old gossip. Regional political or economic developments that offer the investor a potentially profitable knowledge advantage are the matters that will interest us in The IKN Weekly. What Hugo said to Evo about Barack will not interest us. The type of political development in Ecuador that allowed this blog to call Dynasty (DMM.to) a buy just days before the beginning of its 300% upmove in December will most definitely interest The IKN Weekly.
* Market Watching, providing impressions, thoughts, opinions on whatever happens in the sector during the week and how you as an investor might benefit going forward. This would really be a catch-all category covering many aspects of the junior mining investment world, but a topical example would be as in yesterday morning's blog content mentioning International Royalty Corp. (IRC.to) (ROY). I wrote that IRC.to would be a good way to play the positive news from Barrick about Pascua Lama. It subsequently rose 13% from C$2.63 to C$2.97, with the final push made when IRC.to published its news release promoting the Pascua Lama link late Thursday.
Click here to read more about the INK Weekly or to sign up now!
Thursday, March 19, 2009
The Latin American zinc association (Latiza)
I didn't even realize this organization existed until I stumbled upon a interesting "in depth" piece that BNAmerica's did on it.The Latin American Zinc Association (Latiza) is a regional branch of the International Zinc Association, which comprises both zinc producers, miners and refiners. Latin America, if you did not know produces roughly 23% of the global output of zinc, a very commonly used base metal.
If you're interested in learning more about Latiza and can read Spanish you should definitely check out their home page at:
http://www.latiza.com/primero.html
Wednesday, March 18, 2009
South-South Cooperation Triangle -- Colombia, Peru & Brazil
BOGOTA -(Dow Jones)- Colombian state-controlled oil company Ecopetrol SA ( ECOPETROL.BO) said Tuesday it has agreed to buy stakes in two oil blocks in Peru from Brazilian oil company Petroleo Brasileiro SA (PBR).
In a statement, Ecopetrol said it bought 50% of a block in the eastern Peruvian Amazon jungle and 25% in a second one, located in the country's southeastern jungle.
Both companies will search for oil and gas in the two areas together. The acquisitions need to be approved by Peruvian authorities, Ecopetrol said.
Click here to read more from CNN Money ...
I know weird right??? CNN Money ran this story. Well I guess it was from Dow Jones originally hehe.
In a statement, Ecopetrol said it bought 50% of a block in the eastern Peruvian Amazon jungle and 25% in a second one, located in the country's southeastern jungle.
Both companies will search for oil and gas in the two areas together. The acquisitions need to be approved by Peruvian authorities, Ecopetrol said.
Click here to read more from CNN Money ...
I know weird right??? CNN Money ran this story. Well I guess it was from Dow Jones originally hehe.
Tuesday, March 10, 2009
Morocco-Paraguay hold first joint meeting to boost co-operation
Some interesting news in the field of “South-South Cooperation” arrived in my email box this evening.
The underlying point is simple. Developing nations in today's globalized world are going to be looking towards one another for new opportunities more and more, and towards the developed world less and less... at least proportionately.
The first Morocco-Paraguay joint committee meeting, which kicked off Monday in the Moroccan capital, Rabat, is an opportunity to strengthen bilateral co-operation at all levels and in all areas, Moroccan Foreign Minister, Taieb Fassi Fihri said.
Speaking to reporters following the opening ceremony, Fassi Fihri recalled the kingdom's experience in south-South co-operation, stressing that king Mohammed VI takes great interest in this co-operation as a forum for a better exchange of expertise and sharing of competences.
He underlined, in this regard, the two countries' desire to work together to deepen their political dialogue and strengthen co-operation in several fields, mainly agriculture, water and electricity, health, human development and poverty eradication.
Co-operation opportunities, especially in banking, trade and investment, were also among the issues tackled by the FM, who stressed the importance of strengthening cultural co-operation as well between the two countries.
On his part, Paraguay’s Foreign Minister, Alejandro Hamed Franco, who co-chairs this session with his Moroccan peer, said this meeting is “a new step” in bilateral relations.
Click here to access the full article from ISRIA, Geopolitical Intelligence
The underlying point is simple. Developing nations in today's globalized world are going to be looking towards one another for new opportunities more and more, and towards the developed world less and less... at least proportionately.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The first Morocco-Paraguay joint committee meeting, which kicked off Monday in the Moroccan capital, Rabat, is an opportunity to strengthen bilateral co-operation at all levels and in all areas, Moroccan Foreign Minister, Taieb Fassi Fihri said.
Speaking to reporters following the opening ceremony, Fassi Fihri recalled the kingdom's experience in south-South co-operation, stressing that king Mohammed VI takes great interest in this co-operation as a forum for a better exchange of expertise and sharing of competences.
