BP (BP) should have seen this one coming. An arbitration tribunal set up by BP's existing Russian partners blocked the $7.8 billion share swap deal proposed by BP with Russia's state-controlled Rosneft. The tribunal was setup at the behest of the Alfa-Access-Renova consortium, which is BP's partners Russia's third-biggest oil producer TNK-BP. BP is the third largest of the six oil and gas "supermajors" after Exxon Mobil (XOM) and Royal Dutch Shell. Other competitors include Chesapeake (CHK), Anadarko and Chevron (CVX).

Our price estimate for BP stands at $49.38, implying a roughly 5% premium to its current market price.

Continue reading BP's Rosneft Deal Is Blocked by Russian Tribunal, Risking Costly Resolution

BP's Rosneft Deal Is Blocked by Russian Tribunal, Risking Costly Resolution originally appeared on BloggingStocks on Thu, 31 Mar 2011 17:30:00 EST. Please see our terms for use of feeds.

BP's (BP) headache continues over its planned share swap with Russian-owned Rosneft. According to a report from Sky News, the Association of British Insurers (ABI) announced its concerns over the impact of the swap. ABI reportedly controls 10% to 15% of the U.K. stock market.

ABI's reservations also include a Swedish court's decision to block BP's planned venture with Rosneft in the Arctic. Perhaps most concerning of all -- and not just to ABI -- is Wednesday's report announcing that U.S. prosecutors are considering manslaughter charges against BP for its Gulf of Mexico oil spill. Eleven oil workers were killed as a result of the spill.

Continue reading With BP's Problems, Who Enters the Void?

With BP's Problems, Who Enters the Void? originally appeared on BloggingStocks on Wed, 30 Mar 2011 17:30:00 EST. Please see our terms for use of feeds.

Freeport McMoran Copper (FCX) is a miner of copper, gold and molybdenum. It has operations in North and South America, Indonesia and Africa, and competes with other miners such as the Southern Copper (SCCO), Codelco and Newmont Mining (NEM).

Continue reading Should Freeport Pursue Lundin Mining?

Should Freeport Pursue Lundin Mining? originally appeared on BloggingStocks on Thu, 10 Mar 2011 12:40:00 EST. Please see our terms for use of feeds.

Looking back can be painful, especially if you missed the biggest bull move of the year. The star performer was palladium, which is used in catalytic converters. The metal rallied 95% during 2010, according to the Financial Times.

One major reason for the jump was the belief that Russia has exhausted its stockpiles of palladium that they had accumulated during the Cold War. The big metals trader, Johnson Matthey, said that palladium could swing into a "serious deficit" if sales from the Russian government diminish.

On the futures market, March palladium touched $800 per ounce. Some analysts are forecasting $1,000 per ounce in 2011.

Continue reading Palladium: Best Performer of 2010, Hits Nine-Year High

Palladium: Best Performer of 2010, Hits Nine-Year High originally appeared on BloggingStocks on Mon, 03 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Russia Gains Foothold in U.S. Uranium Production

Russia Gains Foothold in U.S. Uranium Production originally appeared on BloggingStocks on Mon, 06 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Pepsi Is Buying Russian Dairy and Juice Maker Wimm-Bill-Dann Foods

Pepsi Is Buying Russian Dairy and Juice Maker Wimm-Bill-Dann Foods originally appeared on BloggingStocks on Fri, 03 Dec 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Doom & Gloom Economy or Rich America?

Doom & Gloom Economy or Rich America? originally appeared on BloggingStocks on Wed, 06 Oct 2010 10:40:00 EST. Please see our terms for use of feeds.

Continue reading Corn, Wheat and Soybean Prices Surge Higher on Weather Problems

Corn, Wheat and Soybean Prices Surge Higher on Weather Problems originally appeared on BloggingStocks on Mon, 20 Sep 2010 10:00:00 EST. Please see our terms for use of feeds.

In a surprise and unexpected move, Russian Prime Minister Vladimir Putin told Reuters that he was extending the grain export ban until 2011. "I would like to note that lifting of the export ban can only be considered after next year's crops have harvested," Putin said according to Reuters.

Russia is now suffering through its worst drought in nearly 100 years. Grain harvest have been cut by two thirds, down to 60-65 million tons from 97 million tons in 2009.

Continue reading Russia's Putin Extends Ban on Grain Exports

Russia's Putin Extends Ban on Grain Exports originally appeared on BloggingStocks on Fri, 03 Sep 2010 10:00:00 EST. Please see our terms for use of feeds.

"For the 24th year running that the Economist magazine has published its famed Big Mac Index; this index is a tongue-and-cheek way of measuring the purchasing power parity (PPP) -- that is, the relative overvaluation and undervaluation of the world's currencies," notes Nicholas Vardy.

The editor of The Global Stock Investor explains, "What does the Big Mac now say about the relative value of global currencies?

"According to the theory of purchasing power parity, a dollar should buy the same amount of the same good across all countries. By comparing the cost of Big Macs -- a good that is produced in about 120 countries -- the Big Mac Index calculates the exchange rate (the Big Mac PPP) that would result in hamburgers costing the same in America as they do abroad.

Continue reading Big Mac Index: What Burgers Say About Currency Valuations

Big Mac Index: What Burgers Say About Currency Valuations originally appeared on BloggingStocks on Tue, 31 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

In a move that is creating havoc in the grain markets, Russian Prime Minister urged a temporary ban on Russian grain exports. The ban may begin as early as next week and would last through December.

Putin said the a ban would be "appropriate." Russia has "sufficient reserves of grain, but we must prevent domestic prices from rising, preserve cattle herds and build up reserves for next year."

