Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Tuesday, December 18, 2007

News You Can Use

Yuan Rises After China Reduces Holdings of U.S. Treasuries for Third Month The yuan rose after a U.S. government report showed China cut its holdings of Treasuries for a third month in October, a sign the nation may be diversifying its foreign reserves.

U.A.E, Qatar May Adjust Dollar Pegs in Six Months, According to Citigroup The United Arab Emirates and Qatar may opt to change their fixed exchange rates to the U.S. currency in the next six months, according to Citigroup Inc.

Gold Rises in London, Platinum at Record on Speculation Dollar Gain Over Gold gained for the first time in four days in London on speculation a U.S. economic slowdown will halt the dollar's rally, increasing demand for the metal as an alternative asset. Platinum rose to a record on demand in China.

Global Commodities to Start New Agriculture Fund as Farm Prices Surge Global Commodities Ltd., an Australian-based commodity fund manager, plans to start a new fund investing in agricultural raw materials to meet growing investor demand as prices soar.

ECB Lends $502 Billion to Ease Crunch The European Central Bank found strong demand Tuesday for its offer to lend euro-zone banks extra money to get them through year-end, lending a whopping total of €348.6 billion ($501.7 billion) for two weeks in its bid to ease persistent money-market tensions.

An OPEC of Iron Ore? First there was Big Oil. Now comes Big Mining. For years now, mining companies have gotten rich supplying the raw materials that have fueled consumer booms from China and India to Brazil. As commodities prices soared, these companies socked away cash and snapped up rivals. Now they are embarking on another round of deals that promises a new class of juggernauts. The resulting megaminers would have great influence over the cost of raw materials like iron ore, copper and uranium -- and, by extension, the price of consumer electronics, cars and new apartment blocks.

Mine Deals May Unclog Bottlenecks BHP Billiton's $125 billion effort to acquire rival Rio Tinto isn't just about locking up more copper, coal or iron ore. That proposed deal, as well as others sweeping the mining industry, will help determine access to some of the congested ports and rail lines needed to get raw materials to the world.

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