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Jul 17, 2013

VOAvideo: Kerry: Egyptian Leaders Need to Restore Stability July 17, 2013.


RT America: 'You are being tracked" -- ACLU reveals mass license plate surveillance July 17, 2013.

VOAvideo - Morsi Overthrow Divides Mideast, Deepens Turmoil July 17, 2013.


NSA Spying Under Fire: 'You've Got a Problem' By Associated Press July 17, 2013.


RT America July 17, 2013: Snowden saga: to stay or not to stay in Russia?

ReelNASA: Meet the Expedition 37/38 Crew July 17, 2013.

NASA astronaut Mike Hopkins and Russian cosmonauts Oleg Kotov and Sergey Ryzansky will launch aboard a Soyuz spacecraft in September 2013 to begin a 6-month mission aboard

Gold mining industry would rather go back to hedging than fight: GATA I THE GATA DISPATCH JULY 17, 2013.

Gold mining industry would rather go back to hedging than fight

Gold Slump Revives Hedges Scrapped During Bull Run
By David Stringer
Bloomberg News
Wednesday, July 17, 2013

http://www.bloomberg.com/news/2013-07-16/gold-slump-revives-hedges-scrap...

MELBOURNE, Australia -- Tumbling gold prices are raising the prospect of a return to hedging -- a strategy that's been shunned by investors and producers who spent at least $10 billion at the end of the last decade unwinding forward sales.

"You can't just stick your head in the sand and pray that gold is going to go back up again, Gavin Thomas, chief executive officer of Sydney-based Kingsgate Consolidated Ltd., operator of Thailand's biggest gold mine, said by phone. He's considering hedging despite investors' resistance. "Hedging is a call on gold. If you believe it's going up, you don't hedge. If you believe it's going down, you do hedge.

Petropavlovsk Plc, Russia's second-largest producer, and Australia's OceanaGold Corp. have begun hedging and brokers including Societe Generale SA are flagging more may follow to bolster revenue and ensure debt servicing as prices are forecast to extend losses. Gold is heading for its first annual drop since 2000 and any move toward forward sales of output could accelerate declines, according to Bank Julius Baer & Co.

"The days of being beholden to a religious belief that the gold price will rise are gone, company directors have to be cognizant of that, said Tim Schroeders, who helps manage $1 billion in equities, including gold companies, at Pengana Capital Ltd. in Melbourne. "There are very few producers who don't have problems. A lot of them have large debts or high costs. Producers have got to look at" hedging, he said.

Hedging involves mining companies selling future output at fixed prices to secure loans and protect margins. The practice fell out of favor in the past 10 years amid gold's longest bull run in at least nine decades.
Investors pressured producers to unwind their hedge books as prices soared sevenfold during bullion's winning streak. AngloGold Ashanti Ltd. spent $2.6 billion in 2010 to wind up its hedge book, while Barrick Gold Corp., the largest producer, took a $5.6 billion charge in the third quarter of 2009 to eliminate hedging.

"It would be a negative impact on price, the more hedging you see, because what it basically does is to take a stream of gold and sells it into the market, Tyler Broda, a London-based analyst at Nomura International Plc, said by phone, adding that producers already may have missed the chance to lock in prices. "At the top of the cycle, you should have seen mining companies start to hedge.

Gold, which hit a 34-month low on June 28, is heading for the first annual drop in 13 years and Goldman Sachs Group Inc. forecasts it will reach $1,050 by the end of 2014. Gold futures for December delivery rose 0.2 percent to $1,295 at 10:23 a.m. in New York.

Standard Chartered Plc forecasts the net amount of gold hedged will soar more than 16-fold to 500 metric tons by 2017 from 30 tons this year. Fitch Ratings Ltd. predicted last month that increased royalty sales, forward sales and gold price hedging may occur for less well-capitalized companies.
"If it's cheaper to hedge than to issue paper at deep discounts, then it makes sense, Mark Bristow, CEO of Randgold Resources Ltd., said in Johannesburg on July 10, adding his company isn't against hedging.

A revival of hedging may be a last resort for producers from Toronto to Melbourne who have announced plans to trim spending, sell mines, cut staff and reduce high-cost production in response to a decline in the price of gold that could shave about $10 billion from earnings, according to data compiled by New Jersey-based Kenneth Hoffman at Bloomberg Industries.

