BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[US Steel: A bright future, but it's not a play for squeamish investors]]>http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/http://www.bloggingstocks.com/2009/08/12/us-steel-a-bright-future-but-it-s-not-a-play-for-squeamish-inv/#commentsFiled under: ,

I'm Reiterating my Buy rating for United States Steel Corporation (NYSE: X), first recommended on April 15, 2009 at a price of $27.61. Shares are up a cool 59.5% since that time.

The rationale for owning X's shares remains the same: US Steel will likely be a survivor in the consolidating global steel sector with sufficient scale to either produce raw materials and acquire raw material assets.

Continue reading US Steel: A bright future, but it's not a play for squeamish investors

US Steel: A bright future, but it's not a play for squeamish investors originally appeared on BloggingStocks on Wed, 12 Aug 2009 17:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>raw materialsRawMaterialssteelWed, 12 Aug 2009 17:00:00 EST<![CDATA[2009 Money moves: Play with gold]]>http://www.bloggingstocks.com/2009/01/16/2009-money-moves-play-with-gold/http://www.bloggingstocks.com/2009/01/16/2009-money-moves-play-with-gold/http://www.bloggingstocks.com/2009/01/16/2009-money-moves-play-with-gold/#commentsFiled under: , , ,

This post was written as part of a feature offering ideas from bloggers on ways to make more money in 2009. See all 18 suggestions.

Gold and the U.S. dollar are inexorably linked. The U.S. dollar represents the U.S. economy as a paper asset, while gold represents a standard of international value that transcends national boundaries. The value of both of these asset classes is very difficult to determine. Both are affected by geo-political events and both move up or down as a matter of perception.

Let's look at a few examples. With the large bank bailouts of 2008 and the coming Obama stimulus package, there are those who say that we are way overextended and have printed too much paper money. Those who take this position are the "gold bugs," the ones who are running away from paper assets to the safety of a hard asset like gold. This is where you find predictions that gold will rise to $2,000-$5,000 per ounce. It is this perception of the U.S. economy that drives investors to buy gold.

Then there are those who look at the world a bit differently. They see a world with 6 billion plus people that is running out of natural resources and that will not be able to meet the demand for basic commodities such as food, energy and raw materials. As a result of these shortages, commodity prices will rise to irrationally high levels. This in turn will cause rampant inflation and devalue paper assets even further and make gold even more valuable.

Continue reading 2009 Money moves: Play with gold

2009 Money moves: Play with gold originally appeared on BloggingStocks on Fri, 16 Jan 2009 14:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>energygoldinflationraw materialsRawMaterialsUS dollarUsDollarFri, 16 Jan 2009 14:40:00 EST<![CDATA[It's a recession for recyclers, too]]>http://www.bloggingstocks.com/2008/12/11/its-a-recession-for-recyclers-too/http://www.bloggingstocks.com/2008/12/11/its-a-recession-for-recyclers-too/http://www.bloggingstocks.com/2008/12/11/its-a-recession-for-recyclers-too/#commentsFiled under: ,

It's one of the the most frustrating and unfortunate aspects of the U.S. and global recessions: a noble sector, a win-win-win all around, is facing dire times.

The recycling sector is being decimated by the economic slowdown. Many industry players may not survive, the whole process of creating new from the old seems to be stalled, and all over the globe piles of plastic, cardboard, newspaper/paper, and metal, among other re-useables, are piling up, The New York Times reported.

And the reason is obvious enough: demand for consumer goods and other finished products is declining, globally, and that means the chief manufacturing centers of the world - - China being the largest - - don't need the recyclable materials that a year ago were so much in demand, The Times reported. Prices have plunged: paper, down to $20 a ton from $105 a ton; plastic bottles to 2 cents a pound, down from 13 cents a pound; aluminum to 30 cents a pound, from $1 a pound.

Economist Peter Dawson told BloggingStocks expanded storage capabilities during this recession means recyclers will be able to hold more than 10 times the recycled material than during the last U.S. recession in 2001-2002, but there are financial and storage limits.

