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Chris Looney, Macquarie managing director, on what’s pushing metals higher in today’s markets.
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All right well talking of commodities copper hitting a one month high for a third day on hopes that will be -- stimulus in the US and China aren't.
Bustamante from metals -- my next guest is bullish on copper.
Even without any new measures joining me now is Chris -- Macquarie managing director Chris thanks for being here com.
I don't -- -- -- that the the child's the stimulus here in the US may have just dropped a little bit because of economic data since those.
Federal FOMC minutes were released have -- -- little more encouraging but you believe that some more stimulus is on the way.
I think you know as far as -- consigned yeah refocus on China and I think you know China -- the world's largest consumer of copper 40% of global bond.
So it's really about China and the stimulus China puts in the called market really counts.
And there is a belief bad that the economic data has also shown a big slowdown in China see you are fairly confident that the Chinese Government will.
Put in some -- monetary easing.
Correct absolutely and and you know it's it's actually be simpler map -- have a forty out of -- that's been from destruction of the year.
And it's evolves to my money and already they've got to play sisters catch up states on the spent the year so far.
-- according to Watson spent mess -- erotica amount on call pop.
-- -- -- -- being -- rapidly.
Because government agencies need to spend the money -- allocated essentially what you're saying accident -- and it's a real political -- popping down you know.
Almost so -- somebody get promotions it and spend it so we're fairly confident happen.
I'm previously as we've seen that spending side towards him again copper prices dropped only 12%.
Down from its peak in February which you see -- bids copper prices.
Good Graf then it shows.
It's been middling along for a while now when you see prices picking up where -- -- to the end the year at seasonally we see.
He's in check the local comes in China -- expense infrastructure now.
Really lost two months the and we see that reaping -- -- In the meantime -- got -- break out its recent range and -- fairly hefty short positioning really contrary and argue because the general sense we're getting is that there's a global slowdown -- and you know you look at Shanghai compensate you can -- off.
You total votes.
That warrant Philippine general Chinese economy.
If we look at the numbers along.
We felt infrastructure spam which is forty tackle the moms you know should do the trick sometimes the -- the considered the was the numbers and data.
The mortal -- as it.
Monetary easing so -- is that what it -- about platinum to a lot of eyes and attention to what's going on in South Africa are major.
Platinum producer of course and live Gupta is with had a lot of unrest of one of the big mines down -- what's that done to platinum prices.
We see real so Irish problems should be an attractive broken out -- couple guys a lot of interest fund community.
And technically it's really taken off.
I think the real risk for platinum White House focusing on as if the unrest spreads -- -- -- -- minds -- my Maurice seeing signs of all of tension between the mighty unions and the bigger mines was the biggest consumers of platinum.
While it's it's it's the car companies have the current combatants.
You know platinum -- -- -- into diesel engines in Europe has been fairly.
Iraq and have given situation -- SP cited conservative saturating the supply side which is drop -- prices.
But if we see that unrest spread that we could see.
Obviously prices going up on consumer goods ultimately sound like that that's definite risk all right good stuff Chris -- thank you so much for -- --
