Sep 14, 2010 – The recent State of the Union message to Congress by President Obama included a request for the approval of a further fiscal stimulus package this year amounting to around $100 billion to help to tackle the unemployment problem, and he has also presented a $3.8 trillion budget for fiscal 2011 that is likely to maintain the overall deficit around the $1.35 trillion level expected this year.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management - Much will depend on the attitude of overseas holders, and especially on the attitude of the Chinese and Japanese authorities. For the present they seem to be prepared to maintain and even increase their dollar exposure; and if this continues, and the problems of other major currencies remain unresolved, it should be enough to allow the dollar to “improve”. The euro struggled to recover in the early part of January from the big fall that occurred in December; but the recovery did not last very long, and it has subsequently fallen sharply again, to leave it value against the dollar around 10% below the level in early- December.
There has been no significant change in the underlying economic background, although there is some evidence that the fragile recovery that was developing is losing some momentum.
Foreign Exchange Markets 2010 Part 3: Shaw Capital Management Korea - But there has been a serious deterioration in the financial background as the fears have increased that Greece and some other periphery countries in the euro-zone may be unable to fund their massive fiscal deficits, and service their sovereign debts. There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
The present lack of urgency at the central bank and amongst the key politicians suggests that this trend will continue, and that the euro will fall still further; but there is still some hope that the seriousness of the situation will finally produce a support operation that will ease the situation.
Shaw Capital Management News - All the available evidence continues to point to a slow, two-speed recovery in the euro-zone economy. Germany and France appear to be performing reasonably well, although there are some signs of slowdown in Germany; but Greece, Portugal, Spain, Ireland, and even Italy are struggling to escape from recession, and are expected to keep overall output in the euro-zone this year around the 1% level.
Shaw Capital Management News - There is also considerable uncertainty about the intentions of the European Central Bank and the stronger countries if conditions continue to worsen, and so overseas holders have started to withdraw funds from the European capital markets to await developments.
Retail sales remain depressed, and fell by 1.2% between October and November to reflect the continuing caution of consumers; and industrial orders in Germany rose by much less than expected in November, after a very disappointing result in October, to indicate some weakness in export prospects that had been expected to provide significant momentum to the economy.
Wednesday, September 15, 2010
Shaw Capital Management News: Focus on Plutonic Power Corporation (TSX:PCC)
Plutonic Power Corporation develops environmentally cordial run-of river hydro projects in nation Columbia.
Now before we intend into the specifics on this one, let’s prototypal respond the question: What is run-of-river hydro?
Plutonic defines it quite well, stating that run-of-river projects do not actually order whatever damming of water. Instead, whatever of the liquid in a river is pleased and dispatched into a tube titled a penstock.
This penstock feeds the liquid descending to a generating station. The uncolored obligate of somberness creates the forcefulness required to aerobatics the turbines that in invoke create electricity. The liquid leaves the generating send and is returned to the river without altering the existing distinction or liquid levels.
All of Plutonic’s factor specifications and cerebration methods are conformable with providing the small turn of environmental and seeable impacts.
In fact, in a comparability of environmental impacts, the lake Power Authority shows run-of-river hydro to hit inferior of an effect than solar and wind. And of instruction it rates much meliorate than lubricator and coal.
“In a comparability of environmental impacts, the lake Power Authority shows run-ofriver hydro to hit inferior of an effect than solar and wind. And of instruction it rates much meliorate than lubricator and coal.”
Shaw Capital Management News: Operations. Plutonic Power is in the impact of antiquity discover a sort of run-of-river hydro projects in Canada. The prototypal to go online module be the East Toba and Montrose project, which is due to begin dealings after in 2010.
The compounded installed noesis of this digit module be 196 megawatts. All the forcefulness to be generated from this send module be oversubscribed to BC Hydro low a 35-year income contract.
In the ordinal lodge 2009, 74 proportionality of the project’s being cerebration was completed, and 73 proportionality of the penstock was completed. 79 proportionality of the cerebration of the sending distinction was completed.
Shaw Capital Management News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed noesis of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed noesis of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed noesis of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power disposition to amend newborn forcefulness operations. A Request for Proposals followed for projects using proven technologies, much as hydro, wind, solar and geothermal.
This Clean Power disposition allied BC Hydro with the BC Energy Plan which calls for 90 proportionality of forcefulness in the domain to become from decent or renewable sources and for every newborn forcefulness procreation projects to hit set gain edifice pedal emissions.
The aim here for BC Hydro is to successfully discuss noesis acquire agreements with those chosen from a daylong itemize of proposals. … Plutonic is on this list.
And on Nov 19, 2009, Plutonic Power conventional asking from By Hydro that the Bute Inlet and Upper Toba Valley Projects module be approved. These projects were planned together with GE Energy Financial Services.
The GE Connection. In August of 2006, Plutonic Power acknowledged GE Energy Financial Services the inner correct to attain a $100 meg justness assets and wage $400 meg in debt finance for its East Toba River and Montrose project.
In convey for the justness investment, GE gets a 49 proportionality justness wager and 60 proportionality scheme welfare in the project. Now by the instance BC Hydro issued its letter for proposals, GE had presented an justness effort of most $79.3 meg and long most added $71.3 meg assign for the East Toba River and Montrose project.
