Sunday, May 23, 2010

Industrials/Materials/Energy $DE $RIO ; Sinochem takes $3.6B stake in Brazilian oilfield; $GE escapes harshest part of Reform Bill

· DE – Ralph Whitworth, the activist investor, may set his sights on Deere according to Bloomberg; Whitworth may lobby the company to boost its dividend or resume its buyback and is seeking a meeting w/mgmt – Bloomberg 
· Sinochem takes $3.6B stake in Brazilian oilfield – China’s largest chemical trader agreed to pay $3.6B to Statoil for a 40% stake in Brazil’s Peregrino field. The companies will jointly seek more opportunities in Brazil and around the world. The Australian  
· Small miners rocked by confusing resource super-profits tax – Small miners are saying they are unsure whose profits will be affected due to the Australian mining tax. Some miners have said it is confusing and the gov’t should have done a better job explaining it. The Australian  
· Commodities dip as $US grows stronger – Commodities fell sharply last week as traders worried about the euro-zone debt crisis, a stronger dollar, and Chinese demand. Markets were also shocked when Germany made a move to impose restrictions on short sales for a few securities. The Australian  
· Top miners dig in against resource tax – Australia’s top miners, BHP, Rio, and Fortescue have increased efforts to oppose the resource super profit tax, saying local miners are getting hammered due to the tax and investments are fleeing Australia. WSJ
· Frustration mounts as oil spill washes into Louisiana coastal wetlands – Residents along the Gulf coast continued to express their anger as oil washed into delicate wetlands in Louisiana, as many wondering how to clean up the mess now that BP’s latest attempt to plug the well won’t happen until at least Tuesday. The EPA head will also return to the coast to monitor the Gulf oil spill response. AP
· US could fall behind China in clean energy – U.S. Commerce Secretary Gary Locke said the U.S. could fall behind China and other countries in clean energy development unless it passes the proposed energy legislation. Locke said there is too much capital sitting on the sidelines, while other countries continue to boost investments in clean energy projects. Reuters
· BP increasing efforts to shift blame for oil spill to RIG – BP executives claim that RIG’s documents show its workers were in charge of operations and monitoring the well, while RIG said BP has already acknowledged it has taken full responsibility. WSJ
· GE looks likely to escape harshest restrictions of financial bill – The WSJ said included in the Senate bill is a compromise allowing GE Capital Services to remain under its parent without subjecting the entire company to the Federal Reserve scrutiny. WSJ
· Barron’s was positive on UTX as the company has 40% of its revenues from recurring services.
· Barron’s was positive on NUAN, SWN, NOV, and OXY.
· British Airways and American to receive regulatory approval to link up as soon as next month – The London Independent is reporting that the alliance between the two airlines is ready for regulatory approval and the rollout is planned for August. London Independent
· Obama launches commission into oil spill – Obama has launched a commission to investigate the Gulf spill, which is to be co-chaired by Sen Bob Graham (D) and William Reilly, the former head of the EPA. FT
· Freeport’s huge DRC high grade copper/cobalt mine to exceed 2010 target – The mine in Congo has reached production capacity and should exceed targets for 2010. The mine cost $2B to set up and FCX has a 57.75% stake in it. Mineweb  
· Air India planes crashes, killing 158 people – Investigators continued to look for flight data and voice recorders from the wreckage of an Air India Express Boeing aircraft that killed 158 passengers and the crew. Bloomberg

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