Month: November 2011

Nov. 14 (Bloomberg) — German Chancellor Angela Merkel said it’s time to move toward closer political union in Europe to send a message to bondholders that euro-area leaders are serious about ending the sovereign-debt crisis. Linda Yueh reports on Bloomberg Television’s “Countdown” with Owen Thomas. (Source: Bloomberg)

www.cri-report.com – Currently, the Asia-Pacific region, Europe and North America are the major production and consumption regions of the world tire industry, presenting a tripartite confrontation. The tire industry is a traditional labor-intensive and technology-intensive industry. In the developed countries like American and European countries and Japan, wages of the tire industry occupy a high proportion in production cost, e.g., over 30% in America and over 40% in Germany. The high cost led by high wages has influenced the competitiveness of tire products in these regions. Comparatively speaking, countries in the Asia-Pacific region like China and India possess relatively inexpensive and high-quality labor resources.

Seen from the development in recent years, the annual tire sales volume of European and American tires has indicated a marginal increase with the major demand coming from the replacement market. Take North America for instance, the regional tire sales volume was 351 million in 1999, accounting for about 36% of the total 976 million of the whole world and the regional sales volume was 356 million in 2005, accounting for 33.7% of the world, while that of Asia-Pacific region saw a large proportion of increase in the same period. As the world tire industry gradually transfers to the developing countries like China, the tire manufacture in developing countries will show more advantages. China has become the biggest tire producing and exporting country in the world. Seen from the TOP 75 Global Tire Producing Countries of 2009, over 40 tire enterprises are located in the Asia-Pacific region.

This report firstly gives an overview of the development of the tire industry in the Asia-Pacific region, and then analyzed in detail on development of the tire industry in the major tire producing and marketing countries of the region, including China, Japan, Korea, India, China Taiwan, Thailand, Singapore, Indonesia, Malaysia, Australia, Vietnam, etc. The analysis on tire industry of different countries and regions includes three major parts: brief introduction of the countries or regions, overview of the tire industry and introduction of operations of major tire enterprises.
The brief introduction of the countries or regions gives an indication of the location of the target region, population and economic conditions involving population, GDP, GDP per capita and other major indexes.

The overview of the tire industry mainly analyzes the production and consumption of the tire industry and the environment for its development. The analysis on production and consumption of the tire industry consists of the study on regional development of the auto industry and the estimation based on it of the volume of production and marketing for the tire industry. In the report, it gives an analysis on the tire consumption of the target region in terms of two types of tire consumer markets, i.e., assembly market and replacement market. As for the analysis on development of the tire industry, it will be carried out according to the situation of the target region, and may involve the regional economic environment (economic development situation of a whole country or region), regional resource endowments (e.g. Thailand is a large natural rubber producing country), development of the upstream and downstream industries (e.g. the development of the automobile industry, which is the demand side of the tire industry), environment of relevant laws and rules (e.g. the restriction of environmental protection law for the industry development), etc.

The main part of the introduction of the tire industry aims at the current situation of tire producing enterprises in the target region, the choice of major enterprises and the introduction of enterprises- basic situation, and analyzes the operations according to the statistics such as output value and sales value.

In the end, this report makes a prediction on development tendency of the tire industry in the Asia-Pacific region in 2011 to 2015.

From this report, readers can acquire following and more information:
-production of the tire industry in the Asia-Pacific region
-consumption of the tire industry in the Asia-Pacific region
-operations of the tire industry of the major countries in the Asia-Pacific region
-the major tire enterprises in the Asia-Pacific region and their operations
-prediction on development of the tire industry in the Asia-Pacific region

The following persons are suggested to buy this report:
-tire manufacturing enterprises
-tire trade enterprises
-auto manufacturing enterprises
-research institutes which concern about the tire industry in the Asia-Pacific region
-investors who concern about the tire industry in the Asia-Pacific region

To get more details, please go to http://www.cri-report.com/tyres/63-research-report-on-asia-and-pacific-tire-industry-2011-2012.html

About the Author

www.cri-report.com

Legendary investor Warren Buffett said today his firm, Berkshire Hathaway (BRKa, BRKb) has amassed a stake in International Business Machines (IBM). The Oracle of Omaha told CNBC that Berkshire has bought 64 million IBM shares since March.