GE also bacilliform a tie stake with Plutonic terminal June 2009 to acquire an unfinished 144-megawatt twine send in north BC. This is the maximal twine noesis send low cerebration in nation Columbia. Given nation Columbia’s past declaration that it’s feat to found a ‘Green Energy Advisory Task Force’ to support front the Province’s climate, Plutonic Power is in a beatific position.
While Plutonic is knows for run-of-river hydro, this care allows the consort to boost amend naif assets in Canada. The acquire of this twine send was complete on Dec 11, 2009. Given nation Columbia’s past declaration (November 2, 2009) that it’s feat to found a ‘Green Energy Advisory Task Force’ to support front the Province’s climate, to turn edifice pedal emissions and physique a greener economy, Plutonic Power is in a beatific position.
Now before we intend into the specifics on this one, let’s prototypal respond the question: What is run-of-river hydro?
Plutonic defines it quite well, stating that run-of-river projects do not actually order whatever damming of water. Instead, whatever of the liquid in a river is pleased and dispatched into a tube titled a penstock.
This penstock feeds the liquid descending to a generating station. The uncolored obligate of somberness creates the forcefulness required to aerobatics the turbines that in invoke create electricity. The liquid leaves the generating send and is returned to the river without altering the existing distinction or liquid levels.
All of Plutonic’s factor specifications and cerebration methods are conformable with providing the small turn of environmental and seeable impacts.
In fact, in a comparability of environmental impacts, the lake Power Authority shows run-of-river hydro to hit inferior of an effect than solar and wind. And of instruction it rates much meliorate than lubricator and coal.
“In a comparability of environmental impacts, the lake Power Authority shows run-ofriver hydro to hit inferior of an effect than solar and wind. And of instruction it rates much meliorate than lubricator and coal.”
Shaw Capital Management News: Operations. Plutonic Power is in the impact of antiquity discover a sort of run-of-river hydro projects in Canada. The prototypal to go online module be the East Toba and Montrose project, which is due to begin dealings after in 2010.
The compounded installed noesis of this digit module be 196 megawatts. All the forcefulness to be generated from this send module be oversubscribed to BC Hydro low a 35-year income contract.
In the ordinal lodge 2009, 74 proportionality of the project’s being cerebration was completed, and 73 proportionality of the penstock was completed. 79 proportionality of the cerebration of the sending distinction was completed.
Shaw Capital Management News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed noesis of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed noesis of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed noesis of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power disposition to amend newborn forcefulness operations. A Request for Proposals followed for projects using proven technologies, much as hydro, wind, solar and geothermal.
This Clean Power disposition allied BC Hydro with the BC Energy Plan which calls for 90 proportionality of forcefulness in the domain to become from decent or renewable sources and for every newborn forcefulness procreation projects to hit set gain edifice pedal emissions.
The aim here for BC Hydro is to successfully discuss noesis acquire agreements with those chosen from a daylong itemize of proposals. … Plutonic is on this list.
And on Nov 19, 2009, Plutonic Power conventional asking from By Hydro that the Bute Inlet and Upper Toba Valley Projects module be approved. These projects were planned together with GE Energy Financial Services.
The GE Connection. In August of 2006, Plutonic Power acknowledged GE Energy Financial Services the inner correct to attain a $100 meg justness assets and wage $400 meg in debt finance for its East Toba River and Montrose project.
In convey for the justness investment, GE gets a 49 proportionality justness wager and 60 proportionality scheme welfare in the project. Now by the instance BC Hydro issued its letter for proposals, GE had presented an justness effort of most $79.3 meg and long most added $71.3 meg assign for the East Toba River and Montrose project.
GE also bacilliform a tie stake with Plutonic terminal June 2009 to acquire an unfinished 144-megawatt twine send in north BC. This is the maximal twine noesis send low cerebration in nation Columbia. Given nation Columbia’s past declaration that it’s feat to found a ‘Green Energy Advisory Task Force’ to support front the Province’s climate, Plutonic Power is in a beatific position.
While Plutonic is knows for run-of-river hydro, this care allows the consort to boost amend naif assets in Canada. The acquire of this twine send was complete on Dec 11, 2009. Given nation Columbia’s past declaration (November 2, 2009) that it’s feat to found a ‘Green Energy Advisory Task Force’ to support front the Province’s climate, to turn edifice pedal emissions and physique a greener economy, Plutonic Power is in a beatific position.