He underlined, in this regard, the two countries' desire to work together to deepen their political dialogue and strengthen co-operation in several fields, mainly agriculture, water and electricity, health, human development and poverty eradication.
Co-operation opportunities, especially in banking, trade and investment, were also among the issues tackled by the FM, who stressed the importance of strengthening cultural co-operation as well between the two countries.
On his part, Paraguay’s Foreign Minister, Alejandro Hamed Franco, who co-chairs this session with his Moroccan peer, said this meeting is “a new step” in bilateral relations.
Click here to access the full article from ISRIA, Geopolitical Intelligence
Monday, March 9, 2009
Japanese Firms to Develop Products Specifically for Latin America
TOKYO – Several Japanese companies, including Fujifilm and Panasonic, will develop new low-cost products specially designed for emerging markets in South America and Asia, the daily Nikkei said Monday.
Faced with the fall in demand in its principal markets like the United States and Europe, Japanese firms have decided to target middle-class consumers in emerging economies like Brazil as a way of dealing with the global economic crisis, Nikkei said.
Click here to access this full story from the Latin American Herald
Faced with the fall in demand in its principal markets like the United States and Europe, Japanese firms have decided to target middle-class consumers in emerging economies like Brazil as a way of dealing with the global economic crisis, Nikkei said.
Click here to access this full story from the Latin American Herald
Friday, March 6, 2009
Chinese leaders' Latin American tours boost bilateral strategic co-op
BUENOS AIRES, March 6 (Xinhua) -- Some Latin American diplomats and scholars have spoken highly of Chinese leaders' recent tour of the region, saying their visits will boost the strategic cooperation between China and the Latin American countries.
Chinese Vice President Xi Jinping and Vice Premier Hui Liangyu paid separate official visits to Latin America countries in February, the beginning of the Chinese lunar new year.
China Town, Buenos Aires
The Chinese leaders' visits to the region are of great significance to promote China-Latin America relations, said Gustavo Gerardo, chairman of the Asia-Argentina Association.
As a major trade and investment power, China is playing an increasingly important role in the global economy, he said.
The Chinese and Latin American economies are highly complementary to each other. Primary products produced by Latin American countries for export to China help maintain China's economic stability and growth. Meanwhile, China's investment and commodities have strong appeal to Latin American countries, he added.
Click here to access more on this topic from Xinhua News Agency
Chinese Vice President Xi Jinping and Vice Premier Hui Liangyu paid separate official visits to Latin America countries in February, the beginning of the Chinese lunar new year.
China Town, Buenos AiresThe Chinese leaders' visits to the region are of great significance to promote China-Latin America relations, said Gustavo Gerardo, chairman of the Asia-Argentina Association.
As a major trade and investment power, China is playing an increasingly important role in the global economy, he said.
The Chinese and Latin American economies are highly complementary to each other. Primary products produced by Latin American countries for export to China help maintain China's economic stability and growth. Meanwhile, China's investment and commodities have strong appeal to Latin American countries, he added.
Click here to access more on this topic from Xinhua News Agency
Wednesday, February 25, 2009
Enap, Chile's state oil company declares $958 mil net loss in 2008
Chile's state oil company, Enap, the second largest company in the country after copper giant Codelco (according to this FT article) declared a $958 million net loss in 2008 yesterday.
Enap produces 230,000 barrels of oil per day and 13m cubic meters of fuel a year. The company also has interests in Argentina, Ecuador, Egypt and Iran and . It supplies about 85 per cent of Chile’s fuel needs and exports to Central and South America.
Sadly, Enap is what will go down in history as a classic victim from the volatile markets of the world economy during the global economic crisis of 2008-2009.
Record high commodity prices reached in 2007-2008 forced Enap to purchase a great deal of the crude it refined for use in the domestic economy for around $140 a barrel. When oil prices dropped to $34 a barrel in December, the company was forced sell its refined crude products for the lower market price. In all, this macro swing in the global economy cost the company around $650 million.
Two other factors also contributed to the loss. Drought in northern Chile forced Enap to shut down some hydroelectric plants. Second internal problems in Argentina lead the government to implement subsidies on petrol products, igniting demand in Argentina. When push came to shove and Argentina realized there wasn't enough gas to go around, the country diverted some of its supplies meant for Chile to the domestic economy. Thus forcing Chile in both instances to import energy from new and more expensive sources.
All in all a bad year for Enap in the global economy.
According to this FT article, Enap has pinned its hopes on hydrocarbons exploration in the Magallanes region in the far south of Chile, but the state auditor has raised questions about the viability of the project, and Enap has yet to announce whether it will go ahead.
Wednesday, January 28, 2009
Does Brazil have a cash flow problem?
