We need to find a fairer way of providing Goods and Services to the rest of the people on Earth.Cryptocurrencies and/or Gold Standard of money....maybe the answer to fight hyperinflation caused by too much printing of paper/fiat currencies by Governments and Central Banks all over the World. (https://nomorefiatmoneyplease.blogspot.com)
S&P cuts Glencore outlook to negative on weak commodities
Standard & Poor's on Thursday cut its outlook for Glencore Plc to 'negative' from'stable' after slashing its price forecasts for metals.
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[SYDNEY] Standard & Poor's on Thursday cut its outlook for Glencore Plc to 'negative' from'stable' after slashing its price forecasts for metals and amid uncertainties about China's economic outlook.
The mining and commodities firm posted a 29 per cent slump in first-half earnings in August and cut its forecast for earnings from trading, citing tough market conditions. "Continued weakness and volatility in commodity prices resulting notably from a more uncertain and challenging outlook in China may put additional pressure on operations, credit measures, and free cash flow," S&P said.
It added that credit metrics for Glencore were relatively weak for the 12 months to June 30 while spot prices for some commodities were below its price assumptions.
However S&P affirmed Glencore's long-term corporate credit rating at 'BBB' and its short-term rating at 'A-2', and noted the company's efforts to strengthen its credit profile by focusing on debt reduction and cost cutting measures.
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Last week, S&P warned BHP Billiton's investment-grade credit ratings might come under pressure in the current financial year.
Shell reopens two key Nigeria pipelines shut over leaks, sabotage
Anglo-Dutch oil giant Shell said it re-opened on Wednesday two key supply pipelines in Nigeria shut last week because of leaks and sabotage that forced it to declare a "force majeure" on crude oil exports.
PHOTO: AFP
[LAGOS] Anglo-Dutch oil giant Shell said it re-opened on Wednesday two key supply pipelines in Nigeria shut last week because of leaks and sabotage that forced it to declare a "force majeure" on crude oil exports.
"The Shell Petroleum Development Company of Nigeria Ltd (SPDC)...today (September 2) lifted the force majeure on Bonny Light exports following the repair and re-opening of the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL)", the company said in a statement.
The SPDC, a subsidiary of Shell in Nigeria, said it declared the force majeure last Thursday following the shutdown of both the TNP and NCTL.
The two pipelines take crude to the Bonny Light exports terminal, one of Nigeria's main oil terminals.
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"Force majeure" is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.
Shell, a major oil operator in Nigeria, did not disclose the volume of output affected by the incident.
The company has blamed repeated oil thefts and sabotage of key pipelines as the major cause of spills and pollution in the oil-producing region.
Crude oil theft or "bunkering" is a major problem in Nigeria, with estimates that the country loses some US$6 billion in revenue every year because of the practice.
In another development, the managing director of the state-run oil giant NNPC, Ibe Kachikwu, said Wednesday that the nation's armed forces would be involved in policing the nation's oil and fuel pipelines.
"Efforts are in top gear to fix all the crude and petroleum products pipelines across the country," an official Nigerian National Petroleum Corporation (NNPC) statement quoted him as saying.
"The Nigerian Airforce would be engaged to provide aerial survey of the pipelines, the Nigerian Army Engineering corps to fix and police the pipelines and the Nigerian Navy to provide marine surveillance for the network of pipelines," the statement said.
NNPC has more than 5,000km of pipelines across the country, some located in creeks and forests.
Kachikwu also said that ongoing phased rehabilitation of all the nation's four refineries - expected to produce 20 million litres of petrol daily at full capacity - would reduce petroleum products importation.
Nigeria is Africa's largest oil producer, accounting for more than two million barrels per day.
A driver after refueling at a Dijon's gas station. Oil prices in New York sagged to a new six and a half year low on August 19, 2015.
PHOTO: AFP
[SINGAPORE] Oil prices fell in Asia on Thursday followed a mixed US petroleum report that showed an increase in reserves but a dip in production.
US benchmark West Texas Intermediate for October delivery fell 45 cents to US$45.80 while Brent crude for October slipped 38 cents to US$50.12 in late-morning trade.
Prices turned sharply lower on Tuesday and have been edging down since after weak manufacturing data from China and the United States clouded the outlook for demand growth in the two biggest energy consumers. They had surged more than 25 per cent over the three days before that.
On Wednesday the US Department of Energy's petroleum report for the week to August 28 showed commercial crude stocks rose 4.7 million barrels to 455.4 million barrels, sitting near eight-decade highs.
The increase was much bigger than the 900,000 barrels on average expected surveyed by experts Bloomberg News.
Crude output, however, fell 119,000 barrels to 9.22 million a day. Gasoline inventories fell 300,000 barrels to 214.2 million.
Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at business consultancy firm EY, said "the global supply-demand imbalance remains in focus" following the release of the latest US energy report.
Dealers had been hoping that an uptick in US demand, coupled with a slowdown in output, could whittle down the huge global supplies that were a key reason for the collapse in prices from around US$120 in June last year.
Mr Gupta said "worries that the US Federal Reserve will raise rates at the next policy meeting in September also weighed down market sentiment".
"The US nonfarm payrolls (data) to be released tomorrow is likely to offer some vital clues about the Fed's plans," he added.
