Showing posts with label prices. Show all posts
Showing posts with label prices. Show all posts

Thursday, 29 March 2012

Oil prices keep rising on the Libya and Bahrain uprisings

Shia protest at Bahrain (see above), and there is concern that it could spill over to the minority of Shi'ite in the Eastern province of Saudi oil producers.  Photo: REUTERS

At least three oil companies stop output in the third largest producer of Africa, pump 1.6 million barrels per day (BPD) or almost 2pc global supply resulted in violent clashes in Libya.


Disturbance mark the first reduction in the supply of oil resulting from a wave of protests that swept Middle East and North Africa oil producers.


Investors fear for the potential impact on the flow of oil from first exporter Saudi Arabia if she suffers from similar problems.


In addition, International Energy Agency (IEA) Executive Director Nobuo Tanaka said that the price of oil over $100 per barrel for the rest of the year could tip the economy back in a repeat of the economic crisis of 2008.


"We are very concerned about the situation, it is a risk for the stable supply of petroleum," he said yesterday at the International Energy Forum in Riyadh.


US crude rose high sheath $ per barrel, the highest level since October 2008. Business morning in London, the April contract had trimmed gains to trade at $95.93, up to 2 5pc on the end of last night.


Brent crude, which is trade even more elevated the U.S. price jumped $ 1.26 $107.04 per barrel. Monday, Brent hit a 2 and half year high of $108.70.


"Even if the Libya stops completely, there is not a question of supply." "But brut (U.S.) could go to $100, taking into account the potential of this contagion to spread to Saudi Arabia," said Jonathan Barratt, CEO of Sydney freight Brokerage Services.


To date, events in Saudi have been low key. But Shia majority in neighbouring Bahrain are to protest against the Government of Sunni and fears it could spill over to the minority Shi'ite living in oil producers is the Saudi province.


"The importance of the Bahrain is perhaps being currently weakened." While not a major producer of oil, impact of Bahrain on the oil market is reflected through its importance in Saudi Arabia, "said Barclays Capital Helima Croft and Amrita Sen analysts in a research note.


Supplies of natural gas also felt the impact of the Libya disorders as a pipeline carrying Libyan gas in Italy has been closed.


Brent crude has increased by almost 5pc 12 so far this year. U.S. crude is just below the year 5MC but it is more than $50 below its 2008 high of $147.27.


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Tuesday, 20 March 2012

Oil prices rising soaring to $120 per barrel Middle East concern

At the same time, light crude sweet from NYC in April, known as West Texas Intermediate (WTI), rose to $103.41, a level last seen in late September 2008.

"Oil prices continued to surge higher Libya events dominated headlines and the oil market", said Westhouse Securities analyst Dave Hart.

"Leaving the country of high-quality crude is being significantly affected due to the exodus of foreign personnel."

Brent jumped high $119.79 per barrel at the beginning Thursday, return to approximately $113.53 through the middle of the morning. NY crude was higher at $100.72 $2.67 per barrel.

The King of Saudi Arabia last night announced $36bn (£ 22bn) additional benefits for his people to try to stop the wave of uprisings Arab extends to largest exporter of oil in the world.

Market analysts warns also Brent crude could hit $220 per barrel.

Nomura said oil prices products team is likely to unexplored highs of storage for the next few weeks if political unrest spreads in Algeria, reduction in capacity of world reserve margins thin light just before the first Gulf war.

Prices on the part of the world and copper fell for the fourth consecutive day, as investors reduce their exposure to risk while the sanctuary of gold, Swiss francs and US Government bond pink price.

Disturbance arising from the revolt in the global exporter No. 12 Libya cut at least 400,000 barrels per day (BPD) output bpd countries 1.6 m, according to Reuters calculations.

Soaring oil prices threatens to put an end to the recovery in advanced economies and add other inflationary pressures in booming emerging markets.

According to UBS, an increase of $10 of oil prices will shave 0.3 percentage point by global growth.


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Wednesday, 11 January 2012

Products: Markets are reluctant to sparkling diamond prices

"Diamonds international auction record price in 2010 illustrates the growing trend among the HNWIs in the world to see large diamonds as an investment alternative safe and strong growth," said the report. "The current request at the top of range of the market seems to be in large part of the Russia and the Middle East, but demand from Chinese and other investors in the Asia-Pacific is also growing rapidly," she added.

Diamonds are considered easy means for the transportation of wealth because they are small and precious.

This trend makes sense that a high proportion of the increase in the HNWI between 2007 and 2010 was in the Middle East. The number of super rich in the region increased by 10 4pc, wealth report, said, with only Africa, given the greater growth, 11 1pc for three years.

The number of super rich grew by 8 FP6 in the United States in the period and 6 3pc in Europe.

However, although sharp rises in prices could cause some of the world to think twice about splashes, HNWI there is no doubt that prices are likely to remain high for some time - or even to reach much higher levels.

Supply remains very tight. According to a study of the Canada (RBC) Royal Bank, the world's supply of rough diamonds decreases since 2006, reflecting aging of some larger mines of the world and a lack of significant new production being match up to.

"Partly the scarcity of new projects reflects a surplus of diamonds in the 1990s, which discouraged exploration and the recent financial crisis that saw the recovery of exploration budgets significantly, so that even the majors have been trimming expenses of exploration," said Des Kilalea of RBC. "De Beers, for example, used to pass about 100 m $-150$ m (62 m £-£ 93 m) annually on exploration and development and password now less than a third, with $43.". 3 M in 2010 on the programmes in Angola, Botswana, Canada, India, South Africa, "noted."

The demand for diamonds is likely to continue to strengthen, fueled by the gentrification of Asia and the growing prosperity in the Middle East. Traditional markets such as the United States and the UK will also retrieve.

According to de Beers estimates, there was a significant change in the market of the diamond between 2000 and 2010.

