Not sure why, but investors seem to like the idea that Fortescue Metals Group is a Chinese stooge loose in the iron ore market, given it’s been bid up this morning 1%. It only guarantees lower prices for all and says nothing about FMG profitability but then there’s no reason why many investors won’t catch Barnett Disease just as pollies do.
Credit Suisse has contracted it with the following on the relative merits of the big two today, from the SMH blog:
“Rio has outperformed BHP over much of the past two years and we wanted to convince ourselves that we still prefer Rio given the recent leg down in commodity prices,” McTaggart writes in a note to investors and highlights the following points:
The full text of this article is available to MacroBusiness subscribers