Continue reading It's a recession for recyclers, too

It's a recession for recyclers, too originally appeared on BloggingStocks on Thu, 11 Dec 2008 15:16:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chinaemerging marketsenvironmentinthenewslandfillsraw materialsrecyclersrecyclingThu, 11 Dec 2008 15:16:00 EST<![CDATA[China's exports fall in November for first time in 7 years]]>http://www.bloggingstocks.com/2008/12/10/chinas-exports-fall-in-november-for-first-time-in-7-years/http://www.bloggingstocks.com/2008/12/10/chinas-exports-fall-in-november-for-first-time-in-7-years/http://www.bloggingstocks.com/2008/12/10/chinas-exports-fall-in-november-for-first-time-in-7-years/#commentsFiled under: , , ,

It's another data point indicating both the comprehensiveness and seriousness of the global economic slowdown: China's exports fell in November for the first time in seven years, the General Administration of Customs announced Wednesday in Beijing, as demand decreased in key customer countries in recession, including the United States.

Another global slowdown sign

China's November exports declined 2.2% compared to a year ago to $114.99 billion. It was the first decline in monthly exports since June, 2001. Exports increased 19.2% in October. Meanwhile, November imports also fell, declining 17.9% to $74.9 billion -- that category's first decline since February 2005.

Economist David H. Wang told BloggingStocks Wednesday that the export decline is further evidence of the weakest global economy since 2002. "We have a very serious global condition. Slowing exports will lead to further manufacturing cutbacks in China, which will decrease demand for commodities even more," Wang said. "This will really hit mining companies and commodity producers and I would not be surprised to see five-year lows hit oil, copper, and coal in Q1 2009."

Wang added that the export decline underscores the need for both China and the west [U.S., E.U.] to take steps to create demand.

Continue reading China's exports fall in November for first time in 7 years

China's exports fall in November for first time in 7 years originally appeared on BloggingStocks on Wed, 10 Dec 2008 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditiesemerging marketsexportsGDPGeneral Administration of Customsglobalizationimportsinthenewsraw materialstradeWed, 10 Dec 2008 13:00:00 EST<![CDATA[Inflation? That's bad. Deflation? That's worse ]]>http://www.bloggingstocks.com/2008/10/06/inflation-thats-bad-deflation-thats-worse/http://www.bloggingstocks.com/2008/10/06/inflation-thats-bad-deflation-thats-worse/http://www.bloggingstocks.com/2008/10/06/inflation-thats-bad-deflation-thats-worse/#commentsFiled under: , , , ,

Most investors / readers know about inflation -- an increase in the price of a good or service not connected to an improvement.

But fewer know about its flipside -- deflation -- a decline in prices.

Moreover, while inflation is a serious problem -- it erodes purchasing power and makes it hard for businesses to project and plan for costs, moving forward- - deflation is an even bigger menace.

That's because deflation decreases the amount of money flowing to businesses for their products/services, reducing the money needed to keep commercial activity alive and the economy growing.

Deflation: a danger sign

Don't misunderstand: a price cut after a company becomes more-efficient, or implements a 'holiday or promotional' sale, is fine. Deflation is different: it's pervasive price cutting and asset price declines -- falling prices across the product/service spectrum -- usually driven by a lack of consumer / wholesale demand.

Further, if deflation persists it can, you guessed it, lead to lay-offs. Companies and factories with lower revenue and demand for their products / services scale-back production to reduce expenses by laying-off employees. Those laid-off employees then cut expenses as they search for new work assignments by cutting spending, resulting in even lower demand for products, further price cuts, and lower company revenues, and a vicious cycle can ensue.

Continue reading Inflation? That's bad. Deflation? That's worse

Inflation? That's bad. Deflation? That's worse originally appeared on BloggingStocks on Mon, 06 Oct 2008 13:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketcommoditiesconsumer price indexcpicredit marketsdeflationdeleverageearningsFedinflationinthenewsleveragemonetary policyraw materialsrevenueU.S. Federal ReserveMon, 06 Oct 2008 13:27:00 EST<![CDATA[GoldCorp (GG): 'Our favorite major']]>http://www.bloggingstocks.com/2008/09/05/goldcorp-gg-our-favorite-major/http://www.bloggingstocks.com/2008/09/05/goldcorp-gg-our-favorite-major/http://www.bloggingstocks.com/2008/09/05/goldcorp-gg-our-favorite-major/#commentsFiled under: , , , ,

"People want to own more gold when there's a perception of growing global economic and political turmoil," explain resource experts Roger Conrad and Yiannis Mostrous.

