Gabriel Resources (GBU.TO) is a Canadian company which plans on opening the largest open pit gold mine in Europe. The company won the contract for the largest deposit of gold and sliver in Europe in a very controversial bid. The process of attributing mining rights for the Rosia Monatana deposit has been tied to many allegations of corruption. 

On September 9th the Romanian government announced a resolution which intends to reject the mining rights of Gabriel Resources and put an end to the possible development of a mine there. If the resolution will be adopted, then Gabriel Resources intends to sue the government on the grounds of  “multiple breaches of international investment treaties”[1] In the same day the shares of Gabriel Resources plummeted an astonishing 51%.

The mining project in that area has been a very controversial topic for the Romanian people. First and foremost their main concern is the methods which the company wants to use in order to extract the gold. The most efficient method would be through the use of cyanide. After the gold is extracted cyanide residues would be stored in massive dams which are known to fail.

It appears as if the continued protests of the Romanians have made the government reconsider the project and weigh the cons and pros of the mining operation. This company serves as an example why investors should look into the ethics of a company before they invest in it.

Source 1:    http://www.stockhouse.com/news/natural-resources/2013/09/09/gabriel-resources-(t-gbu)-falls-51-canadian-market

Source 2:   http://www.cbc.ca/news/business/gabriel-resources-romanian-gold-mine-in-jeopardy-1.1701501

Source 3:  http://www.bnn.ca/News/2013/9/11/Gabriel-Resources-CEO-threatens-to-sue-Romania-on-mine-dispute.aspx

Japan Airlines has announced on Monday a deal with Airbus worth $9.5bn. JAL has a fleet of 159 airplanes which are 70% Boeing. This new order for 31 Airbus A350 XWBs, shows a significant change in strategy for JAL. They are appearing to move from a predominantly single fleet strategy to a multi fleet strategy.

Airbus has been appearing to enter the Asian market in full force. Its main competitor Boeing has been the principal supplier of jets in Asia, however recent deals that Airbus made with two Chinese companies, a Vietnamese carrier and a Singaporean lesser have amounted to $13bn.

During the past couple of months Boeing has been hit by serious setbacks. It first started when it’s newly lunched plane the Dreamliner 787 had problems with its onboard batteries, now it’s new rival the A350, has better fuel economy and seems to be taking Boeings market share rapidly.

Could this deal signify the demise of Boeing’s supremacy in the Asian market? According to recent studies, no. “Asia is expected to become the biggest source of jet orders over the next 20 years.”[1]

According to Chris De Lavgon, aviation analyst,  the JAL contract  “Is a big win for Airbus. This was the final frontier for them and they have conquered it.”[2]

Current Airbus Stock Price

Stock Price of Boeing, Airbus’s main competitor

Source 1:   http://rt.com/business/airbus-japan-airlines-deal-828/
Source 2:  http://www.bbc.co.uk/news/business-24424873
Source 3:  http://www.nytimes.com/2013/10/08/business/international/jal-orders-9-5-billion-worth-of-airbus-jets.html

Earlier this week the biggest online black market place has been seized and shut down by the FBI. The founder of Silk Road, Ross William Ulbricht, was arrested and charged with narcotics trafficking, computer hacking, and money laundering. So what do Bitcoins have to do with any of this?

You might be asking yourselves what is a Bitcoin in the first place. A Bitcoin is a digital currency first introduced in 2008 and what makes it unique aside from the fact that it only exits in the virtual world is that there is no government regulating it in any way. The transfer of Bitcoins from one owner to another is done through the use of peer-to-peer networks, therefore no fees are charged, the transfer is done immediately and anonymously.

Silk Road, the biggest online illegal market place was one of the biggest user of Bitcoins, “The FBI estimated that in two-and-a-half years of operation, the underground website generated 9.5m Bitcoins worth of sales”[1] this equates to about $1.2 billion worth of sales.

The closing down of Silk Road could be seen by some as a big hit for Bitcoin, the currency “slumped 8.6 per cent following a raid on Silk Road”[2] However the way I see it is that the closing down of the illegal market place is a positive thing for Bitcoin. This will allow the currency to distance itself from criminal activities and it will enable to become a global currency.

Source 1: http://www.ft.com/intl/cms/s/0/27ca2d60-2b89-11e3-a1b7-00144feab7de.html#axzz2h6V9eCYN

Source 2: http://www.newyorker.com/online/blogs/currency/2013/10/could-the-silk-road-closure-be-good-for-bitcoin.html

Source 3: http://www.theguardian.com/technology/2013/oct/07/fbi-bitcoin-silk-road-ross-ulbricht