Big iron equity struggles as FMG triumphs

Thursday, 23 April 2015

Big iron shares are making sense today as neither RIO nor BHP has taken off post the overnight surge with the former up a lousy 1.5% and latter 2%. Surely weighing upon them is FMG’s ponzi-bond coup, which is cruising upwards at a cool 12%. Of course that won’t last either as markets realise that all FMG has succeeded in doing is guaranteeing unthinkably lower prices for longer but, hey, who cares today! To the index:

The RIO and BHP idiocy spreads are now closing:

However, all of the above moves pale in comparison to BCI, which is up 40% after confirming that it is only vomiting as opposed to hemorrhaging money:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.