In their Vital Resource Investor, the advisor offer their long-term bullish assessment for gold as well their favorite gold mining stock: "Goldcorp (NYSE: GG).

"Every commodity bull market eventually ends when consumers permanently reduce demand with conservation and switch to alternatives, and the producers ultimately over-expand. This, however, only happens over a period of many years.

"To be sure, we've seen demand in the US drop for many vital resources, from copper to energy, as the economy has slowed. Demand from developing nations, however, remains entrenched by necessity, as these suddenly more affluent nations struggle to upgrade their vital infrastructure.

"And although we may see Chinese economic growth slow from its current off-the-chart 10% rate, that country will still face critical needs to build out its cities to meet the millions of new migrants that come every year. And that's a huge call on raw materials.

Continue reading GoldCorp (GG): 'Our favorite major'

GoldCorp (GG): 'Our favorite major' originally appeared on BloggingStocks on Fri, 05 Sep 2008 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chinagggold mininggold stocksgoldcorpGoldStocksraw materialsresource stocksResourceStocksroger conradsteven halpernStevenHalpernthestockadvisors.comvital resource investorVitalResourceInvestoryiannis mostrousYiannisMostrousFri, 05 Sep 2008 13:30:00 EST<![CDATA[American favorites: Rust-belt resurgence?]]>http://www.bloggingstocks.com/2008/07/14/american-favorites-rust-belt-resurgence/http://www.bloggingstocks.com/2008/07/14/american-favorites-rust-belt-resurgence/http://www.bloggingstocks.com/2008/07/14/american-favorites-rust-belt-resurgence/#commentsFiled under: , , , , ,

"Even with the poor outlook for the economy, there are many investment opportunities being created by high energy prices and the low dollar," notes Jim Powell. In his Global Changes & Opportunities Report, he explains, "American 'rust belt companies' look especially good."

"Surprisingly, rising fuel prices are making some American manufacturers more competitive and I could not be happier about the improved outlook for many efficient U.S. producers.

"U.S. machine tool makers are starting to take back some of the business they lost to Japan 20 years ago. U.S. imports of Chinese steel are declining dramatically, while domestic production is rising at rates not seen in years.

"The list of U.S. businesses that are benefiting from the new trade relationships will lengthen, but it won't happen overnight. It's not just a matter of being loyal to the home team. America will benefit from creating more real wealth instead of the flim-flam financial products that led to the phony boom.

Continue reading American favorites: Rust-belt resurgence?

American favorites: Rust-belt resurgence? originally appeared on BloggingStocks on Mon, 14 Jul 2008 11:47:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bniburlington northern santa fefidelity select industrial equipmentFidelitySelectIndustrialEquipmentfscgxGlobal Changes Opportunities ReportGlobalChangesOpportunitiesReportindustrial stocksIndustrialStocksjim powellJimPowellkirby corp.KirbyCorp.lexrail stocksrailroadRailStocksraw materialsRawMaterialsrsult belt stocksRsultBeltStockssteven halpernStevenHalpernthestockadvisors.comMon, 14 Jul 2008 11:47:00 EST<![CDATA[Arcelor to jump into the BHP Billiton/Rio Tinto fray?]]>http://www.bloggingstocks.com/2008/06/30/arcelor-to-jump-into-the-bhp-billiton-rio-tinto-fray/http://www.bloggingstocks.com/2008/06/30/arcelor-to-jump-into-the-bhp-billiton-rio-tinto-fray/http://www.bloggingstocks.com/2008/06/30/arcelor-to-jump-into-the-bhp-billiton-rio-tinto-fray/#commentsFiled under: ,

Since 1975, Lakshmi Mittal has turned ArcelorMittal (NYSE: MT) into a global steel powerhouse. As a result, he's worth in excess of $45 billion. Actually, as an indication of his power, Mittal is now a board member of Goldman Sachs Group, Inc. (NYSE: GS).

And, no doubt, his dealmaking is likely to continue. In fact, there are reports that ArcelorMittal will make a play for Rio Tinto Group, which is the #2 ore producer in the world. The company is currently ensnared in a hostile takeover from BHP Billiton Ltd. (NYSE: BHP). Basically, ArcelorMittal may make an equity investment, which could exceed $10 billion.