At the turn of the century, the United States market represents sales of diamond jewellery 48pc, but this tomb to 38pc by 2010. India represents a statistically insignificant proportion of sales in 2000 - but by 2010, it absorbed 10pc sales.

RBC expects that China will be on 20pc of the world market over the next five to seven years, until of 11pc in 2010. According to De Beers, the diamond jewelry India demand increased 31pc last year and China increased by 25pc.

Therefore, although there are fears that prices will decline the request, the Outlook for diamond producers examines overall enough sparkling.

Products have flourished across in the last week, as the Greek vote for risky mode active austerity measures.

"The Greek"Yes"vote brought sighs of relief and risk reinvigorated the feeling of the market through various asset classes." The vote had wind of precious of refuge, but has been largely good for industrial metals, said Nick Moore RBS.

Base metals were the big winners, with experts saying that copper and aluminum should see the price increases this year. Copper acquired 3pc after the vote Greek and is now $9 400 tonne.

"Now that the worst of the uncertainty surrounding the Greece has been dispelled, market participants should begin to focus on the fundamentals again."

"Copper has always the fundamental best of all metals, and we see the price remaining well supported," according to Commerzbank analysts.

However, poor manufacturing data of China introduced a break for the rally Friday base metals.

The weakness of the dollar, which makes products cheaper for holders of other currencies, provided support. But figures showing Index (PMI Purchasing Managers China ') for June fell to 52 in may 50.9 dampened optimism earlier in the week.

The price of oil has been volatile since the international agency energy said it would release 60 million barrels of reserves for emergency on the market.

The price of crude oil Brent fell from $ 114 to $ 108 after the move, designed to dampen prices. It thereafter up to $112 and then fell $2 Friday at a little under $ 110 per barrel.

Analysts said the sharp fall in US stocks as major reasons why oil prices ended the week higher.


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Wednesday, 16 November 2011

Rising UK Wholesale Gas Prices:

Over the past week a series of factors forced UK wholesale gas prices to go up.  There are rumours that Norway are planning to divert Europipe 1 supply to Germany, also unexpected operational problems from ConocoPhillip’s Theddlethorpe gas terminal, amongst other factors such as Belgian LNG tankers redirected to Japan, PX’s Teesside plant scheduled maintenance outage in September and Qatargas rolling maintenance over the coming months are all contributing in the rise in UK wholesale  gas prices.



Wholesale Gas Prices for Monday’s delivery rose 0.55 pence to 57.10 pence per therm and Tuesday’s gas traded 1.10 pence higher at 57.75 pence.


British gas for October’s delivery rose 0.70 pence to 65.50 pence, while November’s gas increased to 72.75 pence.


Another factor that weighted on UK gas contracts on the far end of the curve was the recession fears in America. Winter 2011/2012 gas contract’s firmed at 73.85 pence up 0.35 pence, while winter 2012/13 gas shed 0.60 pence at 74.60 pence, guided by falling crude oil prices.


Meanwhile, a letter leaked from the Prime Minister’s senior policy adviser on energy and environment. warned that current policies could add 30% to consumer energy bills by 2020. According to Ben Moxham’s letter wholesale gas prices will play a major role in these rises.


“If gas prices are low in 2020, the cost of policies promoting nuclear and renewables would be high, he says, and it would not be cost effective to pursue these policies.  If however, gas prices are high, reliance on nuclear power and renewables “could conceivably” be better for consumers.” – writes Mr. Moxham.


According the Mr. Moxham’s letter there are four policies that stand out as having the most significant impact on household and business energy bills: carbon pricing (both out own carbon price floor and the EU emissions trading scheme), the new Energy Company Obligation, our Electricity Market Reform package and the Renewables Obligation.


For further information: Telegraph | www.decc.gov


If you would like more information on our range of UK Wholesale Gas Prices or would simply like to find out how we could benefit your business, simply call our energy team today on 0870 710 7560 or request a call back at time to suit.


Follow us on Twitter | Become a Fan on Facebook Or you might want to subscribe for further information on Rising UK Wholesale Gas Prices from our site.


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Friday, 4 November 2011

Saudi sovereign offers $36bn deals uprising in the middle of the admonition of oil prices could double.

Growing unrest in the region led experts to warn yesterday evening Brent crude oil prices may double to $111 a barrel mark it culminated yesterday if the crisis continues to spread to other countries in the Middle East.

Team products said Nomura to oil price risk storage in unexplored peaks in the coming weeks if chaos strikes Algeria Similarly, reduce the ability of world reserve thin margins because just before the first Gulf war.

Wednesday, Brent crude rose more than 5MC almost $ 112 a barrel, threat levels that could derail the global economy. It closed at $111.25.

"We could see $220 per barrel should Libya and in Algeria halt oil production." We may be underestimating this speculative activities were largely not present in 1990-1991 ", said Michael Lo, strategist, Bank oil."

The warning came ENI Italy announced the suspension of supplies by the Libya pipeline and a string of foreign companies have been evacuated staff and stop production. Libya holds oil large de l'Afrique reserves and produces 1.6 m barrels per day (b/d), mainly for export to Europe.

German driller Winthershall stopped its production of 100,000 b/d in Libya, whereas ENI is stopped at a string of sites, considerably reducing the flow of 550 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1 m barrels of Libyan output is "locked in", with the other 0.6 m at risk. While Saudi Arabia may respond by raising the output, it takes time and its oil is not a substitute for "Sweet Crude the Libya".

The crisis escalating triggered falls more on the global stock exchanges. Wall Street was down 1pc in trade at the beginning and the FTSE 100 1. 2pc. The Dow Jones index has shed more than 300 points during the three days of 12,075.

Nomura said a closure in Libya and Algeria would reduce global 2.9 m b/d supply and reduce the ability of spare OPEC b/2.1 m d, comparable to levels at the beginning of the Gulf war and worse than during the 2008 spike when prices hit $147.

