Swiber Holdings Limited (the “Company”) was informed on 27 January 2010 by a substantial shareholder, Goh Kim Teck, that he has entered into a credit facility with Credit Suisse AG,. Goh Kim Teck had entered into the following transactions with Credit Suisse AG:
(1) a sale of 15,000,000 ordinary shares of the Company to Credit Suisse AG;
(2) an uncapped collar transaction, involving the following:
(a) a put option granted by Credit Suisse AG to Goh Kim Teck relating to 15,000,000 ordinary shares of the Company with a strike price of S$1.0009;
(b) a call option granted by Goh Kim Teck to Credit Suisse AG relating to the same number of shares with a strike price of S$1.1121; and
(c) a further call option granted by Credit Suisse AG to Goh Kim Teck relating to the same number of shares with a strike price of S$1.3345; and
(3) another call option granted by Credit Suisse AG to Goh Kim Teck over the same number of shares with a strike price of S$0.00.
The purpose of transactions (1) to (3) was to provide Credit Suisse AG with collateral for the credit facility using the shares. As a result of transaction (1) Goh Kim Teck direct interest in the shares of the Company was reduced by 15,000,000 shares. As a result of transaction (3) Goh Kim Teck deemed interest in the shares of the Company was increased by the same amount. Goh Kim Teck total percentage level in the shares of the Company remains unchanged. As a result of transaction (2)(c), Goh Kim Teck retains the benefit of all the upside in the share price above the strike price.
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Saturday, January 30, 2010
Monday, January 25, 2010
ANOTHER ROUND OF KATEKS TRAP
AS IF THE BERNANKE POSITIVE NEWS IS NOT ENOUGH---
1.--BOJ Said to Be Open to Expanding Emergency Loans, Bond Buying
Jan. 25 (Bloomberg) -- Bank of Japan policy makers are prepared to consider expanding an emergency-loan program for banks and increasing purchases of government debt should the recovery falter, people with knowledge of the matter said.
The central bank’s board will leave interest rates and its lending program unchanged tomorrow, 16 of 17 economists said in a Bloomberg News survey. How it responds in coming months will depend on the extent of any further economic shocks -- such as a surge in the yen to November’s 14-year high -- the people said on condition of anonymity because the talks are private.
“Should a rise in the yen threaten to damp corporate and consumer sentiment and exacerbate deflation, the BOJ will probably expand the loan program,” said Masaaki Kanno, a 25- year veteran of the central bank who is now chief economist at JPMorgan Chase & Co. in Tokyo. “If that’s not enough, the bank may turn to more bond buying.”
While increased liquidity injections may help restrain the yen, an expansion of the monthly 1.8 trillion yen ($20 billion) of bond purchases may spark concern the BOJ is financing the government’s deficit spending. Central bankers would have to counter any such perception, and may need to stress the urgency for Prime Minister Yukio Hatoyama’s administration to rein in the budget gap, one of the people said.
The Bank of Japan may be unique in considering additional monetary stimulus among the Group of 20 major economies this year. Exporters have led the rebound from the country’s worst postwar recession as falling wages, job losses and factory overcapacity hamper spending and deepen price declines at home.
Expand Credit Program
Central bank Governor Masaaki Shirakawa and his colleagues, who begin a two-day meeting today, will leave the benchmark interest rate at 0.1 percent tomorrow, according to all of the 17 economists surveyed.
One of the analysts, Hiromichi Shirakawa, chief economist at Credit Suisse Group AG in Tokyo and a former BOJ official, said the bank may expand the 10 trillion yen lending program it introduced Dec. 1 in reaction to the yen’s climb to 84.83 per dollar. The currency jumped more than 1 percent at the end of last week, to as high as 89.79 in Tokyo trading, underscoring the risk to the nation’s exporters.
The emergency lending facility, which provides commercial banks with funds for three months at 0.1 percent, could be expanded in stages, one of the people said. Along with increasing the size, officials might extend the maturity of the loans to six months, and later to 12 months, the person said.
‘Crucial Challenge’
Governor Shirakawa said last week that stamping out deflation is a “crucial challenge” and the bank will persist with its low-rate policy to aid growth. He said he expects the economy to keep growing, fueled by overseas sales, though the revival of exports and output has yet to spur domestic demand.
When the yen was trading around 93 per dollar on Jan. 7, Finance Minister Naoto Kan said he wanted it to weaken “a bit more” and he will seek to cooperate with the Bank of Japan on the currency’s level. The yen’s gain last week made it stronger than the 90-to-mid-90s range that Kan has said manufacturers regard as “appropriate.”
There are “still various policy measures that could be taken” by the government and the bank, Kan said Jan. 14. Last week he said it “would be going too far if the government asked the BOJ to implement specific monetary policy measures.”
With a public debt that’s almost twice the size of the economy, Kan may have little room to increase spending beyond the record 92.3 trillion yen budgeted for the year starting April 1.
‘Put the Heat On’
“The government may put the heat on the BOJ should the yen gain rapidly and stocks slide before the fiscal year end,” said Mari Iwashita, chief market economist at Nikko Cordial Securities Inc. in Tokyo. “The government is overwhelmed by the task of passing next year’s budget bill, so it has no choice but to depend on the BOJ if the economy stumbles.”
So far, borrowing costs remain contained even as the fiscal condition deteriorates, as deflation attracts investors to government debt. The yield on the 10-year note was at 1.325 percent on Jan. 22.
“I see a 30 percent chance that the bank will buy more bonds,” said Yasunari Ueno, chief market economist at Mizuho Securities Co. in Tokyo. “The BOJ at heart probably wants to prevent more bond purchases because any increase would fuel speculation” that it will monetize the debt, Ueno said.
Any consideration by the board to buy more government bonds may hinge on whether the bank sticks to a self-imposed rule of limiting its holdings of the securities lower than the amount of bank notes in circulation. Bank notes are decreasing and the room to increase bond purchases is narrowing, one of the people with knowledge of the situation said.
Another option is for the bank to specify the period for keeping rates low, one of the people said, adding that it’s not currently an urgent issue. When it introduced a quantitative easing policy of pumping cash into the banking system in March 2001, it said the step would stay until prices stopped falling.
To contact the reporters on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net; Masahiro Hidaka in Tokyo at mhidaka@bloomberg.net
Last Updated: January 24, 2010 10:01 EST
http://www.bloomberg.com/apps/news?pid=20601087&sid=amzUp8cG7ZHs
2.-SEC May Approve Restrictions on Short Sales When Stocks Plunge
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By Nina Mehta
Jan. 23 (Bloomberg) -- Concern that short-sellers accelerate stock declines may prompt the Securities and Exchange Commission to adopt a rule next month aimed at curbing bearish bets when equities are plunging.
The regulation would require the trades be executed above the best existing bid in the market when shares fall 10 percent in a day, said Brian Hyndman, the senior vice president in transaction services at Nasdaq OMX Group Inc. In a short sale, an investor borrows an asset and sells it, hoping to profit from a decrease by repurchasing it later at a lower price.
Forcing short sellers to wait for a stock to rise above the best price bid may prevent them from flooding the market with sell orders and causing losses to multiply. Some exchange officials say the restrictions known as uptick rules don’t work, citing studies that show they may be less effective during panics that drive prices down and volatility up.
“There is no empirical data to support the introduction of a new rule,” Hyndman said yesterday at a securities industry conference in Chicago. “But this is the least intrusive of the proposals the SEC was considering.”
Hyndman expects the SEC to adopt a so-called alternative uptick rule that includes a 10 percent trigger, changing regulations that were eliminated from U.S. markets in 2007. The commission asked the public last April to comment on strategies to cushion the impact of short selling following criticism that hedge funds and other speculators used trading tactics to deepen market retreats that began in 2008.
SEC spokesman John Heine declined to comment.
Computer Upgrades
The Standard & Poor’s 500 Index dropped 9.1 percent in September 2008 after New York-based Lehman Brothers Holdings Inc. filed the biggest-ever bankruptcy. The SEC implemented a ban on short selling more than 900 financial stocks that month after Morgan Stanley Chief Executive Officer John Mack and New York Senator Charles Schumer blamed the practice for driving companies to the brink of collapse.
The implementation date for the new rule is likely to be later in the year, according to Hyndman, who didn’t say what he was basing his estimate on. He said exchanges and brokers will probably have 180 days to upgrade their computer systems to accommodate the regulation.
Nasdaq in New York, Kansas City-based Bats Exchange and Jersey City, New Jersey-based Direct Edge Holdings LLC, which operates two alternative trading centers, have told the SEC that no new restrictions on short selling are needed. Paul Adcock, executive vice president in charge of trading at NYSE Arca, a unit of New York-based NYSE Euronext, said that while most exchanges oppose a new regulation, it’s probably inevitable.
Potential Impact
“Because the politicians and the public are all banging the drums, we’re not going to get away with this one,” Adcock said about the reluctance of exchanges to support new short- selling restrictions.
The SEC discussed the potential impact of such a rule when it proposed the alternative uptick last August. Because it would restrict short selling more than other proposals being considered, the regulation might “lessen some of the benefits of legitimate short selling, including market liquidity and pricing efficiency,” the commission said.
When the SEC proposed the alternative uptick rule, it said it would be easier for exchanges and brokers to implement than the former regulation that operated on the New York Stock Exchange for almost 70 years before its removal in 2007. That rule would no longer make sense in a marketplace of automated trading, the commission said.
No Trigger
The rule was proposed to the SEC last March by NYSE Euronext, Nasdaq, Bats and the Chicago-based National Stock Exchange. NYSE Euronext last June said it preferred a different bid test with no 10 percent threshold.
NYSE Euronext’s Adcock raised concern at yesterday’s conference that so-called circuit breakers setting off the restriction might keep stocks from falling as much as they should when a company reports bad news.
“Do you trigger the 10 percent when the stock should be trading down?” Adcock said. The trigger would be mandated uniformly across trading venues when a stock declines by the specified percentage.
Daniel Aromi and Cecilia Caglio, economists at the SEC in Washington, said in a December 2008 report to former Chairman Christopher Cox that even with uptick rules in place, short sellers in a simulation executed trades 25 percent faster on average when stocks plunged than when prices were steady.
To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net.
Last Updated: January 23, 2010 00:00 EST
AS IF THE BERNANKE POSITIVE NEWS IS NOT ENOUGH---
1.--BOJ Said to Be Open to Expanding Emergency Loans, Bond Buying
Jan. 25 (Bloomberg) -- Bank of Japan policy makers are prepared to consider expanding an emergency-loan program for banks and increasing purchases of government debt should the recovery falter, people with knowledge of the matter said.
The central bank’s board will leave interest rates and its lending program unchanged tomorrow, 16 of 17 economists said in a Bloomberg News survey. How it responds in coming months will depend on the extent of any further economic shocks -- such as a surge in the yen to November’s 14-year high -- the people said on condition of anonymity because the talks are private.
“Should a rise in the yen threaten to damp corporate and consumer sentiment and exacerbate deflation, the BOJ will probably expand the loan program,” said Masaaki Kanno, a 25- year veteran of the central bank who is now chief economist at JPMorgan Chase & Co. in Tokyo. “If that’s not enough, the bank may turn to more bond buying.”
While increased liquidity injections may help restrain the yen, an expansion of the monthly 1.8 trillion yen ($20 billion) of bond purchases may spark concern the BOJ is financing the government’s deficit spending. Central bankers would have to counter any such perception, and may need to stress the urgency for Prime Minister Yukio Hatoyama’s administration to rein in the budget gap, one of the people said.
The Bank of Japan may be unique in considering additional monetary stimulus among the Group of 20 major economies this year. Exporters have led the rebound from the country’s worst postwar recession as falling wages, job losses and factory overcapacity hamper spending and deepen price declines at home.
Expand Credit Program
Central bank Governor Masaaki Shirakawa and his colleagues, who begin a two-day meeting today, will leave the benchmark interest rate at 0.1 percent tomorrow, according to all of the 17 economists surveyed.
One of the analysts, Hiromichi Shirakawa, chief economist at Credit Suisse Group AG in Tokyo and a former BOJ official, said the bank may expand the 10 trillion yen lending program it introduced Dec. 1 in reaction to the yen’s climb to 84.83 per dollar. The currency jumped more than 1 percent at the end of last week, to as high as 89.79 in Tokyo trading, underscoring the risk to the nation’s exporters.
The emergency lending facility, which provides commercial banks with funds for three months at 0.1 percent, could be expanded in stages, one of the people said. Along with increasing the size, officials might extend the maturity of the loans to six months, and later to 12 months, the person said.
‘Crucial Challenge’
Governor Shirakawa said last week that stamping out deflation is a “crucial challenge” and the bank will persist with its low-rate policy to aid growth. He said he expects the economy to keep growing, fueled by overseas sales, though the revival of exports and output has yet to spur domestic demand.
When the yen was trading around 93 per dollar on Jan. 7, Finance Minister Naoto Kan said he wanted it to weaken “a bit more” and he will seek to cooperate with the Bank of Japan on the currency’s level. The yen’s gain last week made it stronger than the 90-to-mid-90s range that Kan has said manufacturers regard as “appropriate.”
There are “still various policy measures that could be taken” by the government and the bank, Kan said Jan. 14. Last week he said it “would be going too far if the government asked the BOJ to implement specific monetary policy measures.”
With a public debt that’s almost twice the size of the economy, Kan may have little room to increase spending beyond the record 92.3 trillion yen budgeted for the year starting April 1.
‘Put the Heat On’
“The government may put the heat on the BOJ should the yen gain rapidly and stocks slide before the fiscal year end,” said Mari Iwashita, chief market economist at Nikko Cordial Securities Inc. in Tokyo. “The government is overwhelmed by the task of passing next year’s budget bill, so it has no choice but to depend on the BOJ if the economy stumbles.”
So far, borrowing costs remain contained even as the fiscal condition deteriorates, as deflation attracts investors to government debt. The yield on the 10-year note was at 1.325 percent on Jan. 22.
“I see a 30 percent chance that the bank will buy more bonds,” said Yasunari Ueno, chief market economist at Mizuho Securities Co. in Tokyo. “The BOJ at heart probably wants to prevent more bond purchases because any increase would fuel speculation” that it will monetize the debt, Ueno said.
Any consideration by the board to buy more government bonds may hinge on whether the bank sticks to a self-imposed rule of limiting its holdings of the securities lower than the amount of bank notes in circulation. Bank notes are decreasing and the room to increase bond purchases is narrowing, one of the people with knowledge of the situation said.
Another option is for the bank to specify the period for keeping rates low, one of the people said, adding that it’s not currently an urgent issue. When it introduced a quantitative easing policy of pumping cash into the banking system in March 2001, it said the step would stay until prices stopped falling.
To contact the reporters on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net; Masahiro Hidaka in Tokyo at mhidaka@bloomberg.net
Last Updated: January 24, 2010 10:01 EST
http://www.bloomberg.com/apps/news?pid=20601087&sid=amzUp8cG7ZHs
2.-SEC May Approve Restrictions on Short Sales When Stocks Plunge
Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Nina Mehta
Jan. 23 (Bloomberg) -- Concern that short-sellers accelerate stock declines may prompt the Securities and Exchange Commission to adopt a rule next month aimed at curbing bearish bets when equities are plunging.
The regulation would require the trades be executed above the best existing bid in the market when shares fall 10 percent in a day, said Brian Hyndman, the senior vice president in transaction services at Nasdaq OMX Group Inc. In a short sale, an investor borrows an asset and sells it, hoping to profit from a decrease by repurchasing it later at a lower price.
Forcing short sellers to wait for a stock to rise above the best price bid may prevent them from flooding the market with sell orders and causing losses to multiply. Some exchange officials say the restrictions known as uptick rules don’t work, citing studies that show they may be less effective during panics that drive prices down and volatility up.
