Why is copper not as bullish as equities?

While equity markets are rallying on hopes, copper prices, which signifies actual economic expansion, is subdued – even after China’s rate cut. Should equity markets be worried?
 

Copper is called the metal with PhD because it is the bellwether for economic activity. The metal is widely used in industrial and infrastructural sectors. Interestingly, while the equity market has rebounded from its depressed state of last week copper has not participated in the ongoing rally. Indeed, while the People’s Bank of China, the Chinese apex central bank, cut borrowing rates for the first time since 2008, by 25 basis points to 6.31%, copper has actually fallen. Meanwhile, Dow Jones Industrial Average shot up for three straight sessions and the Sensex is up by 1,000 points from its low of Monday. Markets are rallying on both the news and anticipation of monetary easing.

The recent price of copper, an indicator of real demand, is actually falling despite the euphoria in equity markets. According to Businessweek magazine, China’s biggest producer of the metal, Jiangxi, is considering halting exports to LME warehouses after prices declined. China forms 40% of the world’s copper demand.

The interest rate cut of China comes amidst a raft of gloomy news, mostly dire economic statistics from the United States, which particularly its poor employment figures—is a crucial indicator for its economic recovery. Spain has got its sovereign rating cut by Fitch to two notches above junk rating. And there are rumours that Greece will be headed for the European Union exit. However, the European Central Bank and the Federal Reserve have opted to keep rates unchanged, with the latter denying another round of monetary easing. Equities are rallying on hopes that a solution will be found to all these problems. But only copper prices—based on actual demand growth—will tell us that economic activity is indeed expanding as equity markets are anticipating.

Comments
DKDATTA
1 decade ago
Planning Commission must disclose full break-up of total exp of Rs.35 lakhs of whatever purpose it was used for TOILET/s - the tax-payers & the entire country wants to know it. Montek's remark - this is not that important thing/other imp. matters should be discussed - requires detailed explanation from Mr. Montek himself. How does he think that such expenses are petty things compared to India's GDP or other BIG FIGURES WITH WHICH HE DEALS AND MAKES THE FELLOW COUNTRYMEN FINANCIALLY COMFORTABLE.
nagesh kini
Replied to DKDATTA comment 1 decade ago
The Dy.Chairman of the Planning Commission has to be reminded that all these so-called 'petty' amounts whether in his own domain, his own foreign travel of Rs.2lakh per day, CWC, Presidential travels, ministerial extravaganza all add up to the yawning fiscal deficit adversely hitting the aam admi via high food costs and rupee devaluation.
Montek needs to put in papers as he has overstayed his stay at Yojana Bhavan where he can't even bring out any right numbers for BPL or the extent of black money.
India doesn't need a dysfunctional white elephant any more. Be done with it asp.
Prasadk
1 decade ago
Dear Shri Malik,

35 Lakh is outrageous. On top of that, the snottish Montek says that this is because they had to "replace piping". What does he smoke? I renovated one toilet in my home last year, with the best premium fittings, tiles AND replaced 10 year old piping. I also replaced the WC with latest state of the art. Total cost? Around 75,000/- with labor included. Lets say the planning commission with all its inefficiencies and bribe-taking spends 10 times this amount - it is still 7.5 Lakh! They have spent nearly 5 times of this 7.5 Lakh figure, and Montek wants us to swallow it? Shudder Shudder, this guy is running the "planning" of the entire country? He can't think straight to plan for his own building's toilet block!!
prasadk
Replied to Prasadk comment 1 decade ago
Mr. Malik,

Let me also add, that installing "smartcard" access to these piddling toilets reeks of elitism and discrimination of the worst kind. And to think of the fact that a member of the commission Dr. Narendra Jadhav is actually a "Dalit" and does not miss a single opportunity to wail loudly about how "he was discriminated" against while growing up.

Now will his own Planning Commission allow a dalit to visit this "posh" toilet in the office building?
malq
1 decade ago
Right next to the Planning Commission office are the offices of Delhi Metro and the station at Patel Chowk, where also they have public toilets.

And this is how Delhi Metro operates reasonably clean toilets for men and women (with a 25% capacity for disabled) on a PPP BOOT basis.

http://www.delhimetrorail.com/otherdocum...

Wonder why Planning Commission could not do this, too? These are clean toilets, and I know for a fact that visiting dignitaries of all levels are shown these toilets with pride and dignity. As they should.

anantha ramdas
1 decade ago
Now that the toilet story is out, the next step would be to have an official version if the refurbishing work was finalised after a due tendering process; followed by names of the bidders, the successful one and of course, whether it was "sub-contracted" to get the best results?

Besides, one also needs to know the status of other toilets in the building and if any other repairs are on the anvil?

May be a toilet visit at site would be educative? By the way, how are the public toilets maintained in the capital?
malq
1 decade ago
Update on the toilet issue at Planning Commission, in the form of a response by the gent who asked for the information in the first case:-

SUBHASH AGRAWAL [email protected]
00:32 (6 hours ago)

to undisclosed recipients
Confession by Planning Commission on privileged toilets

Planning Commission while trying to justify expense of rupees 35 lakhs on renovating two toilets at Yojana Bhawan (New Delhi) has confessed its unpardonable mistake of installing ‘Door Access System’ in these fancy toilets which allowed a privileged entry to these toilets only to some selected few through smart cards. It is indeed a big irony that renowned planners planning for 121 crores people of this great nation could not even foresee non-feasibility of such smart-cards!

