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Investment Competition
MacroEcon Data/ Global Issues
Libya Political Unrest
DATAPALOOZA
Ends the Week
before Finals
$50,000 in cash to
invest
No more than 1/3 of
portfolio in one stock
1st Place = iPad
Airtime: Fri. Feb. 25 2011 | 11:35 AM ET
Industry Summaries
Current/ Projected Populations
Where’s the demand?
Inflation Rates
Affect how much money is lent out
Affects international trade
Unemployment & Income levels
High employment means more production
The higher the average income, the more
consumption
Data to Keep an Eye on:
Exchange Rates
Data
Performance
Compared to Expectations
Consumer Confidence
70.4
Above
Existing Home Sales
+12.5%
Above
Durable Goods Orders
2.7%
Below
New Jobless Claims
391,000
Better
New Home Sales
284,000
Below
Real GDP
+2.8%
Below
The World is becoming
more Globalized
What happens in Greece
affects the US
What happens in the
Middle East affects Europe
Seriousness of
Political Unrest
Gaddafi’s 41 year rule is
being challenged by Antigovernment forces
Over 1,000 people killed.
Libya on average has
produced 1.6 Million crude
oil barrels/day
Now only producing 400,000
Different from Egypt?
Airtime: Fri. Feb. 25 2011 | 6:24 PM ET
Gaddafi Cornered
What happens now?
Claims they can ramp up
production to meet demands
Much wealthier country, less
risk for political unrest
Announced that they plan to
spend $37 billion on their people
Unemployed/ poor
BRENT Crude is the European Warehouse
U.S. WTI Crude is the U.S Stockpile
BRENT is generally higher because Europe doesn't have as
much reserves as the U.S. does.
BRENT hit $120 a barrel in the last week, while WTI only hit
like $103
Brent Crude: The global price benchmark
Record High: July 2008 at $150/ barrel
Past Thursday: $120/ barrel
If Brent moves past $130 we should experience demand
elasticity.
Airtime: Fri. Feb. 25 2011 | 8:04 AM ET
Saudi to Hike Oil Production
For every $10 increase in crude oil, GDP
decreases by 0.5%
Oil in Q4 of 2010 was $85 / barrel,
U.S. WTI crude now, it's $97 a barrel
Q4 GDP was revised down Friday to 2.8% from
3.3%
They say oil prices at $105 a barrel would most
likely make U.S. GDP 1.8%
OPEC- 12 countries (includes Libya)
79% Worlds known reserves
44% Worlds Oil Production
US Crude Oil Import Quantities
1st
2nd
3rd
Canada
Mexico
Saudi Arabia
2064 Thousand
1223 Thousand
1076 Thousand
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html
Is oil overbought? Or will
the price continue to rise?
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