“There is no empirical data to support the introduction of a new rule,” Hyndman said yesterday at a securities industry conference in Chicago. “But this is the least intrusive of the proposals the SEC was considering.”
Hyndman expects the SEC to adopt a so-called alternative uptick rule that includes a 10 percent trigger, changing regulations that were eliminated from U.S. markets in 2007. The commission asked the public last April to comment on strategies to cushion the impact of short selling following criticism that hedge funds and other speculators used trading tactics to deepen market retreats that began in 2008.
SEC spokesman John Heine declined to comment.
Computer Upgrades
The Standard & Poor’s 500 Index dropped 9.1 percent in September 2008 after New York-based Lehman Brothers Holdings Inc. filed the biggest-ever bankruptcy. The SEC implemented a ban on short selling more than 900 financial stocks that month after Morgan Stanley Chief Executive Officer John Mack and New York Senator Charles Schumer blamed the practice for driving companies to the brink of collapse.
The implementation date for the new rule is likely to be later in the year, according to Hyndman, who didn’t say what he was basing his estimate on. He said exchanges and brokers will probably have 180 days to upgrade their computer systems to accommodate the regulation.
Nasdaq in New York, Kansas City-based Bats Exchange and Jersey City, New Jersey-based Direct Edge Holdings LLC, which operates two alternative trading centers, have told the SEC that no new restrictions on short selling are needed. Paul Adcock, executive vice president in charge of trading at NYSE Arca, a unit of New York-based NYSE Euronext, said that while most exchanges oppose a new regulation, it’s probably inevitable.
Potential Impact
“Because the politicians and the public are all banging the drums, we’re not going to get away with this one,” Adcock said about the reluctance of exchanges to support new short- selling restrictions.
The SEC discussed the potential impact of such a rule when it proposed the alternative uptick last August. Because it would restrict short selling more than other proposals being considered, the regulation might “lessen some of the benefits of legitimate short selling, including market liquidity and pricing efficiency,” the commission said.
When the SEC proposed the alternative uptick rule, it said it would be easier for exchanges and brokers to implement than the former regulation that operated on the New York Stock Exchange for almost 70 years before its removal in 2007. That rule would no longer make sense in a marketplace of automated trading, the commission said.
No Trigger
The rule was proposed to the SEC last March by NYSE Euronext, Nasdaq, Bats and the Chicago-based National Stock Exchange. NYSE Euronext last June said it preferred a different bid test with no 10 percent threshold.
NYSE Euronext’s Adcock raised concern at yesterday’s conference that so-called circuit breakers setting off the restriction might keep stocks from falling as much as they should when a company reports bad news.
“Do you trigger the 10 percent when the stock should be trading down?” Adcock said. The trigger would be mandated uniformly across trading venues when a stock declines by the specified percentage.
Daniel Aromi and Cecilia Caglio, economists at the SEC in Washington, said in a December 2008 report to former Chairman Christopher Cox that even with uptick rules in place, short sellers in a simulation executed trades 25 percent faster on average when stocks plunged than when prices were steady.
To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net.
Last Updated: January 23, 2010 00:00 EST
suddenly over the weekend,---KATEK TRAP!!KATEKS DIE PAIN PAIN!!!!!!
Bernanke Likely Has Votes to Gain Second Term: Analysis
Published: Saturday, 23 Jan 2010 | 10:46 PM ET Text Size By: Steve Liesman
Senior Economics Reporter
AP
--------------------------------------------------------------------------------
Fed Chairman Ben Bernanke likely has enough votes to overcome a filibuster and gain approval for a second term, according to several leading Senators and an analysis by CNBC of how lawmakers will likely vote.
The analysis also showed Bernanke would win confirmation with bipartisan support, although he will likely register more opposition than any Fed chairman in recent history.
Calls by CNBC to all 100 senators over the past two days found 36 in favor and 18 opposed, with the remaining undeclared. See a detailed tally of yes/no votes in the chart below.
But if the vote of the undeclared 46 senators is the same by party as those who have declared, Bernanke would garner 67 votes in favor, more than the 60 votes needed to overcome a filibuster. He needs 51 to win approval.
The CNBC tally shows that, among the senators who have declared, 71 percent of Democrats and 62 percent of Republicans currently supporting Bernanke.
Bernanke's chances got a boost late Friday when majority leader Harry Reid declared his support.
Late Saturday, Democratic Senator John Kerry joined Reid, saying, “Chairman Bernanke provided leadership that was urgent, nimble, strong and vital in staving off greater disaster."
Republican Senator Judd Gregg and Democratic Senator Chris Dodd in a joint statement insisted that the Fed Chairman has the votes: "Based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation by the Senate for a second term.”
CNBC found 22 Democratic Senators in favor, compared with 9 opposed. Republican support, not evident yesterday, became more apparent on Saturday, with 13 Republicans voicing support and 8 opposing.
Senate Vote On Bernanke So Far
Senator Yes No
Daniel Akaka (D) HI X
Lamar Alexander (R) TN X
Max Baucus (D) MT X
Evan Bayh (D) IN X
Michael Bennet (D) CO X
Bob Bennett (R) UT X
Jeff Bingaman (D) NM X
Barbara Boxer (D) CA X
Sherrod Brown (D) OH X
Jim Bunning (R) KY X
Richard Burr (R) NC X
Thomas Carper (D) DE X
Susan Collins (R) ME X
Kent Conrad (D) ND X
Bob Corker (R) TN X
Mike Crapo (R) ID X
Christopher Dodd (D) CT X
Jim DeMint (R) SC X
Chris Dodd (D) CT X
Byron Dorgan (D) ND X
Dick Durbin (D) IL X
Russ Feingold (D) WI X
Lindsey Graham (R) SC X
Judd Gregg (R) NH X
Orrin Hatch (R) UT X
Kay Bailey Hutchison (R) TX X
James Inhofe (R) X
Dan Inouye (D) HI X
Tim Johnson (D) SD X
Ted Kaufman (D) DE X
John Kerry (D) MA X
Herb Kohl (D) WI X
Jon Kyl (R) AZ X
Mary Landrieu (D) LA X
Frank Lautenberg (D) NJ X
Joseph Lieberman (I) CT X
Richard Lugar (R) IN X
Claire McCaskill (D) MO X
Jeff Merkley (D) OR X
Barbara Mikulski (D) MD X
Harry Reid (D) NV X
James Risch (R) ID X
Bernie Sanders (I) VT X
Charles Schumer (D) NY X
Jeff Sessions (R) AL X
Jeanne Shaheen (D) NH X
Richard Shelby (R) AL X
Arlen Specter (D) PA X
Jon Tester (D) MT X
Mark Udall (D) CO X
David Vitter (R) LA X
George Voinovich (R) OH X
Mark Warner (D) VA X
Jim Webb (D) VA X
Roger Wicker (R) MS X
TOTAL 36 18
*Does not include undecided senators
Source: CNBC
© 2010 CNBC.com
23rd jan 2010
Two Senior Senators Predict Bernanke Will Be Confirmed
Published: Saturday, 23 Jan 2010 | 5:16 PM ET Text Size By: Sewell Chan and David M. Herszenhorn
The New York Times
Two senior senators, a Democrat and a Republican, jointly issued a statement Saturday predicting that the Senate will confirm Ben S. Bernanke to a second term as chairman of the Federal Reserve, hoping to quell doubts that had shaken markets and forced the White House to scramble to keep him from becoming a casualty of populist anti-Wall Street fervor.
AP
--------------------------------------------------------------------------------
Senator Christopher J. Dodd, the Democrat from Connecticut who is chairman of the Senate Banking Committee, and Senator Judd Gregg of New Hampshire, a Republican who is a longtime member of the panel, said in their statement that “based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation by the Senate for a second term.”
The senators referred to recent media reports “highlighting a very vocal opposition.” Two Democratic senators facing tough re-election races had announced at the end of the week they would be among those who would oppose Mr. Bernanke, and his prospects for winning the needed 60 votes suddenly were clouded.
Mr. Dodd, who recently decided to retire as his own re-election looked doubtful, and Mr. Gregg, who also is retiring, not only forecast Mr. Bernanke’s approval but also provided a fulsome endorsement.
“Chairman Bernanke has done an excellent job responding to one of the most significant financial crises our country has ever encountered,” they said. “We support his nomination because he is the right leader to guide the Federal Reserve in this recovering economy.”
In the mobilization on Mr. Bernanke’s behalf, the White House had by Friday night secured public support from the wavering Senate majority leader, Senator Harry Reid, the Democrat who has his own tough reelection contest in Nevada, along with several moderate Senate Democrats and circulated word of the support for Mr. Bernanke from respected billionaire Warren Buffett.
But even then Mr. Reid’s statement was remarkably unenthusiastic. After meeting with Mr. Bernanke on Thursday, Mr. Reid warned: “The American people expect our economic leaders to keep Wall Street honest and level the playing field for middle-class families.”
And in his statement Friday, Mr. Reid said he had decided to support Mr. Bernanke with trepidation and only after he received a commitment that the Fed chairman would take additional steps to increase the flow of credit to middle-class Americans.
While some Republicans were certain to oppose Mr. Bernanke, the minority leadership had its own strategic calculations to make.
Rejecting Mr. Bernanke, a Republican economist who was named chairman by President George W. Bush in 2005 and took over in 2006, could lead Mr. Obama to appoint someone from the ranks of Democratic economists that Republican lawmakers find less appealing. And if markets swooned, Republicans would share in the blame.
But even if the nomination is approved, the spasm of anxiety surrounding it will have highlighted how members of both parties are reassessing their stands on many issues as they try to understand the strain of anger toward the government, Wall Street and other institutions.
In the days since the Democrats lost a crucial Senate seat in Massachusetts, Mr. Obama has struck a tougher tone toward big banks. In the process he signaled a shift away from less aggressive regulatory policies backed by another architect of the bailout, Timothy F. Geithner, the Treasury secretary. On Friday in Ohio, Mr. Obama took a combative approach on health care reform and banking regulation.
But Mr. Obama cannot afford a failed nomination — the Senate has never before rejected a president’s nominee for Fed chairman — and he has publicly and privately backed Mr. Bernanke and Mr. Geithner for their roles in stabilizing the financial system and averting what could have been a wholesale collapse.
ON FRIDAY,22nd jan 2010--------------------------------------------------------------------------------
Bernanke Vote: 'Unthinkable Has Become a Possibility'
Published: Friday, 22 Jan 2010 | 5:55 PM ET Text Size By: Reuters
Ben Bernanke's nomination for a second term as U.S. Federal Reserve chairman, once seen as a sure thing, appeared in jeopardy on Friday after two more Senate Democrats said they would vote against it.
"I believe there will be the votes to confirm him. But it's going to be very close," a senior Democratic leadership aide said.
AP
With the U.S. job market in disarray and voters angry at Wall Street, members of Congress facing mid-term elections in November have come down hard on the central bank and its leadership. See the latest tally of announced voting decisions in the chart on page 2 of this story.
They say the Fed failed to prevent the worst financial crisis since the Great Depression, and combated the meltdown in a way that favored the financial sector at the expense of ordinary citizens.
Senators Barbara Boxer and Russ Feingold brought the total of known "no" votes among the Democratic majority to four, while many others have said they were still on the fence.
"Our next Federal Reserve chairman must represent a clean break from the failed policies of the past," Boxer said. "It is time for Main Street to have a champion at the Fed."
The shift comes rather abruptly, and has added a new element of uncertainty to a stock market that had already been reeling in recent days. The S&P 500 fell into the red for the year on Friday, joining the Dow and Nasdaq indexes.
"The unthinkable has become a very real possibility—risks are rising that the Senate will unseat (him)," said Michael Feroli, economist at JP Morgan.
Chris Krueger of Concept Capital, a private firm that tracks Congress for institutional investors, said he sees a 55 percent chance Bernanke will not be reconfirmed.
In-trade, an online betting platform, now shows just a 68 percent chance the Fed Chairman will be confirmed, down from 95 percent just a few days back.
Several Republicans have already come out against him and some have moved to block his confirmation, forcing Senate leaders to secure a super-majority of 60 votes in the 100-member chamber to move the nomination.
Sen. Bob Corker, R-Tenn., one of four Republicans to side with Bernanke in the Senate Banking Committee, has said that while he wants to support him and is carefully examining Bernanke's record, he reserves the right to vote against him.
"Senator Corker for voted Chairman Bernanke out of committee, and since that time he has had numerous conversations with Bernanke and Fed officials and has visited the Fed to review the AIG documents," Corker spokeswoman Laura Herzog told CNBC. "He will make his final decision before the floor vote occurs, but generally feels the same way he did the day of the committee vote."
Bernanke Likely Has Votes to Gain Second Term: Analysis
Published: Saturday, 23 Jan 2010 | 10:46 PM ET Text Size By: Steve Liesman
Senior Economics Reporter
AP
--------------------------------------------------------------------------------
Fed Chairman Ben Bernanke likely has enough votes to overcome a filibuster and gain approval for a second term, according to several leading Senators and an analysis by CNBC of how lawmakers will likely vote.
The analysis also showed Bernanke would win confirmation with bipartisan support, although he will likely register more opposition than any Fed chairman in recent history.
Calls by CNBC to all 100 senators over the past two days found 36 in favor and 18 opposed, with the remaining undeclared. See a detailed tally of yes/no votes in the chart below.
But if the vote of the undeclared 46 senators is the same by party as those who have declared, Bernanke would garner 67 votes in favor, more than the 60 votes needed to overcome a filibuster. He needs 51 to win approval.
The CNBC tally shows that, among the senators who have declared, 71 percent of Democrats and 62 percent of Republicans currently supporting Bernanke.
Bernanke's chances got a boost late Friday when majority leader Harry Reid declared his support.
Late Saturday, Democratic Senator John Kerry joined Reid, saying, “Chairman Bernanke provided leadership that was urgent, nimble, strong and vital in staving off greater disaster."
Republican Senator Judd Gregg and Democratic Senator Chris Dodd in a joint statement insisted that the Fed Chairman has the votes: "Based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation by the Senate for a second term.”
CNBC found 22 Democratic Senators in favor, compared with 9 opposed. Republican support, not evident yesterday, became more apparent on Saturday, with 13 Republicans voicing support and 8 opposing.
Senate Vote On Bernanke So Far
Senator Yes No
Daniel Akaka (D) HI X
Lamar Alexander (R) TN X
Max Baucus (D) MT X
Evan Bayh (D) IN X
Michael Bennet (D) CO X
Bob Bennett (R) UT X
Jeff Bingaman (D) NM X
Barbara Boxer (D) CA X
Sherrod Brown (D) OH X
Jim Bunning (R) KY X
Richard Burr (R) NC X
Thomas Carper (D) DE X
Susan Collins (R) ME X
Kent Conrad (D) ND X
Bob Corker (R) TN X
Mike Crapo (R) ID X
Christopher Dodd (D) CT X
Jim DeMint (R) SC X
Chris Dodd (D) CT X
Byron Dorgan (D) ND X
Dick Durbin (D) IL X
Russ Feingold (D) WI X
Lindsey Graham (R) SC X
Judd Gregg (R) NH X
Orrin Hatch (R) UT X
Kay Bailey Hutchison (R) TX X
James Inhofe (R) X
Dan Inouye (D) HI X
Tim Johnson (D) SD X
Ted Kaufman (D) DE X
John Kerry (D) MA X
Herb Kohl (D) WI X
Jon Kyl (R) AZ X
Mary Landrieu (D) LA X
Frank Lautenberg (D) NJ X
Joseph Lieberman (I) CT X
Richard Lugar (R) IN X
Claire McCaskill (D) MO X
Jeff Merkley (D) OR X
Barbara Mikulski (D) MD X
Harry Reid (D) NV X
James Risch (R) ID X
Bernie Sanders (I) VT X
Charles Schumer (D) NY X
Jeff Sessions (R) AL X
Jeanne Shaheen (D) NH X
Richard Shelby (R) AL X
Arlen Specter (D) PA X
Jon Tester (D) MT X
Mark Udall (D) CO X
David Vitter (R) LA X
George Voinovich (R) OH X
Mark Warner (D) VA X
Jim Webb (D) VA X
Roger Wicker (R) MS X
TOTAL 36 18
*Does not include undecided senators
Source: CNBC
© 2010 CNBC.com
23rd jan 2010
Two Senior Senators Predict Bernanke Will Be Confirmed
Published: Saturday, 23 Jan 2010 | 5:16 PM ET Text Size By: Sewell Chan and David M. Herszenhorn
The New York Times
Two senior senators, a Democrat and a Republican, jointly issued a statement Saturday predicting that the Senate will confirm Ben S. Bernanke to a second term as chairman of the Federal Reserve, hoping to quell doubts that had shaken markets and forced the White House to scramble to keep him from becoming a casualty of populist anti-Wall Street fervor.
