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Problems with “Letters of Credit” and international trade

October 31st, 2008 Posted in Personal

International trade depends on “Letters of Credit”, or LCs. They finance shipments, but also assure the shipper he gets paid for the cargo sent. While LCs are very important for traders, they are not the favorite financial tool of the banks. Trade finance generate low profits usually, but it’s operationally intensive. Lately it has been harder to get LCs, accelerating the decline in international trade.

Here just a few examples from Bloomberg to illustrate the problems: Ream more »

PT PP London Sumatra Indonesia Tbk

October 28th, 2008 Posted in News

London Sumatra (Lonsum) is the second largest plantation company listed on the Jakarta Stock Exchange and one of the leading palm oil producers in Indonesia. Its first plantations were established in 1906. Its operations encompass breeding, planting, harvesting and processing of oil palm fresh fruit bunches (FFB) to produce crude palm oil (CPO) and palm kernel oil (PKO). The Company also grows, produces and sells significant quantities of rubber, and also cocoa and tea. Ream more »

Street Talks

October 25th, 2008 Posted in Personal

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Lead Card: Card list given to prospects that includes the name, position, company name, address and phone number of a prospective client.

Pitch Day: A day in which potential companies pitch ideas in the hope of garnering interest and investors to their business.

Pit: The trading floor

Soft Sell: A passive pitch used to sell stock Ream more »

Crisis: what will happen next?

October 24th, 2008 Posted in Personal

Already in early 2006 the experts of LEAP 2020, a European think tank studying global economics and politics, warned about the current crisis. In February this year they predicted the crisis would explode and be visible for everyone by September. They had it right.

So it’s interesting to see what they think how this crisis will continue. In their latest bulletin they say there will be more and more a divide between the US and the rest of the world, particularly the Eurozone. To put it simply, measures to curb the crisis that are good for the US are bad for everyone else and vice versa. They say the dollar is only gaining recently because the stock markets continue to decline, for 2009 things look not so good for the US currency. Ream more »