Whole episodes reflects mindset of discrimination even in use of toilets inherited from erstwhile British rulers who had built three different types of stair-cases in North Block and South Block for discriminatory use by government-staff of different grades. Planning Commission should fix responsibility for wasting rupees 5.20 lakhs for discriminatory use of toilets on now dismantled ‘Door access System’. Clarification also alleges about motivation of filing RTI petition with some ‘limited’ queries only. In case Plan Panel considered it necessary to add any clarification on the subject-matter of the RTI petition, it could do so by sue-motto disclosure of any such information under query (7) of RTI petition which read as ‘Any other related information’. Bigger question is mindset to decide for fancy toilets instead of hygienic toilets renovated with economy and austerity.

Government initiates ‘austerity-measures’ with high publicity through media. Abandoning austerity-measures for returning to normal system should also be likewise publicised. Since Planning Commission Deputy Chairpersons holds status of a Union Cabinet Minister, he should disclose details of his assets and wealth on website like is done for other Union Cabinet ministers. Considering highly-criticised travel-expenses of Planning Commission Deputy Chairperson, these should also be sue-motto disclosed on website in full details.

SUBHASH CHANDRA AGRAWAL
(Guinness Record Holder & RTI Activist)
1775 Kucha Lattushah
Dariba, Chandni Chowk
DELHI 110006 (India)
Mobile 9810033711 Fax 23254036
E-mail [email protected]
Web http://www.subhashmadhu.com
07.06.2012
PRSEC/E/2012/08049
DPLNG/E/2012/00108
Deepak R Khemani
Replied to malq comment 1 decade ago
Will they issue smart cards to all those who wish to use these fancy toilets, if so then all those who live around this place should get one a piece so that they can use these facilities are they are available for the general public as said by Montek Singh on TV last night
a v moorthi besides TIHAR
1 decade ago
i take the opportunity share with u what might have happened had i not shared the following with Montek. some honourable member of Planning commission would have landed up in a mess even though it might have a cheaper variety of toilet than one seen by Montek during his numerous visits abroad to study poverty elimination in India from analysing various models available abroad.


In one of leading hospital New Delhi, a gentleman working in Planning commission had made several attempts to get into
the men's restroom, but it had always been occupied.

A nurse noticed his predicament.
' Sir', she said ' You may use the ladies room if you promise not to touch any of
the buttons on the wall.'


He did what he needed to, and as he sat there he noticed the buttons he had
promised not to touch.

Each button was identified by letters: WW , WA , PP, and a red one labeled ATR.

Who would know if he touched them?

He couldn't resist.
He pushed WW.
Warm water was sprayed gently upon his bottom. What a nice feeling, he thought.
Men's restrooms don't have nice things like this.


Anticipating greater pleasure, he pushed the WA button.
Warm air replaced the warm water, gently drying his underside.
When this stopped, he pushed the PP button.

A large powder puff caressed his bottom adding a fragile scent of spring flower to
this unbelievable pleasure. The ladies restroom was more than a restroom, it was
tender loving pleasure!

When the powder puff completed its pleasure, he couldn't wait to push the ATR
button which he knew would be supreme ecstasy ( yes same favourite word of
Vasantan - customer ecstacy when ever Ramesh Prabhu used to hear this word he will
always pass on glances to AVM). He was immediately knocked out by an excruciating
pain.


Next thing he knew he opened his eyes, he was in a hospital bed, and a nurse was
staring down at him.

'What happened?' he exclaimed. 'The last thing I remember was pushing the ATR
button.'

'The button ATR is an Automatic Tampon Remover. Your testicles are now in this
jar, sir!!'
Sanjeev
1 decade ago
They should just be asked to give a break-up of the 35 lakhs . It does not seem right to assume that the bribes must have been in the region of 400%.They could well have been 5-10% as per CPWD norms. A single WC set can cost 80000-100000. Mixers, pillar taps, bib taps, tiling work, sensors can all be very expensive. It depends on whether exclusive range items were installed or not.
However,I am not saying that installing ultra-chic gadgets is justified. It is not.
malq
Replied to Sanjeev comment 1 decade ago
Going by configurations which are used in malls, the approximate estimate received was provided, although as you rightly pointed out - it could be more. Having said that, the bigger issue is the running maintenance and cleanliness = for which there appears to be no input so far.

The larger issue here is the colonial attitude that still prevails in such Government offices. That needs to change.

Toilets are only one part.
Dr VL Lokre
1 decade ago
The argument is ridiculous. I wonder why the auditors did not comment on this purchase proposal.
Nagesh Kini
Replied to Dr VL Lokre comment 1 decade ago
Unfortunately the auditors do a 'shit post mortem' when it's too late! Can't blame them?
malq
Replied to Nagesh Kini comment 1 decade ago
I suppose, eventually, the CAG might just run an all-India audit on Government toilets, and we will then have the "Toilet Scams".
malq
Replied to malq comment 1 decade ago
Oops, there is already a toilet scam in Uttar Pradesh, where the over-reporting has been about 10 times . . . http://articles.timesofindia.indiatimes....

The state was to build toilets in rural households under the centre-sponsored Total Sanitation Campaign. The state panchayati raj department told the ministry of rural development that it got 1.71 crore toilets constructed under the scheme in the past one decade. But the household census data says that only 55 lakh rural households have toilets. Which means, 1.16 crore toilets in rural Uttar Pradesh are " missing". The extent of over-reporting has been close to 10 times (9.74%), say experts. According to TSC reports, there are only 17.50% households without toilets in rural UP whereas the census reports that more than 78% of the households do not have latrines within their premises.

Status | State panchyati raj department has decided to hold a re-verification drive of the toilets constructed in various districts. "A physical and financial verification of departmental activities is also underway at the level of the district, directorate and government levels. Action would be initiated against officials if they were found guilty of any irregularity," said officials. The enquiry is still on, they claim.
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