Oil Boom Spurs New Investment

Surging energy production in North America is prompting billions of dollars of investment next year on pipelines and other infrastructure projects to move oil and gas around the continent.

The U.S. shale-gas revolution, which has revitalized chemicals companies and prompted talk of domestic energy self-sufficiency, is attracting a wave of investment that may revive profits in the steel industry.

Hydraulic fracturing of shale rock formations from Texas to West Virginia has boosted supplies of gas and sent prices plunging by as much as half in the past two years. Gas futures reached a decade low of $1.91 per million British thermal units in April in New York trading.

“The shale revolution is triggering an avalanche of industrial expansion plans,” Barclays’ Pehlivanova and Wang said.

There’s been a reversal of fortune for U.S. chemical producers after years of decline. Shares of LyondellBasell Industries NV have more than doubled since it emerged from bankruptcy in 2010. The company is now among chemical producers planning billions of dollars of plants around theGulf of Mexico to capitalize on cheaper gas. Fertilizer companies including CF Industries Holdings Inc. also are planning to construct gas- fueled plants.

At the same time, there’s no guarantee that steel demand in the U.S. will improve. Domesticsteel-industry capacity utilization is at 74 percent, according to data from the American Iron and Steel Institute. Utilization was 91 percent in August 2008, the month before the bankruptcy of Lehman Brothers Holdings Inc.

http://www.bloomberg.com/news/2012-12-31/shale-gas-revolution-spurs-wave-of-new-u-s-steel-plants-energy.html

Gold advanced, poised for a 12th annual gain

Gold, down 6.2 percent since September and set for the biggest quarterly drop since 2004, may climb to $2,000 next year, the median of 49 estimates in a Bloomberg survey published on Dec. 18 showed. Morgan Stanley said Dec. 6 that bullion will be among next year’s best-performing commodities. Prices may peak in 2013 as the U.S. recovers, Goldman Sachs Group Inc. predicts.

Silver for immediate delivery rose as much as 0.8 percent to $30.25 an ounce and was at $30.13. Prices have gained 8.2 percent this year. Holdings in silver-backed ETPs stood at a record 18,916.92 tons on Dec. 28.

Spot platinum advanced 0.3 percent to $1,526.50 an ounce, taking this year’s gain to 9 percent. Palladium gained 0.5 percent to $701 an ounce, up 7 percent this year.

http://www.bloomberg.com/news/2012-12-31/gold-poised-for-12th-annual-climb-as-u-s-budget-deadline-nears.html

Gold Declines on U.S. Economic Recovery

Gold dropped for the first time in four days as optimism that the U.S. economy is recovering and lawmakers will reach a budget deal damped demand for the metal as a protection of wealth. Platinum and palladium advanced.

It lost 2.3 percent last week, the most since the period to June 22, after data showed that consumer spending, durable-goods orders and industrial output increased in November. A separate report showed the largest economy grew at a 3.1 percent annual rate last quarter, exceeding all projections in a Bloomberg survey.

http://www.bloomberg.com/news/2012-12-26/gold-declines-on-u-s-economic-recovery-budget-deal-optimism.html

U.K. banks under pressure

U.K. banks, under pressure from the Bank of England to increase capital, may do exactly what the central bank doesn’t want them to do: Cut lending.

Britain’s four-biggest banks may need as much as 60 billion pounds in extra capital to meet future loan losses, compensate customers and pay regulatory fines, according to the Bank of England’s Financial Stability Report last month. Central bank Governor Mervyn King is pressing banks to raise capital levels without reducing lending to support an economy struggling to avoid a triple-dip recession.

Lloyds and RBS (RBS) have the most capital to raise because of their higher ownership of “difficult” assets such as commercial real estate in Ireland, Morgan Stanley analysts including Chris Manners wrote in a Dec. 17 note to investors.

Manners estimates the FSA will find banks need 26 billion pounds of capital in its so-called base case, with the shortfall ranging from 11 billion pounds to 93 billion pounds. RBS may need 7.87 billion pounds, Lloyds 6.51 billion pounds, HSBC Holdings Plc (HSBA) 6.39 billion pounds and Barclays 5.55 billion pounds, he wrote.

