In light of recent turbulence in international debt markets brought about by strained financial postures of Dubai, Greece, Spain, the intention of the Kenyan government to issue debt in international markets should be re-assessed. The last time the government had set its sights on the overseas debt markets was the turbulent 2007 period. Preference was then given to local markets, which have proved resilient and overwhelmingly eager for commercial and sovereign debt.

Going forward, persistent stress in debt markets will invariably push up interest rates.

"It is becoming a familiar story: bond markets in crisis, gilt yields soaring, the government struggling to convince international creditors that it can bring down spiralling budget deficits.

But the City's wobbly response to the Chancellor's pre-Budget report this week was a pale shadow compared with the carnage in Greece.

After a week that saw the Greek sovereign debt downgraded below the prized A-rating for the first time in a decade, and the worst bond market collapse in the history of the eurozone, Athens was scrabbling to restore confidence yesterday. At a two-day EU summit in Brussels, the Prime Minister, George Papandreou, promised far-reaching cuts in his country's bloated bureaucracy and an assault on its rampant corruption...."

Read more:

http://www.independent.c...for-uk-debt-1838885.html

Like Tiger, European banks are not out of the woods yet.

"Finance minister Josef Pröll said the government had been forced by fast-moving events to take a 100pc stake in the bank, Austria's sixth biggest lender with assets of €42bn (£38bn).

"The risk situation of this bank has created an enormous threat to Austria, to its future as a financial centre, and to the whole economic region in recent days and weeks," he said, speaking after a 14-hour emergency session overnight on Sunday...."

Read more:

http://www.telegraph.co....aring-domino-crisis.html

A supply crisis on the back of a long term bull market is the stuff that price spikes are made of. This is one pricey brew.

"The top price for Kenya's benchmark AA grade coffee soared by 79 per cent to $601 per 50-kg bag ahead of a month-long break and on good quality beans, exporters said on Wednesday.

"We have just started receiving the main crop coffee and the prices are very firm. We had lots of AAs selling at $601 (per bag)," said Peter Kinyua, managing director of Servicoff exporters.

AA exchanged hands at $601-$194 per 50-kg bag, compared with $336-$209 per bag at the last sale two weeks ago...."

Read more:

http://www.nation.co.ke/.../-/hf73ayz/-/index.html

Hot off the press!

"DENVER — Royal Gold Corp. said Friday it agreed to buy International Royalty Corp. for 749 million Canadian dollars ($706.9 million) in cash and stock, creating a company with expanded royalties in gold and other precious metals.

The agreement comes nearly two weeks after Franco-Nevada Corp. of Toronto submitted an unsolicited cash offer of 6.75 Canadian dollars ($6.42) per share for IRC.

All three companies earn revenue from royalties they hold at mines around the world. IRC's sought-after royalties include Barrick Gold Corp.'s Pascua-Lama gold, silver and copper mine under development in Chile...."

Read more:

http://www.google.com/ho...rJi06R24CYAXa4wD9CLROE80

A Most Merry Christmas and a Golden New Year to you all!

http://vimeo.com/440842