Tuesday, September 14, 2010
Government bond Markets: Shaw Capital Management February Newsletter:
Government bond markets have ended 2009 on a very disappointing note. A further improvement in sentiment about the prospects for the global economic recovery, and indications that some central banks might be preparing to introduce early "exit strategies" from the measures that had been introduced to counter the recession, have been important factors in producing a more cautious attitude amongst bond investors. But a further significant consideration towards year-end has been the fear of possible defaults on sovereign debts after the decision by Dubai World, a government-owned company, to seek a moratorium on the servicing of its debts, and the downgrade in the credit rating of Greece because of its deteriorating fiscal situation. Shaw Capital Management Korea February Newsletter: There was always the risk that the funding requirements resulting from recent policies, and particularly from the measures to counter the latest recession, would prove to be a massive burden for the global bond markets, and this has now proved to be the case. The Dubai government appears to have been rescued by help from Abu Dhabi; but it is still not clear whether there will be help for Greece and other periphery countries of the euro-zone that are in difficulties, and doubts have also been expressed about countries outside the euro-zone, including the UK, if central banks do not implement "exit strategies" carefully, and credible plans to reduce the massive fiscal deficits are not introduced fairly quickly. Shaw Capital Management Korea February Newsletter: There was always the risk that the funding requirements resulting from recent policies would prove to be a massive burden for the global bond markets. These doubts have already led to a significant widening of yield spreads on bonds of member countries of the euro-zone, with Greek bond yields now more than 2.5% higher than German bond yields; and even 10-year yields on US bonds and UK gilts have risen to the 4% level as investors have reduced their exposure. Shaw Capital Management Korea February Newsletter: Our position on the prospects for the bond markets remains unchanged. We still expect that the recovery in the global economy will only develop at a very slow pace, and that "exit strategies" will only be introduced very gradually. The background situation will therefore continue to provide some support for bond markets.
Shaw Capital Management News Focus On Plutonic Power Corporation Tsx Pcc
Plutonic defines it quite well, stating that run-of-river projects do not actually require any damming of water. Instead, some of the water in a river is diverted and sent into a pipe called a penstock.
This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.
All of Plutonic's component specifications and construction methods are consistent with providing the least amount of environmental and visual impacts.
In fact, in a comparison of environmental impacts, the Ontario Power Authority shows run-of-river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.
“In a comparison of environmental impacts, the Ontario Power Authority shows run-ofriver hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.”
Shaw Capital Management News: Operations. Plutonic Power is in the process of building out a number of run-of-river hydro projects in Canada. The first to go online will be the East Toba and Montrose project, which is expected to begin operations later in 2010.
The combined installed capacity of this one will be 196 megawatts. All the electricity to be generated from this project will be sold to BC Hydro under a 35-year sales contract.
In the third quarter 2009, 74 percent of the project's plant construction was completed, and 73 percent of the penstock was completed. 79 percent of the construction of the transmission line was completed.
Shaw Capital Management News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed capacity of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed capacity of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed capacity of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power Call to develop new energy operations. A Request for Proposals followed for projects using proven technologies, such as hydro, wind, solar and geothermal.
This Clean Power Call aligned BC Hydro with the BC Energy Plan which calls for 90 percent of electricity in the province to come from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.
The intent here for BC Hydro is to successfully negotiate power purchase agreements with those chosen from a long list of proposals. … Plutonic is on this list.
This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.
All of Plutonic's component specifications and construction methods are consistent with providing the least amount of environmental and visual impacts.
In fact, in a comparison of environmental impacts, the Ontario Power Authority shows run-of-river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.
“In a comparison of environmental impacts, the Ontario Power Authority shows run-ofriver hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.”
Shaw Capital Management News: Operations. Plutonic Power is in the process of building out a number of run-of-river hydro projects in Canada. The first to go online will be the East Toba and Montrose project, which is expected to begin operations later in 2010.
The combined installed capacity of this one will be 196 megawatts. All the electricity to be generated from this project will be sold to BC Hydro under a 35-year sales contract.
In the third quarter 2009, 74 percent of the project's plant construction was completed, and 73 percent of the penstock was completed. 79 percent of the construction of the transmission line was completed.
Shaw Capital Management News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed capacity of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed capacity of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed capacity of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power Call to develop new energy operations. A Request for Proposals followed for projects using proven technologies, such as hydro, wind, solar and geothermal.
This Clean Power Call aligned BC Hydro with the BC Energy Plan which calls for 90 percent of electricity in the province to come from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.
The intent here for BC Hydro is to successfully negotiate power purchase agreements with those chosen from a long list of proposals. … Plutonic is on this list.
Shaw Capital Management News: Flex-Fuel Power Plants Now Opening in Brazil
On January nineteenth 2010, the primary ethanol-fired power plant whirred into action in Brazil. National oil company Petrobras (NYSE: PBR) and American systems giant General Electric (NYSE: GE) pitched in resources to flip an existing eighty seven MW plant into a flex-fuel power station that can alternate between natural gas and ethanol (that are both considered different fuels, while solely one is renewable). GE needs to see how its turbines will be custom-made to work in flex-fuel plants in Brazil and in developed countries like Japan, where clean-burning power plants are gaining momentum. Brazil's water-dependent hydroelectric infrastructure teeters during the dry season in places where natural gas is not easily accessible. It just therefore happens that wind power peaks at the other term as the water in running rivers that drives dam-based mostly generation. Ethanol and wind might supplant natural gas as the first alternative supply of electricity generation throughout the dry season in Brazil and President Luiz Inacio Lula da Silva said within the Brazilian press that Brazil may be selfsufficient in natural gas after several pre-salt (browse: incredibly deep) offshore fossil fuel pockets are tapped. That capability is a minimum of 5 years away. Ethanol is there currently, and when wind power auctions started last December, 773 wind turbines can be turning across Brazil by 2012. Shell, Petrobras, GE, and Cosan will surely push hard to get the govt. in Brasilia to initiate a nationwide "ethanol electricity" campaign to ensure that oil and automotive fuel are not the key determinants of sugar ethanol's success. As in thus several different areas of the world, those communities that are now underserved by fossil fuels will benefit most from such clean energy advances. The US Administration completed its revised Renewable Fuels Normal (RFS2). RFS2 can move towards a national goal of 26 billion gallons of biofuel production by 2022.
