Brazil Turns to China to Help Finance Oil Projects

May 17, 2009 07:00 PM

Snapshot of news and events for today

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Financial markets Major world indicators

Japanese trading...

  • The 225-issue Nikkei Stock Average fell 226.33 points, or 2.4%, to 9038.69.

  • Currencies: Monday morning in New York, the euro was at $1.3496, off a session high of $1.3510, but up from $1.3488 late Friday. The dollar was at ¥95.76, off a session high of ¥96.02 but up from ¥95.10, according to EBS. The euro was at ¥129.21, off a session high of ¥129.47, and from ¥128.28. The U.K. pound was at $1.5292, off a session high of $1.5314, but up from $1.5175. The dollar was at 1.1202 Swiss francs from 1.1224 Swiss francs late Friday.

Friday's U.S. Markets...

  • The Nasdaq Composite Index fell  The Dow Jones Industrial Average on Friday declined 62.68 points, or 0.8 percent, to 8,268.64. The benchmark finished lower on the week, falling 3.6 percent, just its second losing week in the last 10. It was the worst weekly drop for the average since the week ended March 6. The Nasdaq Composite Index fell 9.07 points, or 0.5 percent, to 1,680.14. The benchmark's nine-week string of weekly gains came to an end, falling 3.4 percent for the week. .
Ag futures Yesterday's action and
overnight indicators

What happened Friday...

  • Corn: Futures faced active profit-taking pressure today amid ideas the upside has been overdone. With the double-digit losses, corn closed lower for the week.
  • Soybeans: Futures moved to new-for-the-move highs before profit-taking drove futures to double-digit losses into the close.

  • Wheat: Futures faced sharp profit-taking pressure to end the week, resulting in weekly losses in the Chicago and Kansas City markets. Minneapolis futures still closed above last week's levels, as sharp gains were seen earlier in the week because of ongoing spring wheat planting delays.
  • Cotton: Futures posted sharp losses amid profit- taking and technical-based selling. With Friday's losses, cotton futures ended sharply lower for the week.
  • Lean Hogs: Lean hog futures ended the week under pressure as traders worked to narrow the premium futures hold to the cash market. June hogs finished about $1.70 below last week's close. Futures are above their reaction lows to the H1N1 outbreak, but set back this week on cash hog market concerns.
  • Live Cattle: Live cattle futures futures finished lower and ended lower for the week.

Overview Other reports affecting agriculture
Major media Links to top news reports
with potential U.S. ag impact

Wall Street Journal (subscription to site required for access)

  • Indian Voters Reach for Era of Stability A strong showing by India's Congress party gives a decisive mandate to Prime Minister Singh and raises hopes for economic reforms.
  • Clarity Is Missing Link in Supply Chain The world's complex "just in time" manufacturing supply chains are making it tough for any single link in the chain to know what's going on just a few links away.
  • A Reshaped Fed Is Likely to Gain Some Powers, Lose Others History may show that the Fed helped stave off another Great Depression in 2008, but the radical steps it took along the way make it more politically vulnerable than it has been in decades. A broad re-examination of the Fed's role in the financial system and its governance is beginning to take shape.
  • Liberals Fret Over Obama's Compromises President Barack Obama's decision to maintain Bush-era military commissions is the latest in a series of compromises and delays that allies on the left see as a disappointing shift away from campaign pledges.
  • China Envoy Brings Deep Skill Set to Job Utah Gov. Jon Huntsman Jr., President Barack Obama's choice for China envoy, is a former businessman and trade official with a direct understanding of the commercial issues that are likely to color one of the U.S.'s most important bilateral relationships.
  • Brazil Turns to China to Help Finance Oil Projects With Credit Markets Tight, President da Silva Hunts for Funding in Beijing, Offering His Hosts Secure Commodity Supplies Brazil's oil industry is turning to China for cash in the latest sign of how Beijing's clout is growing amid the global economic downturn. Brazilian President Luiz Inácio Lula da Silva was set to arrive in Beijing Monday to meet with Chinese President Hu Jintao, who is expected to unleash billions of dollars of credit to help Brazil exploit its massive oil reserves. Brazil will return the favor by guaranteeing oil shipments to Chinese companies.
  • Brazil Food Giants Discuss Merger A Perdigão Acquisition of Sadia Would Create Firm With $11 Billion in Sales Brazil's meat-processing giant Sadia SA once made a hostile bid for rival Perdigão SA. Its fortunes have since changed, and now Sadia is looking for a partner from a position of weakness instead of strength. The two companies, which together slaughter more than two billion chickens and other birds a year, said they are in discussions for a merger that would rescue Sadia and create one of the world's largest frozen and processed food companies.

New York Times (registration to site required)

  • WHO May Raise Alert Level as Swine Flu Cases Leap in Japan Japanese authorities ordered more than 1,000 schools and kindergartens in and near the cities of Kobe and Osaka to shut down.
  • Little Relief Expected for Flood-Ravaged Brazil Swelled rivers that have flooded homes to their rooftops and forced more than 260,000 people from their homes in northeastern Brazil will probably take a few more weeks to recede, Brazilian authorities said over the weekend.
  • New Mood in Antitrust May Target Google Last week, the Obama administration declared a sharp break with the Bush years, vowing to toughen antitrust enforcement, especially for dominant companies. The approach is closer to that of the European Union, where regulators last week fined Intel $1.45 billion for abusing its power in the chip market. In this new climate, the stakes appear to be highest for Google, the rising power of the Internet economy.
  • Report Weighs Fallout of Canada’s Oil Sands The growth in oil sands is the reason Canada has failed to contain its greenhouse gas emissions in recent years despite its commitments to do so. Critics refer to the bituminous deposits as tar sands, calling them the dirtiest fossil fuels on earth. Trying to balance the size of Canada’s reserves and their environmental impact is a tough act. But a new report, to be released today by IHS CERA, an energy consulting group, sees big opportunities for the oil sands, shrouded in vast uncertainty.

Washington Post

  • At Geithner's Treasury, Key Decisions on Hold Many Advisers' Roles Are Undefined And Others Still Awaiting Confirmation Seven weeks after the Treasury Department announced that it was ousting General Motors chief G. Richard Wagoner Jr. in the federal bailout of the company, he is still technically on GM's payroll.
  • As Detroit Crumbles, China Emerges as Auto Epicenter America's auto titans are dismantling their global empires. But across the Pacific, it's as if the global economic forces that have pummeled Detroit never struck. Chinese auto sales are up, and this year China is projected to displace Japan as the world's largest car producer.
  • Board to Ban Accounting Practice That Helped Lending Proliferate Rule Change Aimed at Preventing Another Financial Crisis The end is nearing for an accounting trick destined to be remembered as a hallmark of the housing boom, because it allowed financial firms to conceal a vast expansion in their lending from regulators and investors.
Laughing with, not at From political humorists

Jay Leno: "The economy is so bad, Nancy Pelosi now saying she was misled by E.F. Hutton."

Jay Leno: "Well, let's see what's going on about that whole torture thing. Last week, Nancy Pelosi said she was never briefed by the CIA about their harsh interrogation methods. ... And then after a memo proved she was there and did get briefed, she changed her story to, 'They're lying about me. And they never told me. They didn't tell me anything.'... In fairness to the CIA, they assumed she was paying attention because she didn't blink for three hours."

Jimmy Fallon: "This is a big controversy. House Speaker Nancy Pelosi says that the CIA lied to her in 2003. Yeah, apparently, they sent her a document saying that her makeup looked subtle."

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