On the Tuesday edition of the Morning Mail this week, Philip Anglin discusses developments in Europe with Chief Investment Officer Mike Hawkins. Mike explains that agreement on the management Greek debt position is expected in the next 2 -3 weeks.
We then discuss inflation creeping into the US economy, as a result of rising costs imported from China. Rising US inflation and potentially rising US interest rates, would continue the recent weakening of the Australian Dollar against the US Dollar.
Finally we discuss the two big miners, BHP Billiton & RIO Tinto. The ability of these two companies to continue significant share buy backs will be supportive for their share prices. BHP has almost completed their $10bn buyback ahead of schedule and RIO has completed 50% of their $5bn share buyback. Mike notes his preference for BHP due to their diversity of earnings.
