There seem to be some ruffled feathers in the world of poultry. Shares of Tyson Foods (TSN) lost a hefty 2.75% Monday.

The Chinese government has decided that American chicken is being sold too cheaply in China. To prevent American poultry producers from further chicken "dumping," the commerce ministry is imposing new tariffs -- in some cases exceeding 100% -- on the imported birds for a period of five years. A lower tariff was already introduced earlier this year.

Continue reading Playing Chicken with China

Playing Chicken with China originally appeared on BloggingStocks on Tue, 28 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

A new method of setting the price on iron ore for export is upsetting Chinese and European steel makers and auto manufacturers, but that same pricing scheme is most likely going to benefit U.S. steelmakers such as AK Steel (AKS), Nucor (NUE) and U.S. Steel (X).

In the past, iron ore pricing was largely set on an annual basis, with the first negotiated ore contracts of the season setting the price for the duration of that season. However, this year, the three largest iron ore miners, BHP Billiton (BHP), Rio Tinto (RTP) and Vale SA (VALE), have decided that they will seek quarterly renegotiation of ore contract pricing. This will allow those companies to take better advantage of increases in iron ore demand and spikes in spot prices.

Continue reading New Iron Ore Pricing Scheme Should Be Good for American Steel

New Iron Ore Pricing Scheme Should Be Good for American Steel originally appeared on BloggingStocks on Sun, 04 Apr 2010 14:40:00 EST. Please see our terms for use of feeds.

How can exports not rebound? Last year ended on a sour note after posting record results, and 2009 is by all accounts likely to be ugly. The tourism and travel industry is expected to shed more than 200,000 jobs this year. Fortunately, there's a light at the end of the tunnel. The U.S. Department of Commerce expects international visits to the United States to come back in 2010 - after its first forecasted year of decline (i.e., 2009) since 2003.

This year, international travel to the United States is expected to fall 8%. The following year, however, U.S. travel exports are expected to gain 5%, with 5% annual increases through the end of 2013. We'll come out ahead in all this, but it's going to take some time.

Will the influx of foreign visitors over the next four years be enough to turn the travel industry in the United States around? It's too soon to tell right now, and much will depend on the contributions made by domestic routes. Needless to say, even this glimmer of hope must be welcome to investors committed to the airline and hotel sectors.

U.S. travel exports to rebound in 2010 originally appeared on BloggingStocks on Tue, 26 May 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading AAR February Report: Freight movement by railroads

AAR February Report: Freight movement by railroads originally appeared on BloggingStocks on Fri, 07 Mar 2008 15:20:00 EST. Please see our terms for use of feeds.

Gallery: Harley Davidson Views and Hues

Expect a glut of HOGs originally appeared on BloggingStocks on Thu, 28 Feb 2008 13:42:00 EST. Please see our terms for use of feeds.

Continue reading Inflation or recession? Give us your perspective

Inflation or recession? Give us your perspective originally appeared on BloggingStocks on Mon, 11 Feb 2008 15:03:00 EST. Please see our terms for use of feeds.

Someone might want to explain this to me because it defies nearly all palatable logic that I can apply to it. I read earlier this week that China carries a large debt portfolio and that about 70% of it is American debt. Additionally, China is buying up American debt at break-neck speed, while possibly neglecting their own populace in order to do so.

As I was taught, there are two potentially profitable reasons to buy debt obligations. The first (and best) reason is because there is a reasonable expectation that the debt will be repaid, supported by documentation, collateral security, and research. The second reason is because there is an expectation that the debtor shall default, resulting in the expeditious seizure of pledged security assets that are desired.

I've become aware of an unsettling third scenario regarding the value of buying debt. You can easily use it to buy control of the debtor's assets through their weakness.

Continue reading American debt and the Great Chinese Mind-Bender

American debt and the Great Chinese Mind-Bender originally appeared on BloggingStocks on Sat, 02 Feb 2008 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Asian manufacturers adjusting to American economic downturn

Asian manufacturers adjusting to American economic downturn originally appeared on BloggingStocks on Fri, 25 Jan 2008 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Investing in 2008: Where's the smart money going?

Investing in 2008: Where's the smart money going? originally appeared on BloggingStocks on Tue, 01 Jan 2008 16:10:00 EST. Please see our terms for use of feeds.

Continue reading Another Fed rate cut could spell disaster

Another Fed rate cut could spell disaster originally appeared on BloggingStocks on Tue, 30 Oct 2007 14:18:00 EST. Please see our terms for use of feeds.

Judging by the most recently available statistics from the American Association of Railroads, the trade and productivity numbers currently coming out of Washington appear to be a bunch of bunk. Will someone please tell Ben Bernanke that cold hard facts will supplant pipe dreams any day?

