Supporting global metals markets: The role of the London Metals Exchange

Singapore: Building a future without cheap oil
Singapore's past success at building a world-class economy launched on the back of a hugely successful oil refining and trading system could count for little as it confronts the threats of the increasing scarcity and cost of energy supply. In a book commissioned by the International Trading Institute@SMU, 'Singapore, The Energy Economy: From The First Refinery To The End Of Cheap Oil, 1960 to 2010', author Ng Weng Hoong argues that Singapore's single-minded focus on growing the economy while assuming that the supply of energy and natural resources will always be cheap and plentiful leaves the city-state increasingly vulnerable and dangerously exposed to systemic shocks and even collapse.

Singapore's manufacturing output up 12.8%
Associate Professor Annie Koh, academic director from the International Trading Institute@SMU said that the slowing down pattern of Singapore's manufacturing output excluding the biomedical sector could be seen in the last nine months of 2011.

Global economic imbalance – How Asia can best use its surpluses
Bernard Lee, founder and chief executive of government-funded provider of investment analytics HedgeSPA, as well as a research fellow at SMU's International Trading Institute, examines the utilisation of surpluses in Asia, particularly in China.

Gold over-rated as an inflation hedge
Bernard Lee, founder and chief executive of HedgeSPA, a government-funded investment analytics provider, and a research fellow of the International Trading Institute at SMU, writes that a modest overlay in gold or another commodity can be a good investment as long as the investor is prepared to deal with its volatility. But it is unlikely to be the kind of inflation-proof panacea promoted by certain investment marketing materials.

Sing$ may become victim of own success
Bernard Lee, founder and chief executive of HedgeSPA and research fellow of the International Trading Institute at SMU, examines the underlying structural issues leading to the financial crisis of 2008, and considers the risks faced by the Singapore dollar as one of the few remaining haven currencies in a world where the United States, Europe and Japan are already facing significant economic problems.

What the US Sovereign rating downgrade may mean to Singapore
Today the need to have the ability through deeply liquid futures contracts to hedge price risk on volatile metals is ever present. Huge consumption of metals such as Copper, Aluminium, Zinc and Nickel in China are driving markets and prices globally and the LME enables producers and consumers the ability to mange risks associated with trading on volatile global markets.  The LME contracts have been designed for Industrial use, with a flexible date structure and the ability to deliver metal or take delivery of metal of vital importance to industry and to ensure the LME prices converge with the physical market price.

Cut energy demand to meet shortage
Between April 2010 and March 2011, the world was struck by three Black Swan events involving Mexico, Japan and Mena, resulting in a reduction of the world's supply of cheap energy and inability to meet the world's rising demand. The only serious option left would be a conscious and organised effort to reduce demand and start culling activities and sectors that cannot be sustained when oil price rises. Part of this article was based on a research project supported and funded by the International Trading Institute at SMU.

In the professionals’ own words: the mark of a good commodities trader
The high stakes business of commodities trading is perhaps best avoided by those with high blood pressure or those who enjoy the predictability of a nine-to-five job. Yet, the wealth that can come with success has an overwhelming allure. At a panel discussion organised by the International Trading Institute@SMU, industry experts shared their views and identified some preconditions to 'success' within this precarious industry.

A "glittering" bubble: Where is gold, at a record high, heading next?
Since 2000, the price of gold has surged more than four times to an all time high of more than US$1,400. Is it purely speculative demand that is driving this unprecedented, multi-year surge, or are there other factors at play? With gold at such a high level, is it time for investors to bet that it will drop? Tarun K. Tandon, CEO of FLS Corporation, shares his thoughts at a recent International Trading Institute@SMU seminar.

Hearing the coal story, first-hand
Fourth-year undergraduate Kimberly Phua who is on the International Trading Track at SMU wrote about her experiences as part of a group of 25 SMU undergraduates who embarked on a five-day Industry Study Mission to Kalimantan, Indonesia last year and had a rare exposure to learn more about the coal business first-hand.

Deeds List - Over $100,000 raised for needy patients

Tianjin signs agreements on international exchange and collaboration
17 tertiary institutions in Tianjin signed agreements with 31 counterparts from 15 countries, including Singapore. [The only party from Singapore was SMU's International Trading Institute represented by its Academic Director Associate Professor Annie Koh signed an agreement with the Tianjin Maritime College.]