AP
--------------------------------------------------------------------------------
Senator Christopher J. Dodd, the Democrat from Connecticut who is chairman of the Senate Banking Committee, and Senator Judd Gregg of New Hampshire, a Republican who is a longtime member of the panel, said in their statement that “based on our discussions with our colleagues, we are very confident that Chairman Bernanke will win confirmation by the Senate for a second term.”
The senators referred to recent media reports “highlighting a very vocal opposition.” Two Democratic senators facing tough re-election races had announced at the end of the week they would be among those who would oppose Mr. Bernanke, and his prospects for winning the needed 60 votes suddenly were clouded.
Mr. Dodd, who recently decided to retire as his own re-election looked doubtful, and Mr. Gregg, who also is retiring, not only forecast Mr. Bernanke’s approval but also provided a fulsome endorsement.
“Chairman Bernanke has done an excellent job responding to one of the most significant financial crises our country has ever encountered,” they said. “We support his nomination because he is the right leader to guide the Federal Reserve in this recovering economy.”
In the mobilization on Mr. Bernanke’s behalf, the White House had by Friday night secured public support from the wavering Senate majority leader, Senator Harry Reid, the Democrat who has his own tough reelection contest in Nevada, along with several moderate Senate Democrats and circulated word of the support for Mr. Bernanke from respected billionaire Warren Buffett.
But even then Mr. Reid’s statement was remarkably unenthusiastic. After meeting with Mr. Bernanke on Thursday, Mr. Reid warned: “The American people expect our economic leaders to keep Wall Street honest and level the playing field for middle-class families.”
And in his statement Friday, Mr. Reid said he had decided to support Mr. Bernanke with trepidation and only after he received a commitment that the Fed chairman would take additional steps to increase the flow of credit to middle-class Americans.
While some Republicans were certain to oppose Mr. Bernanke, the minority leadership had its own strategic calculations to make.
Rejecting Mr. Bernanke, a Republican economist who was named chairman by President George W. Bush in 2005 and took over in 2006, could lead Mr. Obama to appoint someone from the ranks of Democratic economists that Republican lawmakers find less appealing. And if markets swooned, Republicans would share in the blame.
But even if the nomination is approved, the spasm of anxiety surrounding it will have highlighted how members of both parties are reassessing their stands on many issues as they try to understand the strain of anger toward the government, Wall Street and other institutions.
In the days since the Democrats lost a crucial Senate seat in Massachusetts, Mr. Obama has struck a tougher tone toward big banks. In the process he signaled a shift away from less aggressive regulatory policies backed by another architect of the bailout, Timothy F. Geithner, the Treasury secretary. On Friday in Ohio, Mr. Obama took a combative approach on health care reform and banking regulation.
But Mr. Obama cannot afford a failed nomination — the Senate has never before rejected a president’s nominee for Fed chairman — and he has publicly and privately backed Mr. Bernanke and Mr. Geithner for their roles in stabilizing the financial system and averting what could have been a wholesale collapse.
ON FRIDAY,22nd jan 2010--------------------------------------------------------------------------------
Bernanke Vote: 'Unthinkable Has Become a Possibility'
Published: Friday, 22 Jan 2010 | 5:55 PM ET Text Size By: Reuters
Ben Bernanke's nomination for a second term as U.S. Federal Reserve chairman, once seen as a sure thing, appeared in jeopardy on Friday after two more Senate Democrats said they would vote against it.
"I believe there will be the votes to confirm him. But it's going to be very close," a senior Democratic leadership aide said.
AP
With the U.S. job market in disarray and voters angry at Wall Street, members of Congress facing mid-term elections in November have come down hard on the central bank and its leadership. See the latest tally of announced voting decisions in the chart on page 2 of this story.
They say the Fed failed to prevent the worst financial crisis since the Great Depression, and combated the meltdown in a way that favored the financial sector at the expense of ordinary citizens.
Senators Barbara Boxer and Russ Feingold brought the total of known "no" votes among the Democratic majority to four, while many others have said they were still on the fence.
"Our next Federal Reserve chairman must represent a clean break from the failed policies of the past," Boxer said. "It is time for Main Street to have a champion at the Fed."
The shift comes rather abruptly, and has added a new element of uncertainty to a stock market that had already been reeling in recent days. The S&P 500 fell into the red for the year on Friday, joining the Dow and Nasdaq indexes.
"The unthinkable has become a very real possibility—risks are rising that the Senate will unseat (him)," said Michael Feroli, economist at JP Morgan.
Chris Krueger of Concept Capital, a private firm that tracks Congress for institutional investors, said he sees a 55 percent chance Bernanke will not be reconfirmed.
In-trade, an online betting platform, now shows just a 68 percent chance the Fed Chairman will be confirmed, down from 95 percent just a few days back.
Several Republicans have already come out against him and some have moved to block his confirmation, forcing Senate leaders to secure a super-majority of 60 votes in the 100-member chamber to move the nomination.
Sen. Bob Corker, R-Tenn., one of four Republicans to side with Bernanke in the Senate Banking Committee, has said that while he wants to support him and is carefully examining Bernanke's record, he reserves the right to vote against him.
"Senator Corker for voted Chairman Bernanke out of committee, and since that time he has had numerous conversations with Bernanke and Fed officials and has visited the Fed to review the AIG documents," Corker spokeswoman Laura Herzog told CNBC. "He will make his final decision before the floor vote occurs, but generally feels the same way he did the day of the committee vote."
Sunday, January 24, 2010
SUNDAY 24TH JAN 2010:
TACTIC: USED ON FRIDAY NITE BY US LIFT OPERATOR---"katek squeeze"
DOW FALL FOR WEEK 18TH JAN 2010 TO 22JAN 2010:4.1percent(INCLUSIVE OF FRIDAY NIGHT BIG DROP OF 2+PERCENT
HANGSENG FALL FOR SAME WEEK :4.3percent
STI DROP FOR WEEK:3PERCENT
so us lift operators strategy is to make the drop as similar as HK and STI as I TIOLD YOU ALL ALWAYS THESE THREE COUNTRIES GOT UNCANNY SIMILARITIES AT CRITICAL TIMES
strategy:collect at LAST SHORT TERM GUPPY MMA ON WEEKLY CHARTS--us lift operators make the SP500 break the last short term guppy mma on daily charts at 1106 and collect between 1091-1106 a 1.5percent range ON NEWS RELEASED BY THEM THAT BEN BERNANKE MAY NOT BE REAPPOINTED
BUT NEWS CAME OUT ON WEEKEND SATURDAY AFTER MARKET CLOSED ON FRIDAY NIGHT THAT OBABA AND SENIOR OFFICIALS SAY THAT ben LIKELY TO BE REAPPOINTED--to catch kateks dead cold on weekend--see how the shortists rush to cover back on monday morning...
I WILL NOT BE SURPRISED IF DOW FUT UP 50 TO 100 in asian morning session...
BE PREPARED FOR DOW TO RETEST 10.6K by end of this week, jan 29th 2010, major factor FOMC on 27th
TACTIC: USED ON FRIDAY NITE BY US LIFT OPERATOR---"katek squeeze"
DOW FALL FOR WEEK 18TH JAN 2010 TO 22JAN 2010:4.1percent(INCLUSIVE OF FRIDAY NIGHT BIG DROP OF 2+PERCENT
HANGSENG FALL FOR SAME WEEK :4.3percent
STI DROP FOR WEEK:3PERCENT
so us lift operators strategy is to make the drop as similar as HK and STI as I TIOLD YOU ALL ALWAYS THESE THREE COUNTRIES GOT UNCANNY SIMILARITIES AT CRITICAL TIMES
strategy:collect at LAST SHORT TERM GUPPY MMA ON WEEKLY CHARTS--us lift operators make the SP500 break the last short term guppy mma on daily charts at 1106 and collect between 1091-1106 a 1.5percent range ON NEWS RELEASED BY THEM THAT BEN BERNANKE MAY NOT BE REAPPOINTED
BUT NEWS CAME OUT ON WEEKEND SATURDAY AFTER MARKET CLOSED ON FRIDAY NIGHT THAT OBABA AND SENIOR OFFICIALS SAY THAT ben LIKELY TO BE REAPPOINTED--to catch kateks dead cold on weekend--see how the shortists rush to cover back on monday morning...
I WILL NOT BE SURPRISED IF DOW FUT UP 50 TO 100 in asian morning session...
BE PREPARED FOR DOW TO RETEST 10.6K by end of this week, jan 29th 2010, major factor FOMC on 27th
Friday, January 22, 2010
2009 FOMC Meetings
DOW RALLY 200+POINTS ON JAN 28 2009
January 27-28 Statement Minutes: 493 KB PDF | HTML (Released Feb 18, 2009)
March 17-18 Statement Minutes: 265 KB PDF | HTML (Released Apr 8, 2009)
dow up a bit 90points
April 28-29 Statement Minutes: 344 KB PDF | HTML (Released May 20, 2009)
dow up 2+pc
June 23-24 Statement Minutes: 347 KB PDF | HTML (Released Jul 15, 2009)
dow went down
August 11-12 Statement Minutes: 260 KB PDF | HTML (Released Sep 2, 2009)
dow up 120 points
September 22-23 Statement Minutes: 263 KB PDF | HTML (Released Oct 14, 2009)
dow up then reverse down
November 3-4 Statement Minutes: 337 KB PDF | HTML (Released Nov 24, 2009)
dow went up then reverse down
December 15-16 Statement Minutes: 318 KB PDF | HTML (Released Jan 6, 2010)
dow went up then reverse down
DOW RALLY 200+POINTS ON JAN 28 2009
January 27-28 Statement Minutes: 493 KB PDF | HTML (Released Feb 18, 2009)
March 17-18 Statement Minutes: 265 KB PDF | HTML (Released Apr 8, 2009)
dow up a bit 90points
April 28-29 Statement Minutes: 344 KB PDF | HTML (Released May 20, 2009)
dow up 2+pc
June 23-24 Statement Minutes: 347 KB PDF | HTML (Released Jul 15, 2009)
dow went down
August 11-12 Statement Minutes: 260 KB PDF | HTML (Released Sep 2, 2009)
dow up 120 points
September 22-23 Statement Minutes: 263 KB PDF | HTML (Released Oct 14, 2009)
dow up then reverse down
November 3-4 Statement Minutes: 337 KB PDF | HTML (Released Nov 24, 2009)
dow went up then reverse down
December 15-16 Statement Minutes: 318 KB PDF | HTML (Released Jan 6, 2010)
dow went up then reverse down
Thursday, January 21, 2010
Wednesday, January 20, 2010
By Asrul Hadi Abdullah Sani
KUALA LUMPUR, Jan 20 — Tun Dr Mahathir Mohamad today claimed the 9/11 attacks in the United States, that killed nearly 3,000, was staged as an excuse to “mount attacks on the Muslim world”, saying killing as an excuse for war is not new to the US. The former prime minister also argued that Israel was created to solve the “Jewish problem” in Europe, saying the Holocaust had failed as a final solution against the community.
“In September 2001, the World Trade Centre was attacked allegedly by terrorists. I am not sure now that Muslim terrorists carried out these attacks. There is strong evidence that the attacks were staged. If they can make Avatar, they can make anything,” said Dr Mahathir during his speech at the General Conference for the Support of Al-Quds here. Al-Quds is the Arabic name for Jerusalem.
“Killing innocent people to provide an excuse for war is not new to the US. But whether the real or staged 9/11 attacks have served the United States and Western countries well. They have an excuse to mount attacks on the Muslim world,” he added. Dr Mahathir also argued the creation of the Jewish state was decided after Europeans failed to massacre the community. “The Jews had always been a problem in European countries. They had to be confined to ghettoes and periodically massacred. But still they remained, they thrived and they held whole governments to ransom.
“Even after their massacre by the Nazis of Germany, they survived to continue to be a source of even greater problems for the world. The Holocaust failed as a final solution,” said the outspoken Malaysian leader who was noted for his anti-Western and anti-Zionist stand while in power for 22 years, until October 2003. Dr Mahathir added that it was easier for the European powers to set up a Jewish state in Palestine.
“Creating a state for them was thought to be a better solution. It could be if some European territory had been allocated to make a permanent ghetto for the Jews. But of course if this was done then the affected European state would rise in arms and kill all the Jews the way they had been doing before. So the debate was about creating an Israeli state in Uganda, Africa, or somewhere in Latin America or Palestine of course.
“It was so easy to decide on Palestine, a British mandated territory. Restrictions on the disposal of mandated land could be ignored. This is nothing new — reneging on solemnly given undertaking is endemic with Europeans,” he said. Dr Mahathir also accused democratic countries for being “hypocritical” and pointed out that the world is “partially civilised.”
“We live in a world that is only partially civilised. I say this because we still believe that the way to resolve conflicts between nations is to kill people in what is called war. The winner is the side which succeeds in killing the most number of people. Yet we vehemently declare that killing people is murder, a terrible crime worthy of the most severe punishment.
“We are being openly hypocritical. Mass killing is glorious but killing one man is a heinous crime,” he said in his speech. Dr Mahathir also expressed his disappointment in Barack Obama and said that the US president has failed. Obama celebrated his first year in office today.
“Well, I am a bit disappointed because so far none of his promises have been kept. He promised to get out from Afghanistan but he ended up sending more troops there instead. He promised to close down Guantanamo but he has not closed down Guantanamo. Even other things he has not been able to do.
“It is quite easy to promise during election time but you know there are forces in the United States which prevents the president from doing some things. One of the forces is the Jewish lobby, IPAC,” he said. Dr Mahathir had previously blamed the Jews for causing the Asian financial crisis.
KUALA LUMPUR, Jan 20 — Tun Dr Mahathir Mohamad today claimed the 9/11 attacks in the United States, that killed nearly 3,000, was staged as an excuse to “mount attacks on the Muslim world”, saying killing as an excuse for war is not new to the US. The former prime minister also argued that Israel was created to solve the “Jewish problem” in Europe, saying the Holocaust had failed as a final solution against the community.
“In September 2001, the World Trade Centre was attacked allegedly by terrorists. I am not sure now that Muslim terrorists carried out these attacks. There is strong evidence that the attacks were staged. If they can make Avatar, they can make anything,” said Dr Mahathir during his speech at the General Conference for the Support of Al-Quds here. Al-Quds is the Arabic name for Jerusalem.
“Killing innocent people to provide an excuse for war is not new to the US. But whether the real or staged 9/11 attacks have served the United States and Western countries well. They have an excuse to mount attacks on the Muslim world,” he added. Dr Mahathir also argued the creation of the Jewish state was decided after Europeans failed to massacre the community. “The Jews had always been a problem in European countries. They had to be confined to ghettoes and periodically massacred. But still they remained, they thrived and they held whole governments to ransom.