At Shaw Capital Management we have a tendency to offer you the knowledge and insight you wish to form the proper investment choices. We look forward to operating with you and being the open architects of your financial well being.
Shaw Capital Management - Investment Innovation & Excellence. We have a tendency to offer the data, insight and experience that you would like to make the proper investment choices. Shaw Capital sometimes offers its purchasers such services as asset allocation and portfolio design; traditional and non-ancient manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and alternative wealth management services, as well as estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family workplace, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc. Every investor will achieve better long-term risk-adjusted results by working with a true open design advisor. Our philosophy is straightforward: virtually each investor will achieve higher long-term risk-adjusted results by working with a true open design advisor. Before Shaw Capital launched the open architecture revolution, investors had to create the sad choice between selecting an advisor who was freelance, however unsophisticated (the traditional pension and endowment consulting corporations), or choosing an advisor
At Shaw Capital Management we have a tendency to offer you the knowledge and insight you wish to form the proper investment choices. We look forward to operating with you and being the open architects of your financial well being.
Shaw Capital Management - Investment Innovation & Excellence. We have a tendency to offer the data, insight and experience that you would like to make the proper investment choices. Shaw Capital sometimes offers its purchasers such services as asset allocation and portfolio design; traditional and non-ancient manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and alternative wealth management services, as well as estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family workplace, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc. Every investor will achieve better long-term risk-adjusted results by working with a true open design advisor. Our philosophy is straightforward: virtually each investor will achieve higher long-term risk-adjusted results by working with a true open design advisor. Before Shaw Capital launched the open architecture revolution, investors had to create the sad choice between selecting an advisor who was freelance, however unsophisticated (the traditional pension and endowment consulting corporations), or choosing an advisor
Friday, September 3, 2010
Jun 2010 Government bond Markets Part 2 of 3, Shaw Capital Management Newsletter
(1888PressRelease) June 25, 2010 - Shaw Capital Management Korea February Newsletter: Article two of three - Bond markets in mainland Europe have also fallen back towards year-end. There are signs of a modest improvement in the background economic situation in the euro-zone; and this seems to be persuading the European Central Bank to withdraw some of the liquidity measures that it introduced to counter the recession as part of a general tightening of monetary policy that might soon include higher short-term interest rates.
Shaw Capital Management Korea February Newsletter: Article two of three - But a more serious immediate consideration for the markets has been the decision by some of the rating agencies to downgrade the credit rating of Greek government bonds, and to warn that other periphery member countries of the euro-zone have been placed on "credit watch" and might suffer the same fate. Investors have responded by widening the yield spreads between the bonds of member countries, and by pushing the overall level of yields higher. The markets appear to be expecting that the process will continue. The Fed appears to agree with this more optimistic view, arguing that economic activity is continuing to pick up, and that the deterioration in the labour market is abating. for weaknesses elsewhere.
Shaw Capital Management Korea February Newsletter: Article two of three - There is also a fear that the contraction that is occurring in banking lending, and in the money supply, may be leading to another credit crunch this year that could extend the economic slowdown. Bank loans to businesses were 1.9% lower in November 2009 than in same month in 2008, and M3 money supply was 0.2% lower, and has been shrinking now for several months. Since an expansion in banking lending was a major plank in the European Central Bank's efforts to combat the recession, this latest evidence of a contraction is a major policy failure, and should be persuading the ECB to move very slowly in dismantling its emergency measures; but all the evidence suggests that it is preparing to act. The latest meeting of its governing council left short-term interest rates and overall monetary policy unchanged; but subsequently the bank chairman argued that some of the existing liquidity measures were no longer needed and would be gradually replaced. This was a disappointment for bond investors, not only because such action might be premature and extend the recession, but also because some of the funds that had been made available had been used to support government bond issues.
Shaw Capital Management Korea February Newsletter: Article two of three - However the more serious consideration was the downgrade of Greece's credit rating, and the threat that other member countries of the euro-zone might receive similar treatment because of the increased risk of defaults. Bond issues in the zone reached the equivalent of $1350 billion in 2009, and are likely to exceed that figure this year, with Greece alone needing to sell $83 billion, and likely to try to rely on overseas investors for at least half the funds.
Article part two of three.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Shaw Capital Management Korea February Newsletter: Article two of three - But a more serious immediate consideration for the markets has been the decision by some of the rating agencies to downgrade the credit rating of Greek government bonds, and to warn that other periphery member countries of the euro-zone have been placed on "credit watch" and might suffer the same fate. Investors have responded by widening the yield spreads between the bonds of member countries, and by pushing the overall level of yields higher. The markets appear to be expecting that the process will continue. The Fed appears to agree with this more optimistic view, arguing that economic activity is continuing to pick up, and that the deterioration in the labour market is abating. for weaknesses elsewhere.