Why? ArcelorMittal needs to find ways to stabilize its raw material supplies. After all, with pricing pressures, it's important to contain things.

Then again, this may ultimately be mostly noise -- to get traders excited. But, in light of ArcelorMittal's global power, investors will definitely listen.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Arcelor to jump into the BHP Billiton/Rio Tinto fray? originally appeared on BloggingStocks on Mon, 30 Jun 2008 18:18:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ArcelorMittallakshmi-mittalraw materialsRawMaterialssteelMon, 30 Jun 2008 18:18:00 EST<![CDATA[China's retail sales surge 21.6% in May]]>http://www.bloggingstocks.com/2008/06/13/chinas-retail-sales-surge-21-6-in-may/http://www.bloggingstocks.com/2008/06/13/chinas-retail-sales-surge-21-6-in-may/http://www.bloggingstocks.com/2008/06/13/chinas-retail-sales-surge-21-6-in-may/#commentsFiled under: , ,

The U.S.'s recent economic doldrums, combined with a 4-year-plus economic expansion that produced less-than-optimal-results in several statistical categories, has caused investors' recollection of robust economic times to fade from memory.

For a refresher, albeit not an ideal case study, regarding what a robust economy looks like, consider China's economy: China's retail sales surged 21.6% in May compared to a year ago, Bloomberg News reported Friday, a rate seven times faster than May retail sales growth in the United States.

Retail sales increased to 870.4 billion yuan or $126 billion in May after rising 22% in April, on strong auto sales and building material purchases, Bloomberg News reported Friday.

Continue reading China's retail sales surge 21.6% in May

China's retail sales surge 21.6% in May originally appeared on BloggingStocks on Fri, 13 Jun 2008 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>consumptiondisposable incomedollaremerging marketsgdpglobalizationinflationinthenewsraw materialsretail salestradeyuanFri, 13 Jun 2008 16:50:00 EST<![CDATA[China's economy grew at 10.6% annual rate in Q1 2008]]>http://www.bloggingstocks.com/2008/04/16/chinas-economy-grew-at-10-6-annual-rate-in-q1-2008/http://www.bloggingstocks.com/2008/04/16/chinas-economy-grew-at-10-6-annual-rate-in-q1-2008/http://www.bloggingstocks.com/2008/04/16/chinas-economy-grew-at-10-6-annual-rate-in-q1-2008/#commentsFiled under: , ,

China's economy grew 10.6% in Q1 2008, the Xinhua News Agency reported Wednesday, citing National Bureau of Statistics research, a pace well above what Chinese Government's ceiling for 2008 GDP growth.

Further consumer prices increased at annualized rate of 8.3% during March 2008, Xinhua reported, as China's infrastructure development and consumer demand for goods/service continued to place upward pressure on commodities and retail prices. China's GDP grew 11.9% in 2007.

In Q1 2008, industrial production jumped 16.4%, while investment in fixed assets, a category that covers categories from housing to new factory equipment, surged 24.6%.

Continue reading China's economy grew at 10.6% annual rate in Q1 2008

China's economy grew at 10.6% annual rate in Q1 2008 originally appeared on BloggingStocks on Wed, 16 Apr 2008 16:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiaChinacommoditiesCPIemerging marketsexportsGDPglobalizationimportsinflationraw materialsRawMaterialstradeWed, 16 Apr 2008 16:31:00 EST<![CDATA[Calpers' investments in commodities to impact the U.S. economy]]>http://www.bloggingstocks.com/2008/02/28/calpers-investments-in-commodities-to-impact-the-u-s-economy/http://www.bloggingstocks.com/2008/02/28/calpers-investments-in-commodities-to-impact-the-u-s-economy/http://www.bloggingstocks.com/2008/02/28/calpers-investments-in-commodities-to-impact-the-u-s-economy/#commentsFiled under: , , ,

The commodities fad took a major step toward becoming an investment trend when investment giant Calpers -- the $240 billion California Public Employees' Retirement System -- announced it may increase its commodities investments 16-fold to $7.2 billion through 2010, Bloomberg News reported Thursday.