“Even after their massacre by the Nazis of Germany, they survived to continue to be a source of even greater problems for the world. The Holocaust failed as a final solution,” said the outspoken Malaysian leader who was noted for his anti-Western and anti-Zionist stand while in power for 22 years, until October 2003. Dr Mahathir added that it was easier for the European powers to set up a Jewish state in Palestine.
“Creating a state for them was thought to be a better solution. It could be if some European territory had been allocated to make a permanent ghetto for the Jews. But of course if this was done then the affected European state would rise in arms and kill all the Jews the way they had been doing before. So the debate was about creating an Israeli state in Uganda, Africa, or somewhere in Latin America or Palestine of course.
“It was so easy to decide on Palestine, a British mandated territory. Restrictions on the disposal of mandated land could be ignored. This is nothing new — reneging on solemnly given undertaking is endemic with Europeans,” he said. Dr Mahathir also accused democratic countries for being “hypocritical” and pointed out that the world is “partially civilised.”
“We live in a world that is only partially civilised. I say this because we still believe that the way to resolve conflicts between nations is to kill people in what is called war. The winner is the side which succeeds in killing the most number of people. Yet we vehemently declare that killing people is murder, a terrible crime worthy of the most severe punishment.
“We are being openly hypocritical. Mass killing is glorious but killing one man is a heinous crime,” he said in his speech. Dr Mahathir also expressed his disappointment in Barack Obama and said that the US president has failed. Obama celebrated his first year in office today.
“Well, I am a bit disappointed because so far none of his promises have been kept. He promised to get out from Afghanistan but he ended up sending more troops there instead. He promised to close down Guantanamo but he has not closed down Guantanamo. Even other things he has not been able to do.
“It is quite easy to promise during election time but you know there are forces in the United States which prevents the president from doing some things. One of the forces is the Jewish lobby, IPAC,” he said. Dr Mahathir had previously blamed the Jews for causing the Asian financial crisis.
Saturday, January 16, 2010
Friday, January 15, 2010
Wednesday, January 13, 2010
Goldman exec says firm gained from trading against clientsWed Jan 13, 2010 1:37am ESTRelated NewsPRESS DIGEST - New York Times business news - Jan 13
Fri, Nov 20 2009(Reuters) - An executive from Goldman Sachs Group Inc said the company in some cases profited by trading ahead of or against its own clients, the New York Times said on its website.
Thomas Mazarakis, who heads Goldman's fundamental strategies group, told select clients in an email that his unit often provided investment ideas that the firm had already traded on and the firm sometimes took the opposite approach, betting against particular instruments recommended by the group, the Times said.
"We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," the paper quoted Mazarakis as writing in the email.
The paper quoted Goldman spokesman Lucas van Praag as saying in a statement the company has been "providing this disclosure, which we think is best practice, for a number of years and there is nothing new in the disclosure you were sent."
A Goldman Sachs spokesman in Hong Kong could not be immediately reached for comment by Reuters.
http://www.reuters.com/article/idUSTRE60C17220100113?feedType=RSS&feedName=businessNews&rpc=76
Fri, Nov 20 2009(Reuters) - An executive from Goldman Sachs Group Inc said the company in some cases profited by trading ahead of or against its own clients, the New York Times said on its website.
Thomas Mazarakis, who heads Goldman's fundamental strategies group, told select clients in an email that his unit often provided investment ideas that the firm had already traded on and the firm sometimes took the opposite approach, betting against particular instruments recommended by the group, the Times said.
"We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you," the paper quoted Mazarakis as writing in the email.
The paper quoted Goldman spokesman Lucas van Praag as saying in a statement the company has been "providing this disclosure, which we think is best practice, for a number of years and there is nothing new in the disclosure you were sent."
A Goldman Sachs spokesman in Hong Kong could not be immediately reached for comment by Reuters.
http://www.reuters.com/article/idUSTRE60C17220100113?feedType=RSS&feedName=businessNews&rpc=76
Tuesday, January 12, 2010
DJ Singapore''s GIC Recognises Big Loss In US Project - Report (2010/01/12 07:33AM)
--------------------------------------------------------------------------------
SINGAPORE (Dow Jones)--The Government of Singapore Investment Corp. has written down most of its US$675 million investment in a giant New York City apartment complex that was bought at the height of the property boom in the U.S., the Business Times reported without citing any source.
The joint owners of Stuyvesant Town and Peter Cooper Village defaulted on their debts last Friday.
GIC had invested US$575 million in a so-called mezzanine loan backed by the property--a subordinated loan that sits between ordinary debt and equity--and US$100 million in an equity stake.
"GIC recognized the losses following the ruling by the New York Court of Appeals in October 2009 which precipitated the default," a GIC spokesman was quoted as saying.
Newspaper Web site:
http://business-times.asia1.com.sg
-By Singapore Bureau; Dow Jones Newswires; 65-6415-4150; djnews.singapore.bureau@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today''s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=afTsE3CHnyz8k7x0DZju%2Fw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
January 11, 2010 18:33 ET (23:33 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
--------------------------------------------------------------------------------
SINGAPORE (Dow Jones)--The Government of Singapore Investment Corp. has written down most of its US$675 million investment in a giant New York City apartment complex that was bought at the height of the property boom in the U.S., the Business Times reported without citing any source.
The joint owners of Stuyvesant Town and Peter Cooper Village defaulted on their debts last Friday.
GIC had invested US$575 million in a so-called mezzanine loan backed by the property--a subordinated loan that sits between ordinary debt and equity--and US$100 million in an equity stake.
"GIC recognized the losses following the ruling by the New York Court of Appeals in October 2009 which precipitated the default," a GIC spokesman was quoted as saying.
Newspaper Web site:
http://business-times.asia1.com.sg
-By Singapore Bureau; Dow Jones Newswires; 65-6415-4150; djnews.singapore.bureau@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today''s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=afTsE3CHnyz8k7x0DZju%2Fw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
January 11, 2010 18:33 ET (23:33 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
United confirm plan to raise £500m through bonds
By Harry Harris and Soccernet staff
January 11, 2010
Comment
Email
Print
Manchester United confirmed on Monday they will look to raise £500 million through bonds to restructure their debts.
GettyImages
Cristiano Ronaldo sale enabled United to turn a profit
The Premier League champions have been struggling under interest payments due on the debts which the Glazers ran up when borrowing in order to purchase the club. In the year up to June 30, 2009, they had to pay out £41.9 million in interest payments.
Although the club did record a pre-tax profit of £48.2 million, that figure includes the £80 million raised from the sale of Cristiano Ronaldo to Real Madrid. Without the sale of Ronaldo, the Red Devils would have been reporting a loss of £31.8 million. Turnover was up in the financial year, from £80.4 million in 2008 to £91.3 million.
The bond will be used to repay the "senior secured notes". It was thought that the Glazers would be looking to finance the £175 million worth of payment-in-kind notes that are currently attracting 14.25% interest. However, this is considered personal debt and will not be refinanced through bonds.
"Manchester United today announced that it will be seeking to raise approximately £500 million aggregate principal amount from an offering of senior secured notes due 2017,'' said a United statement. "The notes, whose proceeds will be used to refinance existing debt secured against the club, will be issued by MU Finance plc.''
But the Glazers will not be selling the club and intend to use the money saved from restructuring the debt to ensure significant money is available to Sir Alex Ferguson to spend in the transfer market.
ESPN Soccernet has been assured that the bond is not a prelude to a sale or in any way a manouvre to attract a buyer. The bond should attract institutions and City investors which will enable the club to repay at a stable and affordable rate of interest.
However, ESPNsoccernet has been informed by City experts, that this is by no means an attempt to find a new owner, or to sell the club, that is definitely not on the agenda.
Despite the world being in recession, Manchester United are the most profitable club in the world at a time when clubs like Manchester City and Chelsea are recording massive losses. But fans remain concerned about the bottom line without the Ronaldo cash.
The Glazers message is clear - none of the clubs figures, nor their desire to reshape their loans of £509 million impacts on manager Sir Alex Fergusons ability to reinvest in the transfer market So far Sir Alex has stated it is because he cannot find the players of the right quality and price, rather than it being a question of not having the money.
--its better to be a soccer player than an owner..that is why i stay clear football clubs shares
By Harry Harris and Soccernet staff
January 11, 2010
Comment
Manchester United confirmed on Monday they will look to raise £500 million through bonds to restructure their debts.
GettyImages
Cristiano Ronaldo sale enabled United to turn a profit
The Premier League champions have been struggling under interest payments due on the debts which the Glazers ran up when borrowing in order to purchase the club. In the year up to June 30, 2009, they had to pay out £41.9 million in interest payments.
Although the club did record a pre-tax profit of £48.2 million, that figure includes the £80 million raised from the sale of Cristiano Ronaldo to Real Madrid. Without the sale of Ronaldo, the Red Devils would have been reporting a loss of £31.8 million. Turnover was up in the financial year, from £80.4 million in 2008 to £91.3 million.
The bond will be used to repay the "senior secured notes". It was thought that the Glazers would be looking to finance the £175 million worth of payment-in-kind notes that are currently attracting 14.25% interest. However, this is considered personal debt and will not be refinanced through bonds.
"Manchester United today announced that it will be seeking to raise approximately £500 million aggregate principal amount from an offering of senior secured notes due 2017,'' said a United statement. "The notes, whose proceeds will be used to refinance existing debt secured against the club, will be issued by MU Finance plc.''
But the Glazers will not be selling the club and intend to use the money saved from restructuring the debt to ensure significant money is available to Sir Alex Ferguson to spend in the transfer market.
ESPN Soccernet has been assured that the bond is not a prelude to a sale or in any way a manouvre to attract a buyer. The bond should attract institutions and City investors which will enable the club to repay at a stable and affordable rate of interest.
However, ESPNsoccernet has been informed by City experts, that this is by no means an attempt to find a new owner, or to sell the club, that is definitely not on the agenda.
Despite the world being in recession, Manchester United are the most profitable club in the world at a time when clubs like Manchester City and Chelsea are recording massive losses. But fans remain concerned about the bottom line without the Ronaldo cash.
The Glazers message is clear - none of the clubs figures, nor their desire to reshape their loans of £509 million impacts on manager Sir Alex Fergusons ability to reinvest in the transfer market So far Sir Alex has stated it is because he cannot find the players of the right quality and price, rather than it being a question of not having the money.
--its better to be a soccer player than an owner..that is why i stay clear football clubs shares
Sunday, January 10, 2010
Current status of Mercator's ships.
Chaitali Prem is one of Mercator's new post-panamax vessel chartered in Sept 09. It is deployed to Refined Success a subsidiary of Cosco Group as part of a 3 year contract with a daily rate of US$39,500. It is now off the coast of South Africa. Its plying the Brazil - China iron ore route
http://aprs.fi/?call=247274800
Chanchal Prem is one of Mercator's new post-panamax vessel chartered in Oct 09. It is off the coast of Brazil. I presume its plying the Brazil - China iron ore route
http://aprs.fi/?call=538003661
Garima Prem is a gearless panamax owned by MLS. Currently contracted to Arcelor Mittal Group till Aug 2010 at US$60k/day. It is currently in USA near Virginia.
http://aprs.fi/?call=565554000&mt=m&z=2&timerange=3600
Garv Prem is an owned gearless Panamax. It is close to Singapore with a voyage destination to India. I am assuming that it is plying the Australia/Indonesia - India coal route.
http://www.marinetraffic.com/ais/defaul ... 40:07%20AM
Prem Veena is an owned Gearless Kamsarmax. It departed from Australia recently. Seems to be heading towards China. Could be plying the China - Australia coal route.
http://www.marinetraffic.com/ais/defaul ... 14:23%20PM
Prem Aparna is an owned geared Panamax. Currently off the coast of Russia in the Black Sea. Was travelling there from Turkey. Not too sure which route its playing. Could be on spot charter for one of the supply chain manager firms.
http://aprs.fi/?call=565272000
Prem Vidya is an owned geared Kamsarmax. Its now in Singapore. It was in China 2 weeks ago.
http://www.marinetraffic.com/ais/defaul ... 06:44%20PM
Prem Varsha is an owned Geared Kamsarmax. It is now in the Gulf of Mexico near New Orleans
http://aprs.fi/?call=565353000
Gaurav Prem is an owned gearless panamax. It is near India.
http://www.marinetraffic.com/ais/defaul ... 05:16%20PM
Kesari Prem is an owned geared panamax. It is off the coast of Malaysia and it is heading towards an Indian port.
http://www.marinetraffic.com/ais/defaul ... 15:34%20AM
Kanak Prem is a geared panamax. Not too much info. Left Singapore earlier this month.
http://www.marinetraffic.com/ais/defaul ... 28:09%20PM
Kalpana Prem is an owned geared panamax. It is heading towards the Suez.
http://www.marinetraffic.com/ais/defaul ... 12:56%20AM
Prem Putil is an owned VLOC. It is deployed to Vale for a 14 year contract to transport iron ore from Brazil to China. Its close to Madagascar heading towards Brazil.
http://www.marinetraffic.com/ais/defaul ... 29:45%20PM
The Board of Directors of Mercator Lines (Singapore) Limited (the “Company”) wishes to announce that the Company will be releasing its unaudited financial results for the third quarter ended 31 December 2009 on Thursday, 21st January 2010. The results will also be available on the Company's website at www.mllsg.com
another article:
The art of management
Pramoud Rao
Posted: Sunday, Jan 10, 2010 at 1907 hrs IST
“That some achieve great success, is proof to all that others can achieve it as well.”—Abraham Lincoln
Being in the business of protecting lives and other precious objects, keen observation is to me as spots to a leopard. I have been observing the growth of Mercator Lines for quite some time now. Lincoln’s quote above truly embodies what I feel whenever I see or read about Mercator’s achievements.
Incorporated in 1983, Mercator Lines is the second largest private sector shipping company in India in terms of tonnage. Since its inception, the company has overcome conventional barriers of the shipping industry and has succeeded in providing the most optimal shipping solutions.
From a traditional tanker company Mercator has diversified interests in transportation, dredging, oil and gas, ship management services, marine logistics and offshore services. It has also made its presence global by setting subsidiaries in Singapore, Mozambique and Indonesia. All this is due to one man’s vision and keen insight—HK Mittal. Aged 60 years, Mittal, Executive Chairman of the company, acquired Mercator in 1988. An enterprising individual, Mittal has been able to bring transparency and professionalism in a traditional industry like shipping. Living up to opportunities around him and making the most of his resources, he has been able to create the fastest-growing shipping company of today (From Rs 65 lakh in 1988, the firm’s revenue increased to Rs 2,200 crore in the year ended March 31, 2009).
Close observations indicate that the company has been able to transform barriers into opportunities for further growth. Considering the cyclical nature of the global shipping industry, the company steered its way by diversifying into various businesses, oil and natural gas exploration being one of them. Thus today, with Western economies emerging from recession, Mercator is expected to benefit from a possible upturn in the global demand for exploring and transporting crude oil and other products.
The business model of Mercator Lines is simple—aggressively grab every opportunity, thereby derisking the business, while locking in its vessels for long-term contracts to mitigate the volatility of freight rates. A strategy that Mittal led his team to believe in and execute successfully, setting a proud example for India Inc as a whole.
One of Mercators core value is “honouring commitment towards stakeholders”. Truly, living up to this, the company has grown from strength to strength over the last 25 years, expanding both horizontally and vertically, thereby building immense shareholder value.
A perfect example of rags to riches, Mercator has grown from a moderate barge operator to India’s second largest private sector company with six solid verticals.
Mercator’s success story can also be attributed to it mastering the art of managing people. It has laid great emphasis on human capital development, talent management and retention. It has successfully inculcated within each employee the ‘Mercatorian’ spirit of innovation. Testimony to this is the gamut awards one not only individually by Mittal, but also by the company both in India and abroad. My conclusion lies in HK Mittal’s humble words, “And this is just the beginning.”.
