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Newsletter
September 2011 edition

 

 

Greenwood’s new strategic partnership with Universities

Brazil claims world’s fifth largest economy spot ahead of schedule

Gold spikes to high as fears over global economy linger

Angolan Economic Growth to Jump to 8% in 2012 on Spending, World Bank Says

Colombia, Brazil see booming trade, investment

Mexico Raises Forecast for Direct Investment 11% to $20 Billion for 2011

Rise in Carbon Credit companies selling overpriced and unsellable commodity

Green News

Charcoal Prices

 

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Welcome to the September edition of the Greenwood Management monthly newsletter.

Our aim is to send out a newsletter on a monthly basis to advise you of future events and report on previous industry related themes and news articles.

At Greenwood management we have been working hard to progress our upcoming project in Costa Rica. Our forestry engineers recently visited the area and specific areas have now been evaluated for suitability for 3 separate types of species. The exit market’s end users have also been identified for the commencement of the project. We will be coming back to you very shortly with more information on this exciting project. Watch out for our updates!

For our current and potential investors in the Brazilian project, we are now moving from the maintenance phase back to the planting programme as the planting season approaches (October through February). Ground preparations and infrastructure developments are now underway in Bahia for our various projects as they continue to progress and expand.

There has also been further progress with our New Brunswick Christmas tree project in Canada; additional land is currently being acquired to meet the ongoing demand for our Balsam fir/Fraser Fir projects. For more information visit gwm-tv-canada.com.

We have included below some investment articles that may be of interest. Enjoy reading and look out for announcements on our new project.

If you have any suggestions for future newsletters please click here to provide your suggestions and we will do our best to meet your requests.

 

Greenwood’s new strategic partnership with Universities

Greenwood Management will be entering into a strategic partnership with two leading forestry and landscape universities in Portugal. The purpose of the partnership is not only to help expand scientific and educational relationships but also to help in the training and future careers of forestry students. We will be exchanging our scientific knowledge and experience as well as developing scholastic plans. Undergraduates and graduates will be given opportunities to participate in training projects in Brazil. The training projects will have a length of 3 or 6 months of which will be fieldwork in the heart of Brazil’s forestry projects and 3 months in Portugal treating the data and producing the final reports.

This is an initial 5 year partnership which will automatically be extended for a further 5 years. We are dedicated to helping the future of environmental forestry education and studies and are excited to get this partnership into full swing. Look out for further updates on the developments of this partnership!

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Brazil claims world’s fifth largest economy spot ahead of schedule

2016, the year of the Brazil Olympics, has long been cited as the time that Brazil will become the world’s fifth largest economy. However, on release of the 2010 GDP figures showing the highest economic growth in 25 years, some reports suggest that epic milestone may have come five years early.

On the back of 7.5% economic growth in 2010, Finance Minister Guido Mantega believes that Brazil is now ranked third in the world taking into account the pace of economic growth and has the fifth largest economy in relation to the G20 countries, overtaking France and Britain in the process. The availability of consumer credit, huge public and private investment and an ambitious government stimulus package have been credited for this, the country’s most brisk period of growth since 1986.

To read the full story click here.

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Gold spikes to high as fears over global economy linger

Gold rose to fresh highs on Monday as more investors sought the safety of the precious metal to escape the threat of unresolved tensions in the global economy.

The price of gold hit $1,894.80 an ounce in early trading despite a bounce in European stock markets. Jeremy Cook, chief economist at foreign exchange brokers, World First, said: “Gold is a rocket ship at the moment and there are many factors that make us expect further gains.

“Firstly, the global recovery has juddered to a halt and, with the obvious uncertainty surrounding the situation; people have been looking to buy tangible assets.

“Secondly, we are likely to see inflation remain high and with the prospects of further quantitative easing in the UK and US this will translate to an increased erosion of the value of money; something that gold investors tend to crow about.”

