Tag Archives: Asia

M & A: Worries Grow About BHP Deal for Potash


Worries Grow About BHP Deal for Potash
will the deal go through?  If not, CAD 130/share is the target! –
—————————————-
From the NYTimes.com- DealBook
Potash Corporation of Saskatchewan investors seem to fear that the Canadian government may block BHP Billiton’s hostile bid for the company, analysts said.
Go to Article from The New York Times:
Potash chief Bill Doyle urged patience for investors expecting an alternative to BHP Billiton’s $40 billion bid, two months after starting talks with potential suitors, Bloomberg News reported.
Go to Article from Bloomberg News:
Read More

Copper Will Trade at $11,000 in a Year, Goldman Says – Bloomberg, October 5, 2010


We’ll see…
bloomberg      
October 5, 2010
Copper Will Trade at $11,000 in a Year, Goldman Says
Copper will trade at $11,000 a metric ton in a year, Goldman Sachs Group Inc. said as it raised price estimates because of swelling demand.
The forecast implies a 35 percent gain from the metal’s current price. The bank had predicted on Sept. 17 that copper would trade at $8,050 a ton in 12 months. Goldman today advised investors to buy the December 2011 contract as increasing demand leads to shortages of the metal.
Copper for three-month delivery traded on the London Metal Exchange jumped 23 percent in the third quarter, the most in a year, helped by falling stockpiles and a weaker dollar. LME inventories shrank by 17 percent in the period, and the U.S. Dollar Index, a six-currency gauge of the greenback’s strength, slid 8.5 percent, the most since 2002.
“Supply-demand deficits look set to grow on emerging- market strength and improving demand from developed economies, which we expect to significantly outpace supply growth, drawing down inventories and creating market shortages,” analysts including London-based Jeffrey Currie said in the report. “We don’t believe that the market is fully pricing these shortages and the potential for demand rationing that lies ahead in 2011.”
Zinc Prices
Three-month copper traded at $8,156 a ton at 1:38 p.m. on the LME. The December 2011 contract was at $8,025. Goldman Sachs raised its three-month forecast for the metal to $8,500 and increased its six-month estimate to $8,800.
Copper will average $9,300 a ton next year, the bank said, compared with about $7,215 so far in 2010. Electrical equipment and construction are the main sources of demand.
Goldman Sachs also raised its 12-month forecast for zinc to $3,000 a ton. The metal, used to rust-proof steel, will likely stay in surplus for now because of supply growth, though the market will be more balanced in the year ahead and “possibly swinging to times of deficit” next year, the bank said.
Zinc for three-month delivery was last at $2,288 a ton on the LME, reducing this year’s decline to 11 percent. The metal will average $2,575 in 2011, said Goldman Sachs, which on Sept. 17 predicted a 12-month price of $2,225.

China: job seekers outnumber available jobs by two to one in 2010


China: Employment Situation ‘Very Grave’ – Spokesman
September 10, 2010

China’s employment situation is “very grave,” with job seekers outnumbering jobs by two to one in 2010, Chinese Ministry of Human Resources and Social Security spokesman Yin Chengji said Sept. 10, Xinhua reported. Yin said 12 million jobs were available this year for 24 million people, including 6.3 million new college graduates and 6 million high school graduates. Beijing must help shift people from rural areas to cities, Yin said. There is also an issue with structural unemployment, Yin said, adding that Beijing will continue to prioritize employment. At the end of 2009, China’s urban unemployment rate was 4.3 percent, with 9.21 million unemployed, according to a Human Resources white paper.


The MasterBlog
http://www.the-masterblog.blogspot.com