- The Financial Express
Chaitali Prem is one of Mercator's new post-panamax vessel chartered in Sept 09. It is deployed to Refined Success a subsidiary of Cosco Group as part of a 3 year contract with a daily rate of US$39,500. It is now off the coast of South Africa. Its plying the Brazil - China iron ore route
http://aprs.fi/?call=247274800
Chanchal Prem is one of Mercator's new post-panamax vessel chartered in Oct 09. It is off the coast of Brazil. I presume its plying the Brazil - China iron ore route
http://aprs.fi/?call=538003661
Garima Prem is a gearless panamax owned by MLS. Currently contracted to Arcelor Mittal Group till Aug 2010 at US$60k/day. It is currently in USA near Virginia.
http://aprs.fi/?call=565554000&mt=m&z=2&timerange=3600
Garv Prem is an owned gearless Panamax. It is close to Singapore with a voyage destination to India. I am assuming that it is plying the Australia/Indonesia - India coal route.
http://www.marinetraffic.com/ais/defaul ... 40:07%20AM
Prem Veena is an owned Gearless Kamsarmax. It departed from Australia recently. Seems to be heading towards China. Could be plying the China - Australia coal route.
http://www.marinetraffic.com/ais/defaul ... 14:23%20PM
Prem Aparna is an owned geared Panamax. Currently off the coast of Russia in the Black Sea. Was travelling there from Turkey. Not too sure which route its playing. Could be on spot charter for one of the supply chain manager firms.
http://aprs.fi/?call=565272000
Prem Vidya is an owned geared Kamsarmax. Its now in Singapore. It was in China 2 weeks ago.
http://www.marinetraffic.com/ais/defaul ... 06:44%20PM
Prem Varsha is an owned Geared Kamsarmax. It is now in the Gulf of Mexico near New Orleans
http://aprs.fi/?call=565353000
Gaurav Prem is an owned gearless panamax. It is near India.
http://www.marinetraffic.com/ais/defaul ... 05:16%20PM
Kesari Prem is an owned geared panamax. It is off the coast of Malaysia and it is heading towards an Indian port.
http://www.marinetraffic.com/ais/defaul ... 15:34%20AM
Kanak Prem is a geared panamax. Not too much info. Left Singapore earlier this month.
http://www.marinetraffic.com/ais/defaul ... 28:09%20PM
Kalpana Prem is an owned geared panamax. It is heading towards the Suez.
http://www.marinetraffic.com/ais/defaul ... 12:56%20AM
Prem Putil is an owned VLOC. It is deployed to Vale for a 14 year contract to transport iron ore from Brazil to China. Its close to Madagascar heading towards Brazil.
http://www.marinetraffic.com/ais/defaul ... 29:45%20PM
The Board of Directors of Mercator Lines (Singapore) Limited (the “Company”) wishes to announce that the Company will be releasing its unaudited financial results for the third quarter ended 31 December 2009 on Thursday, 21st January 2010. The results will also be available on the Company's website at www.mllsg.com
another article:
The art of management
Pramoud Rao
Posted: Sunday, Jan 10, 2010 at 1907 hrs IST
“That some achieve great success, is proof to all that others can achieve it as well.”—Abraham Lincoln
Being in the business of protecting lives and other precious objects, keen observation is to me as spots to a leopard. I have been observing the growth of Mercator Lines for quite some time now. Lincoln’s quote above truly embodies what I feel whenever I see or read about Mercator’s achievements.
Incorporated in 1983, Mercator Lines is the second largest private sector shipping company in India in terms of tonnage. Since its inception, the company has overcome conventional barriers of the shipping industry and has succeeded in providing the most optimal shipping solutions.
From a traditional tanker company Mercator has diversified interests in transportation, dredging, oil and gas, ship management services, marine logistics and offshore services. It has also made its presence global by setting subsidiaries in Singapore, Mozambique and Indonesia. All this is due to one man’s vision and keen insight—HK Mittal. Aged 60 years, Mittal, Executive Chairman of the company, acquired Mercator in 1988. An enterprising individual, Mittal has been able to bring transparency and professionalism in a traditional industry like shipping. Living up to opportunities around him and making the most of his resources, he has been able to create the fastest-growing shipping company of today (From Rs 65 lakh in 1988, the firm’s revenue increased to Rs 2,200 crore in the year ended March 31, 2009).
Close observations indicate that the company has been able to transform barriers into opportunities for further growth. Considering the cyclical nature of the global shipping industry, the company steered its way by diversifying into various businesses, oil and natural gas exploration being one of them. Thus today, with Western economies emerging from recession, Mercator is expected to benefit from a possible upturn in the global demand for exploring and transporting crude oil and other products.
The business model of Mercator Lines is simple—aggressively grab every opportunity, thereby derisking the business, while locking in its vessels for long-term contracts to mitigate the volatility of freight rates. A strategy that Mittal led his team to believe in and execute successfully, setting a proud example for India Inc as a whole.
One of Mercators core value is “honouring commitment towards stakeholders”. Truly, living up to this, the company has grown from strength to strength over the last 25 years, expanding both horizontally and vertically, thereby building immense shareholder value.
A perfect example of rags to riches, Mercator has grown from a moderate barge operator to India’s second largest private sector company with six solid verticals.
Mercator’s success story can also be attributed to it mastering the art of managing people. It has laid great emphasis on human capital development, talent management and retention. It has successfully inculcated within each employee the ‘Mercatorian’ spirit of innovation. Testimony to this is the gamut awards one not only individually by Mittal, but also by the company both in India and abroad. My conclusion lies in HK Mittal’s humble words, “And this is just the beginning.”.
- The Financial Express
Wednesday, January 6, 2010
Tuesday, December 29, 2009
Monday, December 21, 2009
My short summary on Mercator Lines (Singapore)
from forummer in channelnewsasia
Mercator Lines Singapore Ltd (MLS) is one of the largest fleet owners in the Indian dry bulk shipping market. It has a total of 14 ships in its fleet of which 11 are owned by the company. Mercator deals with the transport of iron ore and coal between China, Australia and India. It recently won a Vale contract to transport iron ore from Brazil to China using its new VLOC (Very Large Ore Carrier). Most of its clients are repeat blue chips customers like the Tata Group, Ancelor Mittal Steel group, Cosco etc.
Mercator Group History
Mercator LS is a listed subsidiary of Mercator LL India (an Indian company) which offers full logistics solutions to their customers from load port to the point of usage in India. MLS provides support to the Mercator Group by transporting bulk commodities via sea transportation. Mercator LL India owns over 70% of MLS. A strong parent will benefit a young company such as MLS as it allows her to tap into the managerial experience of her parent or gain financial support through the issue of convertible bonds or rights to her parent in order to acquire more ships. Moreover, most of MLS blue chips Indian clients favour it due to its affiliation with Mercator India which is considered to be a large domestic Indian player. This is further possible due a non-competition pact between the 2 entities.
MLS Fleet
MLS's fleet size is 14 vessels - 11 owned and 3 chartered ships. One more chartered ship will be delivered next year for a 10 year charter. This will bring the fleet size to 15 vessels by 2010. MLS Fleet consist of 7 gearless vessels, 1 VLOC and 7 geared vessels. 'Geared Vessels' have on-board cranes, which facilitate loading and unloading in undeveloped ports, such as those in India and Indonesia. These vessels gives Mercator an edge over its competitors since it has one of the largest geared fleet in the region and most of its clients (Indonesia and India) ports do not have much modern facilities such as cranes. Its new VLOC will ply the Brazil-China route for the next 14 years as part of MLS's recent contract with Vale. MLS fleet is very young and modern since the average age of its owned fleet is merely 6 years. MLS fleet capacity is 1.29mil DWT (excluding the incoming vessel next year). This makes it the second largest dry bulk shipper listed here just behind STX PO.
MLS Operation Style
It is focused on India and other high growth markets, such as China. They have established a strong market presence in the transportation of coal into India having rapidly grown its fleet of 14 vessels hence enabling it to get repeat business from reputable customers such as Tata Power, Cosco, Mittal etc. Its recent contract win from Vale shows that it has truly matured from toddler to a matured adolescent; allowing it to venture to new growth markets and attracting new blue chip clients.
MLS main operations - i) transport ores from Brazil to China using its VLOC, ii) transport of coal from Australia and Indonesia to India thermal plants, iii) transport of iron ores from India to China.
In order to fulfill their operations, MLS often hedge their exposure to the spot markets by committing themselves to long term contracts with their clients. Currently MLS Management has limited their exposure to spot markets by securing long term charters for 70% of their fleet capacity. This gives the MLS a predictable source of cash flow while steering clear of the volatility of the BDI and freight rates. Hence despite a difficult freight rate environment, fleet utilization maintained above 99%. This is unlike Courage Marine which focuses solely on short term charters whereby its utilization rate is merely 70%. This is one of the reasons why MLS remains profitable this year unlike spot charters such as Courage Marine or STX PO.
MLS Long Term Charter -
a) Tata Power -> $320mil, 3-4 geared vessels to transport 3.2m tons of coal from Indonesia, June 08 - May 12.
b) Vale -> Transportation of iron ore from Brazil to China via VLOC, 14 year from May 09 - May 23, $209mil approx
c) Cosco -> Sept 09 - Aug 12, 1 vessel, $39.5K/day
d) Arcelor Mittal -> Sept 08 - Aug 10, 1 vessel, $60K/day
e) European Charter -> Jul 09 - Jun 10, 1 vessel, $15.19K/day
The first 3 contracts alone will guarantee a combined revenue of over $110mil for 2010 and 2011. This is over 60% of FY 2009 revenue. Hence, despite the volatility of the BDI, MLS is well prepared to remain profitable and well-capitalised due to her Management usage of long term charters. This also illustrates the Management desire for 70% of her revenues to be derived from long-term charters.
It must be noted that 2 of the charters expire next year. If the company is unable to get an extension from Mittal or a new contract from a different company, it will place a burden on MLS finances.
Mercator Financial Highlights
Mercator Financial Year ends at March 31. We are now in 3Q 2010 in MLS Financial Calendar.
From 2006 to 2009, Mercator has recorded excellent growths of revenue, net profits, margins and equity. Revenue shot up 3 fold while net profit was up a whooping 15 fold from 4 mil to over 75mil. This is evident in the rise of net margins from 8% to 40% in 2009. This is due to a decrease in freight chargers as initially MLS only chartered their ship. Only in 2008, did MLS number of owned ships outweight its chartered ships (7 to 5). The Management exercise of its option to purchase one of the chartered ships (Ocean Senang) and its purchase of new ships eventually led to a respectable 11 owned ships and 3 charted ships today. MLS has stabilised its ROE at the 20% level for the past 2 years.
In its 1H 10, its revenues has dipped 34% and net profits has plunged by 59% while margins are at 28% levels. The decrease in revenue is largely due to decline in spot market day rates and renewal of long term contracts at rates lower than the previous rates. Due to the above, Time Charter Equivalent (TCE) rate per vessel per day for the half year ended September 30,2009 decreased to US$28,187 as compared to a TCE rate per day per vessel of US$48,327 for the corresponding half year in the previous year representing a decrease of 42%.
On the bright side, the total number of vessel operating days for the half year ended September 30, 2009 was 2,218 days compared with 2,089 days for the half year ended September 30, 2008. Moreover, its vessel hire charges for the half year ended September 30, 2009 decreased by 58% to US$7.1 million as compared to US$16.7 million for the half year ended September 30, 2008. This is due to a drop in hiring rates from shipping chartering companies.
After MLS IPO, its equity was 259 mil in 2008. It has managed to increase its equity to over 350mil in Sept 09. However liquidity and credit risk might be an issue. Its net current assets is negative for the first time in its history accompanied by a little over 14mil cash. Its total debts is 257mil (bank loans plus 13mil convertible bonds) of which 34mil are due this year. Its net debt to equity ratio is 0.69 slightly up from the previous year of 0.67. While its gross debt levels has been dropping over the past 2 years from 311 to 257 mil in Sept 09 due to its repayments, its net debt levels are rising. This is the result of MLS utilizing its cash to acquire more vessels.
MLS has a debt principal repayment commitment (excluding the CB) as follows-
FY 2010 - 19.4 mil
FY 2011 - 30.7 mil
FY 2012 - 25.7 mil
FY 2013 - 24.3 mil
FY 2015 - 23.6 mil
This would total up to over $124 mil. I am confident that MLS is able to meet its commitments as it commands high positive operating cashflow. For FY 08 and 09, its operating cashflow exceeded $100mil while 1H 10 recorded a cash inflow of $38mil. Since MLS has no more vessel acquisition plans for now, I believe most of operating cashflow will be diverted to debt repayments and other payables.
Share Price:
Its current share price is 30.5 SGD cents. Its annualised EPS for 2010 is USD 3.2 cents with a NAV of 28 USD cents. This means that it is trading at a PE of 6.9 and P/B of 0.79 with an annualised ROE of 11%. Considering that its fellow dry bulk counters (STX PO and Courage Marine) are in the red now, we cannot compare their PE ratios. STX PO P/B is 0.98 and Courage Marine P/B is 1.30. Since Mercator is profitable due to its long term charters, there is hardly any reason why it should be trading at such a valuation!
Outlook:
While the hey-days on Late 07- Mid 08 will not return for a long time, I do forsee a stable BDI between 3000-5000 levels for the next few years. There are 2 factors which affect the dry bulk industry - Supply of Ships and Demand of Commodities.
Demand - Emerging countries such as China and India require large amount of coal for their energy due to increased consumption from their growing population. Indian Goal 2012 seeks to have 10 000MW of energy from coal based plants. Current levels are only 5700MW hence there will be greater demands for coal from Australia and Indonesia. The real estate and property market in China is recovering rapidly with a 19% yoy growth in Aug. Floor space under construction has increased by over 22% yoy. This is due to greater housing demand from the Chinese population which will only grow stronger as they become more affluent and numbers increased. The property sector accounts for one-third of Chinese steel consumption so the demand for iron ore is sustainable in the long term. Hence the pace of contraction in the steel industry has narrowed sharply from almost 40% down to only 4.6% lower. India and Brazil are one of the largest exporters of iron ore to China. Since MLS has active dealings with both sides, it will benefit greatly from the demand boom.
Supply - Substantial number of ships have been cancelled/delayed or scrapped recently. As a result only around 40% of the 2009 orderbook was eventually delivered. Since this is expected to carry on in 2010, it will reduce the impact of vessel over-capacity in the near term. However the annual fleet growth will still be around 6%. Since the current BDI level already reflects this impact, I do not foresee any massive and prolonged drop in the current BDI level. This is one of the major risk in investing in Mercator – volatile spot rates.
Conclusion:
India and China needs coal to increase the power output for the increasing population and growing industries. Iron ore is needed to make steel to build up their economic infrastructure - ports, railways, bridges, roads and social infrastructures - houses and offices. In order to meet their demand, they need to utilize dry bulk carriers to transport the raw materials over from the supply zones like Indonesia and Australia. This is where Mercator comes in and this is why Mercator is still and will be profitable!
THE ONLY PROFITABLE SHIPPING COMPANY IN SGX
from forummer in channelnewsasia
Mercator Lines Singapore Ltd (MLS) is one of the largest fleet owners in the Indian dry bulk shipping market. It has a total of 14 ships in its fleet of which 11 are owned by the company. Mercator deals with the transport of iron ore and coal between China, Australia and India. It recently won a Vale contract to transport iron ore from Brazil to China using its new VLOC (Very Large Ore Carrier). Most of its clients are repeat blue chips customers like the Tata Group, Ancelor Mittal Steel group, Cosco etc.