Shaw Capital Management Korea February Newsletter: Article two of three - There is also a fear that the contraction that is occurring in banking lending, and in the money supply, may be leading to another credit crunch this year that could extend the economic slowdown. Bank loans to businesses were 1.9% lower in November 2009 than in same month in 2008, and M3 money supply was 0.2% lower, and has been shrinking now for several months. Since an expansion in banking lending was a major plank in the European Central Bank's efforts to combat the recession, this latest evidence of a contraction is a major policy failure, and should be persuading the ECB to move very slowly in dismantling its emergency measures; but all the evidence suggests that it is preparing to act. The latest meeting of its governing council left short-term interest rates and overall monetary policy unchanged; but subsequently the bank chairman argued that some of the existing liquidity measures were no longer needed and would be gradually replaced. This was a disappointment for bond investors, not only because such action might be premature and extend the recession, but also because some of the funds that had been made available had been used to support government bond issues.
Shaw Capital Management Korea February Newsletter: Article two of three - However the more serious consideration was the downgrade of Greece's credit rating, and the threat that other member countries of the euro-zone might receive similar treatment because of the increased risk of defaults. Bond issues in the zone reached the equivalent of $1350 billion in 2009, and are likely to exceed that figure this year, with Greece alone needing to sell $83 billion, and likely to try to rely on overseas investors for at least half the funds.
Article part two of three.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Shaw Capital Management February Newsletter, Government bond Markets 3 of 3
(1888PressRelease) June 25, 2010 - Shaw Capital Management Korea February Newsletter: Article three of three - The markets are assuming that the more powerful members of the eurozone will support the weaker members in order to prevent defaults that might threaten the single currency structure; but the yield spreads have widened considerably to reflect the increased risks. Our tentative view is that the markets will "muddle through", and that defaults will be avoided; but higher overall yield levels seem unavoidable. Prospects in these markets are therefore very unattractive. The gilt edged market has also come under pressure over the past month; short-term yields have remained basically unchanged, but there have been increases in medium and longer-term yields that has produced a much steeper yield curve.
Shaw Capital Management Korea February Newsletter: Article three of three - There has been evidence of a modest improvement in the economic background; and the Bank of England is proving to be a stabilising influence at a difficult time; but a very disappointing Pre-Budget Report has indicated that there will be no attempt to address the problems of the huge fiscal deficit until after the election. Our tentative view is that the markets will "muddle through", and that defaults will be avoided; but higher overall yield levels seem unavoidable. Prospects in these markets are therefore very unattractive. Funding pressures will therefore continued to increase; and so, although there does not appear to be any real danger that the UK might join the list of countries that could default on their sovereign debts, annual debt issues in excess of £200 billion cannot continue for long if this is to be avoided. It is no surprise therefore that investors have reacted by reducing their exposure to the market.
Shaw Capital Management Korea February Newsletter: Article three of three - There is still some doubt whether the UK economy has moved out of recession. The pace of contraction in the third quarter of the year has been slightly reduced, and since then the pace of job losses has declined, and consumer spending has held up fairly well. But business investment and manufacturing activity remains weak, and so there may have been no overall improvement in the final quarter of last year. The Bank of England has therefore kept short-term interest rates at 0.5%, and maintained its quantitative easing programme, and this has provided support for the market, since the bank has been a major buyer of gilts in recent months.
Shaw Capital Management Korea February Newsletter: Article three of three - However it has not been enough to prevent a very adverse reaction to the Pre-Budget Report from the UK Chancellor. The market did not really expect any significant action on the deficit ahead of the forth-coming general election; but was still surprised by the apparent lack of realism. The government is prepared to allow the deficit to continue to accumulate, and is relying on the gilt edged market to provide the funds to finance that deficit in the hope that this will enable it to win the election, and has produced no real indications of how the deficit might be reduced even after the election is over. It is not surprising therefore that investors have reacted by reducing exposure, that 10-year yields have risen to 4% and longer-term yields to 4.5%, and that there are even suggestions that the country could face a capital flight and a full-blown debt crisis in the coming months. We do not share these extreme views; but clearly the prospects for the market are very unattractive, and higher yields appear unavoidable. Investors have reacted by reducing exposure... and there are even suggestions that the country could face a capital flight and a fullblown debt crisis in the coming months.
Shaw Capital Management Korea February Newsletter: Article three of three - The Japanese bond market is basically unchanged over the past month; but there are fears that present yield levels are unsustainable. A sharp reduction in the growth estimate for the third quarter of last year, and weaknesses since then have raised the possibility of a move back into recession and a further period of deflation. The government has reacted by launching its fourth fiscal rescue package since the economic crisis began last year. It amounts to the equivalent of a further $81 billion to be spent in the regions and on subsidies for consumer durables, and is expected to lift the debt issuance this year to a record $835 billion, despite the indications that bond investors may be becoming increasingly unwilling to finance such a high level of new bonds, and the warning from the IMF that the government is risking a significant increase in debt funding costs. Since overseas involvement in the bond market is at a very low level, such a development is unlikely to affect bond markets elsewhere directly; but it could be a warning to other countries of the dangers of placing too much pressure on their own markets.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Shaw Capital Management Korea February Newsletter: Article three of three - There has been evidence of a modest improvement in the economic background; and the Bank of England is proving to be a stabilising influence at a difficult time; but a very disappointing Pre-Budget Report has indicated that there will be no attempt to address the problems of the huge fiscal deficit until after the election. Our tentative view is that the markets will "muddle through", and that defaults will be avoided; but higher overall yield levels seem unavoidable. Prospects in these markets are therefore very unattractive. Funding pressures will therefore continued to increase; and so, although there does not appear to be any real danger that the UK might join the list of countries that could default on their sovereign debts, annual debt issues in excess of £200 billion cannot continue for long if this is to be avoided. It is no surprise therefore that investors have reacted by reducing their exposure to the market.
