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Re(visions) of Mexico. What I’m up to
5 weeks ago
Monday, January 26, 2009
Bolivians back Morales Charter - Reuters
Jan 26 - Bolivian President Evo Morales appears before a crowd of supporters to claim victory in a controversial election that grants him the right to run for re-election
Bolivian voters approved a new constitution to give the poor indigenous majority more power, let socialist President Evo Morales run for re-election and hand him even tighter control over the economy.
Aymara, Quechua, Guarani and other indigenous groups who suffered centuries of discrimination in South America's poorest country largely backed the new constitution and exit polls showed it was approved with around 60 percent support.
Penny Tweedie reports.
Commodities in focus – Gold prices rise above $900/oz
The spot price of Gold rose above $900/oz on Monday for the first time since October 10, 2008.
Gold ETF's also benefited. New York's SPDR Gold Trust GLD, the world's largest gold EFT allows investors to invest in physical gold like they do normal stocks. This is accomplished through issuing securities backed by physical gold stocks. SPDR said its security backed gold holdings rose 1.6% percent to an all-time high of 823.57 tonnes during Friday trading.
The ETF isn't doing all that bad either. Year-to-date it is up 4.92%. Take a look at the ETF's performance over the year year. The chart truly does justice to the age old concept of investing in gold as a safe heaven. With interest rates so low, investing in Gold, even at yields of 4.92% will become even more enticing as banking woes persist in developed world.
The Royal Bank of Scotland's head of commodity strategy, Nick Moore told Reuters factors including falling interest rates, the re-inflation of Western economies and the prospect of lower supply both from mines and via central bank sales were supporting gold.
“In times of economic crisis, falling equity markets and mounting aversion to risk, physical gold is preferred as the safest form of investment,” Commerzbank analyst Eugene Weignberg said.
Below I have included two links. The first link directs you to a informative analysis and perspective on the gold market by Lawrence Williams who, along with his “expert panel” are forecasting gold prices to reach a high of $1074/ oz.
The second is a article about how gold miner Red Back has managed to successfully raise capital on the Toronto Stock Exchange, further indication of the support for gold.
Forecasting the gold price – expert panel predicts $1074 high, Mineweb readers $1305 – Mineweb
Gold miners still able to raise capital from the markets – Mineweb
Gold ETF's also benefited. New York's SPDR Gold Trust GLD, the world's largest gold EFT allows investors to invest in physical gold like they do normal stocks. This is accomplished through issuing securities backed by physical gold stocks. SPDR said its security backed gold holdings rose 1.6% percent to an all-time high of 823.57 tonnes during Friday trading.
The ETF isn't doing all that bad either. Year-to-date it is up 4.92%. Take a look at the ETF's performance over the year year. The chart truly does justice to the age old concept of investing in gold as a safe heaven. With interest rates so low, investing in Gold, even at yields of 4.92% will become even more enticing as banking woes persist in developed world.
The Royal Bank of Scotland's head of commodity strategy, Nick Moore told Reuters factors including falling interest rates, the re-inflation of Western economies and the prospect of lower supply both from mines and via central bank sales were supporting gold.
“In times of economic crisis, falling equity markets and mounting aversion to risk, physical gold is preferred as the safest form of investment,” Commerzbank analyst Eugene Weignberg said.
Below I have included two links. The first link directs you to a informative analysis and perspective on the gold market by Lawrence Williams who, along with his “expert panel” are forecasting gold prices to reach a high of $1074/ oz.
The second is a article about how gold miner Red Back has managed to successfully raise capital on the Toronto Stock Exchange, further indication of the support for gold.
Forecasting the gold price – expert panel predicts $1074 high, Mineweb readers $1305 – Mineweb
Gold miners still able to raise capital from the markets – Mineweb
Direct flights open between Peru and Cuba! -- Andina reports
Lima, Jan. 26 (ANDINA).- TACA Airlines will begin flying directly between Lima (Peru) and Havana (Cuba) in the first quarter of 2009.
Beginning on March 23rd, TACA will fly three times a week on the Lima-Havana route to meet the growing demand from travelers.
