The Banking and Strategy Initiative

Chillin' out till it needs to be funded

China’s bold new 2009

China’s flip flop of 2009 | Confirms the expectation of leadership reversal in the world order?


Chinese Petro Corp CNPC ($PTR) is going ahead with $30 billion in loans to finance acquisitions despite the failed CNOOC bid in 2007, planned destinations being Argentina ( YSF Repsol) Brazil and Russia after state level discussions earlier in 2009 in Brazil and Russia.

PetroChina recently acquired a 45.5% stake in Singapore Petroleum from Keppel Corp. for 1.47 billion Singapore dollars ($1.02 billion). And it also signed a $41 billion liquefied natural gas deal with Exxon Mobil Corp. (NYSE:XOM) to import the LNG from the Australia-based Gorgon LNG project

Also CNPC’s pocket from this loan is a total of $50 billion including its Cash reserves, while its purchase in Libya has already been stopped by local state officials and the Repsol purchase is only $15 billion..


Boeing Co. (BA) expects orders from Chinese airlines to account for around 40% of its forecast of 8,960 commercial jet orders from Asia over the next 20 years, a senior Boeing executive said Wednesday. ( zyakaira niotes: this estimate is already 2 years behind, with all this heave ho on, and no aircrafts having sold)

Randy Tinseth, Boeing’s vice president of marketing for its commercial aircraft division, told this WSJ report that China will grow at 8.6%, NA at 2.5% and the intra-Europe market to grow 3.4% annually, as measured in revenue passenger kilometers, a key metric for gauging passenger revenue.

Tinseth said the recent economic downturn has prompted some airlines to defer deliveries of new aircraft. For 2008, Boeing recorded 100 deferrals, mostly from North American customers.

Tinseth said the number of deferrals this year is “something greater than” the 2008 number, but declined to elaborate. The Energy news here is courtesy TheDeal and silobreaker

State Money

While state-owned China Development Bank financed CNPC, the $300 billion China Investment Corp (SWF) is moving in to purchase distressed real estate in the US with the help of the US government

Commodity Derivatives and the excessive lending

Meanwhile Foreign banks continued to suffer in China and probably move faster to N11 and North American Markets as Chinese Aviation and Oil companies continued to threaten 100% default on Commodity derivatives because prices have dropped sharply and new loan growth has slowed down after a state wide change in policy closing down the long term fund window on stimulus and planning to save its economy from spiralling bad debt

Other MNCs like Unilever continue to plan far a longer innings at the cost of profits according to the new Chinese edition of WSJ


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