Russia Overtakes Saudi Arabia in Oil Exports

Russia has surpassed Saudi Arabia in oil exports for the first time since the end of the Soviet Union as the country takes advantage of OPEC production cuts to gain market share. Russian exports of oil and refined products rose to 7.4 million barrels a day in the second quarter of 2009, compared to 7.25 million in the first quarter, according to country’s energy ministry data. In contrast, Saudi shipments fell to around 7 million barrels a day between April and June — down from 7.39 million in the first quarter, according to International Energy Agency estimates of output and domestic demand.

Investors had expected Russian supplies to drop after government officials told the Organization of the Petroleum Exporting Countries the country was ready to limit production to help increase global prices. Instead, Russia is providing tax breaks for new fields in Siberia. Domestic companies Rosneft and Lukoil, as well as BP’s Russian joint venture, TNK-BP, also have increased output as prices have risen by over 50%.

Source: Bloomberg

CNPC Lands $30 Billion Loan

China National Petroleum Corp (CNPC), the country’s largest oil and gas producer, on Sept. 9 said it received a $30 billion loan from a state-owned China Development Bank as the energy company makes a move for overseas resources. CNPC added the five-year loan will be given at a discounted interest rate, which would be used to fund its “go global” strategy.

Source: Financial Times

China’s Geely to Bid for Volvo

China’s Geely Automotive said on Sept. 9 it wants to bid for Ford’s Volvo subsidiary in a move that makes it the latest Chinese automaker to chase a foreign brand. If successful, the acquisition could boost the profile of Geely, a small, home-grown car maker and give it access to the Volvo technology the company needs to upgrade its cars.

Source: Reuters

GM’s Plans for Opel Get Complicated

General Motors’ new board could soon be in a standoff with the German government. But even if GM is determined to get a more satisfactory disposition of its Opel auto operations in Europe, there aren’t any clear-cut paths to success. The company’s board of directors met on Sept. 8 and will again on Sept. 9 to discuss Opel’s fate. If the board chooses not to accept a bid from Canadian parts maker Magna International and its Russian partner, OAO Sberbank, a very complex drama will unfold.

Source: BusinessWeek

Kraft Calms Cadbury Bid Speculation

Kraft has played down speculation it will raise its offer for Cadbury after the British chocolate company rejected its $16.7 billion offer. Cadbury shares have climbed 38% on talk the American firm could increase its bid, and that there may be a bidding war with rivals such as Hershey or Nestle.

Source: Reuters

Retailers Bend Over Backwards to Win Consumers Over

Tough economic times have caused many consumers to cut spending. But some recent promotions show shoppers will still chase a bargain, particularly one that seems unlikely to be repeated anytime soon. Even big-ticket items costing hundreds or thousands of dollars can be in high demand if they are priced right.

Source: New York Times

New Regulation to Hit Investment Banks

The global financial regulatory crackdown is likely to cut long-term profitability at U.S. and European investment banks by nearly a third, according to a study by JPMorgan. The report paints a pessimistic view of the impact of regulatory changes that include tougher capital rules for trading and a push to trade derivatives on exchanges. Investment banks’ return on equity could fall from 15% to under 11% by 2011.

Source: Financial Times

German Bankers Defend Bonuses

On Sept. 9, leading German bankers defended bonuses as a necessary reward for talent and a lesser factor in the global economic crisis than politicians have made out. “Banks can’t let star performers slip through their fingers by being tight-fisted,” Deutsche Bank Chief Executive Josef Ackermann said.

Source: Wall Street Journal

Madoff Feeder Fund Makes $8 Million Deal

Massachusetts regulators have reached an $8 million settlement with one of Bernard L. Madoff’s feeder funds. The deal calls for full restitution for the New England state’s victims, and was struck with New York-based Fairfield Greenwich Advisors. The Massachusetts secretary of state had filed a civil complaint against Fairfield on behalf of 10 state investors, saying its executives had not conducted adequate oversight of Madoff.

Source: Associated Press

NYSE Euronext Teams Up with Brokerages

NYSE Euronext has agreed to sell stakes in the options business to seven brokerages including Bank of America and Barclays as the exchange tries to revive the struggling operation. Citadel Investment Group, Goldman Sachs, TD Ameritrade Holding, Citigroup, and UBS also will purchase stakes in NYSE Amex, the company said.

Source: Bloomberg

Obama to Make Healthcare Speech

In a high-stakes speech to the nation, U.S. President Barack Obama will press for a government-run insurance option on Sept. 9in his proposed overhaul of the U.S. health-care system. White House officials say the president will detail what he wants in the health-care overhaul, as well as say he is open to better ideas on a government plan if lawmakers have them.

Source: Wall Street Journal