Two price shocks preceded by - or triggered - a recession in Europe and the United States. Fatih Birol, Chief Economist, International Energy Agency said the last rising already become prices a "serious risk" for the fragile economies of OECD block.

Some analysts fear the underlying image is worse than officially recognized doubting Saudi claims of alternative ample capacity. Wikileaks cable cited comments by geologist of Saudi Aramco oil giant that Kingdom reserves had been exaggerated by 40pc. A second cable cited U.S. diplomats asking if the Saudis "more empowered to make prices downwards for an extended period."

Report from Nomura, who consider the scenario catastrophic to a real crisis in the Gulf, said recent oil price shocks have shown a pattern of three floors, with a final blow-off price in the final phase. The current crisis is the first step.

Soaring oil prices create a dilemma for banks, nasty because they inflationary if caused by the robust global growth, but the deflationist if caused by a tightening of supply which acts as a tax on consumption of nations. Big oil exporters tend to save additional revenues for first price spikes, so the initial effect is draining global demand.

The current image contains elements of both, with an extra touch of liquidity created by the US Federal Reserve leaking into the global system and play havoc with commodity prices.

Secretary of the Treasury Tim Geithner told us Wednesday that the global economy is relatively stong to "manage" the oil shock, insisting on the fact that central banks "have extensive experience in the management of these things."

The European Central Bank (ECB) responded to skyrocketing oil in July 2008 by raising rates even if the Germany and the Italy were in recession at that time there. Nout Wellink, the Governor of Dutch of the ECB, said that this was an error policy.

Circumstances are different this time still also dark. ECB chief Jean-Claude Trichet scored last month that the Bank will be "look at" the hump of prices in the short term, but the ECB rhetoric has since then harden. Fed doves will probably give more weight to the deflationary risks.

Jeremy Leggett, a leader of the task force industry UK peak oil and energy security, says the crisis Mid-East "shows the extreme fragility of the world system." People don't realize the proximity we a potential jump if that agitation reached critical mass in OPEC countries enough. "Governments must develop contingency plans and get cracking on proactive steps while we still have time", he says.

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph


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Friday, 29 July 2011

Sugar producer pork prices London IPO Rusagro, Russian

Rusagro has about one-sixth of the sugar of the Russia producing market and has the fifth largest country pork farm.

The company expects to increase of 300 m $ (187 m £) in the initial public offer (IPO) and can be evaluated at up to. 08bn $2 on the list of exhibits. The funds collected will be used to finance projects to grow the business.


GDR is similar to American Depository Receipts (ADRS). A bank certificate issued in more than one country for underlying shares held by a foreign investment bank.


Rusagro has about one-sixth of the sugar of the Russia producing market and owner of the pig farm-fifth of the country. It operates also six food processing plants producing oils and fats, as well as a number of dairy farms.


The float of the company in London should be up to 17 1pc of its fairness. The company planned to list in London last year, but its introduction on the stock exchange was cancelled due to poor market conditions.


Rusagro, founded in 2003, is controlled by billionaire founder of the company and Russian Vadim Moshkovich and its family of 95pc and 5MC belonging to Maxim Basov, the current Chief Executive. It is one of the largest agricultural companies of the Russia.


Mr. Moshkovich started selling apartments, vodka and oil in the 1990s, before investing the profits in agricultural land. He is also a Senator of Council of Federation of Russia.


Alfa Capital Markets, Credit Switzerland and Renaissance Capital will advise on the introduction on the stock market, said Rusagro.


A number of Russian companies is in the registration process in London. Construction standard group company began an introduction on the stock exchange of 300 m to pre-marketing £ institutions of London, last week, and the eighth largest bank of the Russia Nomos, plans to raise 437 m £.


However, a number of Russian groups have abandoned the intellectual property offices in London due to the backdrop of market. KOKS, a pig iron and coking coal producer, closed his introduction on the stock exchange in February, market conditions in the wake of the violence in Egypt. Gold miner North had or wanted to increase approximately 680 m £ in a float of London to pay off the debts of its parent company Severstal, but postponed plans after refusing to reduce its price range.


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Thursday, 21 July 2011

If there is a global gas GLUT, why prices rise?

Ian Marchant, Chief Executive of HSE, told the Daily Telegraph that people are confused the abundance of gas to United States with a difficult situation of supplies in Europe.

Britain still gets about one-third of its inland North Sea gas, half of the rest of Europe via pipeline and 15pc via tanker form liquid.

Operational problems with liquefied natural gas (LNG) shipped from Qatar, the flow of gas in the Middle East to Asia, where customers are willing to pay higher prices and the increase in demand following the recession, have combined to push up to UK 25pc price this year.

There is some merit in these arguments.For example, just because the world has a surplus of cheap labour, does not mean that the United Kingdom cannot be far from unskilled workers.

But the image always account for the discrepancies between how energy suppliers seem to wait longer to cut prices they do before their livestock.

Britain is well supplied with gas, according to the National Grid and is poised to take its first shipment of U.S. natural gas liquefied this week at the station of the island of grain.Tous signs are that wholesale gasoline prices should be stagnation – or even collapse.

As a result, many observers are struggling see why retail prices should also be higher now than they were during much tougher wholesale price spikes.

"There is no obvious reason why energy companies should raise retail prices this winter," said Andrew Horstead risk analyst of Utilyx. "The market is well supplied and prices increased in depressions which we have seen in March, but they remain well below historical levels for this time of year.»

While the Fed is committed to freeze prices in March, Chief Executive of another major supplier said Daily Telegraph was likely to follow British gas and of SES lead in raising invoices, arguing that the prices are one-third higher than they were in 2007.

A part of the problem by working on the reasons why rising gasoline prices at retail is the lack of transparency surrounding how vendors get their gas and the price they pay for it.

Providers argue that they buy gas coming months - perhaps up to one year on the futures market - and therefore their costs of commodities not necessarily follow spot market prices.

