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Ten years of cheap money

Analysis / Asia

Ten years of cheap money

Some analysts talk about currency wars, others emphasize the acute problem of disinflation on trying to explain the process of cutting rates by central banks around the world. The fact is that we have eight years of monetary easing and much probably this process will continue the next two others. This year 24 central banks...

Whiting Petroleum Corp, Oasis Petroleum, Apache Corp, EnCana, Devon Energy Corp, Anadarko Petroleum Corp. are only a few of the big names of shale oil sector in north America. These are some of the names that have given a boost to the fall of the oil price. Only in America there are 75 shale-focused companies with different sizes. What is going to happen with all these companies if the oil stays at this level? Many of them have big debts and have also big problems on paying the debts because the initial projections have been made with a 100 Usd oil price. Now many of these companies are under the eye of the majors. Exxon Mobil and Chevron most likely are going to buy some of them. The problem with these companies is also that their valuation is made on a reserve basis. As the price of oil has dropped the valuation will be less interesting from what the owners would like. This is a golden moment for the majors to enlarge their reserves with a cheap price. Now it remains to see if it will be a consolidation between peers or these small medium and large companies will finish in the belly of the largest and oldest oil companies. We know that the crises are made for the strongest. So if these companies come out from the hell they will be stronger in the future. The only thing we wait to know is the way these companies will escape from the death. Many analysts suggest that one of the ways to consolidate the sector would be a "stock for stock" because of the financing lack and the amount of the debt these companies already have. Otherwise the major part of them will be incorporated by any big fish of this market.

Energy / US

Time for a consolidation in the oil shale industry

Whiting Petroleum Corp, Oasis Petroleum, Apache Corp, EnCana, Devon Energy Corp, Anadarko Petroleum Corp. are only a few of the big names of shale oil sector in north America. These are some of the names that have given a boost to the fall of the price of oil. Only in America there are 75 shale-focused...

What can we expect from the New Development Bank of BRICS

Asia / Finance

What can we expect from the New Development Bank of BRICS

The so called BRICS countries (Brazil, Russia, India, China and South Africa) this time seems to take seriously. These countries have agreed to build a New Development and Investment International Bank. This new institution will be ready to operate within the end of this year.  Its headquarters will be in Shanghai and the potential of this...

draghi_mario

Europe / Finance

The ECB finally launched the QE

The question that many investors could make to them self is: Why so late? Why for last? In fact the other major central banks Fed, Boj, BoE, have launched similar QE many years ago and some of them has already finished the process creating millions of jobs. Let’s hope that the saying of Jesus: Blessed...

INDIA, the next global leading economy

Asia / Economy

“INDIA” The next global leading economy

Not by much the economic and financial newspapers were talking about India’s biggest problem: the electricity. This has been for long time a key issue for Indian’s economy. Nowadays, newspapers are talking about the miracle of Indian’s economy. The economic growth for the past year was 7.5 % against China’s 7.3 %. For the next...

Nasdaq reaches again 5.000 points

Finance / US

“Nasdaq” Reaches again 5.000 points!

We had to wait fifteen years to see another time the Nasdaq to touch the 5.000 points level. Few analysts would have imagined that the Nasdaq would take so much time to reach again this historic level. Now the question is: What ought to think the investors? May be they have to be afraid? In...