Cutting costs "might not be sufficient given the recent acceleration in the correction of the gold price," and some producers, including Barrick may be forced to hedge, Philipp Lienhardt, an analyst at Julius Baer Group Ltd., said in a June 28 note to clients.

While hedging made sense in the past for Barrick, the company now has other options, its CEO Jamie Sokalsky told the Bloomberg Canada Summit in Toronto on May 21. Andy Lloyd, a Barrick spokesman, declined to comment.

OceanaGold, a top 10 Australian gold miner by market value, said June 27 it would hedge 115,650 ounces of production at its Reefton mine in New Zealand over the next two years as the project moves toward care and maintenance.

"It's just a risk-mitigation step -- had the gold price stayed up where it was, we wouldn't have had to do it," Mick Wilkes, CEO of the Melbourne-based company, said in a phone interview. It doesn't plan additional hedging, Wilkes said.

With gold dropping from $1,600, "you're starting to hear conversations from producers about hedging," said Michael Haigh, head of commodities research at Societe Generale, who in April correctly predicted gold's rout. It's likely to be the start of a trend, the bank said in a report last month.
"On the day you put a hedge in, within the next day it is either the right decision or the wrong decision. It never stays static, said Peter Bowler, managing director of Beadell Resources Ltd., which hedged 195,000 ounces of gold at $1,600 an ounce over three years in April 2012 under the terms of a financing agreement. "You go from a hero to zero in this game fairly quickly."

* * *

CNBC Latest News - Evening Brief July 17, 2013.

LATEST STORIES


NYT International Herald Tribune Global Update july 17, 2013: I.M.F. Tells China of Urgent Need for Economic Change

July 17, 2013
Compiled 20:45 GMT

Global Update



TOP NEWS

I.M.F. Tells China of Urgent Need for Economic Change

By ANNIE LOWREY
China's domestic economic balance is precarious, the fund said, largely a result of too little consumer spending and too much government spending.

Looking for Early Signs of Dementia? Ask the Patient

By PAM BELLUCK
Doctors are starting to pay more attention to patients who say they are experiencing cognitive problems but do not yet show a measurable decline.

Europe Wants More Concessions From Google

By JAMES KANTER
Joaquín Almunia, the European Union competition commissioner, said Google's proposals to address antitrust concerns were "not enough."
World

Video: Fun Factory: Blowing Off Steam in China

After spending a shift on the factory floor, young workers in China's manufacturing cities let loose.
Opinion

Op-Ed Contributor

Children in the Fight Against Corruption

By ROBTEL NEAJAI PAILEY
Liberia's adults are mired in a culture of endemic dishonesty. It's the young who must lead the moral revolution.
WORLD

Panama Seizes Korean Ship, and Sugar-Coated Arms Parts

By RICK GLADSTONE and DAVID E. SANGER
A freighter on its way from Cuba to North Korea was found carrying missile-system components cloaked in a cargo of sugar, the Panamanian authorities said.

Another North Korean Ship Made Cuba Run in 2012

By RICK GLADSTONE
A "mirror image" voyage that aroused no suspicion added to the intrigue around the vessel impounded by Panama for carrying concealed weapons.

Putin Does Not Expect Ties With U.S. to Be Harmed by Snowden Case

By DAVID M. HERSZENHORN and ANDREW ROTH
President Vladmir V. Putin said Wednesday that bilateral relations were more important than the controversy surrounding Edward J. Snowden, the former intelligence contractor.
BUSINESS

Fed Chairman Reaffirms Stimulus and Warns Congress Over Cuts

By BINYAMIN APPELBAUM
Ben S. Bernanke said that the Federal Reserve expected the economy to gain strength in the coming months, potentially allowing the central bank to decelerate its stimulus campaign.
DealBook

JPMorgan in Talks to Settle Energy Manipulation Case for $500 Million

By JESSICA SILVER-GREENBERG and BEN PROTESS
JPMorgan Chase is aiming to settle accusations by the Federal Energy Regulatory Commission that it devised "manipulative schemes" that transformed "money-losing power plants into powerful profit centers.

