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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (62800)	4/15/2010 12:50:52 PM
From: elmatador	Respond to of 219848

Mr. HU arrives in Brazil blawgit.com China goes to BRIC summit with multi-million dollars energy investments in Brazil news 15 April 2010 When China's President Hu Jintao, arrived last night at Brazil for a state visit and to attend the second heads-of-state summit of BRIC nations, he was more than welcomed by his Brazilian counterpart Luiz Inacio Lula da Silva since Hu had come armed with multi-million dollars investment proposal. Invisible to the world, China has huge investments in Latin and South America, more so in Brazil, South America's biggest economy. Chinese President Hu Jintao will be signing multi-million dollars worth of oil deals with Brazil's state owned oil giant Petrobras.Sinopec executives had already visited Brazil last month and finalised the details, which will be signed by Hu Jintao in Brazil this week. Under the deals, Asia's largest crude refiner, China's state-owned Sinopec will acquire stakes in Petrobras' two offshore blocks in Brazil and also sign a long-term oil supply deal. Since Petrobras requires approximately $112 billion through 2014 to fund its newly discovered oil at the Tupi oil field, (See: Brazil's energy producer Petrobras on $112.7-billion expansion), which contains a massive 5 billion to 8 billion barrels of untapped light oil, the Rio de Janeiro-based oil company has been borrowing from state credit agencies and investors in the bond markets. According to the Brazilian media, Lula da Silva is likely to talk to Hu for a $10-billion loan to Petrobras from China's state-owned banks to fund part of the Tupi oil field expansion. In February 2009, China state-owned China Development Bank had loaned Petrobras $10 billion at low interest rates in return for 150,000 barrels of crude per day in 2009 and 200,000 barrels per day for the next nine years. (See: China to lend Petrobas $10 billion to secure future oil supplies) Although Brazil is keen to expand its economic ties with the other two BRIC countries, India and Russia, the South American nation, whose gross domestic product stood at $1.77 trillion in 2009, is keen to court Beijing and position itself to as a major exporter of oil, iron ore and soyabeans to China. China's demand for these products has led to it overtaking the US as Brazil's biggest trading partner last year. Over the past decade, trade between China and Brazil rocketed from just $2.3 billion in 2000 to $9.1 billion in 2004 and $36.1 billion in 2009. Last month, Sinopec helped Petrobras complete building a 900-mile natural gas pipeline. Beijing is also funding to build a coal-fired power plant in southern Brazil. China is also keen on building new port facilities in Brazil and has proposed supplying bullet trains to ply between São Paulo and Rio de Janeiro. Many of China's large companies like Gree, Traxx, Huawei, ZTE and Citic now have their branch offices in Brazil, while automaker Chery and oil major Cnooc have a minority share in the Brazilian market.

To: energyplay who wrote (62800)	4/15/2010 7:05:10 PM
From: TobagoJack	Respond to of 219848

just in in-tray, per GREED n fear · The EU €45bn “package” for Greece has allowed stock markets to remain sanguine over the past week. But the package is a short-term fudge not a solution. It also does not create a template for how to handle the rising fiscal distress in other Euro countries. · The nasty debt dynamics at work in Euroland are fundamentally deflationary so long as Germany seeks to maintain some semblance of fiscal order. This undoubtedly is what German leaders will attempt to do given the hostility of ordinary Germans to bailouts in the EU context. · Investors should continue to look to reduce euro exposure on any strength in the currency since the problems are only just beginning not ending. Still from an equity standpoint, the weakening tone in the euro is a positive for Euro-based companies geared to the continuing boom in emerging markets. · The post “credit crisis” debate about how to regulate the Western banking sector continues. In GREED & fear’s view the whole political debate thus far continues to fail dismally in the sense that it is not focused on the key problem, which is of course moral hazard. Indeed that problem has got dramatically worse as a result of Western governments’ practical “solution” to the private sector debt crisis, which was for the most part to transfer the debt to the long suffering taxpayers. · A practical way of combatting moral hazard in banks is so-called “embedded contingent capital” which is a security that converts to common equity when a bank is in serious trouble, thereby increasing the core capital of the bank without resorting to taxpayer dollars. In GREED & fear’s view this idea seems far more focused than anything else proposed thus far. · The past week has seen China’s chief banking regulator Liu Mingkang raise again in public the issue of local government borrowing via special purpose vehicles. The key positive point remains that the authorities are being pre-emptive on this issue. · Incremental tightening in China continues to be reflected in reduced credit growth. The more data that comes out in China highlighting the reality that growth is slowing at the margin, the less scope there is for investors to worry about more aggressive tightening. · Blood has finally been spilled in Thailand in the long running feud between “red” and “yellow”. It is clear that an election now looks a lot nearer than it did one week ago. The surprise decision of the Election Commission to seek dissolution of the Democrat Party creates the clear potential for renewed stalemate. · GREED & fear has long viewed the Singapore dollar as as good a “safe haven” currency in Asia as any. It is interesting therefore that the Monetary Authority of Singapore tightened policy this week by allowing for a further “modest and gradual appreciation” of the Singapore dollar. · Longer term the Singapore dollar should eventually trade through the US dollar and potentially even through the euro. But the currency move in Singapore will occur in the context of a gradual evolution in policy as the MAS adjusts for the reality that Singapore is now primarily a private banking centre, not a manufacturer of widgets. · It is hard to think of a better candidate to profit from the deflationary trend in the West than Fast Retailing with its trendy but cheap Uniqlo brand. The interesting point about Fast Retailing is its ambitious overseas expansion. Fast Retailing remains for GREED & fear the most interesting example of where the experience of Japan’s 20 years of price deflation can help build a scalable business model globally. CLSA CLEAN & GREEN: Please consider our environment before printing this email. The content of this communication is subject to CLSA Legal and Regulatory Notices These can be viewed at clsa.com or sent to you upon request.