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New Vale CEO takes investors’ side, positive on China

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If you take government pressure of Brazilian mining behemoth Vale, there should be a spring in this stock's step. In fact, Henrique Ferreira, the company's new CEO, says he will defend VALE ( quote ) and its shareholders' interests against attempts to push its capital expenditures and cash flow away from profitable enterprise and toward government-friendly initiatives. This is big enough news to give VALE a lift, so be ready: Furthermore, Ferreira is saying extremely positive things about the market and the fundamental backdrop for VALE and its iron ore business in particular. He says China and emerging markets have shown "brilliant" performance. In fact, after a 13% down over the last three months, it looks like ore prices are back on the upswing. Even on a deep pullback, China would not be able to take prices much lower than here. Many even think Chinese factories have de-stocked for the simple reason that they wanted to see what the market would do without their buying power on the table. Now, given what we saw in last night's trade numbers, it looks like these companies have already started jumping back in. As for M&A, Ferreira says it is all a matter of the right "opportunity" emerging.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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