Mercator Group History
Mercator LS is a listed subsidiary of Mercator LL India (an Indian company) which offers full logistics solutions to their customers from load port to the point of usage in India. MLS provides support to the Mercator Group by transporting bulk commodities via sea transportation. Mercator LL India owns over 70% of MLS. A strong parent will benefit a young company such as MLS as it allows her to tap into the managerial experience of her parent or gain financial support through the issue of convertible bonds or rights to her parent in order to acquire more ships. Moreover, most of MLS blue chips Indian clients favour it due to its affiliation with Mercator India which is considered to be a large domestic Indian player. This is further possible due a non-competition pact between the 2 entities.
MLS Fleet
MLS's fleet size is 14 vessels - 11 owned and 3 chartered ships. One more chartered ship will be delivered next year for a 10 year charter. This will bring the fleet size to 15 vessels by 2010. MLS Fleet consist of 7 gearless vessels, 1 VLOC and 7 geared vessels. 'Geared Vessels' have on-board cranes, which facilitate loading and unloading in undeveloped ports, such as those in India and Indonesia. These vessels gives Mercator an edge over its competitors since it has one of the largest geared fleet in the region and most of its clients (Indonesia and India) ports do not have much modern facilities such as cranes. Its new VLOC will ply the Brazil-China route for the next 14 years as part of MLS's recent contract with Vale. MLS fleet is very young and modern since the average age of its owned fleet is merely 6 years. MLS fleet capacity is 1.29mil DWT (excluding the incoming vessel next year). This makes it the second largest dry bulk shipper listed here just behind STX PO.
MLS Operation Style
It is focused on India and other high growth markets, such as China. They have established a strong market presence in the transportation of coal into India having rapidly grown its fleet of 14 vessels hence enabling it to get repeat business from reputable customers such as Tata Power, Cosco, Mittal etc. Its recent contract win from Vale shows that it has truly matured from toddler to a matured adolescent; allowing it to venture to new growth markets and attracting new blue chip clients.
MLS main operations - i) transport ores from Brazil to China using its VLOC, ii) transport of coal from Australia and Indonesia to India thermal plants, iii) transport of iron ores from India to China.
In order to fulfill their operations, MLS often hedge their exposure to the spot markets by committing themselves to long term contracts with their clients. Currently MLS Management has limited their exposure to spot markets by securing long term charters for 70% of their fleet capacity. This gives the MLS a predictable source of cash flow while steering clear of the volatility of the BDI and freight rates. Hence despite a difficult freight rate environment, fleet utilization maintained above 99%. This is unlike Courage Marine which focuses solely on short term charters whereby its utilization rate is merely 70%. This is one of the reasons why MLS remains profitable this year unlike spot charters such as Courage Marine or STX PO.
MLS Long Term Charter -
a) Tata Power -> $320mil, 3-4 geared vessels to transport 3.2m tons of coal from Indonesia, June 08 - May 12.
b) Vale -> Transportation of iron ore from Brazil to China via VLOC, 14 year from May 09 - May 23, $209mil approx
c) Cosco -> Sept 09 - Aug 12, 1 vessel, $39.5K/day
d) Arcelor Mittal -> Sept 08 - Aug 10, 1 vessel, $60K/day
e) European Charter -> Jul 09 - Jun 10, 1 vessel, $15.19K/day
The first 3 contracts alone will guarantee a combined revenue of over $110mil for 2010 and 2011. This is over 60% of FY 2009 revenue. Hence, despite the volatility of the BDI, MLS is well prepared to remain profitable and well-capitalised due to her Management usage of long term charters. This also illustrates the Management desire for 70% of her revenues to be derived from long-term charters.
It must be noted that 2 of the charters expire next year. If the company is unable to get an extension from Mittal or a new contract from a different company, it will place a burden on MLS finances.
Mercator Financial Highlights
Mercator Financial Year ends at March 31. We are now in 3Q 2010 in MLS Financial Calendar.
From 2006 to 2009, Mercator has recorded excellent growths of revenue, net profits, margins and equity. Revenue shot up 3 fold while net profit was up a whooping 15 fold from 4 mil to over 75mil. This is evident in the rise of net margins from 8% to 40% in 2009. This is due to a decrease in freight chargers as initially MLS only chartered their ship. Only in 2008, did MLS number of owned ships outweight its chartered ships (7 to 5). The Management exercise of its option to purchase one of the chartered ships (Ocean Senang) and its purchase of new ships eventually led to a respectable 11 owned ships and 3 charted ships today. MLS has stabilised its ROE at the 20% level for the past 2 years.
In its 1H 10, its revenues has dipped 34% and net profits has plunged by 59% while margins are at 28% levels. The decrease in revenue is largely due to decline in spot market day rates and renewal of long term contracts at rates lower than the previous rates. Due to the above, Time Charter Equivalent (TCE) rate per vessel per day for the half year ended September 30,2009 decreased to US$28,187 as compared to a TCE rate per day per vessel of US$48,327 for the corresponding half year in the previous year representing a decrease of 42%.
On the bright side, the total number of vessel operating days for the half year ended September 30, 2009 was 2,218 days compared with 2,089 days for the half year ended September 30, 2008. Moreover, its vessel hire charges for the half year ended September 30, 2009 decreased by 58% to US$7.1 million as compared to US$16.7 million for the half year ended September 30, 2008. This is due to a drop in hiring rates from shipping chartering companies.
After MLS IPO, its equity was 259 mil in 2008. It has managed to increase its equity to over 350mil in Sept 09. However liquidity and credit risk might be an issue. Its net current assets is negative for the first time in its history accompanied by a little over 14mil cash. Its total debts is 257mil (bank loans plus 13mil convertible bonds) of which 34mil are due this year. Its net debt to equity ratio is 0.69 slightly up from the previous year of 0.67. While its gross debt levels has been dropping over the past 2 years from 311 to 257 mil in Sept 09 due to its repayments, its net debt levels are rising. This is the result of MLS utilizing its cash to acquire more vessels.
MLS has a debt principal repayment commitment (excluding the CB) as follows-
FY 2010 - 19.4 mil
FY 2011 - 30.7 mil
FY 2012 - 25.7 mil
FY 2013 - 24.3 mil
FY 2015 - 23.6 mil
This would total up to over $124 mil. I am confident that MLS is able to meet its commitments as it commands high positive operating cashflow. For FY 08 and 09, its operating cashflow exceeded $100mil while 1H 10 recorded a cash inflow of $38mil. Since MLS has no more vessel acquisition plans for now, I believe most of operating cashflow will be diverted to debt repayments and other payables.
Share Price:
Its current share price is 30.5 SGD cents. Its annualised EPS for 2010 is USD 3.2 cents with a NAV of 28 USD cents. This means that it is trading at a PE of 6.9 and P/B of 0.79 with an annualised ROE of 11%. Considering that its fellow dry bulk counters (STX PO and Courage Marine) are in the red now, we cannot compare their PE ratios. STX PO P/B is 0.98 and Courage Marine P/B is 1.30. Since Mercator is profitable due to its long term charters, there is hardly any reason why it should be trading at such a valuation!
Outlook:
While the hey-days on Late 07- Mid 08 will not return for a long time, I do forsee a stable BDI between 3000-5000 levels for the next few years. There are 2 factors which affect the dry bulk industry - Supply of Ships and Demand of Commodities.
Demand - Emerging countries such as China and India require large amount of coal for their energy due to increased consumption from their growing population. Indian Goal 2012 seeks to have 10 000MW of energy from coal based plants. Current levels are only 5700MW hence there will be greater demands for coal from Australia and Indonesia. The real estate and property market in China is recovering rapidly with a 19% yoy growth in Aug. Floor space under construction has increased by over 22% yoy. This is due to greater housing demand from the Chinese population which will only grow stronger as they become more affluent and numbers increased. The property sector accounts for one-third of Chinese steel consumption so the demand for iron ore is sustainable in the long term. Hence the pace of contraction in the steel industry has narrowed sharply from almost 40% down to only 4.6% lower. India and Brazil are one of the largest exporters of iron ore to China. Since MLS has active dealings with both sides, it will benefit greatly from the demand boom.
Supply - Substantial number of ships have been cancelled/delayed or scrapped recently. As a result only around 40% of the 2009 orderbook was eventually delivered. Since this is expected to carry on in 2010, it will reduce the impact of vessel over-capacity in the near term. However the annual fleet growth will still be around 6%. Since the current BDI level already reflects this impact, I do not foresee any massive and prolonged drop in the current BDI level. This is one of the major risk in investing in Mercator – volatile spot rates.
Conclusion:
India and China needs coal to increase the power output for the increasing population and growing industries. Iron ore is needed to make steel to build up their economic infrastructure - ports, railways, bridges, roads and social infrastructures - houses and offices. In order to meet their demand, they need to utilize dry bulk carriers to transport the raw materials over from the supply zones like Indonesia and Australia. This is where Mercator comes in and this is why Mercator is still and will be profitable!
THE ONLY PROFITABLE SHIPPING COMPANY IN SGX
Sunday, December 20, 2009
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Nasdaq Composite
VIX21.59-0.73-3.27%
CBOE Volatility index
CURRENCIES--LOOK AT HOW USD SURGES UP WITH US STOCKS UP!!
IDIOTS WILL BELIEVE THE TREND USD DOWN, US STOCKS UP WILL NEVER CHANGE..they will be the sacrificial lambs when fed meets on 16dec 2009
Euro1.4615-0.0117-0.79%
Yen89.10.90+1.02%
Pound1.626-0.0017-0.1%
FRANC1.03420.0084+0.82%
CANADA1.060.0085+0.81%
why is EVERY ECONOMIC CRISES AND RECOVERY SELF DIRECTED AND SELF ACTED BY THE GOVERNMENT?
let me explain to you the mechanisms behind every crises and recovery..
1.stock market ramped up for economy to boom..
2.stockmarket ramped up furiously in last stages to enable BIG players to get out and drag idiots in in FINAL stages of stockmarket boom..economy just boomed then, everybody has BIG bonuses, want to START buying stocks.
3.BIG players DISTRIBUTE to them..ramped up furiously is to "create" euphoria and "more space" to short ALL the way down later..
4. after stockmarket peak comes the CRASH,MASSIVE SHORTING time!!!
5.due to shorting needs TO PAY interest per annum and at the most only 100 percent gain(if stock market crash to zero--hahaha),as compared to bull markets,where by gains can be 1000percent or even more, THAT EXPLAINS WHY A BEAR MARKET IS ALWAYS SHORTER THAN BULL MARKETS
6. after massive shorting of stockmarkets come UNEMPLOYMENT in the economy due to LISTED companies share price tumble, retrench staff to cut costs,thru multiplier effect,it spreads to whole world and all industries.
7.after stockmarket hits what the lift operators target of bottom, lift operators started buying back,at this time STRANGELY,government will step in to "HELP" the affected companies(BUT MUST BE BIGGEST IN MARKET CAP),SMALLER ONES CAN go and die,FOR FUCK THEY CARE,eg lehmann brothers
8.Strangely, central banks will also start printing money to "create" a recovery..just empty money created from nowhere to "INFLATE" the markets and hence the economy back up.
9. after pushing up,the government has to take back the EXCESSIVE printing of money ,otherwise massive inflation will thus result..so they take back slowly,raising interest rates and taxes GRADUALLY(because taking money from citizens is much harder than GIVING money to them,many countries citizens will revolt)
that also adds to the fact why bull markets are "LONGER" LASTING THAN BEAR MARKETS--
BECAUSE GOVERNMENTS IN WORLD NEED "longer" time to take back the excessive money..
10. and the whole CYCLE REPEATS
the end of my thorough analysis of ECONOMIC KELONG "CRISIS" AND "RECOVERY"
I SAW VERY CLEAR FROM THIS SUBPRIME THAT ECONOMIC CRISES AND RECOVERY ARE ALL MANMADE..
WHEN SOMETHING IS SO PREDICTABLE--I PREDICTED THE MARCH BOTTOM AND THE TRENDS CHANGING--it is so ARTIFICIAL THAT I WANT TO PUKE!!!!
self directed and self acted drama serial
let me explain to you the mechanisms behind every crises and recovery..
1.stock market ramped up for economy to boom..
2.stockmarket ramped up furiously in last stages to enable BIG players to get out and drag idiots in in FINAL stages of stockmarket boom..economy just boomed then, everybody has BIG bonuses, want to START buying stocks.
3.BIG players DISTRIBUTE to them..ramped up furiously is to "create" euphoria and "more space" to short ALL the way down later..
4. after stockmarket peak comes the CRASH,MASSIVE SHORTING time!!!
5.due to shorting needs TO PAY interest per annum and at the most only 100 percent gain(if stock market crash to zero--hahaha),as compared to bull markets,where by gains can be 1000percent or even more, THAT EXPLAINS WHY A BEAR MARKET IS ALWAYS SHORTER THAN BULL MARKETS
6. after massive shorting of stockmarkets come UNEMPLOYMENT in the economy due to LISTED companies share price tumble, retrench staff to cut costs,thru multiplier effect,it spreads to whole world and all industries.
7.after stockmarket hits what the lift operators target of bottom, lift operators started buying back,at this time STRANGELY,government will step in to "HELP" the affected companies(BUT MUST BE BIGGEST IN MARKET CAP),SMALLER ONES CAN go and die,FOR FUCK THEY CARE,eg lehmann brothers
8.Strangely, central banks will also start printing money to "create" a recovery..just empty money created from nowhere to "INFLATE" the markets and hence the economy back up.
9. after pushing up,the government has to take back the EXCESSIVE printing of money ,otherwise massive inflation will thus result..so they take back slowly,raising interest rates and taxes GRADUALLY(because taking money from citizens is much harder than GIVING money to them,many countries citizens will revolt)
that also adds to the fact why bull markets are "LONGER" LASTING THAN BEAR MARKETS--
BECAUSE GOVERNMENTS IN WORLD NEED "longer" time to take back the excessive money..
10. and the whole CYCLE REPEATS
the end of my thorough analysis of ECONOMIC KELONG "CRISIS" AND "RECOVERY"
I SAW VERY CLEAR FROM THIS SUBPRIME THAT ECONOMIC CRISES AND RECOVERY ARE ALL MANMADE..
WHEN SOMETHING IS SO PREDICTABLE--I PREDICTED THE MARCH BOTTOM AND THE TRENDS CHANGING--it is so ARTIFICIAL THAT I WANT TO PUKE!!!!
self directed and self acted drama serial
Tuesday, December 8, 2009
Bubble tea is back!
October 11th, 2009
If you don’t know what bubble tea is, we’re talking about something you need to try! It goes by various names in English and usually includes a few of the following words: frothy Taiwan-style pearl tapioca milk tea! In Cantonese, there are a couple of names, but the most common is pronounced something like ‘zun (rhymes with gun) ju lai cha’. (Say it fast enough and it won’t make a difference!)
Ten years ago there were bubble-tea places all over the city. Walking around Hong Kong, a few could be found in every major neighborhood. But last year when I had a craving, I had to criss-cross the city just to get a tea. What happened?
As a business, tea houses which serve bubble tea and side snacks (such as the delicious pillow toast,) have had a difficult time maintaining profitability. Once again, Hong Kong’s high rents are a spoiler of our collective good time. You can still find branches of Saint’s Alp and RBT, (two popular chains,) but the sit-down type locations aren’t anywhere near as common as they once were.
The plot thickens…
At the beginning of summer, I started noticing long lines forming on the street in new places. Taking a closer look, people were walking away holding cups with fat straws – a tell-tale sign of bubble tea!
This time around they’ve changed their format and have come back as drink stalls. Selling bubble tea from drink stands appears to be more efficient. Now they can fit into smaller, pedestrian-heavy ground-floor locations, rather than rely on space in expensive shopping centers. Gone are the seats and kitchen, which drag down the ratio of profit per square-foot. Neighborhoods such as Mongkok, Wanchai, and Causeway Bay all boast several new outlets.
