News overview
"Test in Sovereign Bond Trust"
News - 17 Jan 12
- Nickel market is firmer. Psychological barrier of USD 20,000.00/mt in sight. Technical signals changing to plus. The market has corrected former exaggerations. Fundamental data in the real economy remains unchanged. Banking environment somewhat more critical.
- China remains a growth economy. Quality of statistics must always be scrutinised. But the real economy in the core member states of the Euro zone also robust. Germany is here the main factor.
Plea for Solidarity
News - 07 Dec 11
- After liquidity injection, nickel prices rose by 12%. Resistance seen at USD 18,550.00/mt. Reason for volatile price movements: computer trading.
- Price level difficult to explain fundamentally. Satisfactory nickel demand, nickel supply lower than expected. Supply deficit expected. Between February and October prices have dropped by over 40%. Financial market participants' risk aversion is the driving force behind prices on the commodity markets. Developments in the financial world and the real economy are moving further and further apart.
Belts and braces
News - 15 Nov 11
- Nickel prices had been well supported at the USD 18,000.00/mt level. After the turmoil in Italy this level was broken through on the downside. At this present price level, supply of Ni pig-iron is reduced.
- Continuing to leave structural and debt problems for the future is not wise, even if threats to growth today have to be considered. There will be no miracle cure. Italy could even surpass Greece’s creativity in its figures. The new interim government has a difficult task. Hopefully there are no black holes.
Fault always lies with others
News - 14 Oct 11
- Reference price for ferrochrome for the 4th quarter USD 1.20/lb. Roll-over from the previous quarter.
- 3rd party investors seem interested in a takeover bid of the London Metal Exchange. At present the Exchange is in the control of the brokers.
- Stainless Steel business of ThyssenKrupp renamed as Inoxum as of 1st October. Step by step departure from expertise and brand core stainless steel has hidden risks. What might sound plausible in the short term may not be good in the long term.
It is not over yet
News - 16 Sep 11
- The third anniversary of the Lehman bankruptcy. Global economy now at a crossroads. Discrepancy between perceptions and the realities of the situation. Weakening of business, yes, recession, no.
- Economic institutions revise their growth forecasts. Fear of misjudgements can become a self-fulfilling prophecy. Scope of problem solving in politics still considerable.
- The finance industry is a gloom manufacturer yet again. Banks are not giving loans to one another anymore. Government bonds have taken on another dimension to subprime.
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