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Given that atmosphere, BHP executives see the rise and fall of commodity prices as part of the typical economic cycle, stressing that the downward pressure should not prompt panic.
The impact of the fall of commodity prices on African economies illustrate their fragility, and that of the ubiquitous and premature "Africa Rising" narrative, which doesn't distinguish between Mauritius and Congo.
The dramatic rise and fall of commodity prices, credit concerns and fertilizer costs have partially paralyzed fall buying activity," analyst Robert Koort wrote in a note in which he cut the companies to "neutral" from "buy".
Ms Hilde F. Johnson highlighted that an even greater challenge now is the negative impact of the fall of commodity prices in Congo caused by the global economic crisis.
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Large industrial companies that produce basic commodities came under pressure after the CRB Index, a broad measure of commodity prices, fell by almost 1.5% in intraday trading.
Daniel Vasella, chairman of Novartis, a Swiss drugs giant, agrees that his industry must innovate or risk falling into a low-margin ghetto of commodity pricing.
As the dollar has fallen, the prices of commodities priced in dollars have jumped: oil fetches well over $100 a barrel.
But industry-wide price deflation of 1.7%-2%, as a result of falling commodity prices and retailers battling over the price of essentials and seasonal favourites hit the value of sales.
With those trends, Bell said the company is beginning tough discussions with cities about what it sees as a long-term economic reality: cities must bear more of the financial impact of falling commodity prices.
The cable, approved by the American ambassador, John R. Beyrle, assessed the Kremlin rumors not as indicators of Mr. Putin's weakness, but of the limits of his position in a period of falling commodity prices and tightening credit.
See articleGlencore and Xstrata both reported hefty declines in annual profits because of falling commodity prices and write-downs of aluminium assets.
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