Besides an increase in locations, another positive for consumers is that the prices for drinks seem to be slightly lower than before. Perhaps this is just an introductory offer to get people hooked again!
Quick tip: go with the most basic flavor. (In winter, try a hot one!) Stay away from the fruit choices, which seem to lean heavily towards artificial colors and flavors.
Bubble tea is definitely one of small pleasures of life in Hong Kong! Welcome back!
MY NEXT HUAT BUSINESS!!!
Container shipper Neptune Orient Lines says for the 4 weeks from Oct 17 to Nov 13 (Period 11), container shipping volumes increased 23% y-o-y to 208,000 FEU (Forty-foot Equivalent Unit) while average revenue per FEU declined 28% y-o-y to US$2,239 ($3,109).
The increase in volume was mainly due to higher volumes lifted in several trade lanes. Lower average revenue per FEU was due to lower core freight rates and lower bunker recovery.
news at 5.19pm 7th dec 2009
after market closes
FROM BLOOMBERG
Yen, Dollar Rise on Rate Outlook, Gold Falls Most in 14 Months Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Justin Carrigan
Dec. 7 (Bloomberg) -- The yen strengthened and the dollar rose to its highest level in a month against the euro as investors weighed whether the world economy is recovering fast enough to warrant higher central bank interest rates. Gold headed for the steepest two-day retreat since October 2008.
The yen advanced against all 16 most-traded currencies tracked by Bloomberg at 10:21 a.m. in New York. The dollar gained versus 13. The MSCI Emerging Markets Index dropped for a second straight day as Dubai’s equity index plunged 5.8 percent to a four-month low. Gold fell 2.1 percent in New York, while crude oil dropped a fourth consecutive day. European equities fell, while the Standard & Poor’s 500 Index rallied.
Federal Reserve Chairman Ben Bernanke speaks today for the first time since the Dec. 4 U.S. employment report signaled a surprise drop in the jobless rate, stoking expectations the Fed may raise rates sooner than economists had anticipated. Investors are concerned banks may have to increase writedowns that have reached $1.7 trillion worldwide since the credit crunch began, as Dubai World seeks to delay payment on $26 billion of debt.
“On the U.S. dollar front we now have an early indication on the level of volatility that a shift in monetary policy can trigger,” Khurram Butt, in the Treasury sales division of Europe Arab Bank Plc in London, wrote in a client note. “Before the job report, the chances of a June Federal Reserve rate hike was implied at only 35 percent, but this jumped to above 50 percent after the unemployment number came out.”
Yen, Dollar Gain
The yen rose most against higher-yielding currencies, advancing 1.5 percent versus the New Zealand dollar. The U.S. dollar traded at its highest level since Nov. 4 versus the euro, extending gains made at the end of last week that followed the U.S. employment report.
Treasury two-year notes advanced on speculation Bernanke may try to damp optimism about the strength of the economic recovery in his speech today. The benchmark two-year note yield fell two basis points to 0.81 percent.
The U.S. lost 11,000 jobs in November, less than the 125,000 median forecast of 82 economists in a Bloomberg survey, the Labor Department said Dec. 4. Fed-funds futures contracts on the Chicago Board of Trade showed today a 16 percent probability the central bank will increase its benchmark overnight rate to at least 0.5 percent by March, up from 11 percent a week ago.
Gold futures for February delivery in New York extended their decline since Dec. 3 to 6 percent, falling to $1,145 an ounce as the Dollar Index’s advance curbed the metal’s appear as an alternative asset.
Four-Day Retreat
Crude oil futures slumped 1.3 percent and have now lost 4.9 percent since Dec. 1. The Reuters/Jefferies CRB Index of commodities declined for a fourth day, the longest losing streak since August.
The Dubai Financial Market General Index sank the most among benchmark equity indexes worldwide. The measure has tumbled 17 percent since Dubai announced on Nov. 25 that state- owned Dubai World would ask creditors for a “standstill” agreement on its debt, including property company Nakheel PJSC’s $3.5 billion bond due for repayment in a week.
Russia’s Micex Index dropped 1.4 percent as oil company OAO Rosneft sank on falling crude prices. South Africa’s FTSE/JSE Africa All Shares Index declined 0.9 percent, after gold producer AngloGold Ashanti Ltd. retreated 3.7 percent.
Europe, U.S. Stocks
The Dow Jones Stoxx 600 Index, the benchmark for European stocks, slumped 0.3 percent. Fresnillo Plc, the world’s largest primary silver producer, and Xstrata Plc led basic-resources producers lower in London, losing more than 1.1 percent. Siemens AG, Europe’s biggest engineering company, slipped 1.8 percent in Frankfurt after Morgan Stanley cut its recommendation.
The S&P 500 rose 0.2 percent to 1,108.10, adding to last week’s 1.3 percent advance. Cigna Corp. added 5.1 percent, leading gains among health-care companies, after Goldman Sachs lifted its industry rating to “attractive,” citing cheap shares and “limited downside risk under likely outcomes for health reform legislation.”
To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net.
Last Updated: December 7, 2009 10:31 EST
WHAT DID I TELL YOU??THE TREND HJAS JUST STARTED TO CHANGE FROM USD DOWN, US STCK MKT UP, TO USD UP, US STCKS UP!!
PLUS BDI SURGE PAST 4100 AGAIN!!gd for dry bulk like stx and mercator
good news always happen at strange points!!!same as when sti at 2k!!
The increase in volume was mainly due to higher volumes lifted in several trade lanes. Lower average revenue per FEU was due to lower core freight rates and lower bunker recovery.
news at 5.19pm 7th dec 2009
after market closes
FROM BLOOMBERG
Yen, Dollar Rise on Rate Outlook, Gold Falls Most in 14 Months Share Business ExchangeTwitterFacebook| Email | Print | A A A
By Justin Carrigan
Dec. 7 (Bloomberg) -- The yen strengthened and the dollar rose to its highest level in a month against the euro as investors weighed whether the world economy is recovering fast enough to warrant higher central bank interest rates. Gold headed for the steepest two-day retreat since October 2008.
The yen advanced against all 16 most-traded currencies tracked by Bloomberg at 10:21 a.m. in New York. The dollar gained versus 13. The MSCI Emerging Markets Index dropped for a second straight day as Dubai’s equity index plunged 5.8 percent to a four-month low. Gold fell 2.1 percent in New York, while crude oil dropped a fourth consecutive day. European equities fell, while the Standard & Poor’s 500 Index rallied.
Federal Reserve Chairman Ben Bernanke speaks today for the first time since the Dec. 4 U.S. employment report signaled a surprise drop in the jobless rate, stoking expectations the Fed may raise rates sooner than economists had anticipated. Investors are concerned banks may have to increase writedowns that have reached $1.7 trillion worldwide since the credit crunch began, as Dubai World seeks to delay payment on $26 billion of debt.
“On the U.S. dollar front we now have an early indication on the level of volatility that a shift in monetary policy can trigger,” Khurram Butt, in the Treasury sales division of Europe Arab Bank Plc in London, wrote in a client note. “Before the job report, the chances of a June Federal Reserve rate hike was implied at only 35 percent, but this jumped to above 50 percent after the unemployment number came out.”
Yen, Dollar Gain
The yen rose most against higher-yielding currencies, advancing 1.5 percent versus the New Zealand dollar. The U.S. dollar traded at its highest level since Nov. 4 versus the euro, extending gains made at the end of last week that followed the U.S. employment report.
Treasury two-year notes advanced on speculation Bernanke may try to damp optimism about the strength of the economic recovery in his speech today. The benchmark two-year note yield fell two basis points to 0.81 percent.
The U.S. lost 11,000 jobs in November, less than the 125,000 median forecast of 82 economists in a Bloomberg survey, the Labor Department said Dec. 4. Fed-funds futures contracts on the Chicago Board of Trade showed today a 16 percent probability the central bank will increase its benchmark overnight rate to at least 0.5 percent by March, up from 11 percent a week ago.
Gold futures for February delivery in New York extended their decline since Dec. 3 to 6 percent, falling to $1,145 an ounce as the Dollar Index’s advance curbed the metal’s appear as an alternative asset.
Four-Day Retreat
Crude oil futures slumped 1.3 percent and have now lost 4.9 percent since Dec. 1. The Reuters/Jefferies CRB Index of commodities declined for a fourth day, the longest losing streak since August.
The Dubai Financial Market General Index sank the most among benchmark equity indexes worldwide. The measure has tumbled 17 percent since Dubai announced on Nov. 25 that state- owned Dubai World would ask creditors for a “standstill” agreement on its debt, including property company Nakheel PJSC’s $3.5 billion bond due for repayment in a week.
Russia’s Micex Index dropped 1.4 percent as oil company OAO Rosneft sank on falling crude prices. South Africa’s FTSE/JSE Africa All Shares Index declined 0.9 percent, after gold producer AngloGold Ashanti Ltd. retreated 3.7 percent.
Europe, U.S. Stocks
The Dow Jones Stoxx 600 Index, the benchmark for European stocks, slumped 0.3 percent. Fresnillo Plc, the world’s largest primary silver producer, and Xstrata Plc led basic-resources producers lower in London, losing more than 1.1 percent. Siemens AG, Europe’s biggest engineering company, slipped 1.8 percent in Frankfurt after Morgan Stanley cut its recommendation.
The S&P 500 rose 0.2 percent to 1,108.10, adding to last week’s 1.3 percent advance. Cigna Corp. added 5.1 percent, leading gains among health-care companies, after Goldman Sachs lifted its industry rating to “attractive,” citing cheap shares and “limited downside risk under likely outcomes for health reform legislation.”
To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net.
Last Updated: December 7, 2009 10:31 EST
WHAT DID I TELL YOU??THE TREND HJAS JUST STARTED TO CHANGE FROM USD DOWN, US STCK MKT UP, TO USD UP, US STCKS UP!!
PLUS BDI SURGE PAST 4100 AGAIN!!gd for dry bulk like stx and mercator
good news always happen at strange points!!!same as when sti at 2k!!
Sunday, December 6, 2009
Saturday, December 5, 2009
hi all based on last night actions,very clear that this leg will be the leg to push sp500 back to usual highs 1576
may i recall 1st leg of subprime:
usd drop, us stcks down, oil went up
excuse:oil hedge against falling usd
real mechanism:oil did not spike up during stckmkt bull run
leg 2 of subprime:
usd drop, oil drop, us stcks drop
excuse:recession fears dampen oil demand
real mechanism:it is very profitable to short oil down at usd 147
RECOVERY:
leg 1 of recovery:
usd drop, us stcks rise, oil rise
excuse:us govt print a lot of money for bailout package,economy dropping at slower pace
real mechanism:oil shorts are being covererd as oil plunge very quick and too fast
sp500 value from 666 to 1120-460points
leg 2 of recovery:
usd RISE,us stcks rise,oil rise WILL BE THE MOST PROBABLE SCENARIO and excuse
add 460 to 1120 gives 1570, the all time highs of sp500
real mechanisms behind excuse:usd shorts are being covered together with US economy strengthening..
BY THE TIME INTEREST RATES IN USA RISE, USD WILL HAVE PEAKED or go up more gradual hahaha
this is LAST NIGHT EVIDENCE:
COMMODITIES > KEY COMMODITIES
More: Key Commodities | Energy | Metals | Agriculture | Livestock | Index | Rates | CurrenciesENERGY FUTURES
CRUDE OIL75.47-0.99-1.29%
NATURAL GAS4.5860.127+2.85%
RBOB GASOLINE1.975-0.018-0.9%
BRENT CRUDE77.740.22+0.28%
Current DateTime: 02:41:49 05 Dec 2009
LinksList Documentid: 33282388
More Energy Futures
METAL FUTURES
GOLD1162.5-55.80-4.58%
SILVER1848.5-61.70-3.23%
COPPER318.9-3.05-0.95%
PLATINUM1445.8-47.90-3.21%
Current DateTime: 02:42:13 05 Dec 2009
LinksList Documentid: 33282094
More Metal Futures
DOLLAR INDEX
usd INDEX 75.85 +1.58percent
EURO1.4827 -0.0263 -1.74%
us stocks
DOW10388.898422.75+0.22%
Dow Jones Industrial Average
S&P1105.986.0601+0.55%
S&P 500 Index
NAS2194.3521.21+0.98%
Nasdaq Composite
VIX21.25
I WILL NEVER BE SURPRISED IF MONDAY,7th december 2009, US STCK MARKET SURGE UP
may i recall 1st leg of subprime:
usd drop, us stcks down, oil went up
excuse:oil hedge against falling usd
real mechanism:oil did not spike up during stckmkt bull run
leg 2 of subprime:
usd drop, oil drop, us stcks drop
excuse:recession fears dampen oil demand
real mechanism:it is very profitable to short oil down at usd 147
RECOVERY:
leg 1 of recovery:
usd drop, us stcks rise, oil rise
excuse:us govt print a lot of money for bailout package,economy dropping at slower pace
real mechanism:oil shorts are being covererd as oil plunge very quick and too fast
sp500 value from 666 to 1120-460points
leg 2 of recovery:
usd RISE,us stcks rise,oil rise WILL BE THE MOST PROBABLE SCENARIO and excuse
add 460 to 1120 gives 1570, the all time highs of sp500
real mechanisms behind excuse:usd shorts are being covered together with US economy strengthening..
BY THE TIME INTEREST RATES IN USA RISE, USD WILL HAVE PEAKED or go up more gradual hahaha
this is LAST NIGHT EVIDENCE:
COMMODITIES > KEY COMMODITIES
More: Key Commodities | Energy | Metals | Agriculture | Livestock | Index | Rates | CurrenciesENERGY FUTURES
CRUDE OIL75.47-0.99-1.29%
NATURAL GAS4.5860.127+2.85%
RBOB GASOLINE1.975-0.018-0.9%
BRENT CRUDE77.740.22+0.28%
Current DateTime: 02:41:49 05 Dec 2009
LinksList Documentid: 33282388
More Energy Futures
METAL FUTURES
GOLD1162.5-55.80-4.58%
SILVER1848.5-61.70-3.23%
COPPER318.9-3.05-0.95%
PLATINUM1445.8-47.90-3.21%
Current DateTime: 02:42:13 05 Dec 2009
LinksList Documentid: 33282094
More Metal Futures
DOLLAR INDEX
usd INDEX 75.85 +1.58percent
EURO1.4827 -0.0263 -1.74%
us stocks
DOW10388.898422.75+0.22%
Dow Jones Industrial Average
S&P1105.986.0601+0.55%
S&P 500 Index
NAS2194.3521.21+0.98%
Nasdaq Composite
VIX21.25
I WILL NEVER BE SURPRISED IF MONDAY,7th december 2009, US STCK MARKET SURGE UP
Mercator Lines (Rs 65): Buy
Mercator Lines can touch target of Rs 87: Emkay
9 Oct 2009, 1215 hrs IST, ET Bureau
MUMBAI: Emkay Global Financial Services expects Mercator Lines to touch target of Rs 87 on the upside.
“Mercator Lines is breaking out of an ascending triangle and daily momentum has started to pick up. The volumes have been very encouraging on breakout, also note that how volumes have expanded into rallies since July hinting at accumulation over last few months. The stock should target Rs 87 with reversals at Rs 55.7,” the recommendation said.
ANOTHER ANALYST
We recommend a buy in Mercator Lines from a short-term horizon. It is perceptible from the charts of the stock that since its March low of Rs 21 the stock has been on an intermediate-term uptrend. However, after encountering resistance at Rs 76 in June, the stock went through a medium-term correction till the July low of Rs 42. Later, the stock resumed its uptrend, taking support in the Rs 42-45 band. In mid-September, it crossed the 21-day and 50-day moving averages and is currently trading way above them. On October 8, the stock jumped 9 per cent, accompanied by high volumes and began to shape a flag pattern. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is on the brink of entering this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in positive territory. Taking into consideration that the stock’s intermediate-term uptrend-line is intact we are bullish from a short-term perspective. We expect it to move up until it hits our price target of Rs 72. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 61.5.
