The plan includes boosting the capacity of it’s existing Camacari facility, which manufactures the Fiesta small car & also upgrading & modernizing the Troller plant that builds utility vehicles, said Jennifer Flake, a spokeswoman, Ford will also invest in infrastructure to bring new models for Brazil, she said.

The auto industry in Brazil, South America’s largest economy, is headed for record sales this year, the country’s automakers association said on Oct. 7. Ford ranks fourth in Brazil, behind Fiat SpA, Volkswagen AG and General Motors Co.

“Ford understands the importance of Brazil and Argentina and they continue to invest in those markets,” Michael Robinet, an analyst at consulting firm CSM Worldwide in Northville, Michigan, said in an interview. “Every automaker is taking Brazil seriously and they should, because it’s a market with an expanding middle class.”

The Camacari factory, in Bahia, northeastern Brazil, will be able to build 300,000 cars annually after the expansion, an increase from 250,000 now, Marcos de Oliveira, chief executive officer of Ford’s Brazilian unit, said Monday.

“This is a very large investment for Ford,” Mark Fields, Ford’s president for the Americas, told reporters at the announcement in Brazil. “We’re investing because we want to continue to grow and to improve our competitiveness.”

Ford has sold 298,134 vehicles in Brazil this year, giving it 9.9% of the market, CSM said. That share is down from 10.2% in 2007 and is less than half of GM’s 20.3%, the firm said.

Third-quarter pre-tax profit in South America declined 49% to 247 million USD as revenue dropped 22% to 2.1 billion USD, Ford said on Nov. 2. The automaker blamed “unfavourable” currency-exchange rates in Brazil and Argentina.

In the last few years, however, the Government has sought to exercise more control over the whole mining sector and earlier this year it set up MonAtom to undertake uranium exploration and mining on behalf of the state, as well as to pursue nuclear energy proposals. It will hold the state’s equity in uranium and nuclear ventures, under the Mongolian Nuclear Energy Agency.

In mid-July, after consultation with the International Atomic Energy Agency, Parliament passed a Nuclear Energy Law to regulate the exploration and mining of uranium and give the state a greater degree of ownership and control of those resources. Along with this the Government set up Dornod Uran, a joint venture company between MonAtom and Russia’s ARMZ to develop two uranium mines in Mongolia — Dornod and nearby Mardai. A Japanese partner, evidently Marubeni, is also expected to be later involved in the work of this joint venture.

The development is of particular interest to Russia due to its proximity to the Priargunsky operations, allowing possible creation of a ‘single infrastructure. At least until mid-August, Canadian based Khan Resources owned a 69% share in the Dornod project, mostly through its 58% subsidiary Central Asian Uranium (CAUC). The balance of CAUC, which holds Mongolia’s only uranium mining license, was owned by MonAtom and ARMZ, each with 21%.

A definitive feasibility study released in March 2009 showed that the $333 million project was sound, on the basis of 24,780 tons of indicated resources, including 20,340 tons of probable reserves. Annual production of 1,150 tons over 15 years from 2012 was envisaged.

However, the Nuclear Energy Agency has announced that the joint venture of MonAtom with ARMZ will develop the project to annually produce about 2000 tons. Khan is uncertain where it stands, having apparently been dispossessed as it sought to negotiate an investment agreement with the Government.

Gurvanbulag is another deposit, about 30 km away, which has been held by the Canadian Western Prospector Group. This March the company agreed to a $25 million takeover by China’s CNNC International, a 74% subsidiary of CNNC Overseas Uranium Holding and through it, of SinoU. MonAtom appears to be positive about this development.

According to Finance Minister, Alexei Kudrin, the Russian economy will be on the rise again as early as in the third quarter of 2009.

"We still do not have the final data for the second quarter, but we expect Russia's economy to grow in the third quarter compared to the second quarter, and the third quarter will mark the end of recession," Kudrin told a news conference whilst in London attending the G20 summit

Russia has recently raised forecasts for the price of oil and is now looking at revising its views on gross domestic product (GDP), Kudrin said last week. The Economy Ministry now sees Urals oil averaging $57 a barrel this year, up from the $54 forecast previously & the average price of crude is projected to increase gradually to $58 in 2010, $59 in 2011 and $60 in 2012.

With 40% of  the Market Vectors Russia ETF Trust (NYSE:RSX) predicated on energy, it is plain that energy prices need to remain stable if not advance in the light of the news above, if it is to become more attractive to risk averse investors. Trading at $23.54 off of a 52 month low of $10.34, it is still a long way off of its high of $40.75.

Standard & Poors retained it's BBB rating on Russia last Thursday, which would seem to allay some fears, as it was widely expected that the rate would be cut. The ratings agency also noted that by the end of 2012, with net debt levels at 14% of GDP, Russia's public balance sheet remains superior to the BBB rating median of 42% of GDP.

The government is also now tapping its $85.7 billion Reserve Fund & $90.7 billion National Wellbeing fund, which were built on windfall oil revenues, to pay for an “anti-crisis” program that is worth about 2.5 trillion rubles ($79 billion).

Personally, I am positive on Russia long term & feel that this ETF offers value for a long term portfolio, year to date, it has returned 75.4% & I reckon it has further to go. Lately it has been trading in a choppy pattern & has suffered a significant retrace, but with S&P confirming it's rating, I'll be looking closely at the price of crude & natural gas over the next month or so, any gain there & I'll be adding with an expectation of an additional 25% gain this year.

Author holds a long position in RSX

So our feeling is that with China declining at such a rapid rate, Long FXP  (NYSE: FXP) short FXI is a no brainer & we are looking to make some good returns over the next few weeks, we are also adding in a soupcon of SDS for interest & to confirm our bearish sentiment on the S&P 500. With a ratio of 2:1:1 we feel that this is a well hedged play, with a good upside potential.

We are looking to hold this trade for a minimum 10 day period & I have set this trade up on kaChing.com in our test account in order to track it. The idea being that we can give a visual on the performance of the trade & also  a good term of reference when we close out the positions & reblog.

At time of writing, no position in any stock mentioned