Brazil's Biofuel Boom: Mark McHugh

Believe it or not, industry experts see biofuels accounting for up to 25% of global energy consumption by 2050. With this long-term vision in mind, Mark McHugh, president and CEO of consultancy firm CenAm Energy Partners SA, assesses the current biofuel industry from his base in Brazil, the seat of the growing industry. . . . → Read More: Brazil’s Biofuel Boom: Mark McHugh

Winning the Rare Earth Economic War: Luisa Moreno

China’s sudden cuts to rare earth export quotas and domestic production marked the beginning of a Rare Earth Economic War, proposes Jacob Securities’ Senior Mining and Metals Analyst Luisa Moreno. The good news is that partnerships between end-users and mining companies may just be the secret weapon to level the playing field for . . . → Read More: Winning the Rare Earth Economic War: Luisa Moreno

Jaret Anderson: Potash Developers Blaze Trail to Brazil

Brazil offers an ideal environment for potash developers, according to Salman Partners Analyst Jaret Anderson. A robust agricultural sector, favorable government policy with excellent transportation and infrastructure are leading to the development of a number of very attractive potash projects in Brazil. In this exclusive interview with The Energy Report, Jaret details his . . . → Read More: Jaret Anderson: Potash Developers Blaze Trail to Brazil

Big Mac Index

Each year The Economist magazine publishes one of my favorite economic indicators – the Big Mac Index. This year The Economist said,

Our Big Mac index, based on the theory of purchasing-power parity, in which exchange rates should equalise the price of a basket of goods across countries, suggests that the yuan is 49% . . . → Read More: Big Mac Index

Gold and the Punchbowl

I have just been listening to Ben Davies’ podcast (see also FT Alphaville here) from Hinde Capital about the funding issues of the Japanese government and the points he makes are important. I have used the metaphor of Japan as a bumblebee before and while I believe that the story on Japanese savings . . . → Read More: Gold and the Punchbowl

Productivity Growth in Brazil

Carlos Pereira of the Brookings Institution (link) has reviewed the dismal productivity growth and the consequent macroeconomic indicators in Brazil in the last decade.

“Although there are several expenditures in this category, the one that stands out high above all others is outlays for social security and pensions. Practically one-third of the federal budget . . . → Read More: Productivity Growth in Brazil

Liquidity on the Currency Futures vs. the Nifty Futures

India is the second country of the world, after Brazil, where the currency futures are more liquid than the currency forwards. Today when I glanced at the order book of the near month rupee-dollar futures, I was struck by the big numbers that are visible:

The tick size of this market is 0.25 paisa, . . . → Read More: Liquidity on the Currency Futures vs. the Nifty Futures

When a Currency Futures Market Dominates a Currency Forward Market

In recent months, a sense has emerged that the exchange-traded currency futures market in India is more liquid than the corresponding contract traded OTC (i.e. the forward market). As an example, we examine a dataset from NSE of 28,797 observations of data – one observation per second – from 3 November 2009, for the . . . → Read More: When a Currency Futures Market Dominates a Currency Forward Market

The Burden of Rebalancing

Nothing good lasts forever, or so at least many would have us believe. I shall neatly leave it aside of whether this is true in a general sense but merely note that it appears that we are moving closer to some form of another of crunch here. And my rationale you ask? Well, let . . . → Read More: The Burden of Rebalancing

Interesting Readings for October 14, 2009

David Oakley reports on Brazil having made it to investment grade. This is their payoff to the immense progress that took place in the last decade in terms of fiscal, financial and monetary institution building. In many respects, India’s starting conditions today are similar to where Brazil was before these reforms. Robert Shiller, . . . → Read More: Interesting Readings for October 14, 2009