Tag: south-korea

Korean Hostility Triggers Wall Street Sell Off

Filed in o, Spot Gold by on November 23, 2010 0 Comments
Korean Hostility Triggers Wall Street Sell Off

Filed under: Market Matters , Headline News , DJIA On a quiet Tuesday two days before Thanksgiving, you wake up to find that North Korea has shelled an island off the coast of South Korea. You turn on your computer to find that the incident has triggered a sell off on Wall Street. The Dow dropped 120 points to 11,056. The Nasdaq Composite fell 1% to 2506, as reported in the Wall Street Journal . You are probably wondering why this small confrontation between North and South Korea is causing all this turmoil. For one thing the market dislikes uncertainty, especially when international power balances are being breached. This is the first salvo in what could be a nasty situation. When something like this happens, traders simply bail out and wait to see what happens next. Continue reading Korean Hostility Triggers Wall Street Sell Off Korean Hostility Triggers Wall Street Sell Off originally appeared on BloggingStocks on Tue, 23 Nov 2010 11:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

Continue Reading »

Sri Lanka Boom Times

Filed in Gold, GOld juniors, lead, mongolia, shares, ubs by on October 14, 2010 0 Comments
Sri Lanka Boom Times

Two years ago, the Tamil Tigers of Sri Lanka were described by the FBI as “the most dangerous and deadly terrorist organization in the world.” Over the past thirty years, they have killed upwards of 100,000 people — the vast majority of them civilian. The list of heinous acts is long and multifaceted. Children were kidnapped and used as soldiers. The Tigers sent more suicide bombers than another other terrorist group, far surpassing the PLO. They even pioneered the use of suicide airplane attacks and bomb belts. But on May 17, 2009, after being routed by the forces of Sri Lankan President Mahinda Rajapaksa, the Tamil Tigers (or LTTE) finally admitted defeat. The Tiger leaders were dead. The war was over, and there were celebrations in the capital city of Colombo. The hub of South Asia As I write this, Sri Lanka is undergoing a massive post-war rebuilding boom. They have deals in place with the International Monetary Fund (IMF) which limits government spending and works toward a balanced budget. This is a deal similar to the one made with South Korea and Indonesia after their financial crisis of 1998… South Korea iShares Index (EWY) went from 12 to 70 over the past decade; the Indonesia iShares Index (PCX) went from 22 to 90 over the past two years. The IMF deal forces the politicians into fiscally conservative governance, as well as gives them someone to blame for the austerity. And in most cases, the IMF has a fine track record. (Argentina is a notable exception.) Major trade route Sri Lanka has been on a major trade route between East Asia and the Middle East for thousands of years. It is most known for its tea, rubber, garments, and tourism. There is a new, deep-water port terminal being built in Colombo with a $500 million investment from China Merchant Holdings. The New York Times ranked Sri Lanka as the Number 1 place out of 31 to visit in 2010. There will be several new business opportunities going forward in real estate, business process outsourcing, banking, timber, pepper, fisheries, education, health care, and infrastructure. In other words, buy the hotels, cement makers, and the banks. For example, Seylan Bank Plc. (Colombo: SEYB) reported that profits have risen 295% in the latest quarter. The share price has tripled this year. The exchange as a whole is up 110% this year. Last year, the Colombo Stock Index rose 120% — just edging out Mongolia. GDP growth For most of the 2000s, GDP Growth in Sri Lanka was running at 6%. In 2009, in the aftermath of the global bust, it contracted to 3.5%. But so far this year— as the rebuilding gets underway and investors flood into the market — GDP growth is running at 8% for the first two quarters of 2010. The IMF is projecting a seven percent growth rate in 2010, but will soon revise higher. Brian Aitken, IMF Mission Chief for Sri Lanka said, “Our latest projection came before the second quarter data and we would reevaluate our projections this November or December when the mission next visits Sri Lanka. The second quarter…

Continue Reading »

Asiatic Adventurism, Part III

Filed in currencies, deflation, euro, Gold, mongolia, obama, US Dollar, Yen, yuan by on October 12, 2010 0 Comments

