Introduction to commodities markets and their geopolitical aspects. Presentation of the financial instruments for risks hedging (commodities prices, forex, interest rates) and their technical implementation. Teacher assistant: Alessandro Giraudo Studi: - Bachelor in Business Administration (Scuola d’Amministrazione Industriale - SAMMI, Università di Torino) - una sintesi della tesi pubblicata su “L’Impresa” - MBA in Scienze dell’Amministrazione (Scuola d’Amministrazione Industriale – SAMMI, Università di Torino - voto della tesi :110/110, summa cum laude et menzione– Premio nazionale CIRIEC per la migliore tesi in Scienza delle Finanze in Italia – 1973 - studi post-graduate: Università di Genova (Finanza Internazionale e Storia Economica), Università di Berkeley (Economia Internazionale e Storia Economica con CM Cipolla), Salzsburg Seminars-Harvard/Yale (Economia Internazionale et Organizzazione delle Imprese Multinazionali) Esperienze professionali: - Fiat Co. (Direzione Sviluppi Internazionali - Economista – Torino e New York – ricerche presso lo Hudson Institute) - Cargill Inc. (Chief Trader e Investment Manager - Milano, Ginevra, Parigi, Amsterdam) - UBS (Zurigo-Edelmetall Abteilung et Chief Trader a Parigi) - NLMP (Commodity Economist e Broker – Parigi) - Tradition Group (World Group Chief Economist – Parigi) Esperienze didattiche: - SAMMI - Università di Torino (Tutor in Economia Politica – corsi in italiano)) - Institut Supérieur de Gestion – Parigi (Finanza dei Mercati, Economia Internazionale, Storia Economica della Finanza, Grandi Sfide Economiche - corsi in francese ed in inglese) - EDC/Paris Businnes School – Parigi (Sviluppo Internazionale delle imprese – corsi in francese ed in inglese) - Sciences Po-IEP – Parigi (Commodity Markets – seminari in inglese) - AMISTADES-Roma (corso in italiano sulle materie prime) - LSE – London; conferenze post-graduate sui temi delle materie prime (in inglese) - INSEEC – Parigi (Materie prime: rischi e coperture – corsi in francese ed in inglese) - Università Telematica Cusano – Roma (Geopolitica delle Materie Prime e copertura dei rischi)

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Development of the lectures: 1) paramount of commodities markets: - presentation of the commodity markets: metals (ferrous and non-ferrous, precious, strategic and rare earths), energy (coal, oil, gas, nuclear, electricity, renewable energy), soft commo. (sugar, coffee, cocoa), grains, textiles, wood-lumber, rubber (natural, synthetic) - introduction to commodity exchanges and physical transactions markets (major business financial centers) - maritime logistics (from INCO terms to bill of lading, from quality certification to freight market, maritime choke points, supply chains) - financial aspects (trade finance, investment finance, insurance) - major trading houses and market players/actors - history and geopolitics of raw materials (wars, political equilibria, power…) 2) introduction to financial hedging instruments: - identification of corporate risks - presentation of the financial instruments: Swaps, futures, options (vanilla and structured products), forward, ETF, CAP, Floor, Collar, Diff. contracts, producers’ contracts…) 3) real drill on a battle camp: - students are working for two different (inexistent, but “real” enterprises): the first is a producer of commodities, the second is a consumer of commodities. They must suggest solutions to hedge the risks - the first company is based in one Eurozone country and owns a mining company in Canada producing silver and a second one producing copper in Chile. They need to hedge the risks of commodity prices (silver, copper, and energy), of currencies (Cad$/US$, CLP/$, $/€) and the risks of local interest rates because both companies have a negative cash-flow. Furthermore, there face several logistic problems - the second company is based in one Eurozone country and produces bronze products. It must buy copper and tin and it is exposed to the risks of Cu+Sn and energy prices fluctuations, currencies volatility ($/€) and interest rates fluctuations (negative cash-flow, once more) - students form small groups (2-3 people) and must write notes the General Manager of both enterprises to recommend solutions for the hedging of the risks and, if there is any time left, they must present (oral presentation with no P.P.) their suggestions. This is a difficult test for students needing oratorial skills and teamwork 4) Students will prepare a short memo on one of the following subjects: copper, tin, silver markets, currencies trends, interest rates forecasts, economic picture…. 5) in addition to the bibliography, students will receive notes written by the visiting professor and documents issued by international banks, research centers and institutions July 03, 2023 (09.00-1300) Palimpsest of commodities history and commodities that made/make History Commodity Geopolitics - precious metals - base metals - strategic metals and R.E. - grains - soft commodities - spices - energy - textiles - precious and semi-precious stones - big battles and conflicts for commodity control - intelligence in commodity markets July 04, 2023 (09.00-1300) Identification of risks: - commodity prices fluctuations (specific raw material and energy) - Forex swinging - interest rates movements for: - mining industry - industrial sector - services sector (retail business, banking, insurance, transportation, consulting/advertising activities) BIG COMMODITY MARKETS - trading places of the past - London and the LME (owned by HK Exchange) - Paris (golden decadence) - Zurich (gold shines…but in the vaults of Paradeplatz) - New York and Chicago (that invented futures, copying the Japanese Dojima market) - Shanghai (exchange or big casino?) - Singapore, Geneva, and Zug (the 3 places for physical transactions) - Freight and logistics (the other side of the coin) - commodity project and trade finance - Central Banks and commodities - Merchants and trading companies July 05, 2023 (09.00-1300) financial hedging instruments and risk management - futures - options (vanilla and exotic) - forward - swaps (including climate swaps) and swaptions - producers’ contracts - FRA, CAP, FLOOR, Collars - Contract for Difference - ETFs July 06, 2023 (09.00-1300) case study - mining industry (EZ company, owner of a copper mine in DRC and of a silver mine in Canada…with a development of logistics) - industrial company (EZ company utilizing copper for its production) - both are large energy consumers July 07, 2023 (09.00-1300) development with the students of other cases: - food company (consuming grains and energy) - transportation company (consuming energy) - energy company (production and distribution) Students will be invited to write a report, with an analysis of risks and proposals of solutions (risk management) for some specific types of companies (personal or group work). A large academic bibliography will be proposed with documents written by the lecturer, reports and research documents issued by international institutions and banks.

In presenza

Presentazione report scritto

P.D.2-2 - Luglio

July 03, 2023 (09.00-13.00) July 04, 2023 (09.00-13.00) July 05, 2023 (09.00-13.00) July 06, 2023 (09.00-1300) July 07, 2023 (09.00-1300)