Brazilian soybeans and China --- Catherine (medium)
>> commodity prices have climbed this year and so, too, have the shares of energy companies, among them u.s. oil and gas producer quiksilver. shares are trading at an all-time high, today at $60.21, up 145% in the past year. the c.e.o. of the company, glen darden, says rising oil and gas prices are keeping the company active. last week quiksilver reiterated expectations of 15% production growth for 2004. the company says it can maintain that rate for four to five years.
>> it’s a difficult business because we’re fighting declines all the time. but we happen to be involved in two very high growth areas, the canadian play and texas. so with our inventory of leases and our test wells that we’ve drilled, we can see a large fairway to develop. so that gives us confidence to project over a number of years.
>> and he’s equally confident about the direction of commodity prices.
>> the demand is firming up. the economy is improving, which increases the demand for our product and we’re supported by the higher oil prices and i don’t see those coming down significantly over the next 12 months. so i think natural gas prices will be fairly strong for the next year or so that we can see.
>> k.w.fnt―k.w.k. is the ticker. general electric and honeywell international have reached agreement to provide equipment to chinese companies.% catherine yang joins us from hong kong this tuesday morning with the details of the quarter. catherine, good morning. what are the details?
>> good morning, matt.
>> that we see?
>> general electric and honeywell are among u.s. manufacturers benefiting from commerce secretary donald evans’ visit to china this week. these companies will sign contracts. general electric is the world’s biggest maker of turbines, will be selling two electric transfer systems to china southern power. and honeywell, the world’s ligest―biggest maker of air conditioners, will provide refridge rants to consumer electronics maker. evans’ visit comes amid criticism that the bush administration is not doing enough to address the widening trading deficit with china. matt.
>> speaking of china, i understand that brazilian soybeans will have easier passage into that country now that a ban has been lifted. what will that mean for brazil and china?
>> this means brazil will be able to resume annual exports to china worth $1.3 billion. talking about china, the world’s biggest buyer of the beans and the one-month embargo had threatened to cancel 11% of total exports. both these countries reached an agreement on herbicides and accepted standards to remove herbicide-laced feed from cargos of beans. soybean futures rising 2% monday and down 12% since april 29 when china rejected the first shipment of brazilian beans. it’s not only overseas growers taking stakes in the fastest growing beer market , interbrew buying stake in a chinese brewer to strength its position. it’s the maker of rolling rock and paying $53.2 million to control a chinese brewery. interbrew is the world’s second largest beer maker and says it expands its share in the eastern province of china.
>> another round of beer for my friends. thank you very much. a channel―chanel designer going down scale.