Consumers are therefore taken hostage by their provider effectiveness is to cover.SES would admit this week that it had been less effective predict which way would be the price of gas, leaving at a loss in its sales activities at retail for the first half of this year.

"For me, it raises questions about how HSE target their procurement strategy and presentation how they are large wider energy market", explains Mr. Horstead.

There are signs that the overabundance of gas will compel the prices lower in Europe, where the market is scheduled by opacity even more than the more liberal model of Great Britain.

Major suppliers Europe have recently been pressure increasing gas giant Gazprom and total to start offering gas contracts linked to the spots, prices that are below the 30 year contract prices coupled with price 50pc.Prix oil immediate are so low due to the overabundance of gas.

Paul Newman, head of energy at AIP, the current broker, believes that the market is at the edge of a revolution.

"Much of what we see on the European markets for natural gas is the same as what we saw in the oil market in the years 1980 and 1990," he says. "Second shock in 1979 led to contracts of fixed price/fixed-supply and led to an explosive growth in the use price market, such as the cash price references.»

Everything should be good news for UK consumers at retail, gas that Britain depends in part on supplies by channelling of the continent.

The United Kingdom remains vulnerable to shocks in the short term as the flow of pipeline limited indirect Russia across Europe and the supply disruption of the North Sea.

In General, the overabundance of gas will mean gas inférieures.Il invoices but just was still too much sign of that.RM

Rubber prices have this week reached a maximum of 30 years, causing tire manufacturers increase their prices by 15pc 10pc.

Futures on the point of guide Tokyo products index is over $ 4,661 per tonne, their most top since February 1980 and Thailand cash prices climbed to a record historique.Prévision rain is likely to aggravate a shortage of supply and Chinese inflation boosted demand in the commodity sector.

ProSpreads technical analysts: ' "the fundamental reasons for recent gains rubber are clear and obvious: increased sales of cars in China, coupled with bad weather in Southeast Asia, squeezing more supply it should be a courageous speculator to sell at this gathering." "

Copper has continued its rally hit a record in London and a maximum of 30 months in New York.

Chinese demand - that never - fueled base metal prices after that industrial production increased by 13pc one year earlier.

On the London Metal Exchange, copper for the delivery of three months reached $8,966, exceeding the previous peak set in July 2008.

However, the Commerzbank analysts noted that China is now reduce imports. ""This could put price of copper under pressure," they said.


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Thursday, 14 July 2011

How commodity prices are driving the cost of UK food

Wheat hit a record in the UK over 200 pounds per ton, leve 90pc in last year. There are droughts in Russia and Ukraine. In addition, wheat used biofuel demand resulted in higher prices. Meanwhile, corn is the agricultural product is expected to grow most this year and is already over $ 6 per bushel - the highest level since the financial crisis. Already increased the price of 67pc, as China began importing grain for the first time in years and crops failed in bad weather. This is bad news for breakfast cereals.

When grain prices began to rise, the cost of the feed thereby. Prices for cattle, pork bellies and lean hog futures are rising between 19pc and 26pc with farmers, a peak year 20 of the Declaration. The squeeze is likely to continue with the increasing demand for better lifestyles, including diets more expanded, Asia and other developing regions.

Café

Among dozens of products reaching record heights, Arabica coffee reached a record of 13-year Wednesday. Supplies were affected by the disease in Colombia. Meanwhile, Robusta, used for instant coffee, has been climbing because of heavy rans Indonesia and the Viet Nam.

Sugar

Prospects for sugar are less certain, because it has already been negotiated to a maximum of 30 years for some time and some analysts believe the goods is due for a correction. Increase the obligations on suppliers of gasoline to mix their fuel ethanol has driven prices. Tight Indian supply has also been held more than $780 per tonne sugar.

Cocoa

Chocolate ingredient is a less efficient agricultural products last year. It is likely to be well provided next year, so no big shocks are expected - unless the political unrest continues in Côte d'Ivoire, the world's leading producer of cocoa. He is currently trade around $2950 per tonne.

And it is all driven by…...

There are a number of factors behind price shock food potentials under United Nations this month. More extreme weather events and the growing demand for the growth of the world's population are two factors underlying big. But it is also linked to the price high oil, used for the transportation of almost all products worldwide and fertilizer manufacture needed to grow crops. A weak dollar, bouncing equities, speculation and a global monetary easing are some of the reasons as strong markets across the Board. Oil is particularly sensitive to macroeconomic movements, as the one assets of alternative products with gold that is favored by investors.


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Friday, 8 July 2011

The fall of oil prices for the second day on the release of the dollar and stocks strong

Oil price slumps for second day on strong dollar and stockpile releaseThe second day of dramatic oil prices falling following global energy watchdog decision to release an additional 60 million barrels of oil on the market.

Oil and other products has come under pressure, increase in the dollar against the euro, driven by concerns that the Parliament of the Greece cannot pass of austerity measures which will publish an international bailout.

The second day of drops drama follows the world of energy watchdog decision Thursday to release an additional 60 million barrels of oil on the market in the next month.

Relocation of the International Energy Agency to sell 2 million barrels of oil per day sparked an immediate liquidation, with oil fall $ 5 this day there. He dropped one of more than $4, or set to less than $105 a barrel Friday.

One of the effects of the release of stocks of emergency reserves was to reduce the gap between New York and London reference price oil futures. Brent crude was much more expensive than West Texas Intermediate (WTI) for months, reaching a peak of $23 above the benchmark of U.S. this month. The difference is now about $15 per barrel.

James Zhang, analyst at Standard Bank, said: "an increase in crude supplies of water origin of the United States is likely to see Brent/WTI spread narrow, and it is also likely to buffer refining margins."