Calpers, the largest pension fund in the United States, said it would hold between 0.5% and 3% of its assets in commodities. Last year the fund invested $450 million in commodities.

Strong emerging market growth, particularly in China and in sections of Latin America, has created a bull market in oil, commodities and raw materials, and many economists say these assets are likely to outperform both inflation and selected investment classes in 2008, and possibly for a longer time period.

The Standard & Poor's GSCI index of 24 commodities is up 10% so far in 2008, following a 33% gain in 2007. Meanwhile, the Standard & Poor's 500 Index of stocks is down 6% this year, while U.S. Treasuries have netted a 2% return.

Continue reading Calpers' investments in commodities to impact the U.S. economy

Calpers' investments in commodities to impact the U.S. economy originally appeared on BloggingStocks on Thu, 28 Feb 2008 15:03:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>California Public Employees Retirement SystemCalperscommoditiescoppercornCPIenergyinflationinthenewsoiloil pricespension fundsraw materialswheatThu, 28 Feb 2008 15:03:00 EST<![CDATA[Economist expects China's 2008 inflation to exceed official 4.8% limit]]>http://www.bloggingstocks.com/2008/02/22/economist-expects-chinas-2008-inflation-to-exceed-official-4-8/http://www.bloggingstocks.com/2008/02/22/economist-expects-chinas-2008-inflation-to-exceed-official-4-8/http://www.bloggingstocks.com/2008/02/22/economist-expects-chinas-2008-inflation-to-exceed-official-4-8/#commentsFiled under: ,

China's government said it hopes to limit inflation to 4.8% this year, but said it could have trouble doing so after January 2008 snowstorms worsened food shortages, the Associated Press reported Friday.

The storms, which disrupted food ships, might keep inflation high in February 2008, said Zhou Wenjun, an official of the cabinet's National Development and Reform Commission, The AP reported. Prices increased at annualized rate of 7.1% in January 2008.

CPI goal: 'good luck'

Economist David H. Wang told BloggingStocks Friday that China's effort is admirable, but structural and monetary policy factors will make it nearly impossible to hold inflation to the government's stated objective. (Wang lived in China for more than 20 years before moving to the United States for graduate school; he still studies China's economy.)

Continue reading Economist expects China's 2008 inflation to exceed official 4.8% limit

Economist expects China's 2008 inflation to exceed official 4.8% limit originally appeared on BloggingStocks on Fri, 22 Feb 2008 11:38:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChinacommoditiesCPIdollaremerging marketsinflationinthenewsmonetary policyraw materialstradeyuanFri, 22 Feb 2008 11:38:00 EST<![CDATA[Oil closes at $100.74 -- new record high close]]>http://www.bloggingstocks.com/2008/02/20/oil-dips-then-hits-another-record-high-101-27-per-barrel/http://www.bloggingstocks.com/2008/02/20/oil-dips-then-hits-another-record-high-101-27-per-barrel/http://www.bloggingstocks.com/2008/02/20/oil-dips-then-hits-another-record-high-101-27-per-barrel/#commentsFiled under: , ,

Oil closed Wednesday up 73 cents to $100.74 per barrel -- a new record high close -- in a session anxious to hear Thursday's report on weekly U.S. inventories. Oil had traded at a print record $101.27 earlier in this session.

The weekly Wednesday oil inventory report will be released this week on Thursday, one day late, due to the Presidents' Day holiday. Oil closed above $100 for the first time in its history Tuesday, at $100.01.

"It's been a wait-and-see market today, for the most part," independent energy trader Jim Dietz told BloggingStocks Wednesday afternoon. "Neither bulls nor bears seem to want to make a major stand ahead of the inventory report, but we did trade above $100 again. If we close above it today, that would be a bullish sign." Dietz added that he is currently flat -- or has no open energy positions.

