Prepare for biggest inflation scare since 1980s warns Jefferies
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Broker highlights some potential winners and losers if prices keep on rising A change from a deflationary era to an inflationary one could be forthcoming says teh broker
Investors should be prepared for the biggest inflation scare since the 1980s, according to US broker Jefferies, which has looked at which sectors would fare best if the beast really has returned.
Chris Wood, Jefferies’ head of global equity strategy, says the debate now is “how fast and how soon”.
A change in investment regime, from a deflationary era to an inflationary one, could be forthcoming, he adds, with how the Fed and other G7 central banks respond to set the tone.
Overall, first-quarter production was at 95% of normal capacity partly due to COVID-19 constraints at some operations
Anglo American PLC (LON:AAL) said its coal production fell in the first quarter and reduced its full-year output guidance for both metallurgical and thermal coal.
Thermal coal production dropped 20% from the year-earlier quarter to 4.9 million tonnes (Mt), with guidance for the year cut to about 14 Mt, from about 24 Mt, reflecting the diversified miner’s plans to spin off its thermal coal operations in South Africa.
Overall, first-quarter production was at 95% of normal capacity, meeting strong customer demand despite some limited constraints at certain operations due to COVID-19, said the FTSE 100-listed miner.
22 April 2021 | 07:59am
StockMarketWire.com - Mining company Anglo American reported a 3% rise in first-quarter production, but trimmed its guidance for metallurgical and thermal coal following a fall in output.
For 2021, guidance for metallurgical coal was trimmed to a range of 14 million-16 million tons from 18 million-20 million tons owing to the suspension at Moranbah North in Queensland, Australia and geotechnical conditions and delayed access to Grosvenor, also in Queensland, the company said.
Thermal coal guidance was cut to 14 million tons from 24 million tons, reflecting the proposed demerger of the South African coal business.
Production increased by 3% in Q1 driven by strong performances at the copper operations in Chile, and PGMs and iron ore in South Africa, more than offsetting plant maintenance downtime at Minas-Rio iron ore in Brazil and the temporary suspension at the Moranbah metallurgical coal operation in Australia, it added.