Glencore is not getting riskier ( to WSJ)

Glencore- is brawn without brain, big punts with no exits, financials on steroids and a management in a forever capital shopping mode. Marc Rich, of course had flaws that he paid for, but if was alive, would kick their butts in the street and feed his dogs with the rest of them. Continue reading

Traders or Commodity Finance Banks Part XIV. A French bank is eating GLENCORE’s bear flesh.

Sanctions have created major dislocations in the markets and while there is a decent level of volatility, Glencore is clearly on the wrong side of it.

CCI and Oddo are on the other side of this trade eating a free bear flesh lunch from Glencore.
Is Glencore unlucky or the trader creates its own luck ?

There is a belief that Glencore is in a good position (expressed by Long- equity indexers inadequately comprehending the interwined physicality and financiality in commodity markets) while in fact the reverse is totally true.

The existential questions are why don’t they simply make money by trading with the existing assets that they already control ? Continue reading

EITI: Qu’on nous laisse tranquilles !

EITI is aimed at oil-cash and anti-corruption ( payments transparency). Greater accountability by governments and companies is seen by EITI as a way of combatting corruption but behind EITI the real target is most likely Vitol, Gunvor and shareholding galaxies (of a French, Russian and Swiss Citizenship) by an arbitrary prosecution from adversarial foreign powers.
While it is generally accepted that EITI aimed at transparency in the commodity payments the real target is Switzerland. Continue reading

Cargill vs “The Others”

Cargill is probably the ultimate insider, producers, consumers, processors, transporters, operates at considerable advantage in trading commodities.

An old Commodity Merchant cajoles me with “When Cargill sells, it is maybe because they’ve a view… (just maybe…) Continue reading

Mercuria, Ad maiorem Dei gloriam Traders – SITCG Part X

It’s the Salomon Brothers of the commodities, a business regulated to the quarter turns. Since its beginnings in 2004, Mercuria Trading S.A. has demonstrated an unrelentless capacity to execute complex trades, earning the banks/financing parties trust.

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NOBLE ‘Paper for Paper Plan II’ FP&A

At the beginning of 2017, Noble’s position consisted of back-to-back losses, nothing less than $2B equity in non-cash mark-to-market unrealised gains and a book that was irreversibly damaged. Continue reading

The Trader’s Wet/Paper Freight Quandary

Various papers have tried to explain the forward curves and spot volatility across the freight market. This article examines the reasons why Traders/Charterers Owners are not inclined to use the swap to mitigate the freight risk. We observe the impediments … Continue reading

Glencore FP&A notes- The Bringer of War

Ivan Glasenberg joined the company just as Mark Rich fled the United States to Switzerland and renounced to its American citizenship.

Glasenberg first post was coal trader in Johannesburg.

At that time, the company’s core business was supplying oil to the apartheid regime of South Africa before and during the UN embargo.

In 1991 Ivan Glasenberg had caught Mark Rich attention and was brought to Switzerland.

Over the next decade Ivan Glasenberg became a trusted member of the inner circle.

The pardon of Marc Rich by the U.S Government, did not include the company.

In 1994 Marc Rich stepped down as a CEO and sold its 51 percent shares to the management.

The company was renamed Glencore.
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Gerald Metals Liquidity and Funding: How the financing/banks should approach the setting of their risk tolerance with a trader ?

How the financing/banks should approach the setting of their risk tolerance with a trader ? Continue reading

AGREEMENT between Simon Jacques and the Minister of Interior, 1 rue de Jargonnant Geneve.

AGREEMENT between Simon Jacques and the Minister of Interior, 1 rue de Jargonnant Geneve.

AGREEMENT with the Minister of Interior, 1 rue de Jargonnant Geneva One day Trafigura will get the banks and institutional coverage. These(s) will not go unnoticed as the group funding pivots to bond issuances. In the immediate term, my … Continue reading