Good afternoon
In South Africa, things are hottening up...there might well be trouble ahead, before Zuma will throw in the towel...The Rand looks poised to go down further, helping the South African mmining industry, which has had to rely on a weak Rand for many years to stay competitive.
Building material stocks especially have been very strong in China today, as the government ahs declared a third economic zone beside of Shenzhen and Shanghai. The decision is believed to substantially support Chinese growth over the next few years.
Manufacturing surveys in the US as well as in Europe continue recent, strong trends - unemployment in Europe still on the way down.
The US care industry is feeling a bit weak. While numbers of cars being sold are slightly up, and SUV´s are still gaining market share, these numbers could only be achieved with large incentives for buyers. As Bloomberg reports, the 7 year rise of the industry in the US might come to an end.
Coal prices, especially coking coal prices, will probably be quiet strong for the enxt few month. The recent Cyclone has done substantial damage to rail infrastructure in Queensland, and some mines will not be able to export - or at least not in the past quantity - for a month or two to come. Good timing for the Quarterly negotiations. For companies like Stanmore Coal, which are financially not very robust, this could turn out to be a more serious problem.
Kingsgate - is now taking the first step to recover remedies and compensation from the Thai government. The Free Trade Agreement between Australia and Thailand require a consultation process first, before the case goes to an international tribunal. This could be a lengthy and expensive exercise, and Kingsgate is evaluating funding options - I guess they are talking to litigation financiers. I have no idea what sort of money is at stake - but I could well imagine, that the number is a 3-digit million number. Never nice to speculate on a court decision, especially not, if it´s potentially years away - but this is a free option anyway for shareholders.
Have a nice evening
WS
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