BHP Billiton (NYSE:BHP) said in a recent production report they are wary of the short-term outlook for growth, especially in mature markets, with European nations putting austerity measures in place to combat the sovereign debt crisis.
Prospects in the United States aren't looking good, and China is taking measures to combat their urban property crisis, which has overheated in a big way.
China will continue to grow, just at lower levels than the recent past, contrary to a few recent reports they're going to allow the property market to go forward as it was. That's just wishful thinking and attempts to get investors to put their money in dubious companies and funds.
BHP said this in their production report, "Uncertainty surrounds the near-term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels. Within China, measures introduced to reduce growth to more sustainable levels means volatility in commodity end-demand is likely to persist. BHP Billiton sees these measures as a normal continuation of China's economic management policies,"
In other words, over the short term there is very little to bring optimism to the demand factor of a number of raw materials, and that's going to show in the results of companies like BHP.
While we'll see some good quarterly reports for the last quarter, like with Freeport-McMoRan (NYSE:FCX), that was based on commodity prices last quarter. Since then a number of metals and other commodities have fallen, and that's pointing to a tough quarter next time around.
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