China, David Stringer, Bloomberg discussed on Bloomberg Daybreak Weekend

Automatic TRANSCRIPT

Doug krizner in New York and Bryan Curtis in Hong Kong. John coming up this next week minors, including HP Glencore, an Anglo American all report earnings. Now, these reports could offer some strong clues about growth in China and indeed in the global economy, but what to expect we're joined by Bloomberg's senior reporter on energy and commodities David stringer. David thanks very much for being with us, perhaps even more important than some sort of resolution to the US China. Trade war will be the impact of China's stimulus. The miners have to be concerned about demand in China, which has been slowing. And is expected to slow further. No, that's absolutely, right. And and that really is a key consideration for the major commodity produces. And we know from from recent conversations from recent comments from some of the really biggest players in the sector that the one thing looking for is. When and where tiny stimulus is gonna is going to be put into next week. We'll have from from Billiton from from Glenn cool and also from harangue low American from straight eight the biggest mining company and really is that look on on China that people will be very interested in saying, of course, China biggest consumer commodities flow, a China likely tons to week prices on weaker earnings. You know, it's very interesting David because the latest trade data from China beat estimates on both the export and import side of the equation. And I'm wondering whether or not the Chinese economy. Maybe it's putting in a bottom who knows? But the extent to which the market may be hyping. This idea of stimulus is it possible that the notion of stimulus may be overreaching that the Chinese may not need to apply. Much more. Absolutely. That's absolutely possible on I guess what we heard from some of the players in the sector from some of the miners as well. Seeing. Now in what the waiting to see there's more evidence of a stimulus at a regional level. And the really key issues for them is what kind of industries are going to receive a boost. And how does that translate through to rule materials? What it could be that? We don't see a huge impact on commodities like on run token, colder raw materials for the steelmaking sector could be things like copper aluminium metal that he used more in machinery and white goods in in power grid. They could be beneficiary on. So they may not be a tool that that helps all minus with the exception of Glencore may be the rest of these diversified miner's. Stocks have been on fire. Why? Well, that's right. They're making a lot of cash. That the simple equation prices for lots of key commodities. Whether that's on whether that coaching coal. They have been performing at a well in a crop of company went through a very difficult period. At the end of two thousand fifteen to cook got rid of debt, and right now that the generating a lot of cash what we're seeing is is that can go back to investors, but not necessarily doing the sort of deal making the path and not necessarily putting a lot of cash into projects right now that rewarding investors with anything more interest from generalists investors and was seen as you mentioned those gains in share prices. So in in China, the top steel industry group, I was reading a China iron and steel association. They were kind of indicating that the iron ore market may have overreacted sue some of the supply disruptions that we have seen recently. What's their basis for making that claim, do you think? Towards the back end of the week gone. We we we started to see auto prices come back from a really pronounced response to the disaster that we saw in Brazil in January tailings dam waste them. Spill at a at a mine run by Brazil's the biggest. We still pricey died on ten dollars a tonne fifteen dollars a ton. And that scene is having been an overreaction potential full supply pulled out of the market eighty it. Still a complex pitcher didn't play at the extent to which seaborne and supply could be affected this year. And I think what we're saying is the recognition of that that that's still uncertainty as to how little supply will be pulled out of the market. And what impact that's going to have? I think the response from this Chinese groups was that. Steel mills the news is when they thought there was an overreaction. They don't see that being so much any she with a tighter market, David. Thank you so much Bloomberg's David stringer there. He is senior.

Coming up next