Copper and the Global Economic Landscape

Tom welcomes back Simon Hunt, an expert on global economics, China, and the copper industry. Hunt discusses the escalating tensions between the U.S. and Iran, driven by Trump's tariff policies and geopolitical ambitions. He explains that these tensions could lead to regional conflicts, with significant implications for global markets and supply chains. Hunt also explores the broader shift in global power dynamics, highlighting how nations like China, Russia, and Iran are strengthening ties through organizations like BRICS. He warns that U.S.-China trade disputes, including high tariffs on Chinese goods, are causing severe disruptions to global supply chains and manufacturing sectors. These disruptions are expected to lead to a global economic slowdown or recession. The conversation delves into the potential impact of these developments on financial markets, particularly the value of the dollar, which Hunt suggests may undergo significant changes as countries seek alternative currencies tied to gold. He also discusses copper's role as an economic barometer, predicting price volatility and eventual increases due to supply chain disruptions and long-term demand shifts. Hunt concludes by emphasizing the uncertainty and chaos that dominate the current geopolitical landscape, urging caution for businesses and investors as they navigate this complex environment. The episode ends with a note on the importance of staying informed about global developments to understand their far-reaching implications. Time Stamp References:0:00 - Introduction0:55 - Liberation or Demolition3:54 - Iran Sovereignty & Trump8:56 - China & 104% Tariffs16:20 - Trump & Iran Escalation21:50 - Tensions Ukraine/Russia28:20 - U.S. Trillion Defense Budget30:37 - A Tale of Two Dollars34:37 - China Yuan Devaluing38:20 - BRICS Currency?39:30 - China's Econ. Issues47:40 - Global Slowdown & Copper54:11 - Monitor Geopolitics56:44 - Wrap Up Guest Links:Email: simon@shss.comWebsite: https://simon-hunt.com/Substack: https://shss.substack.com Simon Hunt began his career in 1956 in Central Africa as a PA to the Chairman of Rhodesian Selection Trust, one of the two large copper companies in what was then Northern Rhodesia, now Zambia. In 1961, he came back to London and joined Anglo American Corporation of South Africa as a PA to one of the Board Directors, followed by being part of a small sales and marketing team for copper. From there, he helped start up a new copper development organization, CIDEC, financed by copper producers, which he then joined, focusing on conducting end-use studies of copper in Europe. He then went into the City to gain financial experience and founded Brook Hunt in 1975. He was instrumental in setting up the company's cost studies and end-use analyses. Simon appeared as material witness and consultant in two ITC anti-dumping cases in 1978 and 1984, winning both at the commission level. He has spent 2-4 months every year in China since 1993, and until a few years ago would be visiting some 80 wire and cable and brass mill factories across the country every year. He now restricts these factory visits to a smaller number, all of which he has known for many years. Simon also spends many weeks each year traveling around Asia. The focus of the company's services is on the global economy, including the changing geopolitical and financial structures, China's economy and its copper sector, and then the global copper industry as each part is interconnected. Simon is the author of the "Frontline China Report Service," which is marketed by the TIS Group. The Service provides regular reports on China's economy, politics, and financial outlook. Simon established this company in January 1996.