Nov. 14 (Bloomberg) — Hans Goetti, chief investment officer for Asia at Finaport Investment Intelligence, discusses the European sovereign-debt crisis and expectations for the euro. Speaking from Singapore with Owen Thomas on Bloomberg Television’s “First Look,” he also talks about investment opportunities in gold and corporate bonds.

The One Place to Invest for Growth, Income… and Safety

by Alexander Green, Investment U Chief Investment Strategist
Monday, November 14, 2011: Issue #1642

Eight weeks ago, I wrote an Investment U column pounding the table for dividend stocks. Since then, they’ve ratcheted higher, but I still see plenty of upside ahead.

Someone who shares my enthusiasm for high-yield stocks right now is my friend and former colleague Rick Pfeifer, Senior Portfolio Manager at Fund Advisors of America, a  Florida-based money management firm.

On a recent trip to the sunshine state, I stopped into his office to hear why he, too, feels this is one of the best places to put your money to work today.

Q: Rick, there’s an awful lot of fear and anxiety about the economy and the stock market right now. Investors are confused and uncertain about what to do with their money. What is your take on things?

A: In a market as volatile as this, you have to spread your bets. But my take is this: If you’re looking for growth, buy dividend-paying stocks.

If you’re looking for income, buy dividend-paying stocks. If you’re looking for safety, buy dividend-paying stocks.

Q: Why?

A: The first question every investor has to ask himself is, “How should I divide my money among stocks, bonds and cash?”

The average money market fund currently pays two one-hundredths of one percent. At that rate, you will double your money in just 3,600 years.

Q: Not terribly attractive.

A: Definitely not.

And Treasury yields won’t make you jump up and click your heels, either. The 10-year guy is yielding two percent, which translates – at best – to a zero-percent yield after inflation.

Q: Tough to meet your investment goals that way.

A: Right.

In my view, dividend stocks are a good place to be right now for several reasons. Let’s talk about safety first. When the Dow traded at these levels 11 ½ years ago, it sold for 47 times earnings. Today it trades at less than 14 times earnings. Stocks are cheap right now on the basis of sales and earnings.

But even during market declines, dividend-paying stocks hold up better than non-dividend-paying stocks and sometimes fight the broad trend and rise in value. The reason is obvious. These tend to be mature, profitable companies with stable outlooks, plenty of cash and long-term staying power.

Q: U.S. companies are sitting on a record amount of cash now, too, right?

A: Correct.

U.S. companies currently hold more than $2 trillion in cash, a record. Thanks to this economy and the current Administration (don’t get me started), companies aren’t hiring and they’re not boosting spending. So a lot of this cash is rightfully going back to shareholders.

The Dow currently yields more than bonds. And dividend growth among U.S. companies has averaged 10 percent per year over the last two years, more than double the long-term dividend growth rate.

Q: Okay. Dividend stocks are less risky than non-dividend payers and currently pay more than cash or bonds. But how do you think this group will perform in the years ahead?

A: We can only use long-term historical performance as a guide, but the numbers are pretty darn encouraging. Over the last 50 years, for instance, the highest 20 percent yielding stocks in the S&P 500 returned 14.2 percent annually.

That’s good enough to double your money every five years – or quadruple it in 10. And if you were even more selective, say investing only in the 10 highest yielding stocks of the 100 largest companies in the S&P 500, your annual return would have been even better, 15.7 percent.

Q: We should add the standard caveat here about past performance and point out that there are risks with dividend stocks, too, right?

A: Indeed. You have to be selective. An investor would be foolish to plunk for a stock just because the dividend is large. The market is full of “dividend traps,” troubled companies that pay hefty dividends to keep investors from bailing out.

Q: How does an investor avoid those?

A: Mainly, by doing his or her homework. You need to look at prospective sales and earnings growth. You have to examine the balance sheet and make sure that the company isn’t too highly leveraged.

You have to note cash balances. And, perhaps most importantly, you need to analyze whether the payout ratio is sustainable.

Q: So can you give us a few examples of high-yielders that have you been buying in your managed accounts lately?

A: I’ve been nibbling at Windstream Corp. (Nasdaq: WIN), a well-run communications and networking company with an 8.3-percent current yield. I like oil and gas producer Enerplus (NYSE: ERF), with its high operating margins and 7.7-percent dividend.

And – this one is a bit different – I’ve been picking up a 10.3-percent yield with the Gabelli Global Gold Trust (AMEX: GGN). There are plenty of other attractive high-yield situations out there, too. They should be owned, of course, as part of a more broadly diversified portfolio.