Continue reading Oil closes at $100.74 -- new record high close

Oil closes at $100.74 -- new record high close originally appeared on BloggingStocks on Wed, 20 Feb 2008 16:47:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditiesemerging marketsgasolineheating oilinflationinthenewsnatural gasNYMEXoilOPECraw materialsWed, 20 Feb 2008 16:47:00 EST<![CDATA[China strengthens yuan slightly, hints at currency policy revision]]>http://www.bloggingstocks.com/2008/02/20/china-strengthens-yuan-slightly-hints-at-currency-policy-revisi/http://www.bloggingstocks.com/2008/02/20/china-strengthens-yuan-slightly-hints-at-currency-policy-revisi/http://www.bloggingstocks.com/2008/02/20/china-strengthens-yuan-slightly-hints-at-currency-policy-revisi/#commentsFiled under: , , ,

China's central bank let the yuan appreciate slightly Tuesday night to 7.1452 yuan to the dollar from 7.1580 yuan, China's Xinhua News Agency announced Wednesday. The report also provided a hint regarding the pace of future currency appreciation.

"We will further improve monetary policy controls, continue to use quantitative measures, widen usage of price-related policy tools and increase innovation in monetary policy measures,'' the central bank said in the report, without elaborating, Bloomberg News reported.

Zhou Xiaochuan, head of the People's Bank of China, China's central bank, has said repeatedly in recent months that the yuan rate would gradually reach a "balanced" level and help bring equilibrium to the balance of payments.

At issue: The yuan

China is facing pressure on a number of fronts to appreciate its currency. Both the United States and Europe would like China, which maintains the yuan's rate in an artificially low trading band, to float its currency or at least let it come close to reflecting a fair-value rate in the years ahead. China keeps the yuan artificially low to reduce the cost of goods exported, which boosts exports sales. Both the U.S. and Europe say that rate gives China an unnatural competitive advantage in trade. China counters that it needs a low-valued yuan to increase wealth and protect young sectors of its developing economy.

Continue reading China strengthens yuan slightly, hints at currency policy revision

China strengthens yuan slightly, hints at currency policy revision originally appeared on BloggingStocks on Wed, 20 Feb 2008 14:25:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiaChinaCPIdollaremerging marketsEUeuroEuropeexportsforeign exchangeforeximportsinflationinthenewsLatin Americaraw materialstradeyuanWed, 20 Feb 2008 14:25:00 EST<![CDATA[China's inflation soars -- will it let the yuan float?]]>http://www.bloggingstocks.com/2008/02/19/chinas-inflation-soars-will-it-let-the-yuan-float/http://www.bloggingstocks.com/2008/02/19/chinas-inflation-soars-will-it-let-the-yuan-float/http://www.bloggingstocks.com/2008/02/19/chinas-inflation-soars-will-it-let-the-yuan-float/#commentsFiled under: , ,

China's inflation rate accelerated to its highest level in more than 11 years in January, rising to a year-over-year rate of 7.1%, up from a 6.5% pace in December, China's National Bureau of Statistics announced Tuesday.

The NBS said food prices surged 18.2% in the year-over-year period, as record snow storms blocked food transport, forcing prices higher.

Officials said the food shortages had eased, but that consumer prices were likely to continue to rise due to higher wage costs and higher costs for coal and other industrial materials.

China's government is attempting to cool its economy, in part to take pressure off wholesale prices, particularly commodities, but also to lower retail inflation. China's economy grew 11.4% in 2007. Many economists expect 8.5-9.5% GDP growth in 2008.

Continue reading China's inflation soars -- will it let the yuan float?

China's inflation soars -- will it let the yuan float? originally appeared on BloggingStocks on Tue, 19 Feb 2008 10:22:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ChinaCPIdollaremerging marketsfeaturedfood pricesFoodPricesGDPinflationraw materialsRawMaterialsyuanTue, 19 Feb 2008 10:22:00 EST<![CDATA[After year's sixth hike, China seen pushing rates further in 2008]]>http://www.bloggingstocks.com/2007/12/20/after-years-sixth-hike-china-seen-pushing-rates-further-in-200/http://www.bloggingstocks.com/2007/12/20/after-years-sixth-hike-china-seen-pushing-rates-further-in-200/http://www.bloggingstocks.com/2007/12/20/after-years-sixth-hike-china-seen-pushing-rates-further-in-200/#commentsFiled under: , , , , , ,

China increased benchmark interest rates for the sixth time this year Thursday, the Chinese government announced, in the government's latest attempt to slow surging growth and rising inflation in the world's second-largest economy, Reuters reported.

