BHP Billiton Chairman: Global Recovery Could Still Stall
October 21 2010 - 7:47AM
Dow Jones News
Mining titan BHP Billiton Ltd.'s (BHP) long-term outlook remains
strong and the global economy is recovering but it could still
stall, the company's chairman said Thursday.
"This year started quite positively as the global economy
reacted to substantial government-funded economic
stimulus...however, in April of this year sovereign debt concerns
re-emerged," Jac Nasser said at the company's annual general
meeting.
He added: "It is still possible that the recovery could
stall--government balance sheets remain weak and global trade and
currency tensions continue to escalate."
Nasser said the European Union, U.S. and other developed
countries still face ongoing challenges with regard to fiscal and
financial stability.
But a structural shift in the global economy toward China and
other emerging markets--including India, Russia, Brazil, and more
recently Indonesia, Mexico and Turkey show promise for future
growth as the forces of industrialization, urbanization and
improved living standards continue to grip developing economies, he
said.
Nasser said prices for commodities remain volatile due to
concerns about the overall health of the global economy but he
noted that BHP's diversified portfolio has reduced its exposure to
price volatility.
-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328;
alex.macdonald@dowjones.com