For a quick overview of issues, consider that China has understood the art of war since Sun Tzu, back when the rest of us didn’t have fireworks or chopsticks. The Chinese do not like losing face. Shooting wars have been known to start over tariffs. China is already using gunboat diplomacy and playing a deep game. They know that a trade war is still a war while Congress was grandstanding to the voters — and Japan cowers. China has many counters to the latest puff ball protectionist gambit, an obvious one being a stiff little note from their Ambassador regretting that due to lost revenue from increased U.S. tariffs his country feels obliged to sell Treasuries according to the enclosed schedule until trading relations are stabilized at the current level…or even one more favorable to China. Start with $100 bn the first month, $200 bn the second month, and schedule $300 bn the next month, anticipating the U.S. would fold after the first sale, if not sooner. Robert Mugabe stymied DeBeers by selling diamonds at a discount, so why not discount T-bills if political and other economic advantages make that course feasible? If I were Chinese Premier Wen Jiabao, I would hold ostentatious talks with the Japanese (who are scared stiff of me) about selling U.S. paper jointly in order to protect my …

Continue Reading »

Tiny 1gram Gold Bullion | Wall Street Stocks | New York Stock …

Filed in Gold, Indonesian Gold by on October 4, 2010 0 Comments

And sometimes I go to department store like Hyundae Dept Store to buy some gold . lilkrn. October 4, 2010 – 10:14 pm. Where did you get them? If you buy gold in South Korea can I just go into a store and buy bullion ? …

Continue Reading »

S. Korea rejects N. Korea’s call for joint inquiry into sinking

Filed in Bank Gold, Gold, Gold Spot Market by on July 3, 2010 0 Comments

North Korea has called for a joint investigation with South Korea into the sinking of a South Korean navy vessel last March, but the proposal was quickly rejected by Seoul.

Continue Reading »

G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction

Filed in recession, South African Gold, Spot Gold by on June 6, 2010 0 Comments
G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction

Filed under: Market Matters , Politics , Recession In an about face, G20 finance ministers dropped their support for fiscal stimulus . The communique from Saturday’s meeting in South Korea stated: “The recent events highlight of sustainable public finances and the need for our countries to put in place credible growth friendly measures to deliver sustainability.” Back in April the G20 group was hep on continuing their stimulus programs. Their statement then called for fiscal support to “be maintained until the recovery is firmly driven by the private sector and becomes more entrenched.” Continue reading G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction originally appeared on BloggingStocks on Sun, 06 Jun 2010 10:10:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Continue Reading »

U.S. weighing new options over North Korea

Filed in Bank Gold, Gold, Gold Spot Market by on June 5, 2010 0 Comments

The United States said on Saturday it was weighing new options beyond the United Nations to punish North Korea, which South Korea blames for the sinking of a warship that has blah blah blah blah blah blah blah …………. WRH permalink

Continue Reading »

At polls, South Korea conservatives pay for response to Cheonan sinking

Filed in Bank Gold by on June 3, 2010 0 Comments

City and provincial elections dealt a blow to the conservative government of South Korea President Lee Myung-bak. Many voters were unhappy with the strong response to the sinking of the Cheonan Navy vessel. WRH permalink

Continue Reading »

U.S. Committed to Border Defense: For South Korea

Filed in Bank Gold, gld, Gold Spot Market by on May 26, 2010 0 Comments

For those of you keeping score at home, that is about 2.5 INS Agents (soldiers) per mile. South Korea has 238 American soldiers per mile to defend its borders. We get 2.5 American soldiers per mile to defend ours. But wait, there’s more! Obama has just committed an additional 1200 National Guard troops to border protection. This raises the number to 2.65 soldiers per mile. If only Arizona had the the same lobbyists as South Korea! WRH permalink

Continue Reading »

Eni Gains Momentum in Iraq – Analyst Blog

Filed in lead, silver by on May 26, 2010 0 Comments

Eni SpA ( E ) is gaining momentum at Zubair oilfield, Iraq. It expects to reach production volumes of at least 250,000 barrels per day (bpd) from the current rate of 180,000 bpd.   Eni lead consortium won the contract for developing the oilfield last year. Other players include US-based Occidental Petroleum and South Korea’s Kogas. This was a 20-year term contract, which may extend up to 25 years. During this time period, the consortium plans to invest a total sum of $20 billion. Eni plans to invest approximately $72 billion in the 2010−2013 time frame, an increase of 8% form the 2009−2012 plan. This increase is driven by new projects in Iraq and Venezuela in the E&P space.   Eni’s strong presence in North Africa and the Middle East is likely to result in growth. Moreover, additional production is expected from acquired properties in the Gulf of Mexico and Congo and the expected build-up in gas production in Libya.   While the company is positive about the Zubair field’s capacity, it indicated a flat 2010 upstream outlook with an aim to grow production through 2013 at 2.5% CAGR (compounded annual growth rate). Eni plans to bring 41 new fields online in the next four years.   Despite the company’s significant international exposure, Eni is facing challenges at the domestic front, due to increasing competition, which is likely to impact its margins. Read the full analyst report on “E” Zacks Investment Research