SoftBank Forms Fuel Cell Venture With Silicon Valley Start-Up

By HIROKO TABUCHI
The technology investment company is joining with Bloom Energy to introduce its energy server technology to Japan.
TECHNOLOGY
State of the Art

The $100 Ouya, a Game Console From Quirksville

By DAVID POGUE
Ouya is the economy model game console, with open-source, hackable innards and a collection of some truly great and some completely dreadful games.
Bits Blog

Two Tales of Plummeting Prices

By BRIAN X. CHEN and IAN AUSTEN
When a new digital device gets a big price cut, it's usually good news for consumers but usually a sign of poor sales - even if the maker of the device doesn't want to admit that publicly.

Revenue Falls at Intel as PC Sales Sag

By QUENTIN HARDY
The company's lower earnings reflect the trend of fewer personal computer sales worldwide and the trouble Intel has had moving to mobile devices.
SPORTS

Formula One Boss Indicted in German Bribery Case

By BRAD SPURGEON
The chief executive of the Formula One auto racing series has been indicted by the Munich state prosecutor in connection with the sale of the series in 2005.
On Soccer

Every U.S. Game Counts for Holden and Donovan

By SAM BORDEN
Stuart Holden and Landon Donovan are trying to show that they are worthy of a permanent elevation to the elite group in United States men's soccer.

Trainer Denies Giving Banned Drugs to Sprinters

By MARY PILON
The trainer Christopher Xuereb said Asafa Powell and Sherone Simpson, who recently tested positive for banned substances, were using him as a scapegoat.
U.S. NEWS

Universities Face a Rising Barrage of Cyberattacks

By RICHARD PÉREZ-PEÑA
The hacking attempts, many thought to be from China, are forcing universities to spend more to prevent and detect intrusions and to constrict their culture of openness.

Senate Panel Questions Nominee for U.N. Ambassador

By BRIAN KNOWLTON
Samantha Power appeared to face no serious obstacles to confirmation during a hearing of the Foreign Relations Committee.

In San Diego, Mayor Rejects Calls by Allies to Step Down

By ADAM NAGOURNEY
Mayor Bob Filner, a Democrat, has been besieged by a blizzard of sexual harassment charges by employees and constituents.
OPINION
Op-Ed Contributor

When Prisoners Protest

By WILBERT RIDEAU
Why we should all be concerned about the inhumane conditions of prolonged solitary confinement.
Opinionator | The Conversation

The Filibuster Lives

By DAVID BROOKS and GAIL COLLINS
Brooks and Collins discuss the return of the maverick John McCain and the inner lives of politicians, such as they are.
Op-Ed Columnist

If Churchill Could See Us Now

By THOMAS L. FRIEDMAN
The G.O.P. aversion to an immigration bill is costing us dearly.

DealBook P.M. Edition July 17, 2013: JPMorgan in Talks to Settle Energy Manipulation Case for $500 Million.




