Here is a chart showing China’s top trader partners in 2010, the latest year for which data is available:
Click to enlarge
The U.S. was China’s top trader partner and was also the top export destination for China’s exports.Germany had more trade with China than Australia.
China’s Top Export Destinations in 2010:
China’s Top Import Suppliers in 2010:
Data Source: PRC General Administration of Customs, China’s Customs Statistics
Some of the European ADRs trading on the New York Stock Exchange were listed there many years ago. A list of ten such ADRs that were listed in the 1980s and 90s is shown in the table below with their current dividend yields:
| S.No. | Company | Ticker | Dividend Yield as of Dec 4, 2012 | Country | Industry |
|---|---|---|---|---|---|
| 1 | BT Group | BT | 3.72% | United Kingdom | Fixed Line Telecom. |
| 2 | GlaxoSmithKline | GSK | 5.29% | United Kingdom | Pharma. & Biotech. |
| 3 | Koninklijke Philips Electronics - | PHG | 3.64% | Netherlands | Leisure Goods |
| 4 | Novo Nordisk | NVO | 1.58% | Denmark | Pharma. & Biotech. |
| 5 | TOTAL | TOT | 5.91% | France | Oil & Gas Producers |
| 6 | Natuzzi | NTZ | N/A | Italy | HouseGoods&HomeConst |
| 7 | Nokia | NOK | 7.75% | Finland | Tech.Hardware&Equip. |
| 8 | STMicroelectronics | STM | 6.29% | Switzerland | Tech.Hardware&Equip. |
| 9 | Portugal Telecom | PT | 17.43% | Portugal | Fixed Line Telecom. |
| 10 | Bank of Ireland | IRE | N/A | Ireland | Banks |
Of the companies noted above, Denmark-based pharmaceutical firm Novo Nordisk (NVO) has had an incredible run since 2000 growing by over 1,800%. The company offers a range of diabetes products and provides treatments for people with haemophilia, growth hormone deficiency and for women experiencing symptoms of menopause. Its products are marketed in more than 190 countries.Total revenues in 2011 was over $13.0 billion and the profit margin was about 27%. A $10,000 investment in NVO five years ago would be worth $27,160 with dividends reinvested, according to S&P.
A chart showing the performance of Novo Nordisk against France’s Sanofi (SNY), Pfizer (PFE) and S&P 500 is shown below:
Click to enlarge
Source: Yahoo Finance
Disclosure: No Positions
Coal is a major source of fuel for electricity generation in many countries. Relatively cheap and abundantly available, coal will continue to play a significant role in power production for years to come. I came across the following chart showing coal use in electricity generation in select countries:
Click to enlarge
Source: Coal and Electricity Generation, World Coal Association
France depends on nuclear energy for most if its electricity needs. Hence it has the lowest coal use at just 5%. China and India on the other hand, use coal for most of their electricity generation.The U.S. is in the middle of the group generating about 45% of its total electric power from coal. Canada and Russia use other sources of fuel for most of their power production. Though Germany currently has a high percentage of coal use, the country is rapidly moving to other sources for its electricity needs.
Related ETF:
Market Vectors-Coal ETF (KOL)
Disclosure: No Positions
Most of the economic news coming out of Europe are negative. Almost on a daily basis the media reports on a wide range of topics including the shocking unemployment rates in countries such as Greece, Spain, Italy, etc, debt issues, future of the Euro, foreclosure issues in the Spanish real estate market, fragile banking system, Portuguese heading to their former African colony of Angola in search of work, etc. Bombarded with all these negativity news most investors are tempted to stay away from European stocks until some sense of normality returns. However in spite of economic and financial chaos blanketing many of the EU members, investors can find attractive opportunities. Ignoring the constant noise and looking beyond the horizon takes courage and investors willing to hold equities for a few years would be richly rewarded. One way to select stocks in such uncertain conditions is to look for companies with high exposure to overseas markets as opposed to those that mostly depend on domestic markets. Many European companies have strong presence in countries outside of Europe and they should be relatively less impacted due to the turmoil in Europe.
From a recent article titled “Despite Bleak Backdrop, Europe Beckons” in T.Rowe Price Insights:
Europe Features Strong Corporate Fundamentals
European corporations have made major progress by cutting costs and strengthening their balance sheets, leading to improved earnings power and cash flow generation.Faced with muted growth in local markets, managers have increasingly looked overseas for growth opportunities and today have a large presence in, or exposure to, emerging markets.
While European stock markets have gained traction in recent months, valuations are at 25-year lows.
Source: Morgan Stanley Capital International based on MSCI Europe, EAFE, U.S., and Emerging Markets Indices.
Chart is shown for illustrative purposes and does not represent the performance of any specific security. Past performance cannot guarantee future results. It is not possible to invest directly in an index.
Source: Despite Bleak Backdrop, Europe Beckons, T.Rowe Price Insights
An important point to be noted is that it is the governments and public sector that are in trouble and not private sector companies. Corporations adapt to the changing economic landscape and continue to generate profits as much as they can.So investors need not avoid European stocks due to the ongoing crisis faced by some governments.
Ten European non-financial companies with high exposure to markets outside of Europe are listed below for consideration:
1.Company: Nestle SA (NSRGY)
Current Dividend Yield: 3.22%
Sector:Beverages (Nonalcoholic)
Country: Switzerland
2.Company: SABMiller PLC (SBMRY)
Current Dividend Yield: 2.96%
Sector: Beverages (Alcoholic)
Country: UK
3.Company: Diageo PLC (DEO)
Current Dividend Yield: 2.32%
Sector: Beverages (Alcoholic)
Country: UK
4.Company: Telefonica SA (TEF)
Current Dividend Yield: 10.28%
Sector: Telecom
Country: Spain
5.Company: Siemens AG (SI)
Current Dividend Yield: 3.76%
Sector:Electronic Instrumentation & Controls
Country: Germany
6.Company: Unilever NV (UN)
Current Dividend Yield: 4.05%
Sector:Food Processing
Country: The Netherlands
7.Company: Danone SA (DANOY)
Current Dividend Yield: 2.81%
Sector:Food Processing
Country: France
8.Company: BASF SE (BASFY)
Current Dividend Yield: 3.68%
Sector: Chemical Manufacturing
Country: Germany
9.Company: British American Tobacco PLC (BTI)
Current Dividend Yield: 4.00%
Sector:Tobacco
Country: UK
10.Company: Total SA (TOT)
Current Dividend Yield: 5.91%
Sector:Oil & Gas – Integrated
Country: France
Note: Dividend yields noted are as of Dec 3, 2012
To answer my title question I would say that investors looking to diversify or add exposure to European companies for 2013 can initiate new positions now through the end of the year taking advantage of the depressed prices and market volatility.
Disclosure: No Positions
Fossil fuels are still the main source of energy for most of the world despite the increasing use of renewable energy sources. Oil, Natural gas and Coal are the three main fossil fuels. While most countries have at least one of these three fuel sources, some countries and regions have an abundance of one or more of these commodities.
The location of the World’s Main Fossil Fuel Reserves:
Click to enlarge
Source: Global Availability of Coal, World Coal Association
Here are some fascinating facts from the World Coal Association report:
Related ETFs:
Market Vectors-Coal ETF (KOL)
United States Oil Fund LP ETF (OIL)
United States Natural Gas Fund (UNG)
Disclosure: No Positions