"In Europe, an important part of the release of the reserve will be produced oil, given the way in which the oil reserves special is managed in Europe." As the oil product market is already fairly low in Europe, the release could lead cracks produced even lower in the short term. As a result, the gross prices would move down to the refineries to induce him to buy crude. »


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Thursday, 7 July 2011

Explorers oil bubble up as fuel prices surge

But while explorers were in demand, consumers of oil slipped back.International consolidated airlines Group, the combined British Airways and Iberia have slipped 8.2 percent 226.2 to concerns about the impact of rising fuel costs.

However, analysts at Morgan Stanley stressed the need for "objectivity beyond oil".

"Jet fuel prices have increased 30pc for three months, by a combination of macro and political factors," they said. "Investor debate centres on the sector's ability to price for this inflation of costs without negatively affecting profitability in the medium term." We believe it is premature to 'write' industry based on fuel price increases.

Another company on retirement was GKN as Citigroup cutting manufacturer of car components and aircraft "hold" to "buy". Come from the results of GKN, analysts said that they felt a break in the pace of its recent rapid increase in profits, which helped down 4.7 percent 197.4 GKN.

That makes it one of the more marked as FTSE 100 fallers has extended its decline in a fifth day. However, the blue-chip index weighs its earlier losses through the figures of the Atlantic just closing optimistic consumer confidence 3.55 points to 5919.98. FTSE 250 fell to 112.2 points to 11409.74.

Among other latecomers was Royal Bank of Scotland, who throw 1.72 to 45.6 percent despite narrower losses in the statement.

Tobacco companies normally defensive slipped in new form of british american tobacco from 750 m £ redemption share did not at the concerns of counter on cigarettes volumes falling. The manufacturer of cigarettes Lucky Strike 16½p fell to £ 23.96½, Imperial tobacco, while throwing a 38 p to £ 19.63.

Tesco has been too in the doldrums, easing back 401,9 5.4 p, even if Seymour Pierce analyst reiterated their "buy" on the supermarket. However, the broker said that retailers in General, with higher rates of interest on the horizon, it was difficult to see the sector carrying out short term unless the business activity picks up.

According to Espirito Santo analysts, it certainly seems that betting on a retailers drop bears. The broker said data showing that short interest in the general retail sector suffers fresh records. "This is interesting because despite a neutral recommendation on the sector, it feels as if we are fighting a battle ever-more difficult, trying to convince investors that falling confidence consumers reverse or at least not degrade in 6 to 12 months," said analysts.

They stressed the short interest in the House of retail, Dixons and Debenhams, which was a maximum of 12 months. House of retail sales fell 0.2-221.2 p, Dixons throw a p from 0.44 to future and Debenhams set 0.1 to 62.1%.

However, interest short Ocado comes as facilitates liquidity. At the end of January, the amount of shares outstanding on loan was almost 13pc according to data explorers. now it's just 8 FP6. Ocado fell 16½-205 p.

A retailer, suffering from a particularly sensitive decline was however, jjb Sports. String sportswear struggling a 6½ to 20¾p in the middle of the fears he will not get support from creditors for its proposed rescue plan.

JJB said be creditors, including lessors, returning from his second in as many years company voluntary agreement, or it will probably go into administration. But earlier this week, said Capital Shopping Centres that he planned to vote against the regime of the JJB.

Among the small-caps, Mouchel jumped 152½p 16½ once services business group said that it was in talks with a potential buyer without a name. But Costain, evoked as buyer - soon to depart. The construction company made a statement, saying: it was not the party in question. Costain on 6 and 230 p.

Costain said that it had approached Mouchel week last with a revised recommended part proposal and offer money cash, but added that it wasn't mentioned in the Declaration of Mouchel society.

Panmure Gordon analyst as possible suitors might be a company like MITIE or Serco. MITIE declined 1 percent 199.6 then that Serco put on 14 at 543½p. Subcontractors were under discussion on the highest level too, where capita jumped 48 at 718 p after the posting of an increase in annual profits.

Mid-Capper Sportingbet stir-fry 2.14 percent 47.14 take the silver medal as games company online reported strong growth in Australia in Turkey and emerging markets. Investors were also encouraged by comments of Sportingbet rules in two of its largest markets - Greece and Spain - would not have serious impact on profits that some analysts had feared.


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Friday, 1 July 2011

Cotton prices causes "panic buying" as almost 150 years high

Cotton prices have increased since mid-January, 30pc prompting stricter limits on speculative positions taken by traders. Photo: BLOOMBERG

Floods in cotton main regions in Australia, Pakistan and China have done wrong offer together with China, the world of fiber, user demand is mounted in arrow.


Cotton for March delivery is spent much of 2 4pc to $1.8122 lb in NYC yesterday.


However analysts believe that prices can now facilitate, as the National Cotton Council of America publishes the results of its investigation into planting intentions today. It was expected to show an increase in farmland in U.S. dedicated to cotton in the current season.


"Gathering of cotton prices looks like now, it contains elements of panic", stated Carsten Fritsch, an analyst of commodities at Commerzbank. "We believe that the price of cotton is already in a phase of exaggeration and expect a sharp fall in prices in the coming months", he added.


"It's basically taken mills of panic," Lou Barbera, cotton products VIP analyst told Reuters. "Mills overseas get the ball."


Cotton prices have increased by 30pc since mid-January, prompting Intercontinental Exchange (ICE) to tighten limits on speculative positions in futures contracts traded on the Exchange.


ICE has proposed that any trading in contracts of more than 300 of cotton ice No2 March future should show was "economically appropriate to reduce the risks associated with potential changes in the value of the assets.


This limit is the equivalent of 30,000 bales of cotton.


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Thursday, 30 June 2011

"Bottom fishing" help oil prices after liquidation rebound

While some traders put the rebound until they called bottom-fishing, others said higher export the Germany numbers and positive figures payroll confidence boosted us on the health of the global economic recovery.

