Red-Hot Resources

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

Monday, January 28, 2008

News You Can Use for Monday

The Bullish ...

Gold Fields, Anglo Platinum Mines Stay Shut on South African Power Crisis AngloGold Ashanti Ltd., Gold Fields Ltd. and Anglo Platinum Ltd. kept their South African mines shut as power supply was cut for a fourth day, threatening investment and jobs in the continent's biggest economy.

Coal Jumps to Record as Production Drops in South Africa, Australia, China Coal rose to a record in Asia and also advanced in Europe as floods in Australia and snow storms in China restricted output, spurring generators to secure supply.

Chicago Wheat Gains by Limit on Speculation Demand for Grains to Increase Wheat futures in Chicago rose the daily maximum as the weak dollar encouraged buyers to increase purchases of U.S. supplies. Corn declined for the first time in three days.

The Bearish ...

Sales of New Houses in U.S. Last Year Probably Dropped the Most Since 1963 Purchases of new homes in the U.S. probably fell in December, capping the biggest annual decline in at least four decades, economists said before a government report today.

Nickel Slides in London to 2008 Low on Higher Inventories, Demand Outlook Nickel fell for a second day in London as increased inventories signaled demand from stainless- steel makers, the biggest user, has yet to pick up. Copper, aluminum and zinc also declined.

Global Recession Risk Grows as U.S. `Collateral Damage' Hits U.K., Japan The U.S. economy may already be in recession; other countries might not be far behind.

PetroChina 44% Decline Proves BRIC Premium Evaporates When S&P 500 Tumbles The biggest slide in emerging-market stock valuations in a year and a half is proving that a slowdown in the U.S. economy still matters to Brazil, Russia, India and China.

Other Opportunities ...

Statism Beats Capitalism as Gazprom, Petrobras Squeeze Exxon, BP Earnings State-controlled energy companies OAO Gazprom and Petroleo Brasileiro SA are winning the battle for investors as their governments squeeze Exxon Mobil Corp., BP Plc, and Royal Dutch Shell Plc for access to oil and gas.

Death of VaR Evoked on Wall Street as Risk-Taking Meets Taleb's Black Swan The risk-taking model that emboldened Wall Street to trade with impunity is broken and everyone from Merrill Lynch & Co. Chief Executive Officer John Thain to Morgan Stanley Chief Financial Officer Colm Kelleher is coming to the realization that no algorithm or triple-A rating can substitute for old-fashioned due diligence.
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