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Money for Nothing

Presenter: Bryan Curtis
North Korea / US energy

The odds are stacked in favor of a continued rally in Japan, but what about the rest of Asia?  On Money For Nothing  we'll ask Uwe Parpart of the Reorient Group. We'll also talk with Stephan Haggard, a professor at the Graduate school of International Relations at the University of California at San Diego about the economic impact of a missile test in North Korea. Then we take a look at why the US energy revolution might just be the answer to its recovery. (8am-8.30am,

8.03 am - News highlights of the day

* Former KPMG partner charged with insider trading

* Global stocks edge higher

* IMF lowers its growth forecast for the US but raises it for Japan

The odds are stacked in favor of a continued rally in Japan but what about the rest of Asia?

Uwe Parpart, Managing Director and Head of Research at the Reorient Group said "we are still in a de-leveraging world. I see no signs of inflation being a problem and so in such circumstances, additional liquidity is welcome. The safest investment for big time investors is always a near monopoly or monopoly type situation. If you can be a monopoly player, that certainly is the best way to go."

8.15 am - Why is North Korea not destabilizing things?

Uwe says "a war in Korea is a low probability event with a high catastrophic impact." "The markets are good indicator of things happening that are more serious," said Stephan Haggard, Professor at the Graduate School of International Relations and Pacific Studies at the University of California in San Diego. "Since the US or South Korea has no intention of attacking North Korea, it is unlikely that war will break out."

8.25 am - Is the US energy revolution the answer to the recovery of the world's largest economy?

The shale boom in the U.S. could spur an industrial revival. Oil and natural gas production within the U.S. is rising sharply due to horizontal drilling and hydraulic fracturing. The world's largest economy is poised to become energy independent by 2020 and might be a major exporter of natural gas by 2022. The U.S. Energy Information Administration said that crude-oil output in the fourth quarter this year will exceed imports for the first time since 1995. Fields in North Dakota and Texas put the nation on track to surpass a production record set a quarter-century ago. And the International Energy Agency said the U.S. will surpass Saudi Arabia in oil production in the next decade.

Is this a game changer?

"It certainly has the potential to be so," said Kathy Bostjancic, economist with The Conference Board. "That we have the potential to become energy independent within a decade is revolutionary but there is still a lot of uncertainty. It largely depends on government action and competing interests. Domestic users of this natural gas benefit greatly as the price of natural gas has plummeted and might therefore be against exporting it."