The People's Bank of China increased its benchmark one-year deposit rate by roughly one-quarter percentage point, or 27 basis points, to 4.14%, and also raised the one-year lending rate about one-fifth percentage point, or 18 basis points, to 7.47%. The central bank's last interest rate increase occurred in September, Reuters reported.

Earlier this year, China's monetary officials shifted their monetary bias from "prudent" to "tight' to slow the nation's double-digit GDP growth economy.

Economic boom

China's GDP has grown more than 10% for more than four years, serving as a centerpoint for not only emerging market development in Asia, but also as an engine for global growth. Low-cost labor and the nation's weak currency, the yuan (which is fixed at an artificially low rate, a trading band, by the Chinese government), have fueled an export boom and a large trade surplus. That surplus has led to many benefits for the world's most populous nation, including rising real incomes, an expanded middle class and historic economic development, but has also stoked inflation.

Further, monetary and industrial officials in the world's other major economic regions in the United States and Europe have urged Chinese officials to slow the nation's economy -- and implement other reforms -- to take price pressure off commodities (such as oil) and resources.

Continue reading After year's sixth hike, China seen pushing rates further in 2008

After year's sixth hike, China seen pushing rates further in 2008 originally appeared on BloggingStocks on Thu, 20 Dec 2007 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiaChinaChinese Governmentcommoditiesdollaremerging marketsEuropeEuropean Unionexportsforeign direct investmentGDPGlobalGrowthimportsinflationinterest ratesmonetary policyraw materialstradeUnited StatesyuanThu, 20 Dec 2007 16:40:00 EST<![CDATA[Dryships (DRYS) is in the right sector at the right time]]>http://www.bloggingstocks.com/2007/12/06/dryships-drys-is-in-the-right-sector-at-the-right-time/http://www.bloggingstocks.com/2007/12/06/dryships-drys-is-in-the-right-sector-at-the-right-time/http://www.bloggingstocks.com/2007/12/06/dryships-drys-is-in-the-right-sector-at-the-right-time/#commentsFiled under: , , ,

As the globalization era progresses, transportation is at a premium. Young, growing economies in Asia, Latin America, and Eastern Europe are placing enormous demands on their infrastructures, even as they expand them.

Further, the growth in intercontinental trade has meant that shipping vessels also are in short supply, and among shipping companies, Dryships (NASDAQ: DRYS) is worth an evaluation.

Dryships ships commodities, grains, bauxite, fertilizers and steel products in its fleet of 35 vessels.

In general, analysts like Dryships' mix of spot charter market revenue and long-term contracts, in addition to the company's adequate performance regarding cost controls.

In the current international trade environment, that would be enough to recommend the shares, but the major positive is the vessel market. Shipping space is at a premium, and shippers like Dryships have considerable pricing power as a result. Hence, analysts see large EPS gains for the company, among other shippers in the sector. The Reuters F2007/F2008 EPS consensus estimates for DRYS are $4.25/$8.62.

Continue reading Dryships (DRYS) is in the right sector at the right time

Dryships (DRYS) is in the right sector at the right time originally appeared on BloggingStocks on Thu, 06 Dec 2007 10:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AsiacommoditiescontainerizationDRYSDryshipsEastern Europeemerging marketsexportsglobalizationimportsLatin Americaraw materialstradeThu, 06 Dec 2007 10:45:00 EST<![CDATA[As U.S. economy slows, spotlight on Fed grows]]>http://www.bloggingstocks.com/2007/12/05/as-u-s-economy-slows-spotlight-on-fed-grows/http://www.bloggingstocks.com/2007/12/05/as-u-s-economy-slows-spotlight-on-fed-grows/http://www.bloggingstocks.com/2007/12/05/as-u-s-economy-slows-spotlight-on-fed-grows/#commentsFiled under: , , , , , , ,

Bald eagle There are days when the U.S. Federal Reserve probably feels like it's part of a well-researched, coordinated public policy effort to both keep the U.S. economy growing at an acceptable rate with low inflation, and serve as an engine for global growth. Then there are days like today, when the Fed undoubtedly feels like it's out there on its own, like that well-known bald eagle -- a solitary guardian amid ever-present risks and dangers.

The Fed meets December 11 to decide whether to continue to ease monetary policy. The consensus among economists and Wall Street analysts is that the Fed will lower key short-term interest rates by a quarter-percentage point to 4.5%, with some analysts predicting a half-percentage point cut by the Fed.

