BHP Billiton China Inflation
BHP Billiton (NYSE: BHP) had its stock price plunge as concerns over the effects of China tightening its money supply has put downward pressure on commodities because of uncertainty of demand.
Reports show China has inflation challenges, and the normal way to deal with that is to take measures to tighten your money supply, which will cut back on spending and demand for raw materials.
Being the largest mining company in the world, BHP Billiton plunged by over 2 percent as a number of precious metals fell in price on the China inflation news.
BHP Billiton China Inflation
Showing posts with label Inflation China. Show all posts
Showing posts with label Inflation China. Show all posts
Friday, March 12, 2010
Thursday, February 25, 2010
Nouriel Roubini on China Tightening
Nouriel Roubini on China
While a lot of people have made a big deal about the tightening in China, I agree, with Nouriel Roubini that in reality there is not much real tightening going on, and I think it's because of the negotiations China's going through concerning various commodities, including iron ore for its steel industry, among other commodity contracts they're negotiating over.
Eventually Roubini sees there will be an eventual tightening because of inflation, but that time doesn't seem to be here yet.
China is pretty cagey about its negotiations, and they got burned some last year when they didn't enter into predictable contracts with the major three iron ore companies, and spent more on the open market as a result.
Even with the so-called tightening, projections are China will lend at a growth rate of 20 percent form last year, albeit a little slower than the 30 percent at that time.
Nouriel Roubini on China
While a lot of people have made a big deal about the tightening in China, I agree, with Nouriel Roubini that in reality there is not much real tightening going on, and I think it's because of the negotiations China's going through concerning various commodities, including iron ore for its steel industry, among other commodity contracts they're negotiating over.
Eventually Roubini sees there will be an eventual tightening because of inflation, but that time doesn't seem to be here yet.
China is pretty cagey about its negotiations, and they got burned some last year when they didn't enter into predictable contracts with the major three iron ore companies, and spent more on the open market as a result.
Even with the so-called tightening, projections are China will lend at a growth rate of 20 percent form last year, albeit a little slower than the 30 percent at that time.
Nouriel Roubini on China
Friday, January 22, 2010
Commodity Prices Rise Hong Kong
Commodity Prices Rise in Hong Kong
Confirming what a number of investors and economists already know, the consumer price index in Hong Kong rose in December, primarily driven by rising food prices and other commodity prices.
The composite consumer price index in December increased 1.3% year over year. That followed on the footsteps of price increases of 0.5% in November, giving rise to fears inflation could continue growing for some time, something many have been concerned about after central banks around the world continued to run their money printing presses.
Attempting to downplay the price increases in commodities and food, the Chinese government stated this: "As the economic recovery, both locally and globally, is still at the early stage, the prevailing excess capacity on the supply side should help to contain the upward pressures on costs and prices."
Some Chinese economists disagreed with the official party line, saying increases in energy and food prices, and possibly other commodities could push consumer prices even higher than they're growing now.
Estimates are prices could increase by 3.7 percent in 2010 based on what was already said plus rental increases.
Commodity Prices Rise in Hong Kong
Confirming what a number of investors and economists already know, the consumer price index in Hong Kong rose in December, primarily driven by rising food prices and other commodity prices.
The composite consumer price index in December increased 1.3% year over year. That followed on the footsteps of price increases of 0.5% in November, giving rise to fears inflation could continue growing for some time, something many have been concerned about after central banks around the world continued to run their money printing presses.
Attempting to downplay the price increases in commodities and food, the Chinese government stated this: "As the economic recovery, both locally and globally, is still at the early stage, the prevailing excess capacity on the supply side should help to contain the upward pressures on costs and prices."
Some Chinese economists disagreed with the official party line, saying increases in energy and food prices, and possibly other commodities could push consumer prices even higher than they're growing now.
Estimates are prices could increase by 3.7 percent in 2010 based on what was already said plus rental increases.
Commodity Prices Rise in Hong Kong
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