Brazil seems to be having some money troubles by the looks of the press. It's not good news for Latin America when its largest economy slows, especially when until just recently it seemed Brazil (the depreciation of the Real aside) was well relatively well poised to weather the storm.
Like its fellow BRIC country's, Brazil is far from immune to the global crisis. The country is still heavily dependent on commodity exports, which was the main engine of growth for both the Brazilian economy and stock market the past few years.
Despite reports that consumer spending is still holding up and that Brazil's big state conglomerates like Petrobras are increasing spending (see MercoPress article here), it simply won't be enough to keep the economy afloat forever—and it definitely will not be enough to maintain growth levels of 4-5%.
Poor Ronaldo seen here losing at the French World
Now... for the grim news. While just days earlier Petrobras reported it will be increasing spending, yesterday things did not go its way when it went shopping in international markets to raise money. The company was forced to put off plans to sell bonds because the cost of borrowing to finance the bonds in dollar denominated debt was simply too high (see Bloomberg article here)
Moving on. Brazil's government also had some bad news to bring to the table, announcing plans to freeze roughly 6% of its planned spending budget for 2009 because slow economic growth is eroding tax collection ( see bloomberg article here)
To round up the negative news is one last story concerning loan defaults in Brazil. Credit card spending may be surging, people may be packing the stores but they aren't paying their bills. Loan defaults surged last month to their highest since September 2002 (see Bloomberg article here).
Not good news people...
Like its fellow BRIC country's, Brazil is far from immune to the global crisis. The country is still heavily dependent on commodity exports, which was the main engine of growth for both the Brazilian economy and stock market the past few years.
Despite reports that consumer spending is still holding up and that Brazil's big state conglomerates like Petrobras are increasing spending (see MercoPress article here), it simply won't be enough to keep the economy afloat forever—and it definitely will not be enough to maintain growth levels of 4-5%.
Poor Ronaldo seen here losing at the French World Now... for the grim news. While just days earlier Petrobras reported it will be increasing spending, yesterday things did not go its way when it went shopping in international markets to raise money. The company was forced to put off plans to sell bonds because the cost of borrowing to finance the bonds in dollar denominated debt was simply too high (see Bloomberg article here)
Moving on. Brazil's government also had some bad news to bring to the table, announcing plans to freeze roughly 6% of its planned spending budget for 2009 because slow economic growth is eroding tax collection ( see bloomberg article here)
To round up the negative news is one last story concerning loan defaults in Brazil. Credit card spending may be surging, people may be packing the stores but they aren't paying their bills. Loan defaults surged last month to their highest since September 2002 (see Bloomberg article here).
Not good news people...
Thursday, January 15, 2009
Gloomy day in the news -- 3 part update
When I woke up this morning and did my morning news reading there weren't too many stories that particularly stood out... If you wanted to describe the news this morning in one word, it would have to be gloomy.
I've assembled separate posts according to region and subject of the the “Gloom and Doom,” as Marc Faber says.
I've assembled separate posts according to region and subject of the the “Gloom and Doom,” as Marc Faber says.
News reel: Economic Meltdown p1 – South America
Click on article titles to access the full copy from parent websites
Peru in Talks to Borrow From U.S. Fed, China, Valdivieso Says – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Peru is in talks with the U.S. Federal Reserve and China’s central bank to swap its currency for dollars as the government seeks to boost liquidity amid the global credit crunch, Finance Minister Luis Valdivieso said.
The country may tap another $9 billion in loans from multilateral lenders to help finance about $35 billion in mining, energy and other development projects, Valdivieso said in an interview with Bloomberg television last night at the Finance Ministry in Lima.
Brazil Company Debt Payment Aid Points to Larger Need in Region - Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Brazil’s plan to provide more than $20 billion to help companies roll over maturing international debt may point to even bigger financing constraints in the rest of Latin America, according to Standard & Poor’s.
Brazil’s central bank President Henrique Meirelles unveiled plans yesterday to tap reserves for helping 4,000 or more companies meet international debt payments this year. Brazilian companies have $61.6 billion of foreign debt coming due this year, including $44.9 billion of obligations that mature in less than a year, Schineller said, citing central bank data.
Brazil’s Exports May Plunge 20 Percent in 2009, Barral Says – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) – Brazil’s exports may plunge 20 percent this year on slumping demand and falling prices as world economic growth slows, Foreign Trade Secretary Welber Barral said.
Argentina’s Buzzi Says Government’s Plan Isn’t Enough (Update1) – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Argentine farm leader Eduardo Buzzi, president of the country’s Agrarian Federation, said measures announced by the government yesterday aren’t enough to help farmers facing drought and falling commodity prices.