Yoganand D.
http://www.blonnet.com/2009/10/14/stories/2009101450550200.htm
source:
Block deal in Mercator Lines
Mumbai, Aug. 26 The shares of Mercator Lines were in the limelight on Wednesday, after a block deal of 51.75 lakh shares was reported on the BSE. The shares were bought by Albulla Investments Funds from Mavi Investment Fund Ltd at Rs 56.5 a share. Mavi Investment Fund Ltd holds 2.19 per cent stake in the company. However, no further information was given. Around 89.43 lakh shares were traded during the day. The Mercator stock touched an intra-day high of Rs 62.25 and closed 9.33 per cent higher at Rs 61.50 on the BSE. - Our Bureau
Mercator Lines targets 30 mt from Mozambique coal mine
Varada Bhat
Mumbai, June 10 2009
Mercator Lines, India’s second largest private shipping company, has targeted production of 30 million tonnes (mt) of coal from its Mozambique mine once its starts production. The mine has estimated recoverable reserves of one billion tonnes.
But the date of actual production is still some time away, and sources say it is expected to kick off in 2010.
“We are still carrying out feasibility studies to develop the infrastructure needed. It will take us some time as it is a large asset and we a need lot of investments to produce 2.5 million tonnes every month,” Mr H.K. Mittal, Chairman, Mercator Lines, told Business Line.
Without offering the financial details, he reiterated that the company had enough funds for the project.
Mining sector foray
Mercator recently entered the coal mining sector by acquiring three mines in Indonesia and one in Mozambique as part of its backward integration initiative.
“We were into transportation and handling of coal. So we decided to get into coal mining,” said Mr Mittal.
The company plans to produce 1.5-2 mt of coal this fiscal from its Indonesian mines which started production a year ago.
“We have started with small mines to get the experience and will, in the future, ramp up production to 10 mt,” he added.
Mercator reported income of Rs 76.90 crore from its coal mining business in 2008-09, its first year of operations.
Freight revenue
According to a shipping analyst, with the global freight market remaining dampened, these businesses will de-risk the company’s earnings from the cyclicality related to shipping freight revenues.
“This will provide revenue generation through sale of coal in domestic/international markets and its transhipment through its own ships,” he said.
Mercator posts 15% rise in net
Mumbai, May 20
Long-term contracts have helped Mercator Lines post a 14.9 per cent increase in net profit for 2008-09 despite the collapse in the dry bulk shipping market last year. Net profit for the year ending March 31, 2009 was up at Rs 376.45 crore from Rs 327.65 crore last year. Total income increased by 45.11 per cent to Rs 2,248.82 crore (Rs 1,549.72 crore), said a statement from Mercator. “Despite a weak economic environment and depressed freight rates, Mercator has delive red good results,” said Mr H.K. Mittal, Executive Chairman, in a press release. During the year, the company started its coal mining activities which generated revenue of Rs 77 crore.
– Our Bureau
Mercator to sharpen focus on dredging, coal mining
Has acquired mines in Indonesia, Mozambique.
Amit Mitra
Mumbai April 16 With the global freight market remaining dampened due to recessionary trends, Mercator Lines, India’s second largest private shipping company, has decided to sharpen focus on its other businesses — dredging and coal mining.
The company recently entered the coal mining sector by acquiring three mines in Indonesia and one in Mozambique, as part of its backward integration initiative. “We are into transportation and handling of coal. So we decided to get into coal mining,” Mr H.K. Mittal, Chairman of Mercator Lines, told Business Line.
The company plans to produce between 1.5 million tonnes (mt) and 2 mt of coal from its Indonesia mines in the current fiscal. “Over the next three to four years, we will be ramping up production to 10 mt tonnes through acquisition of more mines,” Mr Mittal said.
The Mozambique mine, where production is yet to start, is spread over an area of 180-sq.km, with estimated recoverable reserve of one billion tonnes.
To acquire more dredgers
The company also plans to enhance its focus on dredging business, seeing major opportunities in the domestic dredging market as Indian ports plan to expand capacities and new ports are in the pipeline. It plans to add two new dredgers to its fleet of four in the current quarter — at a cost of $110 million.
Within the next three years, Mercator plans to expand its dredging fleet to 10, which will include both cutter suction and trailer suction dredgers. Earlier, the company leased out the dredgers to Dredging Corporation of India (DCI), but now it operates these vessels on its own.
The company has not postponed its acquisition plans despite recessionary trends. “On the contrary, we feel this is the best time to buy assets. Lots of second-hand ships are available at much lower prices as compared to some months ago,” said Mr Mittal. .
Ships can be purchased at prices 20 to 50 per cent lower depending on the category of vessels. New ships at different shipyards were also available, as the owners could not pursue expansion plans due to tight liquidity position.
The company, which spent $310 million to acquire new assets, including a very large crude carrier, will be buying a few bulk carriers this fiscal. Financing, however, was still a problem, he said.
Sharp fall in tanker rates
While the dry bulk market is showing some signs of improvement, tanker rates fell sharply in the last three months. The average charter rate for a VLCC fell from $44,065 per day in January 2009 to $30,672 in February and $25,177 in March. On April 8, the VLCC rate was ruling at about $10,536 per day.
The Baltic Dry Index, which measures the dry bulk freight rates, increased from 1818 in February 2009 to 1958 in March. The rates are just about sufficient to meet the operating costs of shipping companies, say industry analysts.
Mercator Lines plans to acquire more oil rigs
Mr H.K. Mittal, Executive Chairman of the company, made it clear that the company had no immediate plans to acquire offshore supply vessels or multi-purpose supply vessels required by the oil sector.
Santanu Sanyal
Kolkata, May 20 Mercator Lines has before it a proposal for acquiring more oil rigs.
“We are already having one jack-up rig built at Keppel in Singapore and we’re considering more acquisitions, preferably by way of outright purchase,” Mr H.K. Mittal, Executive Chairman of the company, told Business Line.
“To have a new rig built in a yard will take at least three years, an option which perhaps can be dispensed with in favour of outright purchase of newly-built readily available in the market.”
Exploring market
As he felt, there might be no dearth of newly-built equipment for immediate acquisition but only at a price. “In-chartering of old equipment is not so much in our view, but then, we’re exploring the market and keeping our options open,” Mr Mittal observed.
He, however, made it clear that the company had no immediate plans to acquire OSVs (offshore supply vessels) or MSVs (multi-purpose supply vessels) required by the oil sector.
“Our priority is clear: we’ll go for high value large assets,” he added.
Oil sector
The growing Indian oil sector, as Mr Mittal pointed out, was holding out promise. “But that does not mean that our proposed acquisitions will be deployed only in India,” he said, adding, “whosoever, anywhere in the world, gives the best price will get our equipment”.
The jack-up rig being built in Singapore will be delivered in March 2009 and will cost $190 million and its deployment has already been firmed up for three years.
Mercator Lines, as the Chairman pointed out, was essentially a shipping firm, the second largest private sector shipping company in the country, with a diversified fleet comprising 20 vessels, including nine tankers (total tonnage 1.04 million dwt), eight bulk carriers (0.61 million dwt) and three dredgers (combined capacity 20,000 cbm).
The company’s acquisition of dredgers is a recent development and all the three dredgers have been placed with the Dredging Corporation of India for employment.
Mercator Lines can touch target of Rs 87: Emkay
9 Oct 2009, 1215 hrs IST, ET Bureau
MUMBAI: Emkay Global Financial Services expects Mercator Lines to touch target of Rs 87 on the upside.
“Mercator Lines is breaking out of an ascending triangle and daily momentum has started to pick up. The volumes have been very encouraging on breakout, also note that how volumes have expanded into rallies since July hinting at accumulation over last few months. The stock should target Rs 87 with reversals at Rs 55.7,” the recommendation said.
ANOTHER ANALYST
We recommend a buy in Mercator Lines from a short-term horizon. It is perceptible from the charts of the stock that since its March low of Rs 21 the stock has been on an intermediate-term uptrend. However, after encountering resistance at Rs 76 in June, the stock went through a medium-term correction till the July low of Rs 42. Later, the stock resumed its uptrend, taking support in the Rs 42-45 band. In mid-September, it crossed the 21-day and 50-day moving averages and is currently trading way above them. On October 8, the stock jumped 9 per cent, accompanied by high volumes and began to shape a flag pattern. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is on the brink of entering this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in positive territory. Taking into consideration that the stock’s intermediate-term uptrend-line is intact we are bullish from a short-term perspective. We expect it to move up until it hits our price target of Rs 72. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 61.5.
Yoganand D.
http://www.blonnet.com/2009/10/14/stories/2009101450550200.htm
source:
Block deal in Mercator Lines
Mumbai, Aug. 26 The shares of Mercator Lines were in the limelight on Wednesday, after a block deal of 51.75 lakh shares was reported on the BSE. The shares were bought by Albulla Investments Funds from Mavi Investment Fund Ltd at Rs 56.5 a share. Mavi Investment Fund Ltd holds 2.19 per cent stake in the company. However, no further information was given. Around 89.43 lakh shares were traded during the day. The Mercator stock touched an intra-day high of Rs 62.25 and closed 9.33 per cent higher at Rs 61.50 on the BSE. - Our Bureau
Mercator Lines targets 30 mt from Mozambique coal mine
Varada Bhat
Mumbai, June 10 2009
Mercator Lines, India’s second largest private shipping company, has targeted production of 30 million tonnes (mt) of coal from its Mozambique mine once its starts production. The mine has estimated recoverable reserves of one billion tonnes.
But the date of actual production is still some time away, and sources say it is expected to kick off in 2010.
“We are still carrying out feasibility studies to develop the infrastructure needed. It will take us some time as it is a large asset and we a need lot of investments to produce 2.5 million tonnes every month,” Mr H.K. Mittal, Chairman, Mercator Lines, told Business Line.
Without offering the financial details, he reiterated that the company had enough funds for the project.
Mining sector foray
Mercator recently entered the coal mining sector by acquiring three mines in Indonesia and one in Mozambique as part of its backward integration initiative.
“We were into transportation and handling of coal. So we decided to get into coal mining,” said Mr Mittal.
The company plans to produce 1.5-2 mt of coal this fiscal from its Indonesian mines which started production a year ago.
“We have started with small mines to get the experience and will, in the future, ramp up production to 10 mt,” he added.
Mercator reported income of Rs 76.90 crore from its coal mining business in 2008-09, its first year of operations.
Freight revenue
According to a shipping analyst, with the global freight market remaining dampened, these businesses will de-risk the company’s earnings from the cyclicality related to shipping freight revenues.
“This will provide revenue generation through sale of coal in domestic/international markets and its transhipment through its own ships,” he said.
Mercator posts 15% rise in net
Mumbai, May 20
Long-term contracts have helped Mercator Lines post a 14.9 per cent increase in net profit for 2008-09 despite the collapse in the dry bulk shipping market last year. Net profit for the year ending March 31, 2009 was up at Rs 376.45 crore from Rs 327.65 crore last year. Total income increased by 45.11 per cent to Rs 2,248.82 crore (Rs 1,549.72 crore), said a statement from Mercator. “Despite a weak economic environment and depressed freight rates, Mercator has delive red good results,” said Mr H.K. Mittal, Executive Chairman, in a press release. During the year, the company started its coal mining activities which generated revenue of Rs 77 crore.
– Our Bureau
Mercator to sharpen focus on dredging, coal mining
Has acquired mines in Indonesia, Mozambique.
Amit Mitra
Mumbai April 16 With the global freight market remaining dampened due to recessionary trends, Mercator Lines, India’s second largest private shipping company, has decided to sharpen focus on its other businesses — dredging and coal mining.
The company recently entered the coal mining sector by acquiring three mines in Indonesia and one in Mozambique, as part of its backward integration initiative. “We are into transportation and handling of coal. So we decided to get into coal mining,” Mr H.K. Mittal, Chairman of Mercator Lines, told Business Line.
The company plans to produce between 1.5 million tonnes (mt) and 2 mt of coal from its Indonesia mines in the current fiscal. “Over the next three to four years, we will be ramping up production to 10 mt tonnes through acquisition of more mines,” Mr Mittal said.
The Mozambique mine, where production is yet to start, is spread over an area of 180-sq.km, with estimated recoverable reserve of one billion tonnes.
To acquire more dredgers
The company also plans to enhance its focus on dredging business, seeing major opportunities in the domestic dredging market as Indian ports plan to expand capacities and new ports are in the pipeline. It plans to add two new dredgers to its fleet of four in the current quarter — at a cost of $110 million.
Within the next three years, Mercator plans to expand its dredging fleet to 10, which will include both cutter suction and trailer suction dredgers. Earlier, the company leased out the dredgers to Dredging Corporation of India (DCI), but now it operates these vessels on its own.
The company has not postponed its acquisition plans despite recessionary trends. “On the contrary, we feel this is the best time to buy assets. Lots of second-hand ships are available at much lower prices as compared to some months ago,” said Mr Mittal. .
Ships can be purchased at prices 20 to 50 per cent lower depending on the category of vessels. New ships at different shipyards were also available, as the owners could not pursue expansion plans due to tight liquidity position.
The company, which spent $310 million to acquire new assets, including a very large crude carrier, will be buying a few bulk carriers this fiscal. Financing, however, was still a problem, he said.
Sharp fall in tanker rates
While the dry bulk market is showing some signs of improvement, tanker rates fell sharply in the last three months. The average charter rate for a VLCC fell from $44,065 per day in January 2009 to $30,672 in February and $25,177 in March. On April 8, the VLCC rate was ruling at about $10,536 per day.
The Baltic Dry Index, which measures the dry bulk freight rates, increased from 1818 in February 2009 to 1958 in March. The rates are just about sufficient to meet the operating costs of shipping companies, say industry analysts.
Mercator Lines plans to acquire more oil rigs
Mr H.K. Mittal, Executive Chairman of the company, made it clear that the company had no immediate plans to acquire offshore supply vessels or multi-purpose supply vessels required by the oil sector.
Santanu Sanyal
Kolkata, May 20 Mercator Lines has before it a proposal for acquiring more oil rigs.
“We are already having one jack-up rig built at Keppel in Singapore and we’re considering more acquisitions, preferably by way of outright purchase,” Mr H.K. Mittal, Executive Chairman of the company, told Business Line.
“To have a new rig built in a yard will take at least three years, an option which perhaps can be dispensed with in favour of outright purchase of newly-built readily available in the market.”
Exploring market
As he felt, there might be no dearth of newly-built equipment for immediate acquisition but only at a price. “In-chartering of old equipment is not so much in our view, but then, we’re exploring the market and keeping our options open,” Mr Mittal observed.
He, however, made it clear that the company had no immediate plans to acquire OSVs (offshore supply vessels) or MSVs (multi-purpose supply vessels) required by the oil sector.
“Our priority is clear: we’ll go for high value large assets,” he added.
Oil sector
The growing Indian oil sector, as Mr Mittal pointed out, was holding out promise. “But that does not mean that our proposed acquisitions will be deployed only in India,” he said, adding, “whosoever, anywhere in the world, gives the best price will get our equipment”.
The jack-up rig being built in Singapore will be delivered in March 2009 and will cost $190 million and its deployment has already been firmed up for three years.
Mercator Lines, as the Chairman pointed out, was essentially a shipping firm, the second largest private sector shipping company in the country, with a diversified fleet comprising 20 vessels, including nine tankers (total tonnage 1.04 million dwt), eight bulk carriers (0.61 million dwt) and three dredgers (combined capacity 20,000 cbm).
The company’s acquisition of dredgers is a recent development and all the three dredgers have been placed with the Dredging Corporation of India for employment.
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