17/08/2016 - 06:19

BHP reports a $6.4 Billion loss but is it a “buy”?

17/08/2016 - 06:19

Bookmark

Save articles for future reference.

BHP had its worst half in over 50 years as the miner posted a “huge” loss ($6.4 billion) on write-downs in Brazil.

Good Morning,

 

A “mix” night last night with the Aussies winning Gold and Silver in the Sailing, but the Opals, Cyclers and Hockey stars fell short

 

It was the first time since 1992 that Australia hasn’t polled a medal…

 

Last night, US stocks “took a breather” with the Dow -84 points as the US fed provided a hawkish stance on interest rates…..

“Dudley wants to keep expectations grounded,” said Yousef Abbasi, a global market strategist at Jones Trading Institutional Services LLC.

“You have seen some stronger employment data, but other pieces of data are showing a struggle still… retail sales, inflation reads have been among recent disappointments. It’s just reality - rates might move higher by December if jobs data continue to come in better.”

Here at PEAK, we don’t feel that the US fed will raise interest rates in 2016…..

This certainly bodes well for commodities and equities….

Meanwhile, the cost of living in the US was little changed, a sign subdued inflationary pressures would still give policy makers reason to keep interest rates low.

In Oz, just like the Olympics, the AUS reporting season provided “mixed” FY results as DMPdisappointedwhile CGF and MGR provided strong guidance......

 

BHP had its worst half in over 50 years as the miner posted a “huge” loss ($6.4 billion) on write-downs in Brazil.

 

But is it a buy?

 

Well, yes, if you think commodities will continue to rise and that the dividends will be maintained….

 

The SPI is down 6 points this morning

 

Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options