Abu Dhabi Fund Mubadala Sees Commodities ‘Fizzle’ On Coronavirus - Bloomberg:
Commodities markets are set to “fizzle” as the coronavirus crimps business worldwide, according to a top executive at Abu Dhabi’s government-run fund Mubadala Investment Co.
Falling commodity prices are a risk for emerging economies that rely on the production of raw materials, and investors in these markets should “be a little bit cautious,” Mubadala Deputy Chief Executive Officer Waleed Al Mokarrab Al Muhairi said Tuesday in Abu Dhabi. The uncertain outlook for the coronavirus makes it harder for investors to decide where to put their money, he said.
The disease is hurting economic expansion as airlines cancel flights and factories look elsewhere for components they would have bought from China, where the coronavirus originated. Growth in demand for oil was already fragile amid a supply glut, and benchmark Brent crude has tumbled 18% this year.
“Commodities are going to be impacted,” Al Muhairi said. “You see that in aluminum, you see that in iron ore, you see that in oil.” Manufacturers are already shifting some operations and supply chains away from China, he said.
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