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Buffett discusses financial crisis, derivatives

In an interview with Spiegel, Warren Buffett sounds an optimistic tone about the financial industry despite the upheaval. He said the “weapons of mass destruction” that he has mentioned in the past are a reference to “the out-of-control trading in derivatives” and that they will be difficult if not impossible to regulate. “You can’t put the genie back into the bottle,” Buffett said.

Chevron looks to pump natural gas in Indonesia

Chevron (stock ticker: CVX) could produce close to 1 billion cubic feet of natural gas a day by 2016 from Indonesia’s deep-sea fields. Indonesia’s oil and gas regulator still must approve a development plan that Chevron submitted last year. It could take six to eight years to develop the fields before they can start pumping gas, said Steve Green, head of Chevron’s Indonesian and Philippine operations. Read the rest of this entry »

Credit Crisis spurs greater use of supply chain financing

Companies have been increasingly using supply chain financing, which involves using their own receivables to secure financing, as the credit crunch took hold and financial conditions continue to be tough, according to a survey from the consultancy Demica. “Banks in our research were emphatic in their view that SCF is a strong and rapidly growing market, and one which will provide an alternative source of funding for those corporates facing difficulties obtaining traditional bank credit,” said Phillip Kerle, CEO of Demica.

Cambodia rise exports push prices down

Cambodia will sell some of its 1 million-plus tons of rice in warehouses now that it knows it has enough for domestic demand, Prime Minister Hun Sen said. The news adds downward pressure on rice futures, which for two days have fallen by the daily limit set by exchanges. “With major producers in Southeast Asia braced for harvesting bumper crops in the next couple of months, the global market sees more supplies,” said Takaki Shigemoto, an analyst with commodity broker Okachi & Co.

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Moody´s stock looses 17% after rating error

In response to a recent Financial Times article, Moody’s has retained law firm Sullivan & Cromwell to do an external review of the agency’s process for rating European constant proportion debt obligations. Moody’s had rated complex debt products higher than warranted because of a glitch in its computer models but did not fix the error for nearly a year, despite senior staff knowledge. Meanwhile, U.S. Sen. Charles Schumer, D-N.Y., has called on the SEC to investigate the situation.

Oil price hits more than $135 a barrel in Asia

In Asia, oil reached a record high price of more than $135 a barrel today and then retreated. Concerns about supply, increasing global demand and a declining dollar are keeping crude futures moving up. Analysts are starting to question what will stop oil prices from increasing as they continue to set new records almost daily. Although there are technical indications in the futures market that crude might drop, few analysts are ready to call an end to the rally.

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US cuts use of imported oil for first time since 1970´s 

The U.S. has seen its dependency on imported oil dip for the first time since 1977. Imports comprised 57.9% of oil consumption in the first three months of the year, down from 58.2% last year. Americans are using less because of high prices and because more ethanol is in use, said Guy Caruso, head of the U.S. Energy Information Administration.

Buffett keeps eyes on Europe for takeover targets

Investor Warren Buffett said he’s concentrating on Europe, not emerging markets, for companies that his Berkshire Hathaway might be interested in buying. “You want to fish in a pond where the fish are, and Europe is a much better pond,” he said. Buffett is on a four-city European tour designed to form relationships that might identify purchase targets for his investment and holding company.

Microsoft targets Yahoo´s search advertising operation 

In its renewed romance of Yahoo, Microsoft has proposed several ideas for a pairing, including a revenue-sharing partnership and Yahoo selling its search advertising operation. Yahoo is under pressure to negotiate some kind of partnership or deal after resisting Microsoft’s earlier buyout offer. Yahoo’s future might depend on reaching a decision to sell or outsource some of its advertising business, Stifel Nicolaus analyst George Askew said. Microsoft has made it clear that it plans to build its search advertising business one way or another.

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Major shareholder of Yahoo, Icahn, amasses 4% of Yahoo - proxy fight may loom 

Carl Icahn may be smelling blood at Yahoo Inc. (stock quote: YHOO). The activist investor has accumulated a 4% stake of the Internet portal company and may be gearing up for a proxy fight to replace Yahoo’s board. The deadline for Yahoo board nominations is Thursday, with a vote scheduled for the company’s annual shareholder meeting in July. Investors criticized Yahoo for failing to reach a $47.5 billion buyout deal with Microsoft Corp.

China quake disrupts natural gas  production

China’s two largest oil companies said the killer earthquake in Sichuan province forced them to shut some gas wells and an oil refinery in the city of Nanchong. PetroChina Co. has cut daily gas output from Sichuan by about 14%. China Petroleum & Chemical Corp. said aftershocks and blocked transportation links led it to keep gas wells closed. Natural gas demand could drop until business resumes in the province, which uses about 19% of China’s supply, said Lehman Brothers Holdings Inc. analyst Cheng Khoo in Hong Kong.

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SEC to demand liquidity disclosures

US regulators will soon force Wall Street banks to divulge more details about their capital and liquidity. the requiement seeks to avert a repeat of the sudden collapse of Bear Stearns in March. The new disclosure would be “in terms that the market can readily understand and digest”, said the Security and Exchange Comission.

European Central Bank (ECB) and Bank of England leave rates steady

Although Europe is dealing with an inflation problem, and a higher rate would definetly help them to combat this problem, the central banks decided to leave rates unchanged amid signs of slower economic growth ahead. Most analysts expected this decision.

Regulator of US commodities sees no price manipulation

The US regulatory body for futures markets said commodity prices are not a result of market manipulation. Instead, the high prices for oil, food grains and other are because of reasons including the dollar´s falling value, growing demand from developing nations and biofuel mandates.

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