Brent crude bounces $4.41 to $113.54 per barrel late afternoon trade, as traders took the liquidation as an opportunity to buy after a fall 13pc in prices last week.


The rebound came as figures published at the United States suggest hedge funds and other traders have been hit by the collapse of last week.


The data published by the Commodity Futures Trading Commission (CFTC) showed that traders had reduced net long positions on contracts, end of oil by 2 set the week to May 3 the value of the positions was just 5 FP7 off the record set in March.


"It's terrifying," Hamza Khan, an analyst with the Schork Pennsylvania group told Bloomberg. "I would hate to be on the wrong side of this trade." The CFTC data show people received a long and see crash quickly should scare some speculators who entered gross. »


While some traders put the rebound until they called bottom-fishing, others said higher export the Germany numbers and positive figures payroll confidence boosted us on the health of the global economic recovery.


JP Morgan predicts that crude Brent would continue amounted to $120. "While financial bushfires or perhaps a rapid resolution to the civil war Jamahiriya could radically alter the dynamics of the market, the balance of risks and principles yet fundamental points to a world of limited supply," said analysts at the Bank.


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Sunday, 26 June 2011

Prices are jumping and cotton is low

The Intercontinental Exchange acted quickly Thursday to impose new limits of position on trade, to try to stop the accumulation of unique Fund.

Market participants wanting to take over 300 contracts, which is equal to approximately 30,000 bales, meanwhile, must apply for approval and prove that they have an economic need for cotton.

"Any exemption would be to only specified contract month and should not be regarded as the relief of the responsibilities of all traders have to make their operations in a manner consistent with an orderly market, the ice.

Friday cotton futures had fallen slightly 4 or 2pc, $ 1.68 per pound, remains unusually high.

However, the International Cotton Advisory Committee believes that the problem runs more profound as hot money outbreak in the sector.

He thought that jumping to award two years ago was caused by speculators, but acknowledges this last rally on "world cotton, very low stocks limited offer, demand robust and a depreciation of [the] dollar." This means that the price increases could be here until that U.S. farmers are planting crops more.

Saturday, U.S. producers the biggest exporters of the world, is committed to increasing the areas planted by 14pc this year. National Council of said cotton plantation will be mounted at 12.5 m acres.

However, it will take time and retailers are already achieved. Clothing strings warning of higher prices is supergroup, Marks & Spencer, Hennes & Mauritz, all saying them that their margins can be achieved.

AB Foods said last month, growth in 2011 may be limited by the effects of rising of fresh products, especially after impact over cotton prices in Primark.

However, the retailer said it would not be passing on the jump in costs to shoppers at budget fashion chain.

"We will remain the best value on high street," said John Bason, Chief Financial Officer of AB foods.

"Some of the gain margin [done in the previous year] will be giving back," he said.

Lord Wolfson, CEO of the next is more phlegmatic, arguing that the increases are just part of a cycle.

"Of course there is a concern, but at the end of the day, we do not know until we see what happens to prices, he said."

"Sometime cotton comes to offshore." Longer term it will facilitate. Bubble products tend to push harder and longer than expected. »

Commerzbank analysts also believe the commodity is in a bubble: "We believe that cotton prices is already in a phase of exaggeration and expect a sharp fall in prices in the coming months."

Meanwhile, Marc Ostwald titles of the Monument takes view long term beyond the boom and bust - inexorable increase in this cotton is part of a broader trend across commodities.

"It is just food and energy prices that are encroaching on real disposable income in the world as a whole, but also raw materials for clothing", he says.

"A bubble may partially be, but should make no mistake there is a fundamental underlying"basic change", which the combination of the legacy of globalization, in terms of an outsourcing permanent production and humiliation of the USD everyone in the world very expensive, it warns."

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Sunday, 15 May 2011

Why we must hope for a significant fall in the prices

A labourer pours oil that he scooped up from the oil spill with a helmet into an oil drum, near Dalian port, Liaoning provinceOil prices are still some 40pc higher than the average of the year higher than the average in 2009 Photo last and 80pc: Reuters

And falls took place in all categories of products of precious metals to foodstuffs and industrial metals. This could be the start of something grand?

If this is the case, things have developed a long way from here. Oil prices are still some 40pc higher than average and 80pc superior to the average of the last year in 2009. It is a similar story with soft commodities. Wheat is still 30pc above the average of the last year. However, Mao-Tse-Tung is supposed to have said: "the journey of a thousand miles begins with one step". (Note, it is the journey of a single step.)

If commodity prices fall a long way, it should not be surprising that. In fact, I have been waiting for this for some time. The fundamental reason why they weaken now is evidence of more growth in the global economy, accompanied by a mini revival of the dollar.

Here, of course, we had figures of GDP and consumption low but also low surveys PMI manufacturing and services sector. Interestingly, the United States also, although Friday employment figures are OK, also recently on some soft numbers. Meanwhile, the Japan is put down by the results of the recent disaster and in the euro area, there are early signs of a slowdown.

Why the recovery of the world should have started to slow? I think that the most likely explanation is very the price increase of oil and raw materials which now seems to be reversing. In most of the world, higher prices have significantly reduced the real income of consumers and the increase in business costs.

Again, changes in the health of the global economy may be not history. There was a controversy raged on the extent to which speculation has played a role in the conduct of the prices of raw materials. At least, it should be obvious that speculation can have an enormous impact on short periods of time.

Last week, the price of oil fell 10pc. Are we to assume that the application of the world economy has fallen from enough in a week to produce a drop of this magnitude? Of course, it is absurd. What happened is seen that merchants on what has happened, and may still occur, the world demand have changed. But if a change of view (speculation) may affect undoubtedly price, short term, then, why could not touch on longer periods of time?

It can in theory. The argument against this having played an important role in practice, it is that the speculators will have to be prepared and able to build stocks (inventories). Yet there was supposedly no visible evidence of accumulation of stocks of raw materials.