Shaw Capital Management Korea February Newsletter: Article three of three - There is still some doubt whether the UK economy has moved out of recession. The pace of contraction in the third quarter of the year has been slightly reduced, and since then the pace of job losses has declined, and consumer spending has held up fairly well. But business investment and manufacturing activity remains weak, and so there may have been no overall improvement in the final quarter of last year. The Bank of England has therefore kept short-term interest rates at 0.5%, and maintained its quantitative easing programme, and this has provided support for the market, since the bank has been a major buyer of gilts in recent months.
Shaw Capital Management Korea February Newsletter: Article three of three - However it has not been enough to prevent a very adverse reaction to the Pre-Budget Report from the UK Chancellor. The market did not really expect any significant action on the deficit ahead of the forth-coming general election; but was still surprised by the apparent lack of realism. The government is prepared to allow the deficit to continue to accumulate, and is relying on the gilt edged market to provide the funds to finance that deficit in the hope that this will enable it to win the election, and has produced no real indications of how the deficit might be reduced even after the election is over. It is not surprising therefore that investors have reacted by reducing exposure, that 10-year yields have risen to 4% and longer-term yields to 4.5%, and that there are even suggestions that the country could face a capital flight and a full-blown debt crisis in the coming months. We do not share these extreme views; but clearly the prospects for the market are very unattractive, and higher yields appear unavoidable. Investors have reacted by reducing exposure... and there are even suggestions that the country could face a capital flight and a fullblown debt crisis in the coming months.
Shaw Capital Management Korea February Newsletter: Article three of three - The Japanese bond market is basically unchanged over the past month; but there are fears that present yield levels are unsustainable. A sharp reduction in the growth estimate for the third quarter of last year, and weaknesses since then have raised the possibility of a move back into recession and a further period of deflation. The government has reacted by launching its fourth fiscal rescue package since the economic crisis began last year. It amounts to the equivalent of a further $81 billion to be spent in the regions and on subsidies for consumer durables, and is expected to lift the debt issuance this year to a record $835 billion, despite the indications that bond investors may be becoming increasingly unwilling to finance such a high level of new bonds, and the warning from the IMF that the government is risking a significant increase in debt funding costs. Since overseas involvement in the bond market is at a very low level, such a development is unlikely to affect bond markets elsewhere directly; but it could be a warning to other countries of the dangers of placing too much pressure on their own markets.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Shaw Capital Management News: Flex-Fuel Power Plants Now Opening In Brazil
- National oil company Petrobras (NYSE: PBR) and American systems giant General Electric (NYSE: GE) pitched in resources to turn an existing 87 MW plant into a flex-fuel power station that can alternate between natural gas and ethanol (which are both considered alternative fuels, even though only one is renewable).
GE wants to see how its turbines can be adapted to work in flex-fuel plants in Brazil and in developed countries like Japan, where clean-burning power plants are gaining momentum.
Brazil's water-dependent hydroelectric infrastructure teeters during the dry season in places where natural gas isn't easily accessible. It just so happens that wind power peaks at the opposite time of the year as the water in running rivers that drives dam-based generation.
Ethanol and wind could supplant natural gas as the primary alternative source of electricity generation during the dry season in Brazil and President Luiz Inacio Lula da Silva said in the Brazilian press that Brazil could be selfsufficient in natural gas after several pre-salt (read: incredibly deep) offshore fossil fuel pockets are tapped.
That capacity is at least five years away. Ethanol is there now, and after wind power auctions started last December, 773 wind turbines will be turning across Brazil by 2012.
Shell, Petrobras, GE, and Cosan will surely push hard to get the government in Brasilia to initiate a nationwide "ethanol electricity" campaign to ensure that oil and automotive fuel aren't the key determinants of sugar ethanol's success.
As in so many other areas of the world, those communities that are now underserved by fossil fuels can benefit most from such clean energy advances.
The US Administration completed its revised Renewable Fuels Standard (RFS2). RFS2 will move towards a national goal of 26 billion gallons of biofuel production by 2022.
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Shaw Capital Management -
Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
GE wants to see how its turbines can be adapted to work in flex-fuel plants in Brazil and in developed countries like Japan, where clean-burning power plants are gaining momentum.
Brazil's water-dependent hydroelectric infrastructure teeters during the dry season in places where natural gas isn't easily accessible. It just so happens that wind power peaks at the opposite time of the year as the water in running rivers that drives dam-based generation.
