A “Golden Age” of Natural Gas ?

Carlo Besenius of Creative Global Investments LLC: 6 07 2011 CGI Morning Market

· With the US financials to come under more pressure, we are expecting the US major equity markets to contract in the coming two – three weeks

· Russell 2000 down towards 728

· S&P500 down towards 1.195

· DJIA down towards 11,250

The world could be on the brink of a “golden age” of natural gas, propelling consumption of the energy source beyond coal to rival oil as the planet’s favorite fuel by 2035, according to the International Energy Agency. A gas production boom in China, Australia and the United States, together with a retreat from nuclear generation in nations such as Germany after Japan’s Fukushima disaster, could spark a 50% surge in use of gas to account for a quarter of all energy demand, the agency forecast.

· British banks may have “masked” the scale of the dangers they could face by extending loans or lowering interest rates for struggling customers, the International Monetary Fund has warned. The fear is that “lender forbearance” – where banks shift people on to interest-only deals, extend the terms of their loan or allow payment holidays – means that banks may appear adequately funded to withstand a shock, but a worst-case scenario could prove otherwise

· We are expecting US bank stocks to accelerate their negative performance so far ytd, due to a slowing economy, but mostly due to provisions and losses due to continuous US residential Real Estate price declines, and subsequent book value adjustments for the US banks with exposure towards real estate.

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