09-Jul-2010

OIL

10 Second Headlines of the Week – July 9, 2010

Canada

+ Alberta’s recent petroleum land sale set a record of $2,084.86 per hectare, dominated by natural gas plays.

+ Canada aims to double its wheat sales to China with exports of 500,000 tonnes by the end of 2011 worth $130-million.

Fidelity Investments

Wednesday we had a conference with Fidelity Investments

+ Trevor Greetham (Fidelity Intl, London), Parus Shah (Portfolio Manager) and Andrew Marchese (Equity Manager of Team Canada).

+ Key risk issues over the next two years remain: 1) sovereign debt, 2) continued Chinese government slowdown of the housing market, and 3) US economy’s potential for a double-dip recession.

+ There is not a global inflation problem. Deflation is the risk for central banks.

+ Markets are factoring in a second ‘significant’ stimulus package.

+ 2011 could be a year of ‘re-acceleration’ so portfolios must be built by the end of 2010 to accommodate the increase.