Ethanol and wind could supplant natural gas as the primary alternative source of electricity generation during the dry season in Brazil and President Luiz Inacio Lula da Silva said in the Brazilian press that Brazil could be selfsufficient in natural gas after several pre-salt (read: incredibly deep) offshore fossil fuel pockets are tapped.
That capacity is at least five years away. Ethanol is there now, and after wind power auctions started last December, 773 wind turbines will be turning across Brazil by 2012.
Shell, Petrobras, GE, and Cosan will surely push hard to get the government in Brasilia to initiate a nationwide "ethanol electricity" campaign to ensure that oil and automotive fuel aren't the key determinants of sugar ethanol's success.
As in so many other areas of the world, those communities that are now underserved by fossil fuels can benefit most from such clean energy advances.
The US Administration completed its revised Renewable Fuels Standard (RFS2). RFS2 will move towards a national goal of 26 billion gallons of biofuel production by 2022.
At Shaw Capital Management we give you the information and insight you need to make the right investment choices. We look forward to working with you and being the open architects of your financial well being.
Shaw Capital Management -
Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Our philosophy is simple: almost every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Before Shaw Capital launched the open architecture revolution, investors had to make the unhappy choice between selecting an advisor who was independent, but unsophisticated (the traditional pension and endowment consulting firms), or selecting an advisor who was sophisticated but had conflicting interests (global banks, trust companies, money management firms).
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Is this your company? Claim This ProfileShaw Capital Management News: Washington Waxes Brazilian
Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can't be ignored by the United States.
(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.
Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and... signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.
Shaw Capital Management News: Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without
worrying if there will be buyers.
Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5
billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.
Shaw Capital Management News: Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...
Shaw Capital Management - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.
Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and... signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.
Shaw Capital Management News: Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without
worrying if there will be buyers.
Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5
billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.
Shaw Capital Management News: Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...
Shaw Capital Management - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Thursday, September 2, 2010
Shaw Capital Management News: Washington Waxes Brazilian
Biofuel is also an investment imperative for energy investors and companies that want to make money in Brazil. As an important part of the #3 economy in the Americas, ethanol can't be ignored by the United States.
(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.
Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and... signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.
Shaw Capital Management News: Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without
worrying if there will be buyers.
Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5
billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.
Shaw Capital Management News: Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...
Shaw Capital Management - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc
(Sugar) Ethanol as a Global Commodity; Focus on Cosan Ltd. (NYSE: CZZ) Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and its happy beginning to 2010 signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels. Cosan, a Brazilian company that processes more sugar than anyone else in the world, is now joining with Royal Dutch Shell (NYSE: RDS), the #2 oil producer in Europe.
Shell is paying Cosan $1.625 billion for half of its core assets. As part of the joint venture that will emerge, Shell is also taking on Cosan's debt and opening up 2,740 Shell service stations to Cosan's sweet, green fuel. Shell will also give Cosan two small Brazilian companies … Codexis and Iogen … where Shell has been investing in ethanol. Cosan is entering into a joint venture with an oil giant that could be worth $12 billion, and... signals a renewal of interest in ethanol and entrance of some unlikely participants into biofuels.
Shaw Capital Management News: Cosan stands to gain big from an efficient system of turning agricultural leftovers into fuel in its own right. Of all the money and knowledge changing hands, one part is most important: By gaining access to Shell's distribution system, Cosan will have the luxury of ramping up production without
worrying if there will be buyers.
Shell wants to fertilize Cosan's cane-based business. Cosan output now has to grow from 2 billion liters per year up to the 3 billion that will be needed to satisfy a total 4,500 fuel stations in Brazil. From there, it's up to 4 and 5
billion liters annually and on to making ethanol a global commodity. You'd be hard pressed to tell the difference between Shell and Cosan's statements on this joint venture if you removed a couple of words. Very simply, each company wants access to the other's expertise. "Cosan represents the best entry to sustainable biofuels in the market... the best entry of scale," Shell's Mark Williams said in London. In Sao Paulo, Cosan Chairman Rubens Ometto said the tie-up is intended to be "the step forward that was lacking, in spite of all our efforts, to make ethanol a global commodity." Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two.
Shaw Capital Management News: Low prices also help, as evidenced in Brazil where flex-fuel vehicles now account for 90% of new cars and truck sales. Shell's 45,000 stations around the world will pump biofuel to vehicles that can run on gasoline, ethanol, or a mixture of the two (Brazil mandates that all gasoline have at least a 20% ethanol component). As it stands, Brazilians are the end users of the vast majority of the ethanol that their country produces (about 25 billion liters annually). And you wouldn't know it from most of the media, but ethanol is more than just an automotive matter...
Shaw Capital Management - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc
Focus on Plutonic Power Corporation (TSX:PCC) Shaw Capital Management News
June 17, 2010 - Plutonic Power Corporation develops environmentally friendly run-of river hydro projects in British Columbia.
Now before we get into the specifics on this one, let's first answer the question: What is run-of-river hydro?
Plutonic defines it quite well, stating that run-of-river projects do not actually require any damming of water. Instead, some of the water in a river is diverted and sent into a pipe called a penstock.
This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.
All of Plutonic's component specifications and construction methods are consistent with providing the least amount of environmental and visual impacts.
In fact, in a comparison of environmental impacts, the Ontario Power Authority shows run-of-river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.