Banks may have to cut the price of assets to achieve sales. RBS will probably have to accept a lower offer for 316 branches it has to sell after Santander abandoned a 1.7 billion-pound offer for them, a person with knowledge of the matter said last month.

http://www.bloomberg.com/news/2012-12-21/u-k-banks-seen-sacrificing-lending-to-meet-boe-demand.html

Fish fight

http://www.channel4.com/programmes/hughs-fish-fight

Renault is looking to Africa for growth

Renault is looking to Africa for growth, pushing rugged, no-frills models like the Dacia Logan as its sales decline in Europe faster than any other major carmaker. As part of the expansion, the French manufacturer and its partner Nissan Motor Co. (7201) are ramping up production at a 1 billion-euro ($1.3 billion) plant in the Moroccan port city of Tangier.

The new factory in Algeria will assemble models in the same segment as Renault's Symbol, a sedan based on the Clio compact.

http://www.bloomberg.com/news/2012-12-18/renault-plans-to-build-factory-in-algeria-in-african-growth-push.html

Precious Metals Futures surge

Gold futures ended at their highest level in more than a week after the Federal Reserve announced a new bond-purchasing program that investors and analysts say may fuel inflation.

http://online.wsj.com/article/BT-CO-20121212-711964.html?mod=WSJ_MetalsAndMining_middleHeadlines

Jaguar Land Rover November Sales up 14%

Jaguar Land Rover Thursday said its global sales for November rose 14% from a year earlier to 29,893 vehicles, with demand for its luxury cars rising in most regions.

The U.K.-based company said its China sales surged 43%, while the Asia-Pacific market recorded a 26% rise.

Vehicle sales in the U.K. and the rest of Europe rose 15% and 12%, respectively.

In North America, sales were down 7%, the company said in a statement.

http://www.4-traders.com/TATA-MOTORS-LIMITED-9058835/news/Tata-Motors-Limited-Jaguar-Land-Rover-November-Sales-up-14-Tata-Motors-Shares-Gain-15591406/?countview=0

India car sales November down

Car sales in India fell for the third time in four months in November as rising fuel prices, high borrowing costs and fears of job losses in a slowing economy crimped demand.

The sales decline intensifies worries among car manufacturers that the local market is unlikely to rebound in the current financial year through March.

The drop in November comes after a 23% sales jump in October.

Car sales during the April-November period grew 1.3% to 1.24 million autos. At the same period, sales of SUVs, most of which are diesel-powered, climbed 62% to 357,872 vehicles.

http://on.wsj.com/TWZzl5 

China car sales up

Chinese monthly passenger-vehicle sales rose to the highest in almost two years, beating analyst estimates, as consumer confidence improved with the economy and dealerships increased discounts to reduce stockpiles.
Sales of SUVs jumped 18 percent last month to 189,200 units, maintaining its streak as the fastest-growing segment in the world’s largest auto market. In the first 11 months, SUV sales climbed 26 percent to 1.79 million units, compared with a 7.1 percent gain to 14 million in total passenger-vehicle sales.
China passenger car sales will increase about 10 percent next year, according to Xu Changming, director of information resource development at the State Information Center, part of the nation’s top economic planning body, at a car dealership conference on Nov. 29.

Japanese Rebound

“The winter for Japanese brand cars is over,” Dong Yang, secretary general of the auto association, said at a briefing in Beijing today.

Nissan Motor Co. (7201), which has the biggest market share in China among Japanese automakers, reported a 30 percent drop in November sales to 79,500 units, a narrower decline from October. Honda Motor Co. (7267)’s deliveries slumped 29 percent to 41,205 vehicles, while Toyota Motor Corp. (7203) dropped 22 percent to 63,800 vehicles.

General Motors Co. (GM), the biggest foreign automaker in China, reported a 9.7 percent increase in November sales to 260,018 units, led by its Chevrolet and Buick brands. Ford increased sales 56 percent to 67,505 vehicles last month.

Among luxury carmakers, Bayerische Motoren Werke AG boosted sales 62 percent to 31,090 units, while Daimler AG’s Mercedes- Benz reported a 6.6 percent drop in deliveries to 16,876 vehicles in China, including Hong Kong.

China economic recovery intact, but weak exports to drag

In the first 11 months, China's exports and imports grew 5.8 percent from a year earlier, running well below a government 2012 target of 10 percent.

China's exports to the European Union fell 18 percent in November from a year earlier, the sixth straight decline. The Organisation for Economic Co-operation and Development cited the euro area crisis in a report last month warning that exports will remain a weak spot for China's economic outlook.

