Graphic: US Versus Russia

A graphic comparing the US and Russia on various aspects courtesy of mint.com.
See the original plus other graphics at mint.com

25 Largest Companies of the World

25 largest companies in the world as compiled by Bespoke Research

According to Bespoke Invest, ``For those interested, we highlight the 25 largest companies in the world. For each company, we provide its country, sector, price (local currency), year to date change, and market cap in dollars. As shown, Exxon Mobil (XOM) is the biggest company in the world and the only one worth more than $300 billion. PetroChina ranks second and is the only other company worth more than $200 billion. The Industrial and Commercial Bank of China is the world's third largest company, giving China two of the biggest three. Wal-Mart and Microsoft round out the top five. The United States still dominates the list with 12 of the 25 spots. China ranks second with four spots. General Electric used to be the biggest company in the world, but it has slipped all the way down to the 18th spot. Google (GOOG) is also on the list at number 22."

Including China Mobile which has been classified under Hong Kong China has 5. Although the others have been spread among Japan 1, Britain 2, Brazil 1, France 1,Switzerland 1, Netherlands 1, and Australia 1.

By region North America has 12, Asia 7, Europe 5 and South America has 1.

What is interesting is that we are seeing more Asian companies in the race among the elite.

10 US Energy Facts

From American Institute for Economic Research

1 New York State per capita energy consumption is among the lowest in the nation due in part to its widely used mass transportation systems.

2 California imports more electricity from other states than any other state.

3 Iowa is the largest producer of ethanol in the United State and is a leading state in electricity generation from wind turbines.

4 Montana is one of the top hydroelectric power producers in the United States.

5 Colorado’s oil shale deposits hold an estimated 1 trillion barrels of oil—nearly as much oil as the entire world’s proven oil reserves. However, oil production from those deposits remains speculative.

6 Florida is a leading producer of oranges, and researchers are attempting to derive ethanol from citrus peel waste.

7 North Carolina is one of the top nuclear power producers in the United States.

8 Oregon is one of the nation’s leading generators of hydroelectric power, which accounts for more than one-half of state electricity generation.

9 The Henry Hub in Louisiana is the largest centralized point for natural gas spot and futures trading in the United States, providing access to major markets throughout the country.

10 The Powder River Basin, most of which lies in northeastern Wyoming, is the largest coal-producing region in the nation, accounting for approximately 40 percent of all coal mined in the United States.

CDS Market/Default Risk Ranking: Philippines Maintains 12th Place, Europe Dominates Monthly Laggards

Bespoke Investment gives us a colorful snapshot of the pecking order of the cost of insuring debts of various nations, as measured by changes in Credit Default Swaps.

Based on month to month changes, according to Bespoke, ``Ireland, Austria, Greece, and the UK have seen default risk rise the most over the last month. All have risen close to or more than 100%. US default risk has risen the 8th most at 68%.”

Among the 10 worst monthly performers, notice that except for the US which ranks 8^th, European countries have dominated the field.

While we may not have the sufficient explanation on why the markets have priced in serious jitters to many European sovereign debts, we suspect that this has been related to

1) credit risks concerns via banking exposures to the Balkan States, which had overheated and whose internal bubbles has imploded, and possibly combined with

2) the recent deleveraging which has heightened liquidity strains in economies with accentuated budget deficits as below courtesy of Danske …

We also understand that Europe’s economy has been more dependent on the banking sector than the capital markets relative to the US. And when the cardiac arrest engulfed the global banking industry last October, the region’s banks, which carried substantial toxic instruments, saw its lending flows to the real economy critically impaired.

Thus, credit driven economic slowdown plus accentuated budget deficits compounded with credit risk exposure to the Balkans may have raised the market’s concern over many of the European nation’s default risk.

National CDS Ranking according to prices.

More from Bespoke, ``Since then, default risk has risen for all but two of these countries (Lebanon and Argentina). Below we provide the current credit default swap prices for these countries, along with where they were trading one month ago and at the start of the year. As shown, Argentina, Venezuela, and Iceland have the highest default risk, with Russia not far behind. Germany, Japan, and France all have lower default risk than the US at the moment. It now costs $60 per year to insure against US default for the next five years. While this may not seem high, it was at $8 earlier in the year, and $36 one month ago.”

Nonetheless, the CDS market shows how exposures to toxic papers, credit bubbles or failed government policies have largely impacted national credit ratings.

Hence, to engage in the narrative generalization that emerging markets reflect a similar state to toxic waste papers that prompted this crisis is to engage in a fallacy of division.

What we should watch is how the markets will price US CDS, as the world's reserve currency, to reflect on the market's approval or disapproval of present policy actions. A continued march upward could signify strains in its privileged status.

Meanwhile, the Philippines maintained its 12^th ranking with minor changes relative to the rest, on a month to month basis. That should be a relief.

Has The Global Financial Meltdown Forced A Truce In US-Russia Political Tift?

Recently Russia indirectly confronted the US by partly invading Georgia, a staunch US ally.

Not contended with its recent political-military victory, Russia appears to have been flexing its military muscles by parading its warships in the Mediterranean aside from its recent military exercise with Venezuela a formidable political foe of the US.

Courtesy of Timesonline

It has also been capitalizing at US social-economic-financial pressures at home by expanding its influence outside its region. In short, the Putin led Russia have been rebuilding up on the scale of its old “Soviet Union” networks. A possible revival of the former US-Soviet “Cold war” looks likely at work. Or so it seems.

Now we read that the US and Russia are having unannounced highly confidential top level military meeting at Finland (Hat tip: Charleston Voice).

According to Turkish Daily News, ``A U.S. Embassy official says American and Russian military leaders are meeting for unannounced talks in Finland, the highest-level military meeting between the two countries since Russia's war with U.S. ally Georgia in August.

``U.S. Embassy spokesman Kim Hargan says the participants include Adm. Michael G. Mullen, the chairman of Joint Chiefs of Staff, and Gen. Nikolai Makarov, who was appointed the Russian Armed Forces' Chief of General Staff in June.

``Hargan declined to give any details on Tuesday's talks, which had not been previously announced in Finland.

``The Finnish Defense Ministry said the head of the Finnish defense forces, Admiral Juhani Kaskeala organized the meeting at an isolated manor house outside Helsinki. It gave no other details.”

Of course, such a meeting could mean anything and is subject to anyone’s interpretation or speculation. But considering how Russia has felt the brunt of the financial meltdown, to see its stocks collapse, its currency slammed and its bonds toast, while its main source of export revenues-oil and energy-getting walloped, maybe such a meeting puts on hold the political showboating of both camps.

Perhaps misery loves company.