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WATER: Investments of EUR 500 bn required – every year! DB Research

12 Jun

From DB Research:

“Over the next few years, large-scale investment must be made in the water sector throughout the world. Last year, we put global investment requirements at roughly EUR 400 to 500 bn per annum. In the final analysis, the huge need for investment is a result of the 3% increase per year in the demand for freshwater.”

The report highlights four major reasons for the growth in water-related investments:

  • Industry and energy sector need more water
  • Rising incomes drive up household water consumption
  • Insufficient investment in water sector as a result of too low water prices
  • Governments to rely increasingly on support from private-sector companies in future

Deutsche Bank Research capture the key dilemma in that there is a high investment requirement in all areas of the water sector.

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Colombia Foreign Reserves for Week Ending May 31 (Table)

12 Jun

There is normally a lot of focus on central bank gold holdings in China and India. They have the world’s attention. However, even large purchases of gold by China and India have little impact on their total gold weighting due to their large holdings of fiat currencies.  Sometimes I find it more helpful to assess gold holdings of periphery countries as their parabolic demand for gold is more visible. Columbia’s gold reserves have increased almost 27% year-to-date through to 31 May 2011.


Top 10 Year-to-Date U.S. Export Markets for Major Crops (Table)

11 Jun

Volume in metric tons of major commodities exported year-to-date through to April and prior year-to-date.



5 Jun

The corn and coffee future charts are worryingly ominous. Investing in these commodities have largely had successful outcomes to the extent that they have significantly risen in price and have offset real concerns about inflation and money printing. The fundamental positive story strengthening the bull case for commodities in terms of population growth, diet changes correlated with rising incomes and the growth of emerging markets have also reinforced this thesis. However, investments are also about timing and right now when prices are near highs it would not be appropriate to make significant outlays in this direction. 
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4 Jun



29 May

Shell approves the $11bn Prelude LNG offshore project avoiding the need to pipe deep and remote gas onshore. This project will allow the capture and transportation of stranded gas utilising new breakthrough technologies. 

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Two-thirds of 600 cities in China have trouble accessing water

27 May

Tapping into the future
News from China Daily highlights the pressing need for water infrastructure reform right across China, including the capital Beijing.

The article states that foreign companies are investing billions of yuan in a wide range of projects including “waste water treatment, municipal water supply, industrial water supply and direct investment in Chinese water companies.”

Water problems are not restricted to the towns and villages only, as City Investment Banker Wang Lui found out:

“When Wang Liu first came to Beijing for college nine years ago, she thought she could drink the tap water. After all, it is the Chinese capital. Wang is a native of Fushun, a city of Liaoning province in Northeast China where people have to boil the tap water before drinking it. But like tens of millions of residents in Beijing, Wang soon discovered the tap water was not safe to drink and a possible health threat.

‘The water from my tap has a very noticeable odor, and it seems to have lots of chemicals in it,” says the 28-year-old, who works at an investment bank. “I called the water company several times to file a complaint, but the problem never got solved.”

China’s farmland pursuit receives a cagey response

27 May

China’s interests in controlling vast quantities of productive farmland remains largely unchecked. There is a clear trend and divergence away from being merely the purchaser of raw commodities to being the owner of the productive assets. Resources are finite while demand remains strong.

The New York Times reports on China’s growing interest in controlling agricultural land and resources.

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