Perspectives Blog

Increasing energy independence and the U.S. economy

Columbia Management, Investment Team | May 7, 2013

The U.S. petroleum trade balance has shifted. Development of domestic energy sources benefits domestic goods producers with lower costs. Energy exports modest, but on the increase. Investors should note the recent shift in the U.S. petroleum trade balance. For many decades, the United States has largely imported oil and petroleum products, widening our trade deficit and increasing our dependence on foreign energy. With the shale-gas developmen…

Lifting the U.S. oil export ban – Who wins?

Jonathan Mogil, Portfolio Manager and Senior Analyst | March 24, 2014

Industry participants and elected officials have made recent calls to reconsider the 40-year-old ban exporting U.S. oil. Lifting the crude export ban would strengthen the U.S. oil industry as well as the overall economy. Oil producers would naturally benefit from either a full repeal of the ban or any relaxation of U.S. oil export policies; however, independent refiners would likely see their profitably decline. The Energy Policy and Conservat…

Inflation consternation

Martin Harvey, Fund Manager, Threadneedle International Ltd | November 5, 2013

…2009. Some commentators have been quick to change their call for European Central Bank (ECB) action on November 7 or the December meeting. Previously, ECB President Mario Draghi has said lower inflation due to factors such as energy prices is actually positive, as it boosts disposable income and hence consumption. For sure, some of the October decline comes from energy base effects given that annual energy inflation fell to -1.7% year over year….

Rebalancing the U.S. economy

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | January 13, 2014

…tional Bureau of Economic Research, September 2013   Two additional sectors where rebalancing is likely to add to domestic production are trade and capital spending. As to trade, the catalyst here is incremental domestic energy production and the diminishing dependency on oil imports which materially narrow trade deficits. Petroleum imports fell 6% (the lowest level since 1996), and petroleum exports rose 4% (to record highs) adjusted for in…

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…kets (EM) was negative. We saw headlines highlighting the liquidity headwinds created by U.S. QE tapering, Russia’s aggressive opportunism in the Ukraine, China’s imminent hard landing, Brazil’s drought leading to an imminent energy crisis, a state of emergency being declared in Thailand, Turkey’s political soap opera continuing with business and political leaders being arrested on corruption charges, serious devaluation of currencies in Venezuel…

Garbage in, less garbage out

Paul DiGiacomo, Senior Analyst | May 9, 2013

…tes are volatile and have dropped over 30% since the August 2011 peak. As a result, revenue is less predictable. Further, the mix is shifting to new markets. With the acquisition of R360 last year, Waste Connections processes energy waste, which fluctuates with shale drilling activity, which in turn varies with the prices of oil and natural gas. Diversion will increase, with the separation of organics, such as food and grass clippings, as the nex…

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

…ly, countries undertaking structural reforms vs. those continuing to delay or backsliding on economic policy. Mexico is the poster child for positive economic reforms with the recent passage of fiscal reform and the watershed energy reform bill – easily the most important reforms the country has seen in decades. The Philippines and even much maligned Indonesia – with recent land reform bills and removal of energy subsidies are making moves in the…