Continue Reading »

N. Korea expels S. Korean officials from joint factory park

Filed in Gold, Gold Spot Market by on May 26, 2010 0 Comments

Sam Kim Yonhap Wednesday, May 26th, 2010 Further fueling tension between the Koreas, North Korea kicked South Korean government officials out of their joint factory park in the North on Wednesday and threatened to shut it down if Seoul resumes its anti-Pyongyang broadcasts along the border. The North, accused of sinking a South Korean warship in the Yellow Sea in March, also renewed its threat to shoot South Korean loudspeakers if Seoul sets them up on its side. The expulsion of eight South Korean officials from the Kaesong complex came a day after Pyongyang repeated its denial of its role in the Cheonan sinking and said it would sever ties with Seoul. Forty-six crew members died in the sinking, prompting South Korea to vow it will make North Korea pay for the attack. On Monday, the South announced a slew of measures to punish the North, including a trade ban and the resumption of propaganda activities after a six-year halt. “If the south side persists in scattering leaflets and resumes even the above-said broadcasting, the Korean People’s Army will be compelled to promptly take its strong counter-actions including physical actions,” the unnamed chief North Korean military delegate to talks with the South said in a statement. “Moreover, measures will be taken to totally ban the passage of personnel and vehicles of the south side in the zone under the north-south control in the western coastal area,” it said in an apparent reference to the Kaesong industrial zone. The industrial complex, considered the last remaining symbol of detente between the countries, houses about 110 South Korean firms, employing 42,000 low-wage but skilled North Korean workers. The North Korean warning was accompanied by notification that the communist state was cutting off its hot line with South Korea at their truce village, as well as their maritime communication links. South Korean Unification Ministry spokesman Chun Hae-sung said his government will continue to carry out its retaliatory measures despite angry reaction from Pyongyang. “Even though the North should apologize and prosecute those responsible (for the sinking,) it has again taken measures undermining inter-Korean relations,” Chun said. “The South will deal with these North Korean threats unwaveringly and sternly.” The exchange of retaliatory actions comes as U.S. Secretary of State Hillary Clinton is in Seoul after visiting Japan and China, a trip that appeared to heavily focus on the Cheonan sinking. It also comes as the South Korean Navy tracks four North Korean submarines which disappeared from their east coast base after conducting naval training earlier this week. North

Continue Reading »

South Korea Threatens War If North Korea Makes One More Provocation

Filed in gld, Gold, Gold Spot Market by on May 24, 2010 0 Comments

Gus Lubin Business Insider May 24, 2010 South Korea’s Lee Myung-bak announced his retaliation plan for the attack on the Cheonan this morning in Seoul. Although restrained like he has been for the past two months, the president finally referred to the possibility of war: “If our territorial waters, airspace or territory are militarily violated, we will immediately exercise our right of self-defense.” Moving from “passive defense to proactive deterrence” is a significant shift for a country that seems to get pushed around by North Korea every year . Just this month South Korea fired warning shots when North Korean ships ventured across the border. On the other hand, if Kim Jong-il were to refrain from lighting the powderkeg for a year or so, he’d be getting off easy. The rest of Lee’s retaliation involves a ban on sand and fish imports . South Korea will continue to share an industrial complex with North Korea and continue sending foreign aid across the border. Lee will also bring his case to the UN, but the UN can do little without the support of China . Here’s the rest of Lee’s statement, from Joongang Daily : “From this moment, no North Korean ship will be allowed to make passage through any of the shipping lanes in the waters under our control, which has been allowed by the Inter-Korean Agreement on Maritime Transportation,” Lee said. “The sea routes meant for inter-Korean exchanges and cooperation must never again be used for armed provocations.” “In close consultations with the nations concerned, the government will refer this matter to the UN Security Council, so that the international community can join us in holding the North accountable,” Lee said. “Many countries around the world have expressed their full support for our position.” “Trade and exchanges between the Republic of Korea and North Korea will also be suspended,” Lee said. “However, we will continue to provide assistance for infants and children,” he said. “Matters pertaining to the Kaesong Industrial Complex will be duly considered, taking its unique characteristics into consideration.”

Continue Reading »