Markets are already factoring more quantitative easing by Ben Bernanke, the chairman of the US Federal Reserve, when he hosts his annual gathering of central bankers at Jackson Hole, Wyoming.

To read the full story click here.

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Angolan Economic Growth to jump to 8% in 2012 on Spending, World Bank says

Economic growth in Angola, sub- Saharan African second-biggest oil producer, will probably accelerate to 8 percent next year due to higher oil and increased spending, World Bank economist Ricardo Gazel said.

The southern African nation’s economy may expand 5 percent this year, Gazel said in a telephone interview yesterday from Maputo, Mozambique’s capital. Gazel is the Washington-based institution’s economist for Angola and Mozambique.

To read the full story click here.

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Colombia, Brazil see booming trade, investment

Colombia wants to double trade and increase investment with Latin American powerhouse Brazil, but tariffs and shipping costs remain obstacles, an investment conference was told on Thursday.

Brazil's booming economy has increased its consumption across the commodity chain, and its companies, mainly in oil and coal, have already begun investing in Colombia, a major global producer of thermal coal and regionally of crude oil.

To read the full story click here.

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Mexico Raises Forecast for Direct Investment 11% to $20 Billion for 2011

Mexico may receive as much as $20 billion in foreign direct investment this year, 11 percent more than a prior forecast, as the second-biggest Latin American economy’s low wages and proximity to the U.S. draw producers.

“Companies are looking for the best place to invest,” Economy Minister Bruno Ferrari said in an Aug. 19 interview in Los Angeles. “It’s obvious that Mexico has been that place for North America.”
Mexico has manufacturing costs 25 percent lower than the U.S., is producing more engineers than other countries and is signing free trade pacts with nations like Colombia, Ferrari said. The expected $20 billion compares to $18 billion estimated earlier this year by Finance Minister Ernesto Cordero.

To read the full story click here.

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Rise in Carbon Credit companies selling overpriced and unsellable commodity

In recent years we have seen the introduction and rise of carbon credit companies. Most of these carbon credit companies use much the same sales scripts. This is a typical example: "Carbon credits are an obligation under the Kyoto agreement and have gone from zero to $550bn in just five years. No other market has been driven up so fast. This is a worldwide move to clean up the carbon footprint, there is massive legislation and firms have to adhere."

However, growth in a market is no guarantee of investment gains. While there may be extra demand, carbon credits are not limited in supply like commodities such as gold or cocoa. Potential clients are told that industries have to offset emissions and that governments are focusing on green developments —so investors can reap rich rewards.
A typical route to persuade clients to invest is the rainforest land deal. A salesperson claims Amazonian forest land will turn into profitable and easy-to-trade carbon credits once it is certified as "rescued from loggers".

Earlier this year, one London firm was selling land in the Amazon at £1,000 an acre – though similar tracts feature on websites for less than £20 an acre. It claimed "every £7,500 investment will soon turn into £15,000 or £20,000"and said the high markup was due to "the cost of accreditation".

The carbon credits being sold by many of these companies are pre-validated, meaning they have not passed the very stringent measures to become verified carbon credits. These pre - validated carbon credits can be bought for around £1.00 - £2.00. For these, the investor pays £7.50 and receives a fixed 30% return (£2.25) 12 - 18 months later. This leaves the company approx £3.75 profit for each credit sold.

Potential investors in this area should be aware of the risks and potential pitfalls of investing in carbon credits. You have been warned…

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Green News

At Greenwood Management we often come across articles that may be of interest to you. We thought that instead of keeping you waiting for an entire month that we would start to send out individual stories, updates or articles of interest from time to time – this is our new service, ‘Green News’. 

Our next ‘Green news’ article will be on the subject of carbon credits. If you would be interested in receiving these BRAND NEW mini newsletters click here.

Once you have subscribed you are free to unsubscribe at any time.

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Charcoal Prices

Click here to receive information on the latest charcoal prices from Brazil.

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