Continue reading Russia to Ban Grain Exports Due to Severe Drought

Russia to Ban Grain Exports Due to Severe Drought originally appeared on BloggingStocks on Thu, 05 Aug 2010 15:30:00 EST. Please see our terms for use of feeds.

Like 1973 when Russia was forced to buy wheat from the U.S. during the cold war, this could be one for the history books. Russia is suffering its worst drought in 50 years.

Rainfall along the Volga River was 10% to 30% of it long-term average. Temperatures are so hot that workers are forced to take breaks in their work schedule. Add to this wildfires covering more than 600-square miles, and you have major crisis brewing.

Continue reading Russia's Worst Drought in 50 Years Threatens Next Year's Crops

Russia's Worst Drought in 50 Years Threatens Next Year's Crops originally appeared on BloggingStocks on Tue, 03 Aug 2010 12:20:00 EST. Please see our terms for use of feeds.

The grain markets are weather related. Any change in the normal growing weather pattern sends the markets into turmoil.

The story of the day is Russia. The farm ministry said that Russia will harvest 85 million metric tons of grain, down 5 million tons from the previous forecast. Why is this news? Russia and Canada vie with the U.S. as the second largest world wheat exporter.

Continue reading Wheat Moves Sharply Higher on Rumors of Drought in Russia

Wheat Moves Sharply Higher on Rumors of Drought in Russia originally appeared on BloggingStocks on Tue, 06 Jul 2010 14:20:00 EST. Please see our terms for use of feeds.

• Tuesday, June 15: May Import Prices. Expected decline of -1.5%.
• Wednesday, June 16: May Producer Prices. Expected decline of -0.5%.
• Thursday, June 17: May Consumer Prices. Expected decline of -0.2%.

Continue reading Brace for Deflation at Home, Inflation in Emerging Markets

Brace for Deflation at Home, Inflation in Emerging Markets originally appeared on BloggingStocks on Mon, 14 Jun 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil Prices Rebound Despite Bearish Inventory Report

Oil Prices Rebound Despite Bearish Inventory Report originally appeared on BloggingStocks on Wed, 26 May 2010 18:00:00 EST. Please see our terms for use of feeds.

The key development stemming from the BRIC (Brazil, Russia, India, China) Summit? Arguably, it's the four's pledge to study ways to execute trade transactions in their local currencies, instead of the dollar.

The summit in Brazil's capital of Brazilia represented a gathering of nations likely to account for 60% of global GDP growth through 2014, Bloomberg News reported. It was the second annual gathering of the four BRIC nations.

Continue reading BRIC Nations Pledge to Trade in Local Currencies

BRIC Nations Pledge to Trade in Local Currencies originally appeared on BloggingStocks on Fri, 16 Apr 2010 15:30:00 EST. Please see our terms for use of feeds.

The amount of money sitting in sovereign wealth funds grew in 2009. As financial markets around the world recovered from the severity of the financial crisis that struck in September 2008, the coffers of these unique financial entities swelled to $3.51 trillion, according to the latest research from the alternative investment analysts at Preqin.

Nonetheless, some funds did experience withdrawals by their respective governments. In some cases, governments used sovereign wealth fund assets to close budgetary gaps.

Continue reading Sovereign Wealth Fund Assets Up 9% in 2009

Sovereign Wealth Fund Assets Up 9% in 2009 originally appeared on BloggingStocks on Sat, 13 Mar 2010 14:10:00 EST. Please see our terms for use of feeds.

Devan Kaloo, of Aberdeen Asset Management foresees a 15% drop for stocks of developing countries. His fund is investing in the developing countries of Mexico, India and Turkey. He is neutral on Brazil and underweight on Russia.

He is holding fewer Chinese stocks because he feels that stock valuations in China are overdone. The $586 billion stimulus package is due to run out this year. The helped the Shanghai Composite Index to rise 80% last year. This year to date the index is down 6.4%.

Continue reading Aberdeen Foresees Stocks of Developing Countries Falling 15%

Aberdeen Foresees Stocks of Developing Countries Falling 15% originally appeared on BloggingStocks on Wed, 10 Mar 2010 14:00:00 EST. Please see our terms for use of feeds.

"I expect Vimpel-Communications (VIP) -- Russia's major mobile phone operator -- to perform strongly over the next couple of months," says international expert Nicholas Vardy.

In his Global Bull Market Alert, the advisor explains, "VimpelCom's fundamentals are strong and improving." Here's his bullish outlook on the shares.

"The company increased its mobile subscribers by 1.7 million between the second and third quarters, bringing its total number of subscribers to 65.4 million. That's 13% more than last year.

Continue reading Ring up Russia with Vimpel-Com (VIP)

Ring up Russia with Vimpel-Com (VIP) originally appeared on BloggingStocks on Fri, 18 Dec 2009 14:00:00 EST. Please see our terms for use of feeds.

The timing couldn't have been worse. Just as a U.S. envoy arrived in North Korea to meet with the reclusive regime's officials, protests and violence are reported to have erupted. The country is reacting to a new currency issue that is being used to seize most of the citizens' money and savings.

On November 30, 2009, the regime announced that it would issue new currency and cap the amount that could be exchanged at the equivalent of $40. This effectively rendered the money held privately worthless.

Continue reading New North Korean monetary policy leaves two dead, markets in uproar

New North Korean monetary policy leaves two dead, markets in uproar originally appeared on BloggingStocks on Wed, 09 Dec 2009 12:50:00 EST. Please see our terms for use of feeds.