Investing and Global Finance News

Monthly Archives: March 2011

Oil Fields in ArcticOil Fields in Arctic

Rosneft-BP Merger

A couple of months ago, world-renowned BP signed a deal with Russia’s major oil company Rosneft to “swap shares and jointly develop oil fields in the Arctic.” Of course it will be BP reaping most of the benefits (since it will be putting up the majority of the capital) with the Russian Rosneft company taking in 5 percent of BP and BP getting double of that, at nearly 10 percent of Rosneft.

Paying for Technology

The bottom line is, it’s BP that has the technology. So effectively, Rosneft will be paying for it. It lacks both the technological and managerial know-how needed to work “some of the most promising and largely untapped oil fields in the world.” Without this, it will be incapable of maintaining its oil production levels “as output from fields in western Siberia continues to decline.”

BP Benefits?

If that’s the case, then what’s it in it for BP? In a simple word: access. Without the merger with Rosneft, BP is denied access to fields “beyond its political reach.” So Rosneft reaps financial rewards while BP gets otherwise unprecedented access to areas previously denied it due to political reasons.

Russian Energy Issues

This merger is definitely good news for Russians, the country and its economy. But that doesn’t remove its other issues, most notably how to re-educate the people on energy saving activities. Russia is known for its abundant oil and gas reserves so an incredibly lax attitude has been taken amongst the people vis-à-vis energy conservation. But this is essential even in a country with many resources since World Bank figures show that potentially Russia could go much further as with a little bit of work it could cut its energy consumption by a staggering 50 percent. Perhaps if it did this it would be in an even better bargaining position the next time a big name company such as BP approaches it for a deal.

Where Is the IMF Headed?

With the global economy still in somewhat of a crisis and all the events in Japan impacting world finances too, it might be understandable if one were to inquire about the current position of the International Monetary Fund (IMF) today. Of course though, when it comes to such large monetary issues, where there are two… Continue Reading

Stressed-Out Euros and Plummeting Yens

Asia and Europe Not surprisingly, shares in Japan have dropped amid a backdrop of attempts to recover from the “world’s worst nuclear crisis in decades.” But Japan’s tragedy didn’t impact shares in Europe which steadied following a statement made by the region’s Central Bank chief, Jean-Claude Trichet on its decision to raise interest rates in… Continue Reading

Global Budgetary Issues

Portugal Remains Silent Things aren’t looking so great for Portugal right now, either politically or economically. The country’s recent crisis has led to an attempt on the part of its government to “rein in the budget deficit.” In turn, this has resulted in markets once again shifting their focus to Europe’s sovereign debt crises. Given… Continue Reading

Asia and the Global Economy Today

<h3>Global Financial Crisis on the Mend</h3> Finally there is some good news vis-à-vis the much talked about – nay, incessantly whined about – global financial crisis.  The peak was around 3 years ago but since then there have been signs of improvement, albeit at a snail’s pace and still necessitating significant assistance according to Sultan… Continue Reading

Global Food Imports Impacted by Japan

<h3>Japan’s Potential Radiation Leaves Food Shortage</h3> The consequences of Japan’s recent disasters are starting to have an impact on global food imports.  Along with America, Australia and Singapore have now been restricting food and milk imports from there, with Canada set to also pull the reins on its screening.  Those living in Tokyo have even… Continue Reading

Japan Tries To Recover Its Gems

  <h3>Diamonds Are a Girl’s Best Friends</h3> If anyone knows that fact it’s Tiffany…as in Diamond-buff Tiffany.  The company just publicized their staggeringly juicy figures for fourth quarter earnings of $181.2 million ($1.41 per share) which is quite a step-up from the same quarter of last year which was $140.4 million ($1.10 per share). Despite… Continue Reading

Optimism at the 3rd Annual Agribusiness in Ukraine Conference

Agribusiness in Ukraine is a key, rapidly growing industry. Each year, hundreds of leading global industry participants gather at the Intercontinental Hotel in Kyiv for a conference, “Agribusiness in Ukraine” to discuss relevant strategic issues facing the ongoing development this dynamic economic sector in Ukraine, which is extensively blessed with some of the most fertile… Continue Reading

Apple Struggles to Please the World

Could it really be true?  Is it possible that popular computer-giant company Apple is actually experiencing dissatisfied customers?  Well, yes.  And no.  Yes and no to be exact.  The only reason Apple and dissatisfied customers may be used in the same sentence is because their latest product – the iPad 2 – isn’t being produced… Continue Reading