In today’s briefing:
- China Stimulus: Big Loan Growth Numbers, Good for FMG?
- Morning Views Asia: Vedanta Resources, Yankuang Energy Group
China Stimulus: Big Loan Growth Numbers, Good for FMG?
- Fortescue Metals (FMG AU) has corrected due to the iron ore price dropping. China’s massive stimulus could provide an impetus to demand in 6-8 months and revive pricing.
- Substantial correction of steel margins is halted. Iron ore the inventory at the mills and ports has now stabilized. We believe this provides support to pricing at these levels.
- Fortescue Metals (FMG AU) yields at the spot have dropped to 12% FCF and 9% dividend yields, but we believe there is an upside to this.
Morning Views Asia: Vedanta Resources, Yankuang Energy Group
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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