The OECD forecast China's economy would grow by 7.5 percent in 2012 - in line with a government target - before picking up to expand 8.5 percent in 2013.

Despite efforts to rebalance the economy towards domestic consumption, exports generated 31 percent of gross domestic product in 2011, World Bank data shows, and supported an estimated 200 million jobs.

The People's Bank of China, the central bank, cut interest rates in both June and July and has lowered banks' reserve requirement ratio (RRR) by 150 basis points since late 2011, freeing an estimated 1.2 trillion yuan ($193 billion) for lending.

Most analysts believe room for further policy easing is limited as inflation and property prices start to pick up.

Sunday's inflation report showed China's consumer price index rose 2 percent in November from a year ago, slightly less than forecasts for a 2.1 percent gain and up from 1.7 percent in October. Vegetable prices soared 11.3 percent.

Although that leaves consumer inflation well below Beijing's 4 percent target for 2012, the central bank has said rising prices represent the biggest risk long term as China makes a transition from a planned to a market-based economy.

http://reut.rs/WXKlNc

Metal Demand

Raw-material producers posted the biggest advance among the 10 industry groups in the MSCI Asia Pacific Index. Copper futures advanced for a second day on speculation demand from China, the biggest user, will increase as industrial production accelerated.

Rio Tinto Group (RIO), which gets about 31 percent of sales from China, climbed 1.9 percent to A$61.30 in Sydney. BHP Billiton Ltd. the world’s largest mining company, added 0.6 percent to A$34.95.

http://www.bloomberg.com/news/2012-12-10/asian-stocks-rise-to-eight-month-high-on-china-u-s-data.html

"Cliff" worries may drive tax selling

Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.

This week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. EST on Wednesday after the conclusion of the meeting - the Fed's last one for the year.

http://www.4-traders.com/APPLE-INC-4849/news/Wall-St-Week-Ahead-Cliff-worries-may-drive-tax-selling-15582615/?countview=0

China November factory output jumps to 8-month high

Growth in China's factory output and retail sales jumped to eight-month highs in November as consumer inflation bounced off 33-month lows in the latest sign that its economy is snapping out of a protracted slump.

http://www.4-traders.com/news/China-November-factory-output-jumps-to-eight-month-high--15583319/?countview=0

BMW Sees Third Consecutive Sales Record

Bayerische Motoren Werke AG (BMW), the biggest maker of luxury cars, said sales will probably reach a third consecutive annual record next year, when the manufacturer will introduce the 4-Series coupe.

The U.S. car market is “continuing to be in good shape,” Ian Robertson, BMW’s head of sales and marketing, said at a presentation of the new model in Munich late yesterday. The U.S. will be the biggest market for the car, which replaces the coupe version of the 3-Series next year, followed by Germany and the U.K., he said.

http://www.bloomberg.com/news/2012-12-06/bmw-sees-third-consecutive-sales-record-on-new-4-series.html

Apple Inc's rank in China

Apple Inc's rank in China's smartphone market, which is set to become the world's largest this year, fell to No.6 in the third quarter as it faces tougher competition from Chinese brands, research firm IDC said on Thursday.

http://reut.rs/Ra2kTW

Cliff fight may knock out December rally

In normal times, next week's slew of U.S. economic data could be a springboard for a December rally in the stock market.

December is historically a strong month for markets. The S&P 500 has risen 16 times in the past 20 years during the month.

But the market hasn't been operating under normal circumstances since November 7 when a day after the U.S. election, investors' focus shifted squarely to the looming "fiscal cliff."

Investors are increasingly nervous about the ability of lawmakers to undo the $600 billion in tax increases and spending cuts that are set to begin in January; those changes, if they go into effect, could send the U.S. economy into a recession.

"And that is what is grabbing the markets."

"The concerns on the fiscal cliff - as valid as they might be - could be overblown. When you look at a lot of the overriding sentiment, that has gotten extremely negative," said Detrick.

"From that contrarian point of view with the historically bullish time frame of December, we once again could be setting ourselves up for a pretty nice end-of-year rally, based on lowered expectations."

http://www.4-traders.com/TARGET-CORPORATION-12291/news/Cliff-fight-may-knock-out-December-rally-15561283/?countview=0