_Economy and Finance

Commodity supercycle is ‘alive and well’: McKinsey & Co. September 26, 2013, 12:16 PM Recent declines in commodity prices have raised the idea that the so-called commodity supercycle is over, but not everyone believes that. http://blogs.marketwatch.com/thetell/2013/09/26/commodity-supercycle-is-alive-and-well-mckinsey-co/

SG Commodities Review: Copper Robin Bhar 2013.03.20 ■ Copper prices have lost their anchor at $8,000/t. Reasons for the sharp fall include weak physical demand, soaring exchange stocks of copper, disappointing data from China, and lack of Chinese buying after the Lunar New Year holidays concluded in mid-February.

Japan to Begin Test Production for Frozen Gas Locked in Seabed By Tsuyoshi Inajima & Yuji Okada - Mar 11, 2013 Japan, which has almost no natural energy resources of its own, will begin the world’s first offshore drilling operation this week to extract frozen natural gas locked under the seabed. http://www.bloomberg.com/news/2013-03-11/japan-to-begin-test-production-for-frozen-gas-locked-in-seabed.html

WTI Oil Trades Near Two-Day Low as U.S. Crude Stockpiles Climb By Ben Sharples West Texas Intermediate oil traded near the lowest level in two days after U.S. crude stockpiles rose almost five times more than forecast. The Brent pipeline system remained shut a fifth day. http://www.bloomberg.com/news/2013-03-06/wti-oil-trades-near-two-day-low-as-u-s-crude-stockpiles-climb.html

http://www.cnbc.com/id/100413394 UPDATE 1-Shell, Kinder plan to export natgas from United States Published: Monday, 28 Jan 2013 | 2:38 PM ET By: Jeanine Prezioso * LNG exports planned from Elba Island near Savannah, Georgia * LNG cargoes fetch as much as $18/mmBtu, US price below $4 * Exports have US DOE approval but project under review

2013 Outlook Commodities Review European Gas and LNG Thierry Bros Key points ■ On 8 October, the second 27.5 bcm/y Nord Stream line was launched, bringing the facility’s total capacity to 55 bcm/y (the first line was opened in November 2011). The pipeline is designed to bring greater stability to the supply of Russian gas to Europe by reducing dependence on transit countries, with which Russia has repeatedly faced serious issues over gas prices.

2013 Outlook Commodities Review US Natural Gas Laurent Key Key points ■ The US natural gas forward curve is, in our opinion, well priced for the start of the winter but too expensive from March to the rest of 2013. Cal 13 price forecast is $3.52/MMbtu, 40 cents below the current curve.

2013 Outlook Commodities Review Oil Michael Wittner Key points ■ The outlook for oil market fundamentals is neutral through 2013. With another year of sluggish economic growth expected, global demand growth is forecast at 0.8 Mb/d next year, driven by emerging markets east of Suez.

2013 Outlook Commodities Review Copper Robin Bhar Key points ■ At current levels, around $7,600/t, we anticipate limited downside risk as fundamentally the copper market remains tight; there is scope for prices to rise given a belief that the Chinese economy has bottomed and a rebound is expected over the coming months.

Best Metals Forecaster Smirk Sees China Recovering: Commodities By Phoebe Sedgman and Chanyaporn Chanjaroen Industrial metals will rally through the middle of next year as the economy strengthens in China, the biggest user of everything from aluminum to zinc, according to the most accurate price forecaster tracked by Bloomberg. Justin Smirk of Westpac Banking Corp. in Sydney beat as many as 25 others in predicting metals for two consecutive quarters on a rolling two-year basis, data compiled by Bloomberg Rankings show. He expects copper, nickel and zinc to gain through June and forecasts a 21 percent rise in aluminum.

Bloomberg Service Industries in U.S. Kept Expanding in March: Economy By Alex Kowalski - 2012.04.04 12:42 PM Service industries in the U.S. grew in March, capping the strongest quarter in a year and indicating the world’s largest economy will keep generating jobs.

Bloomberg Hedge Funds Make Wrong-Way Bets for a Fourth Week: Commodities By Joe Richter - Mar 25, 2012 9:21 PM Hedge funds wagered the wrong way on commodity prices for a fourth consecutive week, boosting bullish holdings just before reports showing a contraction in manufacturing from China to Europe drove prices lower.

Bloomberg China Soft Landing May Be Hard for Commodity Exporters By Bloomberg News - 2012.03.25 06:41 PM The good news: China’s government will engineer a soft landing. The bad news: Even a soft landing is painful for industries that have become dependent on the world’s fastest-growing major economy as their main profit engine.

Bernanke Sees Need for Higher Household Spending to Fuel Growth By Joshua Zumbrun - 2012.03.22 08:08 PM Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is operating below its level prior to the financial crisis, and that increased household spending is needed to sustain the expansion.

Bloomberg: Australia Economy Grows More Than Forecast By Michael Heath - 2011.12.06 07:02 PM Australia’s economy grew faster than estimated last quarter on consumer spending and mining-driven investment, spurring the local currency as investors pared bets on the pace of interest-rate cuts next year.

Hedge Funds Add to Raw-Material Bets in Biggest Rally of 2011: Commodities By Whitney McFerron - 2011.10.16 06:19 PM Speculators boosted their wagers on higher commodity prices for the first time in five weeks as increasing confidence that the global economy will avoid another recession spurred the biggest rally of the year.

Related News: Economy · Asia · China · Finance · Real Estate · Africa · Canada · Europe · Latin America · U.S. · Bonds · Currencies · Middle East · Japan · U.K. & Ireland · Insurance · Funds · Commodities · India & Pakistan ‘Perfect Storm’ May Threaten Global Economy By Shamim Adam - Jun 13, 2011 8:58 AM GMT+0900 A “ perfect storm ” of fiscal woe in the U.S., a slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy, New York University professor Nouriel Roubini said.

Related News: U.S. · Commodities · Canada · Latin America U.S. Wheat Harvest May Be Worse Than Forecast By Whitney McFerron - May 18, 2011 5:37 AM GMT+0900 Wheat crops in the U.S. Great Plains are showing signs that production may plunge more than the government forecast last week as hot weather and a lack of rain erode plant quality and force farmers to harvest early.

Related News: Bloomberg , Economy , Africa , Australia , Europe , Latin America , Middle East , Opinion , Emerging Markets , Energy Markets , Finance , Commodities Commodities Trading Is Banking’s New Battleground: Commentary Matthew Lynn By Matthew Lynn - May 10, 2011 8:00 AM GMT+0900 Bloomberg Opinion Forget bonuses. Don’t worry about bailouts. That’s all history. The battleground that matters most for the banking and finance industry right now is the profits it is making from commodities trading.

Gold breaks $1,500 as investors seek security By Jan Harvey LONDON | Wed Apr 20, 2011 4:12pm EDT (Reuters) - Gold rose above $1,500 an ounce on Wednesday for the first time ever as the dollar wilted, oil rose, worries over the U.S. economic outlook boosted demand for the metal as a haven and rising inflation lifted Asian demand.