In an effort to stimulate domestic demand amid a U.S. economy slowed by subprime mortgage defaults, the Fed has twice lowered key interest rates this year, cutting the Fed funds rate -- the rate banks charge each other -- to 4.50%, and the discount rate -- the rate the Fed charges banks for short-term loans -- to 5.00%.

Continue reading As U.S. economy slows, spotlight on Fed grows

As U.S. economy slows, spotlight on Fed grows originally appeared on BloggingStocks on Wed, 05 Dec 2007 14:17:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bush AdministrationcommoditiesDiscountRateECBEuropean Central Bankfeaturedfed funds rateFederal Reservefiscal policyGDPhousinghousing sectorMiddle Eastmonetary policymoral hazardmortgage defaultsmortgagesoiloil pricesOPECraw materialsSaudi Arabiasubprime loansU.S. economyWed, 05 Dec 2007 14:17:00 EST<![CDATA[China takes another step to slow sizzling economy]]>http://www.bloggingstocks.com/2007/12/05/china-takes-another-step-to-slow-sizzling-economy/http://www.bloggingstocks.com/2007/12/05/china-takes-another-step-to-slow-sizzling-economy/http://www.bloggingstocks.com/2007/12/05/china-takes-another-step-to-slow-sizzling-economy/#commentsFiled under: , , , ,

China announced Wednesday it will tighten its monetary policy in 2008 for the first time in a decade to slow its surging economy, Channel News Asia reported Wednesday.

China said it would shift monetary policy from prudent to tight, but gave few specific details regarding the policy.
At the same, The Wall Street Journal reported that China's State Information Center, a think tank under the National Development and Reform Commission, said in a report published in the China Securities Journal that China should let the dollar-yuan rate move as much as 1% above or below the central parity rate [subscription required] in each daily trading session, up from 0.5% now.

China's sizzling economy has grown by over 10% annually for more than four years, and many economists expect another double-digit GDP gain in 2007, despite the Chinese government's effort to cool the economy. In 2006, China's GDP totaled $10.2 trillion in purchasing power parity terms and $2.5 trillion in real terms, according to research by the U.S. Central Intelligence Agency.

Continue reading China takes another step to slow sizzling economy

China takes another step to slow sizzling economy originally appeared on BloggingStocks on Wed, 05 Dec 2007 13:53:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>AsiaChinacommoditiescommodity pricesdollareconomyemerging marketsexportsGDPimportsinflationinthenewspurchasing power parityraw materialstradetrade surplusyuanWed, 05 Dec 2007 13:53:00 EST<![CDATA[Rio Tinto denies China bid chatter]]>http://www.bloggingstocks.com/2007/11/26/rio-tinto-denies-china-bid-chatter/http://www.bloggingstocks.com/2007/11/26/rio-tinto-denies-china-bid-chatter/http://www.bloggingstocks.com/2007/11/26/rio-tinto-denies-china-bid-chatter/#commentsFiled under: , , ,

China Investment Corp, which manages China's foreign exchange reserves, and China steel companies Baosteel Shougang Group and Angang Steel are said to be working on a bid for Rio Tinto (NYSE: RTP), Forbes reported Monday, citing China Business, the state-owned Chinese weekly. Rio denied receiving an approach from Chinese investors, Agency France Presse reported.

Deal talk had sent Rio's shares up about 7% in Australia early Monday. However, in the U.S., there was little follow through: Rio's shares fell $2.20 to $433.85 in mid-day Monday trading.

Earlier this year Rio rejected an offer from BHP Billiton (NYSE: BBL), saying BHP's offer undervalued the company. Two subsequent requests for talks by BHP were also turned down.

Sector/Deal Analysis

Continue reading Rio Tinto denies China bid chatter

Rio Tinto denies China bid chatter originally appeared on BloggingStocks on Mon, 26 Nov 2007 13:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Angang SteelBaosteel Shougang GroupBaosteelShougangGroupBBLBHPBillitonChinacommoditiesemerging marketsFCXFreeportMcMoranglobal economyinthenewsiron oreLatin Americaminingmining stocksraw materialsRio TintoRTPMon, 26 Nov 2007 13:50:00 EST