Shares in mining and commodities trading giant Glencore plunged by 30% last Monday. The slump was due to more poor Chinese data and a note from Investec saying Glencore's equity could be worthless if metals prices stay low. The main worry is the group's massive debt load of $30bn. Scepticism over its ability to cope with this debt is growing. The price of insuring Glencore's debt against default has jumped to the highest level since the global crisis in 2009.
What the commentators said
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Annual house price growth halves to 3.5% – ONSAverage UK house prices rose by just 3.5% in the 12 months to April, as stamp duty changes deterred buyers. What’s the outlook for the rest of 2025?
-
Nationwide pays £100 to millions of people – have you received the payment?Nationwide has started paying its £100 Fairer Share bonus and expects to complete payments by 4 July. We look at who will get it and when.
-
These 2 stocks are set to soarTips The returns from these two aluminium and tin stocks could be spectacular when the commodity cycle turns says David J Stevenson.
-
A lesson for investors from a ill-fated silver mineAnalysis Mining methods may have changed since the industry’s early days, but the business hasn’t – digging ore from the ground and selling it at a profit. The trouble is, says Dominic Frisby, the scams haven't changed either.
-
The natural resources industry is in a tight spot – which is bad news for the rest of usOpinion The natural resources industry is in a bind. We need it to produce more energy and metals, but it has been starved of investment, plagued by supply chain issues, and hobbled by red tape. That’s bad news for everyone, says Dominic Frisby.
-
Why investors should consider adding Glencore to their portfoliosTips Commodities giant Glencore is well placed to capitalise on rising commodity prices and supply chain disruption, says Rupert Hargreaves. Here’s why you should consider buying Glencore shares.
-
Avoid China’s stockmarket – here’s what to invest in insteadOpinion China’s stockmarket is not a good place for investors to be. But you can't just ignore the world's second-largest economy, says Dominic Frisby. Here, he picks an alternative China play.
-
Don’t write off Ukrainian iron ore miner Ferrexpo just yetAnalysis UK-listed Ukrainian iron-ore miner Ferrexpo has had its operations severely disrupted by Russia’s invasion. But, says Rupert Hargreaves, it’s brilliant business that’s worth keeping an eye on.
-
The big dividends on offer from mining stocksAnalysis Miners have gone from bust to boom and are now paying out some of the biggest dividends in the FTSE 100
-
Is this the end of the road for Russian gold miner Petropavlovsk?Analysis Shares in Russian gold miner Petropavlovsk have collapsed 90% this year as sanctions have gutted its business model. Rupert Hargreaves asks if the company has a future.