Q: I agree, Rick. Thanks for your time. Let’s chat about this sector again in a few weeks.

Good investing,

Alexander Green

[Editor’s Note: Fund Advisors offers Investment U subscribers a complimentary portfolio review. For more information, feel free to call Rick – or his partner Greg Galloway – at 800.438.3040 or 407.667.4729.]

Article by Investment U

Using Caterpillar to Gauge Global Demand

by Jason Jenkins, Investment U Research
Monday, November 14, 2011

Caterpillar Inc. (NYSE: CAT) has come to terms to buy Hong Kong-listed ERA Mining Machinery in a deal valued at as much as $887 million.

The offer, a 33-percent premium to ERA’s most recent share price, is another bet by Caterpillar that demand for mining equipment and growth in China will stay strong.

ERA is a Chinese maker of coal-mining equipment, specializing in hydraulic roof supports. Formerly known as ERA Holdings Global, it completed a reverse takeover in September 2010 to transform it into a mining machinery maker.

But more importantly, Caterpillar’s move to acquire it could be a strong sign that global demand isn’t weakening, as many pundits are claiming. But we’ll get to that in a minute…

Acquisition Follows Strong Third Quarter

Caterpillar, which manufactures everything from black-and-yellow excavators and harvesters to diesel-electric locomotives, recently reported a stellar quarter. It earned $1.14 billion (or $1.71 per share) in the third quarter – an increase of 44 percent from $792 million, or $1.22 per share, in 2010.

Revenue increased 41 percent to $15.72 billion due to an international demand for machinery. Emerging markets continued to need construction equipment as their economies grow. More mature countries and economies – while experiencing weak growth – needed to replace older equipment.

Resource industries sales, which include mining equipment, more than doubled to $4.6 billion, while construction equipment sales rose 41 percent to $4.9 billion. Power generation sales increased 21 percent to $5.08 billion. The company backlog reached $28.6 billion during the quarter.

The Peoria, Illinois, company said it expects full-year 2011 profit and revenue to be at the top end of its previous outlook range due to strong demand and should see a record year if the company hits its earnings and revenue expectations. Caterpillar said it added 4,800 jobs during the quarter, including 2,000 in the United States. In 2012, the company expects revenue to increase 10 percent to 20 percent above the $58 billion in sales it expects this year.

What it Means for the Global Economy

Higher commodity prices are attracting more investment in mines and fueling demand for mining machinery.

However, of more importance, we need to take notice of Caterpillar’s outlook, as they aren’t seeing any signs of a major slowdown in the global economy.

Companies like Caterpillar are a good indication of the world’s economic well being because they make earth-moving equipment – and if these types of corporations are strong, then global infrastructure is strong. We did not see this three years ago directly after the crisis.

Caterpillar and the Industrial Equipment Industry

Keep in mind that until recently, Caterpillar was losing market share in China, which accounts for about half of the total world demand for construction equipment, to rivals such as Komatsu Ltd. (OTC: KMTUY.PK) of Japan. A year ago, it had seven percent of China’s excavator market, trailing Komatsu’s 15 percent.

Richard Lavin, Caterpillar’s group president in charge of construction equipment, stated in October that the company had to race to catch up because it previously underestimated China’s growth potential and in recent years hasn’t had enough manufacturing capacity there to meet demand.

Strong demand for construction and mining equipment should boost Caterpillar’s revenue through next year, even as the health of global economy remains in doubt. Komatsu should also benefit from this outlook and consider it a good value with a P/E around 10.

Good investing,

Jason Jenkins

Article by Investment U

Nov. 14 (Bloomberg) — Martin Schulz, a senior research fellow at the Fujitsu Research Institute, talks about the outlook for the Japanese economy and the yen. He speaks from Tokyo with Owen Thomas on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Nov. 14 (Bloomberg) — Marc Faber, publisher of the Gloom, Boom and Doom Report,” talks about the outlook for global stock markets. Faber also discusses Europe’s sovereign debt crisis, the U.S. economy and Federal Reserve monetary policy. He speaks from Ho Chi Minh City, Vietnam, with Susan Li on Bloomberg Television’s “First Up.”(Source: Bloomberg)

London Gold Market Report
from Ben Traynor
BullionVault
Monday 14 November, 08:15 EST

U.S. DOLLAR gold bullion prices dropped to $1775 an ounce Monday morning London time – a 0.7% drop from Friday’s close.

