Monday Mayhem

The World Bank's report on global growth has is concerned with two primary issues: 1) outstanding corporate debt that needs to be refinanced and 2) the overall decline in real global growth and demand.

Jump into energy? There is a play alive and well in the energy space on a relative value. Think about selling Exxon and buying Conoco Phillips. Also, the European integrators look interesting because of decent balance sheets and the hope that they may be paying dividends this year. Be cautious jumping into energy longs, but keep your eye on them.

Financials. Mark to market hearing on thursday will address whether acounting rules on asset valuation - especially toxic assets - should change to allow assets to reflect market value. Good time to look at a short term upside for these financials - but get out before Thursday. Nothing good in the short term will develop from these meetings. Very small chance they can produce something significant to make a short term change.

RIG and other drillers look good as a play in future increase in oil demand and production.

Bottom of oil. Opec compliance, reduced demand and

HBSC

Halliburton Oil prices

China - No financial risk

Crumbling Eastern Europe

Hard to find an economist that doesn't believer the "R" fits the world now. Global Recession is with us, but how the world faring on a relative basis? Surprisingly, despite being singled out by some as the core culprit, the US is actually leading the world in terms of performance. Eastern Europe seems to be taking it on the chin worse than anyone else. Currencies have taken a nose-dive, and unlike the US and other more developed countries, borrowing money isn't really an option. Printing money to deal with loans doesn't quite work in these environments, so drying credit is taking the wind out of the sails for who knows how long. Mortgages denominated in foreign currency are dealing with the consequences of local devaluation.

Major Australian telecommunications firm Telstra dropped on forecast warnings. Down 2% in afternoon trading, Telstra's CEO will be leaving the company in June. Some believe this will be a positive step for the company. Union difficulties and refusal to comply with the government's push to provide better services to small and medium sized businesses were reported to be part of the problem.

Tata Motors (TAMO.BO) of India announced that it would begin selling the Nano, the world's smallest car in late March. The car is expected to be priced in the $2,000 range. interesting approach to impending anticipated gas pressures. Wonder how the Nano does in a fender bender, much less a full impact crunch. Save gas money but don't live to tell about it?

Brazilian shares weakened after the holiday break. But Shares oil giant Petrobras (PBR)
gained 3.2%, tracking a 6% jump in crude-oil prices to $42.50 a barrel on the New York Mercantile Exchange. Crude for April delivery surged following a report that weekly U.S. gasoline inventories fell by more than expected.

Shares of Latin America's largest bottler dropped over 75% in the last quarter due to demand drops and exchange losses. Mexico based FEMSA (FMSAUBD.MX) (FMX.N) suffered from exposure to currencies that largely decreased against the dollar with contribution from losses in derivatives.

Dramatic drop in export demand is continuing to anchor the world's second largest economy. Japan is experiencing the worst trade deficit in history. And now in addition to a plummet in US demand, it is contending with a precipitous drop in Chinese demand. Even Just In Time production perfected in Japan has not been adequate to prevent the build of manufacturing inventories. Shipments of automobile and electronic parts throughout Asia have come to a halt. Signs of a shrinking economy will continue to test an already battered business environment. Ironically, the thriftiness of Japanese consumers isn't helping matters. Unlike the leverage laden US consumers, Japanese consumers are saving and not spending which is having an additional drag on internal demand.

Krewe du Obama

Obama made his first formal speech to congress on Mardi Gras evening. "Fat Tuesday" is recognized by many Catholics - and many not so Catholic - as the last day of excess and indulgence to prepare for a 40 day period of discipline and self denial prior to the Easter celebration. Tossing stimulus dollars off the government boat has received mixed market results. These debt building trinkets are certainly a crowd-pleaser. But combined with the seemingly unlimited printing press of the fed, will this kick start the economy, avoid deflation, prevent future inflation and fix the woes of the credit, real estate and manufacturing markets? With most of the denial aimed at Wall Street bonuses, it is no wonder much of the marketplace is reacting with relative indifference.