Rail freight numbers for the week ended June 9 continue to trend downward and are consistent with trending for the year so far. By now, industrial surpluses and inventories should have been reduced to the point that manufacturing would be demanding an increased influx of raw materials, but such is not the case. Plainly put, consumer demand and domestic manufacturing are down, and it shows plainly in reduced freight numbers. The breakdown for the week ending June 9 is as follows:

• Intermodal freight (truck trailers or shipping containers): Down 3.2 percent from last year.
• Carload freight (not including intermodal): Down 5.6 percent.
• 4.0 percent fewer carloads originated from the West and 7.8 percent fewer originated from the East.
• Total cumulative rail freight volume for the first 23 weeks of 2007 was an estimated 754.9 billion ton-miles, down 3.1 percent from last year.

Canadian and Mexican railroad reports show similar trending, though not as significantly as the American declines. The single remarkable exception is the Mexican railroad, Kansas City Southern de Mexico (KCSM), which has reported intermodal volume of 4,878 trailers or containers, up 18.4 percent from the 23rd week of 2006. That significant increase, my friends, is reflective of manufactured goods they're shipping up to us.

Bear these numbers in mind the next time you get your statistical hogwash from Washington. They can tell you that more people are working and they can tell you that companies are manufacturing more stuff, but the true facts come out when the train cars get loaded (or don't).

American railroads point to a slightly chilling economy originally appeared on BloggingStocks on Sat, 23 Jun 2007 08:40:00 EST. Please see our terms for use of feeds.

One of the stocks that I like to keep an eye on is AutoNation (NYSE: AN). It interests me due to their number one position in online auto sales and because of their robust size. I'm getting a bit curious about how quiet it is over there in terms of news items. I'm not the least bit worried about what they're up to. As I've said before, generally a lack of news means that things are going in a business-as-usual fashion.

As of this writing, the most current news item you'll find on the AutoNation website is their Oct. 26, 2006 news release of their third quarter earnings report. . The most current news piece I can find on the web is a reference to the AutoNation Inc. presentation at the China Auto Services Market Summit, December 5, 2006 at JW Marriott Hotel Shanghai . What this signals to me is that AutoNation is yet another active participant in the massive movement to exploit China's blooming economic opportunities. The summit seemed to be geared more towards automobile service operations than towards outright retailing of automobiles. The logistics of moving cars to market, the financing of new vehicle purchases, underpinning the retail segment, leasing, renting and mechanical service were among the topics of focus. The entire summit signals to me that the groundwork is being carefully laid for a major influx of automobiles into mainland China.

I like the feel of the whole thing. "Detroit's" big three are surely in full preparation for this impending boom. Aren't they? I want to see some advertising fliers showing Chevrolet (NYSE: GM) Silverados parked along the Great Wall. I want to see pictures of the streets of Peking jammed with Nitros (NYSE: DCX) and Explorers (NYSE: F). I want to see some of the money we've spent on cheap Chinese die cast tools and toys coming back as wages for American workers. I want my piece of their economy now. C'mon gang, it's time to bring it on home!

Hey AutoNation, it's awfully quiet over there! originally appeared on BloggingStocks on Tue, 26 Dec 2006 13:20:00 EST. Please see our terms for use of feeds.

Okay, so my title is a bit misleading. No, I don't mean a bigger trade deficit is a good thing. What I'm getting at here is that bigger thinking could help lead us down a better road. Beginning with the introduction of transistors in 1947 and then progressing from transistors to integrated circuits and on through to today's computer chips, the trend in electronics manufacturing has been to make things smaller and smaller. While this shrinking of electronics has been an overall good thing, the concept has crept into nearly every class of consumer merchandise. This has made the manufacturing, shipping and importation of foreign manufactured items that much more lucrative.

In the 1970's we were faced with much screaming and yelling about how crude oil was going to run out in 20 years. There was a world wide mad dash to do something to prevent that from happening. The mantra for auto makers became "if it's not a compact car it'll be a subcompact car." People didn't like those cars much but they were sold to us as fun and practical. At .95 cents a gallon for gas, people were eager to use less oil in order to help save the world. Chromium steel was replaced with ugly black and gray plastic. Roofs were lowered to eliminate glass. Tires had their sidewall area reduced and tire widths began to narrow. Japan began to salivate as the proposition of exporting cars to America became lighter, leaner and cheaper. .

(photo courtesy of: www.njscuba.net/ )

Continue reading The American Trade Deficit: Bigger is better for us.

The American Trade Deficit: Bigger is better for us. originally appeared on BloggingStocks on Sun, 03 Dec 2006 17:42:00 EST. Please see our terms for use of feeds.