“We see very light volume today,” says one Hong Kong gold bullion dealer.

“Gold could test $1800 soon, while the $1750 level provides good support.”

On the currency markets, the Dollar gained along with UK and German government bond prices, while European stock markets fell.

Silver bullion fell to $34.20 per ounce – a 1.5% drop from the end of last week – while other industrial commodities were mixed.

Over in Leipzig, German chancellor Angela Merkel repeated calls on Monday for a “new Europe” with greater “political union”.

Merkel – who this weekend described as “shameful” a series of murders that have been linked to a group calling itself the National Socialist Underground – said today that Europe is facing its biggest crisis since the end of World War Two.

The solution is “more Europe and not less Europe” Merkel told her CDU party’s annual conference.

“The Euro is a failed project that has costs barrels full of money,” reckons Dutch politician Geert Wilders. Wilders, whose Party for Freedom is known for its anti-Islam stance, has said he is looking at the implications of the Netherlands returning to the Guilder – the currency it had before joining the Euro.

Spain’s Socialist government meantime is set to lose Sunday’s general election, according to latest opinion polls, which predict a win for the center-right Popular Party.

Yields on Spanish 10-Year government bonds this morning breached 6% for the first time since the European Central Bank began buying Italian and Spanish debt in early August.

Over in Athens, Greece formally appointed Lucas Papademos as prime minister on Friday, while in Italy Mario Monti – former European Competition Commissioner and adviser to Goldman Sachs – was asked last night to form a new government, following the resignation of Silvio Berlusconi.

“Monti’s appointment is clearly a positive for markets,” reckons Emmanuele Vizzini, chief investment officer at Milan-based asset management firm Investitori Sgr.

Italy’s Treasury successfully sold €3 billion in 5-Year government bonds on Monday. The average yield was 6.29% – up from 5.32% for last month’s 5-Year auction.

The ECB stepped up its buying of Italian debt towards the end of last week, according to newswire Reuters. During the crisis it has intervened on the open market to buy government bonds of troubled sovereigns – including Greece, Italy and Spain.

The ECB “must stick to [its] mandate” Jens Weidmann, president of the Bundesbank and a member of the ECB Governing Council, says in an interview published in today’s Financial Times.

“[It] must not be a lender of last resort for sovereigns because this would violate Article 123 of the EU treaty” – which prohibits central banks directly funding governments.

“[Europe is having] an absurd debate in which we are telling institutions: don’t care about the law…if we now overstep [our] mandate, we call into question our own independence.”

The Euro fell nearly 1% against the Dollar on Monday morning, hitting $1.34. The Euro gold bullion price rose to €1304 per ounce – 0.2% up on Friday’s close.

“Doubts and uncertainty over the Eurozone are sure to resurface which could see renewed interest in precious metals, especially gold and silver,” says Marc Ground, commodities strategist at Standard Bank.

“However, we continue to warn that should the Eurozone debt crisis result in a severe drying up of money markets in Europe, we could see all commodities fall rapidly, even gold.”

China meantime should “operate by the same rules as everyone else,” US president Barack Obama told reporters Sunday – referring to the alleged undervaluation of the Yuan against the Dollar.

“Enough is enough.”

“[It depends] whose rules we are talking about,” responded Pang Sen, deputy director general at China’s Foreign Ministry.

“If the rules are made collectively through agreement and China is a part of it, then China will abide by them. If rules are decided by one or even several countries, China does not have the obligation to abide by that.”

Chinese gold bullion demand meantime continues to show signs of strength.

“There’s a lot of material going into China, and New Year demand hasn’t even started yet,” said a senior executive in the secure logistics industry to BullionVault today from Switzerland.

“This is new, regular and additional traffic [in gold and silver] – levels we haven’t seen before.”

Ben Traynor
BullionVault

Gold value calculator   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK’s longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Life for retail foreign exchange traders just got easier with the launch of Mobile4X.com’s latest product development: integration with the popular MetaTrader4 trading platform.

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Ends.

Note to editors
For further information please contact:
Mobile4X.com chief executive Peter Blaikie
M: +64 (0) 226 334 966, E: [email protected]
Mobile4X.com background

Mobile4X.com unchains the everyday retail foreign exchange trader from their computer screen, by bringing critical currency information to them wherever they might be, via text message. To date Mobile4X.com has set thousands of such traders free.

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