Glencore Xstrata is a huge commodity trading and mining company. Comments from its billionaire CEO Ivan Glasenberg:
"At the moment none of us can read China"
"None of us know what is going on there and I'm yet to find the guy who can predict China correctly. China in the first half was a lot weaker than anyone expected."
(Bolding is mine)
- China uses about 40% of the world's copper supply
- Around 50% of aluminum
- Bloomberg's median estimate of 11 economists surveyed last week say China's economy expanded 6.3% in H1 ... not the official 7% figure
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Its been the weakness in China that's driven the AUD lower in past months/years ... and ... according to Glasenberg (see above) no one knows whats going on in China.
(ps. Check out AEP's latest .... he isn't a China bear ... well, not just yet: The recession in China has been and gone. The housing market is picking up as stimulus revives, putting off the day reckoning again )