A rate rise will boost the greenback, making dollar-priced oil more expensive to holders of weaker currencies, hurting demand and helping push crude prices lower.
Asia-Pacific crude: Indonesian grades sink into wide discounts
Asia-Pacific crude market remained depressed as unsold supply from previous months lingered, while differentials for Indonesian grades sank into deep discounts, traders said on Thursday.
PHOTO: AFP
[SINGAPORE] Asia-Pacific crude market remained depressed as unsold supply from previous months lingered, while differentials for Indonesian grades sank into deep discounts, traders said on Thursday.
Indonesia Duri's discount to ICE Brent widened after Chevron offered 100,000 barrels for October loading at $8 a barrel on RIM, down 50 cents from Wednesday, the traders said.
Chevron also offered 50,000 barrels of Minas/Duri spread for October at US$1.50 a barrel, which puts the flagship Indonesian grade at a discount of about US$6.50 to ICE Brent, they said.
Kangqi offered 100,000 barrels of Senipah condensate for October loading at US$5 a barrel below ICE Brent, down from a discount of US$4 in the previous session, traders said.
PV Oil offered two 300,000-barrel cargoes of October-loading Chim Sao via a tender, adding to the glut in the market.
The tender will close on Friday with bids valid until Monday.
For Russian grades, Vitol has snapped up three cargoes in tenders. It bought two ESPO cargoes from Surgutneftegaz at US$1.10-US$1.30 a barrel above Dubai quotes for loading in Oct 26-29 and Oct 29-Nov 1.
It also took ONGC's Sokol cargo at about US$3.50 a barrel above Oman/Dubai quotes for loading on Nov 14-20.
West African crude oil exports to Asia are set to fall to 1.68 million barrels per day (bpd) in September, their lowest since August 2014, shipping data and a survey of traders showed on Wednesday.
Gold slips on dollar after ECB comments, eyes on US data
Gold fell one per cent on Thursday as dollar jumped versus the euro after the European Central Bank cut inflation forecasts, while a US jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus.
PHOTO: REUTERS
[LONDON] Gold fell one per cent on Thursday as dollar jumped versus the euro after the European Central Bank cut inflation forecasts, while a US jobs report that could provide clues on the timing of a Federal Reserve rate rise remained in focus.
The ECB left interest rates unchanged at record lows as expected, but lowered its forecasts for inflation and economic growth, citing a slowdown in emerging markets and weaker oil prices.
As a traditional hedge against inflation, gold suffered from the downward revision.
Spot gold fell as much as 1.1 per cent to a session low of US$1,121.35 an ounce and was down 0.8 per cent at US$1,124.41 by 1331 GMT. US gold for December delivery slipped $11.70 to US$1,121.90.
"No help for gold today: jobless claims, ECB hold(ing) rates unchanged, gains in stocks and wages show(ing) no inflation," said RBC Wealth Management advisor George Gero.
The dollar rose 0.6 per cent against a basket of leading currencies, while global investors stepped back into riskier equities, hurting bullion.
US weekly jobs data indicated a strengthening labour market, a day ahead of the more critical monthly jobs report, which may prompt the Fed to increase rates sooner than later.
New applications for unemployment benefit rose more than expected last week, but the underlying trend remained consistent with a strengthening labour market.
The main focus is now the US non-farm payrolls data, due at 1230 GMT on Friday, which should give a clearer picture about the strength of the world's biggest economy.
"Only amazingly good US data would bring the prospect of the rate hike back to September from December," Citi strategist David Wilson said. "That could put immediate further pressure on the gold price."
Bullion traders remain wary of taking up new positions until they receive more clarity on whether the Fed will raise rates at its next meeting on Sept. 16-17, analysts said.
Higher interest rates would increase the opportunity cost of holding non-yielding bullion.
The technical picture for gold looked bearish with near-term support at US$1,117, ScotiaMocatta analysts said. "We are bearish gold so long as it trades below the recent high of $1,170." Also weighing on bullion was the absence of Chinese buyers. Markets in China, a major gold consumer, are closed on Thursday and Friday for public holidays.
Other precious metals were also under pressure, with silver down 0.3 per cent to $14.66 an ounce and platinum falling about 0.6 per cent to US$1,006.46. Palladium fell 0.2 per cent to $581.50.
THE Government is committed to developing skills for the financial sector amid various forces reshaping the industry, said Emeritus Senior Minister Goh Chok Tong.
He was speaking at an event on Thursday evening where industry association Institute of Banking and Finance Singapore (IBF) recognised six senior executives for professional excellence.
"As you know, I am in the midst of an election... What I find missing at the hustings so far is a serious debate on the future of our economy. And yet the economy is central to our lives," Mr Goh said.
Mr Goh said that the megatrends of technology and demographic change are reshaping the financial sector.
Work is becoming borderless and Singapore's workforce will face even keener competition.
Future workers need to develop distinctive creative, conceptual and critical thinking skills that cannot be replicated by computers. They also need to be able to use new media technologies to communicate, he said.
"Employers must be alert to the changing environment and take responsibility to develop the workforce. They must be willing to invest in the continual skilling up of their employees, and inculcate a culture in which learning and improvement are the norm," he said.
