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Financial analyst Jayant Bhandari talked to INN about the US-China trade war, mergers and acquisitions and what’s next for commodities.
Speaking with the Investing News Network (INN) at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, financial analyst Jayant Bhandari offered his thoughts on M&A, the trade war, Huawei (SZSE:002502) and India.
On the trade war, Bhandari said that he has faith that the US and China will figure things out, and commodities will spring back after last year’s declines.
“The negative effect that commodity prices faced because of unwinding of speculative positions in some of the commodities should revert back to normal,” he said, adding that commodities have a short-term upside because of that.
Talking mergers and acquisitions, Bhandari noted that the Barrick Gold’s (TSX:ABX,NYSE:GOLD) booth at PDAC “does not really exist” — no doubt because it had other things to worry about at the time.
The seeming trend of mergers between gold majors is something to be concerned about, he noted, saying that there’s a possibility that “if a lot of new projects from Barrick and Newmont Mining (NYSE:NEM) come to the market, then the junior mining companies might suffer because there might just be too many of these projects in the market.”
Touching on Chinese-Canadian tensions in recent months — which are most visible in the media in the arrest of Chinese telecommunications company Huawei’s chief financial officer, Meng Wanzhou, at the US’ request, Bhandari said that investors needn’t worry about the flow of Chinese money in markets as western nations fret over cybersecurity.
“[China] will do what creates economic growth for them, and brings return of capital to them. I think China will very likely settle these issues in ways that maximize the benefit they can get, but of course I’m sure they will try to extract advantages on the negotiating table by making some of these countries like Canada and Australia worry about possible hardships that they might face if China were to create problems for them,” he said.
Finally, Bhandari offered a stark assessment of recent tensions between India and Pakistan, which has seen soldiers killed and planes shot down in Kashmir.
Watch the video above to find out more about Bhandari’s thoughts on the resources industry and global affairs affecting markets. You can also check out our other PDAC 2019 interviews here.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