Wednesday, July 17, 2013
TOP STORY
JPMorgan in Talks to Settle Energy Manipulation Case for $500 Million JPMorgan Chase is aiming to settle accusations by the Federal Energy Regulatory Commission that it devised "manipulative schemes" that transformed "money-losing power plants into powerful profit centers.
Barclays Vows to Fight Energy Trading Fine United States regulators have demanded that Barclays pay a record $470 million penalty for suspected manipulation by some traders of energy markets in California and other Western states.
DEALBOOK HIGHLIGHTS
In Tourre Trial, S.E.C. Wages Battle Against Its Own Witness The S.E.C.'s game plan in its lawsuit against a former Goldman Sachs trader was thrown into disarray in several hours of combative testimony on Wednesday, as one of the agency's top witnesses, Paolo Pellegrini, repeatedly accused the government of trying to trick and intimidate him.
In Audience at Tourre Trial, a Familiar Face Brian Stoker, a former midlevel Citigroup executive who beat a government fraud case, has joined the spectators at the trial of Fabrice Tourre.
Activist Peltz Urges Merger of PepsiCo and Mondelez Nelson Peltz's Trian Fund Management has quietly amassed a stake of more than $2.7 billion in the two companies. He wants Pepsi to acquire Mondelez in an all-stock transaction worth $35 to $38 a share and then spin off its beverage business.
Chanos Makes Bet Against Caterpillar Shares of Caterpillar tumbled on Wednesday after the prominent short-seller James S. Chanos said he was betting against the company.
The Statute of Limitations Is Longer Now, Bharara Warns Wrongdoers The statute of limitations for financial crimes was increased to six years from five under the Dodd-Frank Act, Preet Bharara, the United States attorney for the Southern District of New York, noted at a conference Wednesday.
A Bank of America branch in New York.
Bank of America Profit Rises 63% Bank of America's net income rose to $4 billion, or 32 cents a share, from $2.5 billion, or 19 cents a share, in the period a year earlier.
Cadwalader to Hire a Top Adviser on Executive Pay The firm is expected to announce on Wednesday that it has hired Steven G. Eckhaus, a specialist in executive compensation packages, as a partner.
Senators Sherrod Brown, right, Democrat from Ohio, and David Vitter, Republican from Louisiana.
The Trade: Heartening Moves Toward Real Progress in Bank Regulation Jesse Eisinger looks at promising proposals to strengthen capital ratios and regulate the derivatives market.
Breakingviews: A Lifeline to a Brazilian Billionaire Would Be Risky Is the state development bank throwing good money after bad in reportedly easing debt terms for Eike Batista, asks Christopher Swann?
Another View: How to Make Poison Pills Palatable Under Eric Posner and Glen Weyl's proposed method, when an outside shareholder starts a takeover attempt, existing shareholders would have the right to buy votes for or against the takeover.
LOOKING AHEAD
Economic Data Data to be released on Thursday includes weekly initial jobless claims and leading economic indicators for June.
Corporate Earnings Companies scheduled to report results on Thursday include Google, Morgan Stanley, BlackRock, Microsoft, Verizon, Nokia and SAP.
In the United States On Thursday, shareholders of Dell will vote on the $24.4 billion buyout offer by the company's founder, Michael S. Dell.
Overseas On Thursday, the German finance minister, Wolfgang Schäuble, will meet the Greek finance minister, Yannis Stournaras, in Athens, where they are scheduled to hold a news conference in the afternoon.
For the latest updates, go to dealbook.nytimes.com »
Quotation of the Day
"You are tricking me into saying so many things."
Paolo Pellegrini, a hedge fund executive, battling S.E.C. lawyers in the trial of Fabrice Tourre.

The Conscience of a Liberal I John Galt and the Theory of the Firm by paul Krugman: NYT I Opinion Today July 17, 2013.




Opinionator | The Conversation

The Filibuster Lives

Brooks and Collins discuss the return of the maverick John McCain and the inner lives of politicians, such as they are.
Op-Ed Contributor

When Prisoners Protest

Why we should all be concerned about the inhumane conditions of prolonged solitary confinement.
Talking Female Circumcision Out of Existence
Opinionator | Fixes

Talking Female Circumcision Out of Existence

How a pro-women's group used a strategy of "community conversations" to effectively end the practice of genital cutting in an Ethiopian village.
Op-Ed Contributor

Fired for Being Beautiful

Discrimination based on beauty rests on the same sexist principle as discrimination against the ugly. And both rest on the power of the male gaze.
State Politics Vs. the Federal Government
Room for Debate

State Politics Vs. the Federal Government

Does the growing assertiveness of governors and state legislatures make the federal government less powerful?
No Smoke in the Neighborhood
Latitude

No Smoke in the Neighborhood

When Myanmar was a closed society, there were suffocating moments of poverty and repression. But there were also moments of grace.
ADVERTISEMENT
Editorial

Jobs and the City

The candidates aiming to succeed Mayor Michael Bloomberg seek pro-growth policies for uncertain times.
Editorial

The Senate Clings to the Filibuster

A simple-majority vote to determine confirmation of executive appointments should be the rule, not a one-time deal.
Editorial

Summer's Beast Is Loose

As the sun becomes almost predatory, the conversation this year suggests this may be more than a temporary discomfort.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
IS. THIS. NASTY?
Taking Note

IS. THIS. NASTY?

It's for a horse, of course, not a human.
Joe Nocera's Blog

The Gun Report: July 17, 2013

A day in the life of armed America.
John Galt and the Theory of the Firm
The Conscience of a Liberal

John Galt and the Theory of the Firm

Getting to know the weirder side of Sears.