World economy talk

[tidus1203]

*uls

Diba sarado na N225? Tonight lang ata yang earthquake na yan...

[uls]

tidus, sorry di ko nilinaw

Nikkei futures yan (electronic session)

http://quotes.ino.com/chart/?s=CME_NKD.M11.E


USDJPY



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Japan quake downgrade to 7.1 from 7.4

[uls]

WTI crude

[uls]

the USG will shut down non-essential services midnight Apr 8 if Republicans and Democrats can't come to an agreement on the US budget for the fiscal yr 2011

USD index

[Monseratto]

Market driven...

Oil prices surge to fresh highs on supply concerns

Oil prices have surged to a two-and-a-half-year high on concerns about a shortfall in supply.
Brent crude rose by 0.4% to $123.17 in early trade in Asia. Light crude gained 0.5% to $110.82.

The International Monetary Fund (IMF) issued a warning that the disparity in demand and supply of oil is likely to push prices even higher.

"There is a risk that the tensions between demand and supply trends could intensify again and prices could rise rapidly," said Thomas Helbling an advisor to IMF's research department.

The IMF also warned that the markets are likely to face further scarcity in oil supplies, which the markets seem to be factoring in already.

"The increase in the trend component of oil prices suggest that the global oil market has entered a period of increased scarcity," the IMF said.

[uls]

Brent crude above $123

WTI passes $111

[Monseratto]

Brent Crude Oil Futures $/barrel

SINGAPORE (AP) -- Oil prices jumped above $111 a barrel Friday in Asia as fighting in Libya damaged crude installations in the OPEC nation and a weaker dollar makes commodities cheaper for investors with other currencies.

Benchmark crude for May delivery was up 88 cents at $111.18 a barrel at midday Singapore time, the highest since September 2008, in electronic trading on the New York Mercantile Exchange. The contract rose $1.47 to settle at $110.30 on Thursday.

In London, Brent crude for May delivery was up 63 cents to $123.30 a barrel on the ICE Futures exchange.

[uls]

there's doubt that Saudi Arabia production increase is enough to offset production decrease in Libya

[uls]

everything's going in opposite direction of the dollar

gold above $1,470

silver above $40

WTI above $111

1 euro = 1.44 dollar

[Monseratto]

Brent crude above $123

WTI passes $111

Brent Crude up $126

WTI close $113

Expect another P1.00 or more pump increase this Tuesday...

[uls]

^^

sell dollars, buy hard assets

[uls]

explaining the dollar selloff and euro strength --

inflow of dollars from the US into emerging markets

the huge inflow cause Asian currencies to strengthen

Asian central banks have keep their currencies weak (protect their export-dependent economies)

so ACBs buy dollars and sell their own currencies

but Federal Reserve dollar printing is driving down the value of the dollar

so ACBs have to convert their dollars into something else to preserve the value of their assets

so they sell dollars and buy euros

reserve diversification

central banks are also buying gold

[uls]

oil exporters --

the rise of oil prices mean oil exporters are earning more dollars

but they are also concerned about Fed dollar printing driving down the value of the dollar

as they receive dollars from selling oil, they sell the dollars and buy euros

[Monseratto]

Never let your populace decide if you'll pay a sovereign loan...

http://edition.cnn.com/2011/BUSINESS...l?eref=edition

UK to sue Iceland over lost billions, official says
By the CNN Wire Staff
April 10, 2011 -- Updated 1613 GMT (0013 HKT)

London (CNN) -- An increasingly bitter dispute between the United Kingdom and Iceland over billions of dollars lost when banks collapsed is likely to end up in court, a top British government minister said Sunday.

The British government has "an obligation to get that money back, and we will continue to pursue that until we do," said Danny Alexander, the chief secretary of the Treasury.

He was speaking Sunday after Iceland's people voted to repeal a law aimed at solving the dispute.

Six out of 10 voters in the referendum on Saturday opposed the law, the government said in a statement Sunday, saying turnout was high.

Britain and the Netherlands came up with more than $5 billion to bail out savers in their own countries who lost money in the failure of Icesave -- an online retail bank branch of Landsbanki.

Under a European Union directive, Iceland owes compensation to Britain and the Netherlands. The Icelandic government has said it will honor its international obligations.

Netherlands Finance Minister Jan Kees de Jager is "very disappointed about the decision of the Icelandic electorate not to agree with the agreement reached between Iceland, the U.K. and the Netherlands," the Netherlands Finance Ministry said in a statement Sunday.

"The time for negotiations is over," de Jager said in the statement. "Iceland remains obliged to repay. The issue is now for the courts to decide."

The Netherlands Finance Ministry said it is consulting with the United Kingdom about further steps.

The International Monetary Fund loaned Iceland $2.1 billion in November 2009, and said repaying the money to the British and Dutch governments was a requirement of the loan.

Iceland has begun moves toward applying for European Union membership, which Britain and the Netherlands could block.

[uls]

1 year corn

[tidus1203]

And Ben Bernanke still says there is NO INFLATION! Where is he looking?? Its everywhere!

[uls]

Bernanke is probably looking at unit labor cost

[Ry_Tower]

Prices of coco oil and palm oil also very high. Any prediction on when it will decline?

[uls]

^^ when the Fed begins tightening monetary policy. forget supply and demand. forget geopolitical risk. it's the Federal Reserve deliberate devaluation of the dollar that's driving up commodities prices

[tidus1203]

Bill Gross, the so called Bond King is shorting US Treasuries in PIMCO's Total Return fund...

(Reuters) - PIMCO has shifted to a short position in U.S. government-related debt in the world's largest bond fund, while also raising cash holdings in a sign of the asset manager's serious concerns about the U.S. fiscal outlook.


The portion of PIMCO's $236 billion Total Return Fund held in U.S. government debt, including U.S. Treasuries, was -3 percent of total assets in the fund as of March, down from zero in February, the firm's website showed.

http://www.reuters.com/article/2011/...73A2IR20110411