The Rising Influence of Rising Affluence

[biotech_researcher]

This seems troubling for the commodity complex, especially iron ore.

"Rio Tinto‘s (RIO) iron ore shipment in 2013 hit record high. The mining company said it would spend another $2 billion to boost output in Australia over the next four years, betting demand from China will remain strong."

I expect this is not going to end well as the Australian and Canadian dollars have continued to taken a beating and are at multiple months lows. Those currencies most always lead commodity prices. RIO will be hurt badly as they continue to pump out product as China imports slow.



http://blogs.barrons.com/emergingmarketsdaily/2014/01/16/em-morning-roundup-brazil-raised-interest-rate-more-hikes-expected/?mod=yahoobarrons&ru=yahoo