Summit TV

Transcript:

Not much has changed even through this Greek episode we’ve had - we knew the Europeans were in trouble, we knew that we are all over-indebted. In terms of the specifics of who is over-indebted every market is going to go through it - but in general we are expecting some sort of volatility. The fact that Anglo American and BHP Billiton have fallen by some 30% I think presents quite an opportunity. The BHP Billiton story right now that one can discuss is the supertax the Australians are trying to initiate. That proposal if it goes through will only be in 2012. From what I understand on Thursday there’s going to be a challenge to Kevin Rudd’s leadership from within his party. What that means is that his popularity is falling. The Australians don’t like that - it’s not just Billiton - so I think the chances of that going through unchallenged and unchanged is actually quite small. Even if it does go through in some fashion BHP Billiton is actually better placed than most other companies to survive so if it kills a lot of marginal players Billiton could actually improve their profitability. It is diversified. They have oil on their books and a lot of cash so they’re not as geared as Xstrata or Rio Tinto… Anglo American. I think there the story is quite different - they operate in different environments and they have exposure to a different mix of commodities. One of the things that’s quite good is copper - as long as we have infrastructure spend and not just in China but specifically in India the growth in infrastructure can be substantial so Anglo American will do very well.

Broker:
Vlad Anuchin, RMB Asset Management

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