With commodity prices falling and the global economic outlook uncertain, Melbourne-based mining titan BHP Billiton (BHP) pulled the plug on its hostile takeover of rival Rio Tinto PLC (RTP), saying the proposed deal is of no longer in the best interest of shareholders.
So you’re watching the Olympic Games and the usual suspects appear as advertisers… There’s Visa, Coca-Cola, McDonald’s…and BHP Billiton (NYSE ADR:BHP)? Who are those guys, anyway?
It does seem unusual for one of the biggest mining companies to sponsor the Beijing Games.
But as it turns out, this massive marketing campaign wasn’t targeted at Joe Sixpack watching the Olympics.
It was payback to Beijing, says Irwin Greenstein, writing for Contrarian Profits.
The base metals were mostly in the red on Thursday. Copper declined from the pre-dawn hours through to mid-morning, then rallied to finish at $3.6157/lb., down just more than 2 1/3 cents. Nickel prolonged its recent resurgence, rising steadily to push back over the $11 mark, closing at $11.0873/lb., up 61 cents.
One clever mining company owns the lot… and it’s positioned next door to its biggest customer. Broker Cannacord Adams says this firm’s shares should be DOUBLE what they trade for today. But that’s not the half of it! China is DESPERATE for concrete and steel.
The base metals were mostly higher on Friday. Copper rose during the pre-dawn hours, peaking at $3.73 near the New York open, then slid for most of the rest of the day, finishing at $3.6965/lb., up 9 cents.
Anyone, like us, who has suffered the interminable “wait in the hall” hiatus for which Heathrow is so notorious, should just regard it as training for sitting out mining’s major bid.
The base metals endured a serious bloodbath on Thursday. Copper fell off a cliff at the open of the New York session and never recovered, finishing at its intraday low of $3.6416/lb., down 10½ cents.
The base metals were mostly in the black on Friday. Copper bottomed out at $3.72 in the pre-dawn hours, but rallied straight through from there to finish at its intraday high of $3.8099/lb., up 6 cents.
The base metals took a severe beating on Thursday. Copper was down from the pre-dawn hours straight through the day, only coming off its lows near the noon hour and finishing at $3.497/lb., down 6 cents.
Despite what you read from the financial newsletter industry, there aren’t many secrets left in the mining sector.