Cement, Copper, Oil and Elections

123jump.com Staff
30 Nov, -0001
New York City

Iranian and Bulgarian voters elect for a change of regime and focus on domestic agenda as voters prefer job creations at home. Oil closed record high as traders worry of the lack of crude refining capacity in the U.S. Copper traded at sixteen year high as inventories fall at a level not seen in three decades. Gold flirts at a near term record as U.S. dollar despite strong this week is expected to decline in coming months. Euro falls 1% and pound falls 0.2% against dollar.

In Bulgaria national election ruling party is lagging during the initial count of votes. Since the fall of communism in the last fifteen years every ruling party has lost the election. Bulgaria and Romania are planning to join European Union in 2007.

Washington may be preaching free trade but not always practicing, at least that is what top Indian officials feel. According to the latest trade negotiations the U.S. continues to not open up medical services and accounting services to the Indian software professionals and medical doctors.

Dubai, one of the fastest growing economies (7% for 2005) in the gulf region, is experiencing rising wages and inflation in commodities and food prices. Rent in some parts of the city state has risen by 40%.

Australia’s national tourism body has warned that several Chinese and Asian tourists are charged by unscrupulous agents to take a walk on Bondi Beach and lock tourists up in rural areas till they spend enough money in certain retail locations. Australian government has failed to take actions against several previous complaints.

Mahmoud Ahmadinejad has won the Iranian presidential election with 61.6% of votes beating the nearest rival Ayatollah Hashemi Rafsanjani who got 35.9% of votes. The newly elected president stated that Iran’s oil services contract needs to be ‘clarified’. Iran has world’s second largest oil reserve.

Italian dairy giant Parmalat founder Calisto Tanzi was indicted along with fifteen others including officials at Bank of America and auditors at Deloitte Touche was indicted by a judge in Milan for securities violation and market manipulation. Trial date is set September 28 of this year.

Despite reservations from some U.S. lawmakers against Chinese oil company CNOOC’s cash bid for the Unocal at $67 per share, CNOOC is likely to go ahead with the offer. The secretive U.S. security committee’s decision may have significant impact on how American companies do business in China. The biggest loser could be Boeing and American banks and financial services company if Chinese offer is rejected on the regulatory and security grounds.

Euro lost one percent and pound lost 0.2% against dollar in a week’s trading. Traders are still waiting for comments from the chief of European Central Bank. Swedish Krouna lost 1.2% after revising its GDP sharply downwards.

Cement supply in the U.S. continues to be tight. With annual demand rising at 7% so far this year prices have steadily been rising across the U.S. as inventory of cement across manufacturers fell from 19 days to three days of supply. According to Portland Manufacturer’s association survey the import’s share of cement supply this year is likely to jump from 22.7% to 25%. Cement prices across the country have risen 15% so far and are likely to rise another 5% next year.

World copper prices this week crossed and stayed above $1.50 per pound not seen since 1979 as Chinese demand stays strong, weakness in the U.S. dollar and world copper inventory falls to the three decade low according London Metal’s Exchange. Copper prices have doubled in the last two years as China has become the leading copper consumer taking 20% of world’s output and double the rate a decade ago. However few analysts believe that copper inventory will begin to rise in the second-half of the year.