This argument has always struck me as grossly exaggerated. Of course, there is to be increased to hold inventory preparation. But this must not result in an increase in stocks in the practice of. The price can take the strain, combustion thus off the coast of the willingness to hold more shares.

This is not a point on the particular characteristics of the basic products. It is a fundamental point of the economy. It is based on the distinction between ex ante and ex post the application. When the report of the stock exchange, says that the price of the shares in BP rose due to increased demand for them, we do not expect to see this reflected in an increase in the number of shares in question. Expect to see it reflected in a price above separately. It is therefore with commodities.

What are the implications? If all the recent weakness in prices of raw materials is a reflection of the emerging weakness of the global economy, which is hardly cause for celebration. After all, although there would be benefits from the growth of real incomes, if the global economy were slower then it would be bad news - especially for our exports.

And exports are our great hope for recovery. What we would gain on the swings we would lose on the roundabouts. And roundabouts could easily be more important than the swings. If a good case, speculation has contributed to the recent resistance of these awards, however, then there is scope for the price of materials first to fall to a point that is higher than what is justified by a global economic slowdown.

The future is full of surprises. If I had to make an idea of how the next few years could much better than most analysts (including me) are forecast, my main candidate would be a significant decline in the prices of materials first out of all proportion with any weakness in the global economy.

If that happens, we would see a dramatic drop in inflation and a net recovery of real income of consumers. That would help people to absorb the effects of the tax reduction. It is certainly something to hope for. And it may just happen.

Roger Bootle is Director General of the capital economy and economic adviser to the Deloitte

Roger.Bootle@capitaleconomics.com


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Tuesday, 22 March 2011

Why prices for raw materials important both for the FTSE

Therefore, when the strong growth in China's manufacturing plant and United States, more great economy of the planet, prices of products improved economic data points increase and take blue-chip index Britain with them.

The power produced players also means the FTSE may increase even when the British economy remains weak, because their production sites and markets are largely outside of the country.

In 2010, minor Indonesian coal Vallar struck an agreement that will bring the company list in London, and Africa Barrick Gold, the Tanzanian assets of Barrick Gold Canada, also listed in London.

Swiss products giant Glencore trade is supposed to list in London to 2011 and he is also a Brazilian mining company Vale speculation, can ask a joint list here, which she would join FTSE 100.

Before Christmas, FTSE rose above 6,000 points for the first time in 30 months, driven by energy companies price of oil reaching $91 per barrel.

Copper also reached a record high at the end of 2010, $ 9,660 per tonne.

In rally on Tuesday, the first day of trading for the FTSE in 2011, BP, Shell and minor Anglo American were corporations which led to the increase.

Speculation of a public bid for BP by Shell pushed higher, the oil giant actions as positive economic data from some United States and Europe and a rise in the price of oil.

While keep oil and metals prices climbing, its value for London work hard to maintain its position as leading stock products market worldwide.


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Sunday, 6 February 2011

Metal prices are digging a hole mining

Both are images of the past, ghosts industry of the now defunct far from the life of the 21st century - this is why the emergence of 33 Chilean exhilarating a hole in the ground came as a little surprise to the public this week.

As it turns out that mining do more after all, but a global industry employing trillion of 43 million people.

Modern technology may have done away with the need to pick axes and asses, but there are places that still rely on men crawling through tunnels in search of more and more scarce commodities.

For these men, it is apparently worth braving the extremely poor security conditions in exchange for a 20pc than copper average salary miner in the South American nation.

Men rescued in San José, worked in a copper mine - and the Chile is the world number one producer of base metal which saw higher prices for the months.

Euphoria at the Chile is likely to die before long, when the miners returned to their wives and maîtresses.Mais there is still much to be happy about for mining giants.

Department of mines Chile closed mines around 300 since the accident, concerned about the risk of disasters plus.Cependant, this is unlikely to have a major impact on the output of the country.

Product Chile one-third of the world copper around 95pc this is operated by the Corporation, Codelco and BHP Billiton - are under threat of all major international stops in their operations.

Meanwhile, prices are currently at a maximum of 27 months $ 8,490 per tonne and 5MC just below the record copper reached in 2008.

Whereas the weakness of the dollar has provided a boost short-term all precious metals and base, some have increased more rapidly than others - and that includes copper.

Two largest copper producers worldwide, Codelco and Freeport-McMoRan copper and gold, warned this week supply "very tight" next year.

The reasons for this are deteriorating mining, metal of inferior quality and lack of investment in their factory.

It is not only production is declining, but demand is rising.Even today, there are in China and the London Metal Exchange low inventory levels.

Most copper goes into the construction and electrical equipment.

But demand for copper in the future of conduct will be consumers want to buy more environmentally friendly hybrid cars that use twice the amount of copper because they have an electric motor as a motor.

In addition to this, a recent report by the International Copper study demand for red metal Groupsays increase by 3 81pc this year and 4 49pc next year, but Rio Tinto mining giant believes current projects can only supports 3pc growth rates.

It has really been driving the massive rise in base metals copper and providing a boost to the mining industry as a whole.

"FTSE index mining has outperformed FTSE100 stock by 15pc 35pc increase since June, index," said Nick "Metals" Moore, an analyst at RBS products.Antofagasta led the charge with a gain of 71pc, with the company offering price copper exposure, volume growth and position solid balance sheet.

"Other copper producers also increased further to 50pc investors leverage a premium to other miners at the back of the strong fundamental underlying and extremely optimistic market copper pure-play business copper consensus".

Goldman Sachs has higher than forecast in city analysts arguing that commercial copper 35pc higher than $11 per tonne in 12 mois.Il advised customers purchase contract from December 2011 as demand will probably lead to shortages of metal next year.

And there lies the reason as industrial accidents such as test Chilean minors or the latest tragedy in China, where 11 men were trapped dead fear and 26 other people were killed in an explosion of gas, will be on offshore companies or their employees to dig deeper into the Earth for the copper - and other natural resources.

