The news in the commodities business is not showing any signs of improving.
Overnight, global commodity giant Glencore dropped 9 percent in London trading after announcing that its cash flow (EBIDTA) in the first half of year was down almost 30 percent from same period last year.
The stock, which began trading in 2011, hit an historic low, and is down 43 percent since the slide began in June of this year.
Which, not surprisingly, is when the slide in China began.
What is surprising is the comment from Glencore`s CEO, Ivan Glasenberg. He did not place the blame on China. He blamed it on speculative hedge fund activity.
"It`s the funds driving [prices lower] and not the actual demand in China," he reportedly said in a media call. "The actual demand in China is actually not that bad on our commodities."
Regardless, there are other very clear signs that China and the global slowdown is very real.
A small Finnish company that manufactures mining equipment, Metso, announced overnight it was closing one of its plants in York, PA that has been operating since the early 1900s. Closing. That is a pretty definitive indication the mining industry is changing. "This is a permanent change in the mining industry and we need to find new and more efficient ways to run our business," a Metso official said.
One of Metso`s competitors, Caterpillar, is also seeing a collapse in demand for mining equipment. That is not speculative hedge fund activity.
In China, it was another volatile day, this time the opposite of yesterday, with shares falling in the morning session, then miraculously recovering in the afternoon session.
Asia was mostly to the downside. Hong Kong`s Hang Seng fell 1.3 percent, South Korea`s KOSPI was down nearly 1 percent, and Japan`s Nikkei dipped 1.6 percent, though Malaysia had a small gain.
- Prada seeks younger customers in bid for growth
- Lotte vice chairman Lee In-won found dead
- German business confidence falls post-Brexit, says Ifo
- Tesla touts speed and driving range with new upgraded battery
- Stocks creep up amid Fed limbo, dollar dips leftright 22leftright 12leftright
- China Crinkles Aluminum Foil Makers
- Cisco to lay off about 14,000 employees: tech news site CRN leftright 22leftright
- UK to avoid recession and world economy to ‘stabilise’ as Brexit shock passes - but US poses biggest risk to global growth
- Fuel prices push up UK inflation rate to 0.6%
- Rio 2016: Kohei Uchimura gets £3,700 Pokemon Go bill