Today's Market View - Record gold to silver ratio could signal recession risk

London (May 28)  Australian mining capex stalling in 2019 on trade war -

• Mining capital expenditure is expected to stall in 2019 as increasing uncertainty surrounds ongoing demand from China and the potential impact from the US-China trade dispute makes miners more cautious, S&P Global Ratings report.

• The completion of past projects and the relatively modest projects in the pipeline should increase supply slightly for most commodities; copper supply to increase by 0%-3% annually over the next few years.

• Companies are also likely to maintain sufficient financial buffers to weather commodity cycles.

• Downstream companies increasingly intend to significantly reduce their absolute debt levels; “we believe these issuers have acknowledged that the current healthy industry conditions aren’t likely to last, and view a strong balance sheet as prudent ahead of commodity market uncertainty and ongoing geopolitical risks”

Russia launches nuclear-powered icebreaker

• The Ural is one of three nuclear icebreakers to be built to enable better traffic flow the Northern Sea Route.

• The idea is to keep this route navigable all year round and to enable better trade with China without going through the Suez Canal.

• The ships will be the largest and most powerful icebreakers in the world.

• These ships may also be used through the North West Passage across the north of Canada and Alaska.

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