| CME bid spurs fears of merger monster
THE commodities boom is intensifying the merger mania among the world's financial exchanges. But the $US11 billion ($12.4 billion) bid by CME Group to acquire Nymex Holdings may fuel worries that consolidation is leaving the survivors with too much power. A purchase of the 135-year-old New York Mercantile Exchange's owner by CME, parent of the Chicago Mercantile Exchange, would create the largest exchange in the world, with a stock market value of about $US45 billion. And acquiring Nymex's crude oil futures, one of the largest commodity contracts in the world, would fill the last major hole in the 110-year-old Chicago exchange's product line-up, while squeezing remaining rivals in the energy market. The deal also highlights some unsettling consequences of the global scramble for alliances and market share in trading financial securities.
Feds looking into alleged metro Ponzi scheme
Federal agents are investigating several people suspected of running a fraudulent investment scheme that helped pay for stock market day trading and gambling trips to Las Vegas. The alleged scheme used a number of Twin Cities business entities and is believed to have tapped more than 200 investors nationwide for at least $10.9 million, according to a sworn statement filed this month in Minneapolis federal court to obtain three search warrants. U.S. Postal Inspector Rob Strande, who filed the statement, said the losses have not been determined, but that they could be substantial. Strande said in the affidavit that the suspects solicited investors by promising returns of 20 to 2,200 percent over the course of one to 18 months. Potential investors were told that their money would go to unspecified ventures -- including gold, diamonds and oil commodities -- he said.
Std Bank, ICBC in $1bn resources fund
They did not ruling out a possibility of third party participating and investing in the fund. There is a huge demand for resources such as precious metals, oil and gas in China and this is also driving the commodities markets. Ridley said ICBC was interested in taking part in the resources sector and Standard Bank could provide access to over 250 professionals in commodities and resource financing worldwide. Standard Bank would also contribute to the fund by creating deal flow and fund investment opportunities. We will also leverage global franchise in resources industry, he said. ICBC could assist the fund by facilitating access to investment opportunities in China and contributing funding sources. We will complement each other, said Ridley.
Aluminium gains, agris spike, crude witnesses profit-taking
MUMBAI: The commodity markets were volatile last week as the surprise Fed move on interest rates caused short-term turbulence. The immediate reaction was a short-term upmove on select base metals as the industrial outlook (at least as a perception) improved and shorts were squeezed. The bullion outlook, too, improved as hedge fund activity was seen driving prices higher. Select agri-commodities spiked higher and the outlook was slightly more upbeat compared with the previous week. MCX volumes fell 2% and open interest tripped by a similar amount on a week-on-week basis. Turnover gainers were copper, mentha oil, potato, zinc and aluminium. Open interest gainers were natural gas, zinc, refined soya oil and chana. Agri-commodities
Chana has established Rs 2,100 level as a critical support and as long as this threshold is not violated downwards, the outlook remains optimistic.
Oil slips as Opec gathers in Saudi Arabia
Commodities came under pressure on Monday as a wave of risk aversion swept across markets, dragging energy, metals and agricultural prices lower. Oil fell sharply at the start of a crucial week with crude prices in sight of the key $100 level as delegates began to gather for a historic meeting of the Organisation of the Petroleum Exporting Countries. .
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