Click here to access the full article from Andina
Beginning on March 23rd, TACA will fly three times a week on the Lima-Havana route to meet the growing demand from travelers.
Click here to access the full article from Andina
Global financial crisis lifts Australia's four largest and relatively healthy banks into the top 20
Australia's big banks have joined the ranks of the world's largest banks. Australian banks have seen their share prices plummet around 50%, but no less remain in relatively healthy positions when compared with their counterparts in the United States and United Kingdom.
Total stock market capitalization of Westpac, Commonwealth Bank, National Australia Bank and AZN (Australia and New Zealand Banking Group) is now greater than Citigroup, Morgan Stanley, Barclays and Deutshe Bank.
Phil Chronican, head of institutional banking at Westpac said “the maintenance of the bank's market capitalization and value compared with its international peers had increased its reputation and knowledge among major institutional investors.
The banks seem in good position for foreign expansion and acquisitions. ANZ has already been widely successful in Asian markets. Westpac now ranks at the 9th largest bank in the world, and is seeing its foreign exchange deals increase substantially.
"The Australian banking sector is now roughly a quarter the size in market capitalization of the US listed banking sector and much larger than the UK, which raises the question why not expand and become seriously global," Mr Davison said. "However, we believe the most likely scenario is domestic banks will simply be in suspense from the ever changing effects from the nationalization of banks in these foreign markets and survival as a private entity will be deemed being successful."
Click here to read a more comprehensive report of this story at the Australian
Total stock market capitalization of Westpac, Commonwealth Bank, National Australia Bank and AZN (Australia and New Zealand Banking Group) is now greater than Citigroup, Morgan Stanley, Barclays and Deutshe Bank.Phil Chronican, head of institutional banking at Westpac said “the maintenance of the bank's market capitalization and value compared with its international peers had increased its reputation and knowledge among major institutional investors.
The banks seem in good position for foreign expansion and acquisitions. ANZ has already been widely successful in Asian markets. Westpac now ranks at the 9th largest bank in the world, and is seeing its foreign exchange deals increase substantially.
"The Australian banking sector is now roughly a quarter the size in market capitalization of the US listed banking sector and much larger than the UK, which raises the question why not expand and become seriously global," Mr Davison said. "However, we believe the most likely scenario is domestic banks will simply be in suspense from the ever changing effects from the nationalization of banks in these foreign markets and survival as a private entity will be deemed being successful."
Click here to read a more comprehensive report of this story at the Australian
Happy New Year China!
Chinese people around the world began their 15 day long lunar-calendar celebration this weekend, ushering the start of the "Year of the Ox."
Citizens go shopping in Fuzhou, capital of south China's Fujian Province, Jan. 25, 2009.
Spring Festival, or the Chinese Lunar New Year, is the most important traditional Chinese
festival of family reunion. It falls on Jan. 26 this year.(Xinhua/Wei Peiquan)
Chinese folk lore describes the Ox as a sign of prosperity through fortitude and hard work. Appropriate considering the current financial crisis don't you think?
Just in case you where wondering... If you happen to be born in the Year of the Ox (1913, 1925, 1937, 1949, 1961, 1973, 1985, 1997, 2009), you are believed to have a natural tendency to exhibit patience, speak little and inspire confidence in others. Not a bad set of characteristics huh?
Anyway... Happy New Year to the billion + Chinese around the world and all others celebrating this joyous holiday!
Migrant workers, who could not return home for the Spring Festival,
gather together to have new year's dinner in Guilin, a city of south China's
Guangxi Zhuang Autonomous Region, Jan. 25, 2009. (Xinhua/Chen Ruihua)
Citizens go shopping in Fuzhou, capital of south China's Fujian Province, Jan. 25, 2009.Spring Festival, or the Chinese Lunar New Year, is the most important traditional Chinese
festival of family reunion. It falls on Jan. 26 this year.(Xinhua/Wei Peiquan)
Just in case you where wondering... If you happen to be born in the Year of the Ox (1913, 1925, 1937, 1949, 1961, 1973, 1985, 1997, 2009), you are believed to have a natural tendency to exhibit patience, speak little and inspire confidence in others. Not a bad set of characteristics huh?
