| Platinum sets lifetime high on SA output woes
Platinum prices hit a record high for the ninth straight trading day on Tuesday as concerns deepened over output losses in top producer South Africa due to a power crisis, analysts said. The rally, which has sent prices up 30 percent in just three weeks, gained pace after Anglo Platinum, the world's biggest producer, said on Monday the power problem alone would cut output by as much as 120 000 ounces in 2008. It had already cost 30 000 ounces in lost output this year. Platinum rose to a high of $1 965 an ounce before falling to $1 940/1 950 by 1304 GMT, against $1 933/1 941 in New York late on Monday. The market nervously awaited financial results of Northam Platinum on Tuesday and Impala Platinum, the world's second-biggest producer of the metal, on Thursday for more cues on production losses.
TSX joins global market rout
Bush for a $145 billion US economic stimulus package. Also weighing on the benchmark Canadian stock index Monday was a big drop in the price of oil. The price of Brent crude fell $1.72 US to end at $87.51 US a barrel. Gold prices also plunged $14.80 to $867.45 US an ounce. The TSX endured a four-day sell-off last week that sliced 961 points from the benchmark index. The 6.6 per cent drop in the index last week was its worst weekly performance since 2000. "This isn't a 'panic', but in a thin market, with the U.S. closed for a holiday, the scale of the decline today may have been exacerbated by illiquidity — simply not enough bargain hunters around," said CIBC World Markets senior economist Avery Shenfeld. "Still, add in the decline last week, and its clear that equity investors are, if not panicky, very worried," he said.
How rich do you feel?
I was surprised to read that my salary falls within the top 5 % of wage earners in Canada, as I do not consider myself to be monetarily rich, yet I do feel rich in other ways that have been mentioned...ie- family, friends, health, love, happiness, etc. Just recently I married a beautiful woman (my best friend)for the first time in my life at 42 years of age, and I must say I not only feel rich, I consider myself very blessed. I know money could never replace the positive feeling's I get from all the other aspects of my life. .
Africa: China Outdoes Europeans in Congo
The massive deal that China signed with the Democratic Republic of Congo last year is not the "second colonisation" that some Europeans allege it is. The agreement appears, in fact, a promising way to kick-start an economy. The agreement on developing infrastructure through "resource-backed finance" certainly gives China a lot of influence in a country where Europeans are used to dealing the cards. European countries now look with a certain envy at what China has achieved. .
Brokers saddled with huge NPAs, post-crash
MUMBAI: Till three weeks ago, retail brokerages were chasing customers with all kinds of offers, in a bid to goad them churn their portfolios more actively. And after last week's sensational crash in stock prices, brokers are still running after their clients. But this time, armed with legal notices to recover their dues, known in broking parlance as ‘uncovered debits'.
The term is used to denote outstandings on which brokers do not have any collateral that they can seize or liquidate to recover the dues from clients. The legal departments of these brokerages are said to be working overtime since last week as they figure out ways to retrieve the outstanding amount from clients. These disputes could force many high net worth individuals (HNIs) to shift their loyalties. “Clients who have defaulted at one place will go to another broker, and chances are that they will be greeted with open arms there," said an official at a domestic brokerage.
The New "GOLDilocks" Economy
The big news last weekend was CitiGroup temporarily withholding dividend payments and having an emergency meeting to determine how to correct or "cover up" any derivative problems. Up here in Canada, we might think we are immune to the derivative scandal, but the Ontario Teachers Pension Fund, the Quebec Pension fund (others I have not been able to find much more information about) and some Canadian banks such as BMO have some involvement in the bad credit many US banks spread around the globe. BMO is reported to have the largest exposure to the US SIV market than any other Canadian bank. Apparently, BMO raised 22 billion in August to strengthen their balance sheet in the event that any "problem" may arise. It appears that Canadian banks are much more conservative than the US banks south of the border that would grant loans to immigrant workers who lied about their income.
London robusta coffee hits 9-year high
London robusta coffee futures hit a nine-and-a-half-year high and cocoa reached a four-year peak on Friday on a wave of enthusiasm among investment funds for all sorts of commodities. Reallocation of investments for the New Year has already seen several basic resource prices, including gold and oil, hit record highs this month and soft commodities such as coffee and cocoa have been tipped as a good bet for the year ahead. "Funds are increasing their holding in both commodities at the moment. It is not an overnight thing, I think it has been building for some time," soft commodities trader Jeff Cooper of Ambrian Commodities said. .
Pakistani opposition celebrates
The pro-Musharraf Pakistan Muslim League-Q garnering a much smaller share. Sharif, who was overthrown in a coup staged by Musharraf in 1999, cited the lopsided results as a mandate for the president to leave the political scene. "The people have said what they want," said Sharif, 58. He extended an offer to form a coalition with the apparent biggest vote-getter, Bhutto's Pakistan People's Party. But it was not clear whether the PPP, now led by Bhutto's husband, Asif Ali Zardari, would demand that Musharraf step aside or seek an accommodation with him. The two opposition parties were to begin talks this week. Zardari told journalists in Islamabad that, for the time being, his party does not want to ally itself with "any of those people who are part and parcel of the last government." But he did not definitively rule out coalition talks with Musharraf's party or others.
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