Buisness Insider

The Bankruptcy Of The World's Oldest Shipper Signals Rough Waters Ahead For The Battered Industry

Stephenson Clarke Shipping

Stephenson Clarke, the British shipping company, has been around since 1730 when George II was king.

Sadly, they are now in liquidation and shutting down for good.

Here's part of their statement via Reuters:

"While previous economic downturns have been weathered, the current market is one of the worst experienced for many years with no upturn forecast for at least 12 to 18 months,”

Prior to the financial crisis, shippers placed huge orders for ships, which have lengthy lead times.  The Chinese shipping yards also brought an immense number of ships on line.

Once the economy soured, all of the excess capacity was left idling and shipping rates collapsed.  Shippers went deep into the red.

In recent years as the economy began to stabilize, the shipping industry rejiggered their finances and operations in an effort to navigate the bumpy economy.

However, even the most prudent strategic corporate maneuvers couldn't have saved Stephenson from an an economy that's rapidly deteriorating again.

Dagfinn Lunde Dvd Bank Se Marine Money Week Marine Money International Event June 2012 Bi Dng"The economy is growing slower than expected," said Dagfinn Lunde to Business Insider.

Lunde, who many recognize as the most powerful shipping banker in the world, thinks that Stephenson's forecast for a shipping industry upturn in 12 to 18 months is likely too optimistic.  He sees more shippers going down.

However, he pointed to some bright spots in shipping including offshore energy, liquefied natural gas (LNG), and cruises.

Even Lunde was surprise at how quickly the cruising industry recovered from the Costa Concordia disaster.

Ultimately, the problems of the shipping industry are largely supply issues, or issues within the shipping industry.

Regarding the economy as a whole, it's still growing.

"There is no recession on the demand side," said Lunde.

Don't Miss: We Had Drinks With The Biggest Players In The Shipping World, And This Is What They Told Us >

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

Mf

A2A2t
Feeds.feedburner
read full article
   

BEN DAVIES: Asia's Hunger For Treasuries Is Turning Into A Hunger For Gold

Ben Davies

In a piece for King World News, Ben Davies, the CEO of Hinde Capital, said that Asia is a massive buyer of gold and has been stepping up their buy order. 

Asia has long been a buyer of US 10 year bonds, a historical pattern which he compares to the new surge from Asia in gold. 

"With 10 year yields at 1.68% and having topped out in our opinion, we do see a cessation of Asian bond buying and a switch to gold and other currencies by our Asian counterparts.  It is the end of the vendor-financing relationship."

Davies states that evidence points to an upside break for both gold and silver, though he is hesitent to state which way he expects the commodities to break. Either way, Davies expects a huge move for gold in the near future.

The Precious metals market is trend ready.  Gold, on our short and long-term trend indices, is primed for a substantial move.  This could be up or down.

Don't Miss: The Truth About Gold >

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

Mf

A2A2t
Feeds.feedburner
read full article
   

Wall Street's 'Eurozone Crisis Units' Are Getting Ready For A Euro Exit

Empty Trading Floor

There is ton of uncertainty surrounding a scenario where Greece or another country leaves the euro. One uncertainty is whether or not a country would continue to pay down its debt, and whether it would repay it in euros.

According to a report in the FT, derivatives traders at major investment banks across Wall Street are having the same conversation with counterparties. They want to make sure that their euro-denominated transactions continue to get paid in euros as well.

The discussions are occurring partly against the backdrop that, according to the FT, "no bank has dramatically adjusted its exposure to the five [peripheral] countries, betting that gross positions, which range from $5.4bn at Morgan Stanley to more than $20bn at JPMorgan Chase, are manageable."

One source expressed uncertainty to the FT:

One senior Wall Street executive said his bank was approaching derivatives counterparties to say: “‘We’ve got this contract, it’s in euros, what I want to know is in the event that Spain were to be redenominated are we going to end up being adversaries on this or can we just agree that this is a euro contact? Let’s just move it to London law so we each agree that we know where we stand.’

Another said it's altering the nature of new transactions, which could be part of the reason why peripheral bonds have been underperforming:

A trader heading a eurozone crisis unit at another US bank said counterparties were being told to use collateral that could not suddenly switch from the euro to a new currency.

“You can make sure you post collateral that has less redenomination risk,” he said.

Read more at FT.com.

ALSO: Goldman says the ECB is about to deploy "creative new policy instruments" that no one is expecting >

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

Mf
Feeds.feedburner
read full article
   

Page 56 of 126

For latest CURRENT design & photos
Find Joysco Studio On Facebook


28 February 2012
Be Inspired: The Life of Heavy D (Documentary) FT. QUEEN LATIFAH AND MORE NARRATED BY...
17 December 2014
Nike rounds out those best of 2014 lists with the Air Jordan 11 'Legend Blue,' a pair of...
17 December 2014
Iggy Azalea reveals the North American dates for The Great Escape Tour with Tinashe and Nick...
17 December 2014
Everyone is vying for that year-end homerun, but who's really hitting it out of the park? Well,...
17 December 2014
The millions continue to pour in for 50 Cent. The G-Unit leader reveals that he recently secured a deal...
17 December 2014
Puma has hired another prominent R&B singer to help design sneakers for the heritage sportswear...
17 December 2014
Nicki Minaj continues to make her promotional rounds for 'The Pinkprint' album with the latest...
17 December 2014
Cesar Baldelomar was pulled over for playing N.W.A's 1988 anthem 'F--- tha Police,' off...
17 December 2014
Starlito unleashes a new banger off his 'Black Sheep Don't Grin' project with the Don...
17 December 2014
In this week's The Boombox Battle, songs from Fabolous and Rae Sremmurd compete for the...