Anyway... Happy New Year to the billion + Chinese around the world and all others celebrating this joyous holiday!
Migrant workers, who could not return home for the Spring Festival,gather together to have new year's dinner in Guilin, a city of south China's
Guangxi Zhuang Autonomous Region, Jan. 25, 2009. (Xinhua/Chen Ruihua)
Sunday, January 25, 2009
Looking to the East -- Peru and South Korea to discuss a FTA in March
Peru and South Korea have agreed to hold the first round of negotiations for a Free Trade Agreement this March, according to Peru's Minister of Foreign Affairs and Trade.
Korean President, Lee Myung-Bak (left)
Preliminary work for the FTA was compiled in Lima January 20-21, days after the Asian Pacific Economic Cooperation (APEC) had concluded.
“At the preliminary talks, the two sides agreed upon the scale, formation, process and schedule of the Korea-Peru FTA, and together laid the groundwork for effective negotiations in the future," the ministry said.
The two sides will now examine each others drafts of the Agreement before meeting in March, at which point they will debate and hopefully find a middle ground on how to go about opening each market up to one another.
This is great evidence of something that has been written about on this site since its creation, that is—the Pacific countries of Asia and South America are finding cooperating in both economic and political contexts is beneficial for all parties and increasingly necessary in this global and interconnected world.
Korean President, Lee Myung-Bak (left)Preliminary work for the FTA was compiled in Lima January 20-21, days after the Asian Pacific Economic Cooperation (APEC) had concluded.
“At the preliminary talks, the two sides agreed upon the scale, formation, process and schedule of the Korea-Peru FTA, and together laid the groundwork for effective negotiations in the future," the ministry said.
The two sides will now examine each others drafts of the Agreement before meeting in March, at which point they will debate and hopefully find a middle ground on how to go about opening each market up to one another.
This is great evidence of something that has been written about on this site since its creation, that is—the Pacific countries of Asia and South America are finding cooperating in both economic and political contexts is beneficial for all parties and increasingly necessary in this global and interconnected world.
Saturday, January 24, 2009
Bolivia nationalizes one of the last remaining foreign owned natural gas fields
Bolivia's President Evo Morales, on Friday nationalized one of the last remaining gas fields of which a foreign entity was the still the major share holder. Standing alongside his supporters, military and thousands of indigenous leaders Morales explained his "regret that some energy companies do not respect Bolivian laws."
President Evo Morales
The Carrasco gas field is located in the central province of Cochabamba, which by most accounts is Bolivia's wealthiest. Prior to nationalization, the Chaco gas company controlled the production from this field.
British Petroleum (BP) owns 60% of Pan American Energy which in turn owned until yesterday, 51% of Chaco. The remaining 49% was already in Bolivian control... by the country's state-owned petrol company, Yacimientos Petrolíferos Fiscales Bolivianos YPFB which owned the remaining 49%.
Chaco, which operates about a dozen gas fields in Bolivia recently announced plans that it would invest $64 million to increase gas production in the country. Despite the good will, Hydrocarbons Minister Saul Avalos, explained the government was not able to reach an agreement with Pan American Energy on how to arrange for majority control to pass to YPFB.
There are interesting developments from the Andean nation. A mere two days before the referendum on the new constitution President Morales has proposed.
President Evo MoralesBritish Petroleum (BP) owns 60% of Pan American Energy which in turn owned until yesterday, 51% of Chaco. The remaining 49% was already in Bolivian control... by the country's state-owned petrol company, Yacimientos Petrolíferos Fiscales Bolivianos YPFB which owned the remaining 49%.
Chaco, which operates about a dozen gas fields in Bolivia recently announced plans that it would invest $64 million to increase gas production in the country. Despite the good will, Hydrocarbons Minister Saul Avalos, explained the government was not able to reach an agreement with Pan American Energy on how to arrange for majority control to pass to YPFB.
There are interesting developments from the Andean nation. A mere two days before the referendum on the new constitution President Morales has proposed.
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