Energy

On February 27, 2007, Wall Street collapsed in response to the Shanghai Surprise – a response that alerted the world to something called “subprime”.

Weekly musings from your editor. Meet one of the original proponents of the Commodities Super Cycle. He is convinced the best has yet to come.

As global economic growth forecasts fall, and commodities indices rise, it would seem the world is facing the crippling spectre of stagflation.

Oil again pushed through US$100 per barrel overnight but ANZ Bank suggests the market has it wrong and prices are headed to US$80 per barrel by the end of 2008.

An announced US$15bn buyback by IBM turned Wall Street around in the face of stagflationary data.

The Dow exploded to the upside mid-afternoon when S&P announced bond insurers Ambac and MBIA could both keep their AAA ratings.

The Dow bounced hard on the death on Friday as news broke that Ambac was about to be rescued.

Slowing global growth usually means weaker commodity prices but Barclays Capital suggests the current supply side issues across the commodity spectrum should support prices.

OPEC meets early in March to discuss the outlook for the oil market and Commonwealth Bank suggests the meeting is likely to find no change in output levels is required.

Last night’s Philadelphia economic activity index was the worst reading since just before the 2001 recession.