Mining can still be dirty, dangerous, technically difficult and full of risk politique.Mais if prices increase in mineral products industry, is one of the growth sectors more profitable and more critical of the planet.


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Thursday, 2 December 2010

Hedge fund chief David Harding earns £54m from predicting swings in commodity prices

Hedge fund chief David Harding earns ?54m from predicting swings in commodity prices David Harding's Winton Capital uses complex algorithms to bet on movements in the price of bonds, shares and commodities. Photo: CORBIS

The founder of hedge fund Winton Capital Management received a £54m dividend last year, according to accounts just filed at Companies House.

As the ultimate controlling party of Winton Capital, Mr Harding is also likely to be its "highest-paid director", who received £4m in pay last year, according to the accounts.

Many hedge fund owners have seen their fortunes continue to soar despite the economic downturn.

Louis Bacon, the London-based American who runs Moore Capital, saw his fortune nearly double to £1.1bn last year, according to a list compiled earlier this year. Moore Capital's global investor fund was up 18pc last year.

The latest accounts for Winton Capital, filed late last week, show that it paid out a dividend of £96.2m over the year to December 31, 2009.

Of this, £61.1m was paid to executive directors on their ordinary shareholdings in the company. Mr Harding's shareholding values his share of the pay-out at around £54m.

Over 2009, Winton Capital had a turnover of £102m, down from £395m in 2008. It made a pre-tax profit of £60.3m, compared to £288m the year before.

Although Mr Harding's recent bumper pay-out dwarfs most pay packages in the City, he actually took a cut in pay and dividends compared to 2008 due to the relatively weaker performance. Then, Mr Harding, 47, received £101m in dividends and £17m in salary.

Mr Harding used to own AHL, a commodities trading firm that was bought by Man Group. He left and in 1997 founded Winton.

The Kensington-based company uses complex algorithms to bet on movements in the price of bonds, shares and commodities.

It is thought to employ more than 50 researchers with PhDs in esoteric subjects such as extragalactic astrophysics. His staff are said to study historic data in minute detail to develop complex computer programs capable of predicting future trends.

Mr Harding himself studied theoretical physics before going into finance. He loves punk music and his hobbies include walking and economic history.

Last year, he was quoted as saying: "It is nice to have a golden life and a purpose to engage in, a reason to go to work. I wouldn't have set out to be a futures trader if I hadn't wanted to make a lot of money."

The accounts show that Winton Capital Management paid corporation tax of £16.8m in 2009, down from £86.2m the previous year when profits were higher.


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Sunday, 31 October 2010

Metal prices are digging a hole mining

Both are images of the past, ghosts industry of the now defunct far from the life of the 21st century - this is why the emergence of 33 Chilean exhilarating a hole in the ground came as a little surprise to the public this week.

As it turns out that mining do more after all, but a global industry employing trillion of 43 million people.

Modern technology may have done away with the need to pick axes and asses, but there are places that still rely on men crawling through tunnels in search of more and more scarce commodities.

For these men, it is apparently worth braving the extremely poor security conditions in exchange for a 20pc than copper average salary miner in the South American nation.

Men rescued in San José, worked in a copper mine - and the Chile is the world number one producer of base metal which saw higher prices for the months.

Euphoria at the Chile is likely to die before long, when the miners returned to their wives and maîtresses.Mais there is still much to be happy about for mining giants.

Department of mines Chile closed mines around 300 since the accident, concerned about the risk of disasters plus.Cependant, this is unlikely to have a major impact on the output of the country.

Product Chile one-third of the world copper around 95pc this is operated by the Corporation, Codelco and BHP Billiton - are under threat of all major international stops in their operations.

Meanwhile, prices are currently at a maximum of 27 months $ 8,490 per tonne and 5MC just below the record copper reached in 2008.

Whereas the weakness of the dollar has provided a boost short-term all precious metals and base, some have increased more rapidly than others - and that includes copper.

Two largest copper producers worldwide, Codelco and Freeport-McMoRan copper and gold, warned this week supply "very tight" next year.

The reasons for this are deteriorating mining, metal of inferior quality and lack of investment in their factory.

It is not only production is declining, but demand is rising.Even today, there are in China and the London Metal Exchange low inventory levels.

Most copper goes into the construction and electrical equipment.

But demand for copper in the future of conduct will be consumers want to buy more environmentally friendly hybrid cars that use twice the amount of copper because they have an electric motor as a motor.

In addition to this, a recent report by the International Copper study demand for red metal Groupsays increase by 3 81pc this year and 4 49pc next year, but Rio Tinto mining giant believes current projects can only supports 3pc growth rates.

It has really been driving the massive rise in base metals copper and providing a boost to the mining industry as a whole.

"FTSE index mining has outperformed FTSE100 stock by 15pc 35pc increase since June, index," said Nick "Metals" Moore, an analyst at RBS products.Antofagasta led the charge with a gain of 71pc, with the company offering price copper exposure, volume growth and position solid balance sheet.

"Other copper producers also increased further to 50pc investors leverage a premium to other miners at the back of the strong fundamental underlying and extremely optimistic market copper pure-play business copper consensus".

Goldman Sachs has higher than forecast in city analysts arguing that commercial copper 35pc higher than $11 per tonne in 12 mois.Il advised customers purchase contract from December 2011 as demand will probably lead to shortages of metal next year.

And there lies the reason as industrial accidents such as test Chilean minors or the latest tragedy in China, where 11 men were trapped dead fear and 26 other people were killed in an explosion of gas, will be on offshore companies or their employees to dig deeper into the Earth for the copper - and other natural resources.

Mining can still be dirty, dangerous, technically difficult and full of risk politique.Mais if prices increase in mineral products industry, is one of the growth sectors more profitable and more critical of the planet.


View the original article here