Ecuador Bank Drafting Bill for Second Currency, Hoy Reports – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Ecuador’s central bank is preparing legislation that would allow it to issue a currency to be used alongside the dollar, Quito-based newspaper Hoy reported, citing a draft of the bill it had obtained
Bolivia breaks relations with Israel over Gaza invasion – MercoPress- Jan 15, 2009
President Evo Morales announced Wednesday that Bolivia severed diplomatic ties with Israel as an act of solidarity with Palestinians suffering from the current offensive in the Gaza strip.
Peru in Talks to Borrow From U.S. Fed, China, Valdivieso Says – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Peru is in talks with the U.S. Federal Reserve and China’s central bank to swap its currency for dollars as the government seeks to boost liquidity amid the global credit crunch, Finance Minister Luis Valdivieso said.
The country may tap another $9 billion in loans from multilateral lenders to help finance about $35 billion in mining, energy and other development projects, Valdivieso said in an interview with Bloomberg television last night at the Finance Ministry in Lima.
Brazil Company Debt Payment Aid Points to Larger Need in Region - Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Brazil’s plan to provide more than $20 billion to help companies roll over maturing international debt may point to even bigger financing constraints in the rest of Latin America, according to Standard & Poor’s.
Brazil’s central bank President Henrique Meirelles unveiled plans yesterday to tap reserves for helping 4,000 or more companies meet international debt payments this year. Brazilian companies have $61.6 billion of foreign debt coming due this year, including $44.9 billion of obligations that mature in less than a year, Schineller said, citing central bank data.
Brazil’s Exports May Plunge 20 Percent in 2009, Barral Says – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) – Brazil’s exports may plunge 20 percent this year on slumping demand and falling prices as world economic growth slows, Foreign Trade Secretary Welber Barral said.
Argentina’s Buzzi Says Government’s Plan Isn’t Enough (Update1) – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Argentine farm leader Eduardo Buzzi, president of the country’s Agrarian Federation, said measures announced by the government yesterday aren’t enough to help farmers facing drought and falling commodity prices.
Ecuador Bank Drafting Bill for Second Currency, Hoy Reports – Bloomberg - Jan 15, 2009
Jan. 15 (Bloomberg) -- Ecuador’s central bank is preparing legislation that would allow it to issue a currency to be used alongside the dollar, Quito-based newspaper Hoy reported, citing a draft of the bill it had obtained
Bolivia breaks relations with Israel over Gaza invasion – MercoPress- Jan 15, 2009
President Evo Morales announced Wednesday that Bolivia severed diplomatic ties with Israel as an act of solidarity with Palestinians suffering from the current offensive in the Gaza strip.
Saturday, January 10, 2009
FT Commentary -- How are frozen credit markets and the global slowdown being felt down in South America?
Stephen Fidler put together a great piece on January 8th where he presents various perspectives and analysis from South America on how the global crisis is affecting the region.
Across the continent, the crisis has brought about a large-scale destruction of wealth. Claudio Loser, a former western hemisphere chief at the International Monetary Fund, calculates that 40 per cent of Latin America’s financial wealth was wiped out in the first 11 months of 2008 through falls in stock and other asset markets and currency depreciation. That $2,200bn (£1,440bn, €1,610bn) loss alone could cut domestic spending by 5 per cent next year, he estimates.
On top of that, flows of credit from abroad have contracted sharply and the region, much of which depends on exporting raw materials, has been pummeled by a collapse in commodities prices. The deterioration in Latin America’s terms of trade – the price of exports divided by the price of imports – could hit even harder than the credit crisis, says Mr Loser, now with the Inter-American Dialogue, a Washington think-tank. “The fact that the terms of trade have gone so far against the Latin American economies in terms of agriculture, minerals and petroleum is really going to hit the region very hard,” he says.
Click here to access the full article from the Financial Times
Across the continent, the crisis has brought about a large-scale destruction of wealth. Claudio Loser, a former western hemisphere chief at the International Monetary Fund, calculates that 40 per cent of Latin America’s financial wealth was wiped out in the first 11 months of 2008 through falls in stock and other asset markets and currency depreciation. That $2,200bn (£1,440bn, €1,610bn) loss alone could cut domestic spending by 5 per cent next year, he estimates.
On top of that, flows of credit from abroad have contracted sharply and the region, much of which depends on exporting raw materials, has been pummeled by a collapse in commodities prices. The deterioration in Latin America’s terms of trade – the price of exports divided by the price of imports – could hit even harder than the credit crisis, says Mr Loser, now with the Inter-American Dialogue, a Washington think-tank. “The fact that the terms of trade have gone so far against the Latin American economies in terms of agriculture, minerals and petroleum is really going to hit the region very hard,” he says.
Click here to access the full article from the Financial Times
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