Shaw Capital Management Korea News: Operations. Plutonic Power is in the process of building out a number of run-of-river hydro projects in Canada. The first to go online will be the East Toba and Montrose project, which is expected to begin operations later in 2010.
The combined installed capacity of this one will be 196 megawatts. All the electricity to be generated from this project will be sold to BC Hydro under a 35-year sales contract.
In the third quarter 2009, 74 percent of the project's plant construction was completed, and 73 percent of the penstock was completed. 79 percent of the construction of the transmission line was completed.
Shaw Capital Management Korea News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed capacity of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed capacity of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed capacity of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power Call to develop new energy operations. A Request for Proposals followed for projects using proven technologies, such as hydro, wind, solar and geothermal.
This Clean Power Call aligned BC Hydro with the BC Energy Plan which calls for 90 percent of electricity in the province to come from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.
The intent here for BC Hydro is to successfully negotiate power purchase agreements with those chosen from a long list of proposals. … Plutonic is on this list.
And on November 19, 2009, Plutonic Power received notification from By Hydro that the Bute Inlet and Upper Toba Valley Projects will be approved. These projects were proposed jointly with GE Energy Financial Services.
The GE Connection. In August of 2006, Plutonic Power granted GE Energy Financial Services the exclusive right to make a $100 million equity investment and provide $400 million in debt financing for its East Toba River and Montrose project.
In return for the equity investment, GE gets a 49 percent equity stake and 60 percent economic interest in the project. Now by the time BC Hydro issued its request for proposals, GE had given an equity contribution of about $79.3 million and extended about another $71.3 million credit for the East Toba River and Montrose project.
GE also formed a join venture with Plutonic last June 2009 to purchase an uncompleted 144-megawatt wind project in northeast BC. This is the largest wind power project under construction in British Columbia. Given British Columbia's recent announcement that it's going to establish a ‘Green Energy Advisory Task Force’ to help advance the Province's climate, Plutonic Power is in a good position.
While Plutonic is knows for run-of-river hydro, this deal allows the company to further develop green assets in Canada. The purchase of this wind project was completed on December 11, 2009. Given British Columbia's recent announcement (November 2, 2009) that it's going to establish a ‘Green Energy Advisory Task Force’ to help advance the Province's climate, to reduce greenhouse gas emissions and build a greener economy, Plutonic Power is in a good position.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
Now before we get into the specifics on this one, let's first answer the question: What is run-of-river hydro?
Plutonic defines it quite well, stating that run-of-river projects do not actually require any damming of water. Instead, some of the water in a river is diverted and sent into a pipe called a penstock.
This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.
All of Plutonic's component specifications and construction methods are consistent with providing the least amount of environmental and visual impacts.
In fact, in a comparison of environmental impacts, the Ontario Power Authority shows run-of-river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.
“In a comparison of environmental impacts, the Ontario Power Authority shows run-ofriver hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal.”
Shaw Capital Management Korea News: Operations. Plutonic Power is in the process of building out a number of run-of-river hydro projects in Canada. The first to go online will be the East Toba and Montrose project, which is expected to begin operations later in 2010.
The combined installed capacity of this one will be 196 megawatts. All the electricity to be generated from this project will be sold to BC Hydro under a 35-year sales contract.
In the third quarter 2009, 74 percent of the project's plant construction was completed, and 73 percent of the penstock was completed. 79 percent of the construction of the transmission line was completed.
Shaw Capital Management Korea News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed capacity of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed capacity of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed capacity of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power Call to develop new energy operations. A Request for Proposals followed for projects using proven technologies, such as hydro, wind, solar and geothermal.
This Clean Power Call aligned BC Hydro with the BC Energy Plan which calls for 90 percent of electricity in the province to come from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.
The intent here for BC Hydro is to successfully negotiate power purchase agreements with those chosen from a long list of proposals. … Plutonic is on this list.
And on November 19, 2009, Plutonic Power received notification from By Hydro that the Bute Inlet and Upper Toba Valley Projects will be approved. These projects were proposed jointly with GE Energy Financial Services.
The GE Connection. In August of 2006, Plutonic Power granted GE Energy Financial Services the exclusive right to make a $100 million equity investment and provide $400 million in debt financing for its East Toba River and Montrose project.
In return for the equity investment, GE gets a 49 percent equity stake and 60 percent economic interest in the project. Now by the time BC Hydro issued its request for proposals, GE had given an equity contribution of about $79.3 million and extended about another $71.3 million credit for the East Toba River and Montrose project.
GE also formed a join venture with Plutonic last June 2009 to purchase an uncompleted 144-megawatt wind project in northeast BC. This is the largest wind power project under construction in British Columbia. Given British Columbia's recent announcement that it's going to establish a ‘Green Energy Advisory Task Force’ to help advance the Province's climate, Plutonic Power is in a good position.
While Plutonic is knows for run-of-river hydro, this deal allows the company to further develop green assets in Canada. The purchase of this wind project was completed on December 11, 2009. Given British Columbia's recent announcement (November 2, 2009) that it's going to establish a ‘Green Energy Advisory Task Force’ to help advance the Province's climate, to reduce greenhouse gas emissions and build a greener economy, Plutonic Power is in a good position.
Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.
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