A Macquarie consortium purchased for $4.1 billion the gas grid of German energy firm E.ON. Open Grid Europe runs Germany's biggest gas transmission system and is about 12,000 kilometres long. It is the main transport system for gas shipments to Russia and Norway. Members of the Macquarie consortium are Infinity Investments, British Columbia Investment Management Corporation and MEAG Munich Ergo Asset Management. The Australian investment bank led in 2010 a consortium that purchased RWE, Germany's second largest energy firm. The $4.1-billion (3.2 billion euros) price tag for Open Grid Europe … [Read more...]

Lunchtime REPORT(12.30pm AEST) Yesterday was another down day for the Australian share market, with widespread selling in all sectors apart from the utilities, the All Ordinaries Index (XAO) ended off 101 points to 4,214 points. Overnight the European markets finished slightly lower, as Greek political concerns and news that the Greeks will be heading back to the polls on the 17th June was confirmed overnight. More concerns about the stability of the Greek banking system rocked markets after news that Greek banks has seen the European central Bank (ECB) cut access to funds and the president … [Read more...]

Production of the precious safe haven yellow metal gold by Tanzania, Africa's fourth largest gold producer, jumped 13 per cent to 40.4 tonnes in 2011 from 35.6 tonnes in 2010, as companies increased production output prompted by the metal's rising price during the period in reviews. In a report on its Web site, the Central Bank of Tanzania said earnings from gold exports in 2011 rose 47 per cent to $2.226 billion. As the country's biggest foreign exchange earner, gold contributed for 59.1 per cent of Tanzania's total non-traditional exports last year. It exports its gold to … [Read more...]

The Aussie found support just below 99.00 today after selling off over 500 pips over the previous 3-weeks. While this pair is still in a 3 month bearish pattern, it's right on top of a confluence of long-term support including Weekly Pivot S2 and a secondary pattern line - see Figure 1. The Aussie remains the carry pair of choice for global institutions/investors, meaning big money is always looking to buy dip.  We will continue to monitor the 99.00 level for buy-set-ups.  The risk to any buy side action is that the Euro goes into a free fall and takes the asset class markets, including the … [Read more...]

FROM MORRISON SECURITIES PTY. LTD: U.S. STOCK MARKETS The Dow Jones Industrial Average fell for a fourth straight day as confusion over Greece's political future extended the recent stock slide. The blue-chip Dow lost 33.45 points, or 0.26%, to 12598.55, to finish at the day's lows. The slide, which eroded an early gain of 91 points, handed the index its 10th decline in the past 11 sessions. Since the beginning of May, the Dow has lost 4.7%, and now sits at a four-month low. The Standard Poor's 500-stock index fell 5.86 points, or 0.44%, to 1324.80, while the Nasdaq Composite slid 19.72 … [Read more...]

By Nico IsaacWed, 16 May 2012 17:30:00 ET What did 91% of gold traders have in common back in late February-early March? Answer: They were all positioned on the wrong side the market; i.e. they were bullish. Case in point: From January to February 29, gold prices had soared $250 per ounce to their highest level in 4 months.   Gold stood within spitting distance of the psychologically important $1800 per ounce mark. Money managers held their largest bullish bet on COMEX gold futures and options in 4 months. The Daily Sentiment Index (trade-futures.com) stood at 91% bulls, the highest … [Read more...]

By Bob StokesWed, 16 May 2012 17:30:00 ET You probably heard: Greek bank depositors just withdrew $894 million from the nation's local banks in a single day (May 14).   Greece President Karolos Papoulias said "the strength of banks is very weak right now" and expressed worry about “great fear that could develop into a panic.”   European bank shares have recently taken a hit. Yet it was less than two months ago when Goldman Sachs upgraded the sector to overweight from neutral.   When the April issue of Global Market Perspective posted on March 30, it offered subscribers a very … [Read more...]

The Gold Report: In January, the Federal Reserve's extension of a near-zero rate interest policy to the end of 2014 stunned a good many investors. Unless the Fed changes its mind again, that will mean six years of artificially low rates. You've indicated that interest rates have nothing to do with the Fed and that they're really governed by the velocity of money and the health of the economy. Would you elaborate on that? Lacy Hunt: To clarify, the Fed can control the short-term rates, but the long-term rates are in the hands of the marketplace. The Fed's influence there is very minuscule. … [Read more...]

The Gold Report: Chris, Haywood Securities' estimated silver price for 2012 is $36/ounce (oz), but the "devil's metal" has averaged less so far in 2012, closing above $36/oz only once. Are you expecting a significantly stronger second half for silver? Chris Thompson: Silver performed relatively well in Q1/12. We hope that the silver price will find support at current levels of ~$28/oz through Q2/12 and Q3/12, with potential for a strong Q4/12. Looking at the silver price right now, I see that it's struggling to hold its head above $28/oz. If we do see a significant breakdown from $28/oz, it … [Read more...]

Finding Opportunity in Silver, the Devil's Metal: Chris Thompson Source: Brian Sylvester of The Gold Report  (5/16/12) http://www.theaureport.com/pub/na/13381 Silver has been called the most volatile of metals. But volatility produces opportunity, according to Chris Thompson, a top-ranked StarMine analyst with Haywood Securities. In this exclusive interview with The Gold Report, Thompson forecasts a strong year-end for the devil's metal, despite price weakness so far in Q2/12, and shares the names of a select group of companies that stand to profit. The Gold Report: Chris, Haywood … [Read more...]