Bloomberg Lynn Thomas, Glencore, DOJ discussed on Bloomberg Daybreak: Europe
Commodities Lynn Thomas and joins us now very good to. Have you on our program this morning so what, are the big takeaways from the results the, numbers good but not, enough money, back to shareholders is not the headline. Exactly I think that's exactly the story for today You know they're they're making a ton of money. Especially in coal and copper, metals trading is really been there sweet spot but with all the miners. They're, making so much money the big question is what are they going. To do with it is Glencore going to a big. Deal are they going to do a big buyback or dividends and that bit of news. We just haven't seen yet what apple is saying? What's been, the reaction I think for the most part it's been no surprise here you know if there's a. Little bit of disappointment in the shares it's because people were hoping for some bit of news that. They would increase. Their buyback or dividend. And there. Wasn't that today so. We didn't get that it does that go along way to explain well, that explains the weakness perhaps that we saw in the initial trading so we were down what more. Than three percent trade we pulled, back a little bit now down just eight tenths of a percent or so why have. The stabilized markets focusing on something else I mean? I think the, overall story for Glencore is going to continue to be a. Wait. And see story so will they do some With? That cash and then you have to? Factor in their remains a big problem with you know what's going to happen to, Glencore in regard to its DOJ investigation the money. Laundering the bribery will? They have to pay a big, fine and told that sorted. Out you're going to continue to see a discount priced into the, share price just run us through a few of those issues Lynn we've got this DOJ probe there's. Challenges spanning from the Democratic, Republic of Congo to Russia house it dealing with these issues so far. It's, it's you know it's just waiting to see what what happens with. The DOJ prob- we don't know at this stage but. You could certainly say that looking over the past year it's been a terrible year for. Them you know and it's it's almost sad because? They've they're, making so much money but they continue to have these quite serious problems with allegations of bribery and. In Africa tighter restrictions in With regard to the legal, situation, in Congo So I think until that sorted out they'll be sort of a cloud overhanging the, stock and what do I want to do they want to see more deal making or do they? Want to see share buybacks from? This business what what was the am Bishen I think most people expect Glenn court to do some kind of big deal in the next know Time over the next few months or so but we just haven't seen that happen a lot. Of the other mining companies have been quite active. In returning cash to shareholders. So dividends and buybacks with going core they've kind of taken the opposite stance in saying you. Know we'll build up m award chest, the problem is we haven't seen that big emanate come through yet given that its rivals, are giving money back to shareholders by the billions Lynn disease create a distinction between Glencore had its? Main? Rivals not distinctions always been? There Glencorse known for its ambitious deal-making and it's not exactly what people would consider a dividend stock But I think the big? Question is if we're expecting that deal what's it going to be and will they will they carry it out guarantees also speculation about what it could be earlier this year kassenberg said there. Was scope to do deals and the company has. Expressed. Interest, in. Agriculture, of course, making a bid for bungee back in two thousand and seventeen, didn't they Lynn thank you very much. For joining us European commodities team leader for Bloomberg Lynn Thomas and joining us with the. Latest ongoing cool it is down eight, tenths percent now mount but it was wasn't it, yes it, was should we talk tesla that's. All chat in the next section it was, certainly one of the ball buzzy interesting news of days it Tesla's history yesterday there'd be the few in. Recent months and never a dull day for mister. Elon Musk and tesla maybe. An b. o. buyout is on the cards yeah well yes well one point four billion dollars.