Bank stress testing begins today under the Treasury's Capital Assistance Program. The mystery of what this will reveal that is not already understood and the impact on the banks themselves is like opening a box of year old chocolates. Toss the incomplete Phoenix suburban real estate development to the private sector and let the banks get on with some real lending.

Onto the world. Asia bounced from yesterday's five year lows today. The yen's slight slide probably helped give Toyota a slight jump start yesterday, but shares are off in initially trading today. Owning a auto maker may not appear to be a great move in this environment, but Toyota certainly bears consideration if you can convince yourself that the world will but cars and they will buy cars from an established leader in efficient vehicle production. Gas prices are deceptively comforting now. But if gas heads north in any meaningful way in the next year, pent up world wide vehicle demand is not likely to favor Detroit's cheap gas, Hemi inspired models that have been refined in the last decade. Consumers will need to restock and Toyota is the best of breed for the type of auto that the rebound will be seeking.

And Bollywood, the largest producer of films worldwide, breaks the barrier at the Oscars with a solid Slumdog Millionaire sweep. But since winning the lotto is better movie script than investment play, Indian IT giant Infosys is worth keeping an eye on. Falling under criticism for a perceived policy of risk aversion, they might be a solid play to step into the outsourcing business that has a solid foothold in India. Executing carefully in a time of slow demand is probably a prudent way to survive the long term without having to cook the books approach taken by some other Indian firms.

Bernanke - Recovery in 2010

With Bernanke attempted to provide insight into US monetary policy, global markets tried to hold steady while moving into record lows. Discussing the reluctance of international banks to engage in similar fiscal expansions, Bernanke pointed out that a complete recovery will require a "global recovery." Markets in Asia dropped to a five year low, with China's largest oil producer PetroChina losing 4.1% with a drop in crude prices.

While South African investments continue to plummet, Sasol remains an interesting play. Squeezing synthetic fuel and chemicals from natural gas and coal make this company a long term beneficiary of global energy demand. While production benefits remain down the road, currency devaluation makes this an interesting long term play to pick up now.

And for a US energy trade check out XTO Energy. At about 9 times earnings, they are ready to start growing next year and production is up.

Droughts in Argentina are testing the political leadership of President Cristina Kirchner. Defections from her Vice President may have her reconsidering the wisdom of raising the export tax on soybeans. Unhappy gauchos began a short term halt in the sale of grain and beef to prod a reduction in taxes and export controls. Steering clear of drought issues, APCO Argentina is a Tulsa based company with primary oil and gas operations in the Argentina. No debt, $50 million in cash and yield of 1.6% might make this worth a look.

In neighboring Brazil, aerospace manufacturer Embraer announced plans to cut 4,200 workers related to a lack of global demand. Is this an opportunity to get into the world's 4th largest plane producer? Perhaps, but there will probably remain some time to fetch a decent value for this 2 billion market cap giant. Hold tight for for now.

And global defense contractor Lockheed Martin has been beaten down because of expectations of reduced government spending. They are have major global market exposure, recently inked a new $3 billion deal with the UAE and a $800mm deal for Turkish fighters. They maintain top clients and maybe a a good value at this level.

Welcome to the GlobeStreet.com

Welcome to the GlobeStreet.com blog. The GlobeStreet.com blog is designed to keep readers informed about issues related to related to global investing.

The world maybe getting flatter, but there are still many slopes that hold opportunities for astute investors. Globestreet.com will provide periodic commentary and links related to news and perspectives that are shaping global investing trends. From emerging markets in China, India and South America, to Europe, Japan and other developed markets, Globestreet.com will highlight global directions.

The recent financial crisis surrounding credit issues has demonstrated how international growth is tied together now more than ever. Economic setbacks are staging opportunities - in developed and developing countries alike. Stay tuned for discussion about prospects that might not necessarily be in your backyard or in mainstream investment coverage.